Interconnection Update - Q1-2019

This is the first of what will become an ongoing series of quarterly updates about the interconnection market. Over time it will evolve, and eventually cover a lot more than publicly listed companies.


Interconnection; A mutual connection between two or more *things*

When talking about internet infrastructure, interconnection can refer to the physical cross-connects between networks, virtual connections between networks using physical ports, or physical internet exchange ports and the logical connections between networks that utilize an internet exchange switch platform.

I will try and provide consistent updates every quarter after all companies which are tracked have reported earnings.



Equinix reported $213 million of revenue from interconnection, a 3% increase from the previous quarter.

Added 5,500 cross connects for a total of 324,200 and 1,900 virtual connections(1) for a total of 16,800. Combined represent a total of 341,000 interconnections.

Although the number of internet exchange ports is not grouped with cross connects and virtual connections, it is technically a form of interconnection but likely not counted directly since the cross-connect to the IX switch is already counted.

Added 80 internet exchange ports, for a total 5,190 ports worldwide.

Digital Realty

Digital Realty reported $68.2 million of revenue from interconnection, a 7% increase from the previous quarter.

Added 1,000 cross connects for a total of 79,000.

Digital Realty does not report virtual connections or internet exchange ports.


CoreSite reported $18.4 million of revenue from interconnection, a 2% increase from the previous quarter.

CoreSite does not report the number of total interconnections, cross connects, virtual connections, or internet exchange ports.

CoreSite does indicate a number of interconnections on their company profile page within their earning releases, however.

In Q1, that profile stated that CoreSite has “27,000+ interconnections”.

It is worth noting that in Q4-2018, Q3-2018, and Q2-2018 that number remained unchanged.

In Q1-2018, that number was “25,000+ interconnections”


Megaport reported AU$8.96 million (USD$6.3 million) of revenue, an 8% increase from the previous quarter.

Megaport added 334 ports for a total of 3,668 ports, an increase of 10% from the previous quarter. They also added 824 virtual connections for a total, of 5,312 virtual connections, an increase of 18% from the previous quarter.

Total Services is 10, 374, which includes Ports, Virtual Connections, Megaport Cloud Router, and Internet Exchange.

Breaking down 10,374 Services;

-3,668 Ports

-5,312 VXC

-116 MCR(2)

Which leaves 1278. It is likely safe to say that there are roughly 1278 Internet Exchange Ports/Services, which seems reasonable given ECIX reports 521 ports(3), and MegaIX locations in Australia and New Zealand have quite a few connected networks(4).


The interconnection market is thriving, and for some colocation companies, outpacing retail colocation growth. Please see charts below for revenue and metric comparisons.

Source: Company Data

Source: Company Data

Source: Company Data

Note: Equinix did not report virtual connections for months prior to Q4-2017. Source: Company Data

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Data Sources: Company Financial Reports


(1) Virtual connections represent the number of private connections between customers over the Equinix Cloud Exchange Fabric platform

(2) In their half yearly update presentation, Megaport reported 116 Cloud Routers as of Jan 31st, 2019.

(3) ECIX - European Commercial Internet Exchange

(4) MegaIX – Peering and Internet Exchange | Megaport Networks

Related Reading

The Interconnection Factory