How to select the right data center provider

Choosing the right data center provider is a critical decision that impacts long-term IT strategy, business continuity, and digital transformation. In a recent video, Dan Thompson, Principal Research Analyst at S&P Global Market Intelligence, shared key trends and best practices for evaluating colocation providers. From power availability to interconnection ecosystems and financial stability, enterprises must assess multiple factors to ensure they select the best partner for their needs.

Evaluating power availability when choosing a provider

One of the biggest challenges in the data center industry today is energy consumption and power availability. Power shortages and utility delays have forced enterprises to reconsider their deployment plans, sometimes opting for less-than-ideal locations.

Thompson stresses that businesses need to plan further ahead than before, saying, “It’s no longer the case that you can just show up to a market and ask for large sums of power. Utilities will need time to plan for this”.

Key questions to ask a provider about power availability:

• What is your long-term power strategy, and how are you addressing energy constraints?
• Do you have sustainability initiatives or renewable energy options?
• How do you ensure power redundancy and uptime for mission-critical workloads?

“The biggest trends in the data center industry have been energy consumption and the availability of power.” 

How Flexential can help:

Flexential proactively addresses power constraints by expanding its footprint in strategic locations with reliable energy access. Our colocation solutions are designed to support high-density deployments with sustainable energy strategies, ensuring businesses can scale without disruptions.

Assessing connectivity and ecosystem strength

Beyond power, connectivity is a critical factor in selecting a data center provider. According to Thompson, enterprises derive significant value from the interconnection services colocation providers offer. Providers with robust connectivity ecosystems enable businesses to establish secure, low-latency connections with cloud providers, network carriers, and IT service partners.

Key questions to ask a provider about connectivity:

• Do you offer access to direct cloud on-ramps to AWS, Azure, Google Cloud, and other hyperscalers?
• What interconnection options are available, including private networking and carrier neutrality?
• How robust is your partner ecosystem, and can I connect to other enterprises within your facilities?

“In our research, we regularly see that enterprises find great value in the connectivity services the colocation providers offer.” 

How Flexential can help:

With Flexential Interconnection Solutions, businesses can seamlessly integrate with over 250 network providers, multiple cloud on-ramps, and an extensive partner ecosystem. Our Cloud Fabric enables secure, low-latency connections to leading cloud providers and enterprise networks, supporting hybrid and multi-cloud environments.

Why a provider’s financial stability matters

Choosing a colocation provider isn’t just about power and connectivity—it’s also about financial stability. Thompson advises enterprises to evaluate whether a provider is actively investing in facility expansions, launching new locations, or attracting strong investor backing: “It’s a very common practice these days for colocation providers to want to look into your company's financial viability. But did you know that you can do this for them as well?”

Key questions to ask a provider about financial strength:

• Is the provider expanding facilities or launching new data centers?
• Have they secured strategic investments to support long-term growth?
• Do they have a history of maintaining strong customer relationships and service reliability?

“Another thing we can look for is companies that have invested in the data center provider that you are looking for.” 

How Flexential can help:

Flexential continues to expand its national footprint, with 40 data centers across 19 markets and ongoing investments in next-generation infrastructure. Our financial stability and growth-oriented approach ensure businesses have a long-term partner for scalable colocation solutions.

Tailoring solutions to business needs

Every enterprise has unique infrastructure needs, and a one-size-fits-all approach doesn’t always work. When evaluating a provider, businesses should look for customizable solutions that align with their IT strategy, compliance requirements, and scalability needs.

Key questions to ask about customization:

• Can the provider accommodate my future scalability needs?
• Do they offer hybrid IT solutions that integrate colocation, cloud, and disaster recovery?
• How flexible are their contract terms, power density options, and managed services offerings?

“A one-size-fits-all approach to solutioning in data centers is perhaps not the best way to go about it.” 

Conclusion: Making an informed colocation decision

Selecting the right data center provider is more than finding space and power—it requires careful evaluation of power resilience, interconnection capabilities, financial stability, and scalability. As Dan Thompson highlights, enterprises must take a long-term approach to colocation decisions to avoid costly missteps down the line.

Final checklist for selecting a data center provider:

• Do they have reliable power access and a sustainable energy strategy?
• Can they support hybrid and multi-cloud connectivity with strong interconnection options?
• Are they financially stable with ongoing expansions and investments?
• Do they offer customizable colocation solutions tailored to your business needs?

Looking for a future-proof data center provider?

At Flexential, we help enterprises make informed colocation decisions by offering:

• Power-resilient colocation in strategic markets
• Best-in-class connectivity and access to cloud on-ramps
• Financially backed growth and expansion plans
• Flexible hybrid IT solutions to meet evolving business needs

Talk to a Flexential expert today and discover how we can support your IT strategy.