---
title: Disruptions in the Data Center Market
description: Jon Hjembo unpacks the confluence of both the long-term issue of sustainability and the data center sector and short-term issues with price volatility due to the energy crisis.
image: https://resources.telegeography.com/hubfs/2023/Blog%20Assets/AdobeStock_270065418-1.jpeg
---
[](https://www2.telegeography.com/)
- [About](https://www2.telegeography.com/about-us)
- [Research](https://www2.telegeography.com/our-research)
- [Products](https://www2.telegeography.com/products)
- [Solutions](https://www2.telegeography.com/solutions)
- [Resources](https://resources.telegeography.com)
[Log In](https://www.telegeography.com/login/login?service=https%3A%2F%2Fwww.telegeography.com%2Faccount%2Fhome%2Findex)
[Contact](https://www2.telegeography.com/contact-us)
###### Data and Analysis Tools
- [Cloud and WAN Research Service](https://www2.telegeography.com/cloud-and-wan-infrastructure)
- [Data Center Research Service](https://www2.telegeography.com/data-center-research-service)
- [GlobalComms Database](https://www2.telegeography.com/globalcomms-database-service)
- [International Voice Report](https://www2.telegeography.com/telegeography-report-and-database)
- [IP Networks Research Service](https://www2.telegeography.com/ip-networks-research-service)
- [ISP Navigator](https://www2.telegeography.com/isp-navigatorisp-navigator)
- [Transport Networks Research Service](https://www2.telegeography.com/transport-networks)
- [Network Pricing Database](https://www2.telegeography.com/telegeography-pricing-database)
- [WAN Cost Benchmark](https://www2.telegeography.com/wan-cost-benchmark)
- [Product Passes](https://www2.telegeography.com/product-passes)
###### Consulting
- [All Consulting Services](https://www2.telegeography.com/consulting)
- [Submarine Cable Consulting](https://www2.telegeography.com/submarine-cable-consulting)
###### Maps
- [All Map Services](https://www2.telegeography.com/map-services)
- [Sponsor a Map](https://www2.telegeography.com/sponsor-a-map)
- [License Map Data](https://www2.telegeography.com/license-geocoded-map-data)
- [Cite a Map](https://www2.telegeography.com/cite-telegeography-map)
- [Buy a Map](https://shop.telegeography.com/collections/telecom-maps/)
###### Industry
- [Education](https://www2.telegeography.com/telegeography-for-education)
- [Enterprise](https://www2.telegeography.com/enterprise)
- [Tech](https://www2.telegeography.com/tech)
- [Telecom](https://www2.telegeography.com/telecom)
###### Case Studies
- [AI + Retail Telecom Data](https://www2.telegeography.com/where-to-get-global-telecom-data)
- [EXA Infrastructure](https://www2.telegeography.com/exa-infrastructure-case-study)
- [Orange Wholesale](https://www2.telegeography.com/orange-wholesale-case-study)
- [The European Commission](https://www2.telegeography.com/the-european-commissions-data-backed-approach-to-international-policy)
[Back to Resources](https://resources.telegeography.com)
# Disruptions in the Data Center Market
##### By [Jon Hjembo,](https://resources.telegeography.com/author/jon-hjembo) Mar 01, 2023
[Networks](https://resources.telegeography.com/tag/networks) [Events](https://resources.telegeography.com/tag/events) [Data Centers](https://resources.telegeography.com/tag/data-centers)
The global data center market is under an unprecedented squeeze as we move into 2023.
On one hand, we have a long-term challenge surrounding the sustainability of the industry’s growth trajectory in essential hub markets. On the other, we have an acute short-term problem with energy prices in the colocation sector.
These issues combine to create an uncomfortable phase in the market right now.
This is what I unpacked during my presentation at PTC ’23. I started with a look at the growing long-term question—can utilities support the pace of capacity growth in the data center sector?
My slides focused on the current situation in four of these markets—Singapore, Amsterdam, Frankfurt, and Washington. I fleshed out the actions that regulators are taking in these hubs and how the market’s responding.
I then turned to the short-term problem we’re facing—energy market volatility. For the industry, the question is whether soaring power prices directly affect colocation rates and whether costs are about to become very uncomfortable in the data center space.
The answer? It isn’t very easy, but yes. The bottom line is that prices have started to rise and are expected to go higher in 2023.
