Assessing the Colocation Market for a Global Fortune 500 Client

black hardwares on data server room

case study

Assessing the Colocation Market for a Global Fortune 500 Client


A Global Fortune 500 semiconductor company with over 50 locations across the globe and 15,000+ employees.


This top Global Fortune 500 semiconductor company needed colocation space because their current campus could not sustain their significant growth in space and power. They needed to look for a data center that could scale their projected 3–5-year plan, and this needed to be procured in a two-week period.


This search began with a full RFP done by LAVA in Central Mexico. There are many different partners in central Mexico’s ecosystem. At the conclusion of that RFP, the customer and LAVA decided that the Texas colocation market would be more cost-effective. LAVA used our resources including a data center locator tool to find Data Centers in Texas that had the space the customer needed and that could meet their strict requirements. LAVA then created a new RFP with 13 different providers available in Texas. 

The RFP presented the growth availability, total global square footage, security measures, and economic conditions of each Data Center. LAVA then helped the customer down select from 13 vendors to 3 and helped negotiate the best rates possible. LAVA then created a cost comparison model that exhibited the ramp-up schedule with monthly and total costs of the customer for the final 3 vendors. LAVA assisted in the signature of a contract with a vendor that the customer had never before worked with.


Because LAVA did an exceptional job at helping the customer assess their needs and the current market, the customer asked LAVA to assist them with procuring colocation in Canada and Germany as well. This project began with the initial need of 375kW of space and the customer had a ROFR (right of first refusal) on the available space in the data center. The customer then needed an additional 415kW, and added 560 kW of space within the first 11 months of the project with the same data center vendor. 

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LAVA helps enterprise business leaders evaluate the global market of all things As a Service and Managed Service Solutions. We examine customers current environments and ways we can advance their technologies while reducing cost and complexity along the way. We are the CIO's most Trusted Advisor.

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