LocationOct 2, 20265 min read

When a Secondary Colocation Market Makes Sense

A secondary colocation market makes sense when your users, staff or regional operations are nearby, when you need a recovery site away from a major hub, or when a smaller market's buildings already meet your power and connectivity needs. Check provider choice, carrier presence, usable power and expansion room first, because smaller markets have fewer facilities to choose from.

By DataCenter Hunter

When a Secondary Colocation Market Makes Sense

Primary hubs vs secondary markets

Colocation demand concentrates in a handful of large interconnection hubs. On this site, the markets with the most listed facilities include Dallas (35 facilities from 7 providers), Phoenix (19 from 7), Ashburn (18 from 3), Chicago (15 from 5), Santa Clara (14 from 3), Atlanta (13 from 4) and Los Angeles (12 from 5). Counts are as listed on DataCenter Hunter in October 2026 and change as facilities are added.

Secondary markets are everywhere else: regional metros with a smaller number of facilities, often serving a local business base. Examples on this site include Denver, Houston, Charlotte, Cincinnati, Pittsburgh, Salt Lake City, Kansas City, Louisville, Birmingham and Albuquerque.

Neither is better in general. The right choice depends on what the footprint is for.

When a secondary market is the better fit

Your users or operations are regional

If your customers, branches or plants are concentrated in one region, a nearby market can reduce latency and simplify network design. A regional healthcare system, a manufacturer with plants in one state, or a bank with a regional branch network often fits this pattern.

Your staff need to get there

Small teams that rack their own equipment benefit from a facility within easy reach of the office. Fewer trips through a major metro can matter more than a longer carrier list. Good remote hands can close some of the gap; see Remote Hands vs Smart Hands.

You need a recovery site away from the hub

A disaster recovery site should not share the same regional risks as the primary. A secondary market in another region can provide that separation. For example, a primary in Ashburn might be paired with a site in a different region such as Columbia or Pittsburgh, depending on your replication design. Disaster Recovery Colocation explains how to choose.

The footprint is modest and the building fits

A few cabinets for a regional application do not need the biggest market. If a local building meets your power, connectivity and compliance needs, it can be the simplest option.

When a primary hub is the better fit

  • You need many carriers, internet exchanges or several cloud on-ramps in one building.
  • Your users are national or global.
  • You need large or high-density footprints with room to grow.
  • You want the most competition between providers when you negotiate.

For dense compute, see High-Density and AI Colocation. For interconnection-heavy designs, see Colocation Connectivity & Cross-Connects.

What to check before choosing a secondary market

Smaller markets have fewer facilities, so each one matters more. Several markets on this site list only one facility today, including Boise, Chandler, Raleigh, Nashville and Little Rock. In markets like these, check:

CheckWhy it matters in a smaller market
Number of providersFewer providers means less negotiating leverage. Include a nearby metro in the quote round.
Carriers in the buildingFewer carriers can limit path diversity. Confirm named carriers, not "multiple carriers."
Cloud connectivityOn-ramps may be reached by circuit to another market. Ask how.
Usable power per cabinetConfirm the hall can support your density today.
Expansion roomAdjacent space may be limited. Get expansion rights in writing.
Remote hands coverageAsk about staffing and response for after-hours requests.
Compliance reportsConfirm reports cover this building, not just the company.

Build competition into a smaller-market search

The easiest way to keep a secondary-market deal competitive is to quote more than one market. For example, a buyer looking at Greenville might also quote Charlotte and Atlanta. A buyer in Oklahoma City might also quote Tulsa and Dallas. A buyer in Grand Rapids might also quote Chicago or Indianapolis. Then compare quotes on the same requirement using our guide to comparing colocation quotes.

Regional groupings to start from

Browse the data center directory by region, or start with these groupings of enriched markets:

Next step

Start with where your users and staff are, then test one secondary market against one hub. Request colocation quotes across both, or book a consult to talk through the trade-offs.

Frequently asked questions

What is a secondary colocation market?

A regional metro with a smaller number of data center facilities than the large interconnection hubs, usually serving a local or regional business base.

Is colocation in a secondary market a good idea?

It can be when your users, staff or operations are regional, when you need a recovery site away from a hub, or when a local building already meets your power and connectivity needs.

What are the risks of a smaller colocation market?

Fewer providers and carriers, possibly limited expansion space and cloud on-ramps reached by circuit to another market. Check each before committing.

How do I keep pricing competitive in a smaller market?

Quote more than one market. Include a nearby metro or hub in the same quote round, and send every provider the same requirement.

Can a secondary market work for disaster recovery?

Yes. A secondary market in a different region from your primary can provide separation from shared regional risks, if it fits your replication design.

When should I choose a major hub instead?

When you need many carriers or cloud on-ramps in one building, serve national or global users, need large or high-density footprints, or want the most provider competition.