The shift towards provider-neutral Internet exchanges is transforming data center connectivity, offering geographical diversity, redundancy, and flexibility to meet the growing needs of artificial intelligence, cloud services, and data-intensive applications.
Increase in neutrality in data centers in the United States.
A new study has revealed that the trend toward operator-neutral Internet Exchanges (IXs) is revolutionizing data center connectivity, offering geographical diversity, redundancy, and flexibility to meet the growing demands of artificial intelligence, cloud services, and data-intensive applications. In the last decade, there has been a 600% increase in the implementation of IXs in the United States. According to the report, 80% of all IXs in the country are now neutral in terms of data centers and operators.
Of the 50 largest IXs in the United States, 35 (70%) are neutral models, indicating a clear preference for this approach among network operators. Being distributed across different operators and locations in a metropolitan area, neutral IXs avoid lock-in by a single provider and allow for redundant connections, which is crucial for operational resilience.
The research notes that the neutral data center and operator model is proving to be more resilient and adaptable to current connectivity needs. With the increase in cloud computing, artificial intelligence (AI), and the Internet of Things (IoT), organizations require faster and more reliable connections to meet the expectations of modern digital services. Low latency, high performance in interconnection, and network resilience have become essential for tasks ranging from real-time data analytics to high-resolution video streaming.
Neutral IXs differ from those operated by a single provider in that they are distributed among multiple data centers and managed by independent specialists. This allows them to offer more access points, enhancing network density and reducing latency. They can connect multiple data centers, providing up to four times more connection options compared to traditional models, as well as geographical diversity that is key to ensuring resilient connectivity.
Furthermore, neutral IXs are promoting collaboration within digital ecosystems by connecting a variety of data centers and networks, thereby fostering competition and innovation, and offering businesses more alternatives. The introduction of new IXs does not fragment the market; rather, it often stimulates growth, contributing to a more robust and interconnected ecosystem.
The demand for capacity in data centers in the United States is at a historic high, driven by the explosion of AI, cloud services, and other data-intensive applications. Currently, the country has 11,200 MW of installed capacity in data centers, with another 5,500 MW under construction and 12,600 MW planned, suggesting a potential growth of 160% in the near future.
Primary markets like Northern Virginia and Dallas/Fort Worth are at the forefront of data center construction. However, secondary and tertiary markets such as Las Vegas, Reno, and Columbus are also emerging as important players in this ecosystem, thanks to lower costs, tax incentives, and ample space and energy availability.
Regions like New York and Los Angeles face space and energy-related limitations, while secondary markets are expanding. Cities like Phoenix, Dallas/Fort Worth, and Chicago are emerging as strong competitors, with smaller markets like Las Vegas and Reno gaining ground due to favorable conditions for data center construction. These secondary markets are well positioned to support the next wave of growth in the data center industry.
DE-CIX CEO Ivo Ivanov commented that the past decade has highlighted the immense value of the neutral and distributed model in driving digital growth in the U.S. market. The study indicates that these IXs, which follow the European model of neutrality, are not only prepared for the future but are essential to meet the growing needs of cloud computing, AI, and IoT, enabling extremely low-latency connectivity for current and future critical use cases.
