Depending on an organization’s size, staff resources, space, budget and IT needs, some data centers are choosing to move away from an on-premises data center to a multi-tenant data center. Their reasoning? It improves speed and time to market, offers better service quality and reduces risk.

graph depicting cloud strategies of organizations

Multi-tenant data centers (MTDCs) – also known as colocation centers – host “private clouds” from different tenants under the same roof by leasing space, power, security and connectivity options to other organizations. Tenants purchase and bring their own servers to an allocated area within the multi-tenant data center facility, and then entrust their IT infrastructure to the operators.


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In a 2015 survey, IDG Research asked more than 130 IT executives and managers about their IT operations; 27% said they’re already using multi-tenant data centers to host some IT operations, and many others are headed that direction in the next year (download IDG's survey here). There are several reasons why …

Make the Most of Data Center Space without Oversizing1. High Return on Investment

Finances are a main component of the decision; most organizations realize that colocation centers and public cloud solutions can provide a cost-effective solution. Upfront investment is minimal, and multi-tenant data center operators take care of the power, interconnects and cooling equipment needed to run the site.

IT managers can also leverage economies of scale in multi-tenant data centers, benefitting from large volume purchase and negotiation power. Operating costs can be further reduced because operators provide the expertise and IT staff necessary for efficient operation.

2. Improved Time to Market

Organizations can save tremendous amounts of time by leasing data center space instead of building their own. When building a data center from scratch, including design, construction and installation, the business climate may change by the time deployment is complete – so your solution could already be outdated.

Recently, even cloud service providers, such as Amazon AWS and Microsoft Azure, have chosen to lease space from multi-tenant data center operators to provide better, faster service.

3. Better Support for Growth

Multi-tenant data centers can offer great infrastructure, efficiency, density and resilience, along with enhanced features such as redundancy, security, compliance, improved uptime and disaster recovery. They also provide a wide variety of services, such as access to different internet service providers (ISPs) and cloud service providers (CSPs).

2. Flexible, Scalable, Hybrid Cloud Solutions

graph depicting how enterprises migrate to the cloud


For many enterprises, having multiple locations is critical to their operations. Leasing space allows you to select data center space in the geographic locations you prefer with minimum delay.

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Compared to owning a data center, flexible lease terms give you financial freedom to operate without heavy upfront investments or long-term commitments. This is particularly interesting for organizations that need access to cloud infrastructure immediately, but will change their requirements or service types over time.

As your business grows and changes, it’s important to have a scalable IT solution that supports higher computing and storage capacity, as well as increasing bandwidth requirements. This can be achieved with the maturing multi-tenant data center and public cloud ecosystem in an efficient fashion.

The service types and solutions available from various MTDC operators are dedicated to different target customer bases. For example, Equinix specializes in large and wide scale of cross-connects; Digital Realty provides large footprints to individual end-users. Internap focuses on edge computing strategies by building up multiple smaller data centers located physically closer to end-users.

Belden can help enterprises determine whether public cloud, private cloud, hybrid cloud and/or MTDCs are right for their organizations and business needs.

Belden also offers a variety of solutions for multi-tenant data centers to ensure infrastructure, efficiency, density and resilience that tenants expect. Contact us today!

Have you ever considered moving your on-premises data center to an MTDC space?
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