#### Jon Hjembo
Senior Research Manager Jonathan Hjembo joined TeleGeography in 2009 and heads the company’s data center research, tracking capacity development and pricing trends in key global markets. He also specializes in research on international transport and internet infrastructure development, with a particular focus on Eastern Europe, and he maintains the dataset for TeleGeography’s website, internetexchangemap.com.
[View Jon Hjembo Work](https://resources.telegeography.com/author/jon-hjembo)
## Explore Related Content
###### Blog
Mar 12, 2025
#### [Data Centers 101: Technical Terms You Should Know](https://resources.telegeography.com/data-centers-101-technical-terms-you-should-know)
From cross connects to PUE, the data center industry is packed with technical jargon. Today, we’re...
[View More by Jon Hjembo](https://resources.telegeography.com/author/jon-hjembo)
[Read Full Article](https://resources.telegeography.com/data-centers-101-technical-terms-you-should-know)
###### Blog
Dec 11, 2023
#### [Where in the World Is the Largest Data Center Hub?](https://resources.telegeography.com/where-in-the-world-is-the-largest-data-center-hub)
By our 2023 estimates, the Washington metropolitan area—or more specifically Northern Virginia...
[View More by Jon Hjembo](https://resources.telegeography.com/author/jon-hjembo)
[Read Full Article](https://resources.telegeography.com/where-in-the-world-is-the-largest-data-center-hub)
###### Blog
Feb 19, 2025
#### [Evaluating Interconnection Market Health](https://resources.telegeography.com/evaluating-interconnection-market-health)
What makes a city a hub? And what makes a hub healthy? Before we answer these questions, we must...
[View More by Jon Hjembo](https://resources.telegeography.com/author/jon-hjembo)
[Read Full Article](https://resources.telegeography.com/evaluating-interconnection-market-health)
[](https://www2.telegeography.com/)
[Login](https://www.telegeography.com/login/login?service=https%3A%2F%2Fwww.telegeography.com%2Faccount%2Fhome%2Findex)
[Contact Us](https://www2.telegeography.com/contact-us)
###### [About](https://www2.telegeography.com/about-us)
- [Research](https://www2.telegeography.com/our-research)
- [Products](https://www2.telegeography.com/products)
- [Solutions](https://www2.telegeography.com/solutions)
- [Demo](https://www2.telegeography.com/demo)
###### [Press](https://www2.telegeography.com/telegeography-press)
- [Events](https://www2.telegeography.com/telecom-events)
- [Careers](https://www2.telegeography.com/careers)
###### [Resources](https://resources.telegeography.com/)
- [Podcast](https://www2.telegeography.com/telegeography-explains-the-internet-podcast)
- [Newsletter](https://www2.telegeography.com/subscribe-to-telegeography-emails)
-
-
All Rights Reserved 2026
- [Privacy Policy](https://www2.telegeography.com/privacy-policy)
```json
{
"@context" : "https://schema.org",
"@type" : "BlogPosting",
"author" : {
"@type" : "Person",
"name" : "Jon Hjembo",
"url" : "https://resources.telegeography.com/author/jon-hjembo"
},
"dateModified" : "2026-01-30T11:27:35.832Z",
"datePublished" : "2023-03-01T13:01:00.000Z",
"headline" : "Disruptions in the Data Center Market",
"image" : [ "https://resources.telegeography.com/hubfs/2023/Blog%20Assets/AdobeStock_270065418-1.jpeg" ],
"mainEntityOfPage" : {
"@id" : "https://resources.telegeography.com/disruptions-in-the-data-center-market",
"@type" : "WebPage"
},
"publisher" : {
"@type" : "Organization",
"logo" : {
"@type" : "ImageObject",
"url" : "https://resources.telegeography.com/hubfs/assets/telegeography/telegeography-logo-blog.png"
},
"name" : "TeleGeography"
}
}
```
```json
{
"@context" : "https://schema.org/",
"@type" : "WebSite",
"image" : "https://www2.telegeography.com/hubfs/Website/assets/logo/telegeography-logo.svg",
"name" : "Disruptions in the Data Center Market",
"potentialAction" : {
"@type" : "SearchAction",
"query-input" : "required name=search_term_string",
"target" : "{search_term_string}"
},
"url" : "https://resources.telegeography.com/disruptions-in-the-data-center-market"
}
```