Based on the OmniBoss survey, conducted by Vanson Bourne on behalf of Adapt, almost 50 percent of mid-sized enterprises will have significant server colocation needs over the coming 12 months, but without major planning now, UK businesses will have limited options open to them. The survey gathered feedback from 200 senior IT decision makers in mid-sized companies.

The survey also looked at vertical industry needs and found that the finance and banking sector has the greatest need for server colocation. Adapt says that increased demand for colocation is being driven by industry legislation such as the Markets in Financial Instruments Directive and the Sarbanes-Oxley Act as well as strong organic growth. Across industries, demand is also being driven by and new technologies such as IPTV and managing data-intensive content. Surprisingly, 43 per cent of enterprises still don't have a contingency plan in place to manage their additional server colocation requirements, says Adapt.

"It's a time of great change; we've witnessed a shift in emphasis. No longer is data center capacity being driven by space alone, it's now about availability of power," says Peter Knight, CEO of Adept. "In addition, significant consolidation of data center operators, absorption of old capacity and a shortage of new sites being built mean colocation now carries a scarcity value. With demand outstripping supply it's clearly not a buyers market, meaning the corporate sector will be under serviced. London is suffering particularly badly because of soaring demand."