How data centres are evolving to offer greater connectivity to dynamic businesses globallyHow data centres are evolving to offer greater connectivity to dynamic businesses globally

The data centre industry is undergoing a transformation, adapting to the huge growth in demand for connectivity to support business innovation and expansion across the world.

Takamasa Morishima

February 7, 2025

4 Min Read

“We have come a long way from the basic notion of a data centre as a converted warehouse full of servers bursting with cables,” said Takamasa Morishima, Partner Relationship Expert at KDDI Corporation, parent company to Telehouse, one of the longest standing data centre and colocation operators in the world.

Morishima believes, “a globalised world demands major leaps forward in connectivity across national boundaries and continents.”

To meet the demands of businesses that need to move around and share masses of digital information, a new breed of data centre has emerged, supplying advanced networking requirements as a connectivity hub.

The evolution of the data centre connectivity hub

“The data centre now plays a crucial role in enabling seamless communication and data exchange,” said Morishima. “But if we go back to the 1990s, it was very different. Then, the internet had just begun to permeate enterprises and educational institutions, making the need for dedicated data centres very apparent.

“Telehouse was founded in 1989 and started offering services to a range of carriers such as telecommunications companies, as well as trading companies and Japanese banks. That same year we opened a data centre in New York and the following year in London Docklands. By 2000, we had opened Telehouse Voltaire in Paris and Otemachi in Tokyo. We now have a global network of over 45 data centres in 10+ countries.”

The 2000s marked the era when the internet reached millions of households, leading to a significant expansion in regional networks. The rise of Web 2.0 allowed anyone to create content, and data centre operators began focusing on connectivity. It was when SaaS started to take off.

Morishima says Telehouse thrived during this period, establishing itself as a key player in the industry by providing carrier-neutral data centres that enabled seamless connectivity and data exchange.

The 2020s ushered in a new era of connectivity

The 2020s brought about another significant shift in internet usage, influenced by the pandemic, remote working, and advances in artificial intelligence (AI).

“The practical application of AI has led to an explosion in demand for communication and computing resources,” said Morishima. “Communication between individuals over the internet has also led to increased uplink traffic. Phenomena such as the spread of video conferencing is just one driver of increased cross-border communication on a major scale.”

Connectivity is the key to it all now.  “We’re a carrier-neutral provider, which is important to our customers. We have an ecosystem of over 1,000 connectivity partners, including leading global internet exchanges and tier-1 carriers, major mobile, content, and cloud-providers as well as enterprises and financial services companies,” said Morishima. “They are with us because we offer resilient and secure low-latency interconnections that enable businesses to accelerate speed-to-market. It is no accident – our SLA of 99.999% is pretty much unsurpassed.”

The different types of data centre serve different markets

Morishima said the current market is one where hyperscaler and wholesaler infrastructure works well for storage, but connectivity data centres are the crucial hubs for data exchange.

“The simplest analogy is with a major road intersection or a hub airport. The traffic that used to flow between internet service providers (ISPs) now also flows between them and the cloud service providers and content providers. Connectivity data centres are where these different networks exchange all that data efficiently and securely. This is happening in cities all over the world. You need connectivity hubs close to metropolitan commercial centres or financial districts to exchange data at low latency for the organisations there.”

Morishima believes Telehouse data centres achieve this goal because they allow multiple network providers to interconnect, offering customers the flexibility to choose their preferred carriers.

Always evolving and building new partnerships

The emphasis on connectivity means Telehouse is constantly building strategic partnerships to enhance its service offerings. Morishima points to its collaboration with The London Internet Exchange (LINX) that has made the Telehouse London Docklands campus one of the best-connected data centres in the world.

Within Telehouse, Morishima said there is an increasing devotion to customer satisfaction and being “customer-first”. The company works closely with its clients to understand their unique needs and provide solutions that genuinely meet requirements. And with security a top priority for all data centres, Telehouse is committed to ensuring customer information is secure and compliance with increasingly stringent legal requirements is met.

“By providing reliable and high-performance data centre services, we are enabling organisations in finance, healthcare, education, and entertainment to thrive as never before. We are helping them exploit the full power of digital technologies to drive innovation and growth.”

About the Author

Takamasa Morishima

Partner Relationship Expert at KDDI Corporation, parent company to Telehouse

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