Jon Hjembo

Senior Research Manager Jonathan Hjembo joined TeleGeography in 2009 and heads the company’s data center research, tracking capacity development and pricing trends in key global markets. He also specializes in research on international transport and internet infrastructure development, with a particular focus on Eastern Europe, and he maintains the dataset for TeleGeography’s website, internetexchangemap.com.

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Recent Presentation Posts

There’s No Comparison to Fiber

If you've ever made a “telephone” with a pair of tin cans and a string, you have an idea of how the Internet works.

Even in 2022, modern global telecommunications still functions in a somewhat similar manner.

Where Is the Cloud Moving in 2022 and Beyond?

It can be hard to encapsulate what's going on in the data center market at any given point in time.

There's so much happening in so many places, driven by so many different factors.

But never fear, Jon Hjembo is here—with the development trends and pricing expectations that he delivered during his review of the interconnection sector at PTC '22. 

All Eyes on Europe-East Asia Backbone Transport

There's plenty happening along the critical Europe-East Asia subsea route.

Senior Manager Jon Hjembo recently treated the Transport Networks Russia & CIS Conference to a virtual presentation on all things Europe-East Asia backbone transport, highlighting big developments and persistent trends in the region.

Recent Posts

The Data Center Market Blazes a New Trail

When it comes to the nature of exploration, there are typically a number of underlying forces at play, some positive and some negative.

The “pioneering spirit” could be inspired by the excitement of new opportunities, or by the pressure of existing difficulties.

The data center market happens to be dealing with both of those sentiments right now, with several factors driving it to new places.

How Is the Global Network Keeping Up With Demand?

By any measure, the global bandwidth market is thriving. International bandwidth demand has nearly doubled from 2020 to 2022, and has now reached 3.8 Pbps.

Meanwhile, the lit capacity on major submarine cable routes continues to soar, keeping pace with demand.

How? Is the network getting faster?

Not quite. Think bigger highway, not faster cars.

Colocation Pricing Trends To Watch

The pressures of supply chain disruptions, electricity price volatility, and government intervention are impacting prices in the global colocation market.

As we continue to move through 2023, here are a couple of trends to keep an eye on.

Where in the World Is the Largest Data Center Hub?

By our 2023 estimates, the Washington metropolitan area—or more specifically Northern Virginia (NoVA)—dominates as the world's largest data center market.

With more than 22 million square feet of operational capacity, NoVA is 30% larger than the next-biggest data center hub, Tokyo.

What else does the most recent update to our Data Center Research Service tell us?

The Data Center Industry Faces New Obstacles

Recently, we’ve been closely monitoring the intensifying pressures of insatiable demand and supply constraints in key data center markets.

Supply constraints have come in the form of both short-term and long-term challenges.

In the short term, supply chain disruptions have hindered development timelines. On the long-term side, regulators and utility providers have begun taking a hard look at the data center sector and how to grow it sustainably going forward. In some cases, these entities have severely disrupted development during the interim period.

None of these challenges have been resolved. And as we move through 2023, another major disruptive component has been added to the mix—the accelerated growth of generative Artificial Intelligence (AI).

Disruptions in the Data Center Market

The global data center market is under an unprecedented squeeze as we move into 2023.

On one hand, we have a long-term challenge surrounding the sustainability of the industry’s growth trajectory in essential hub markets. On the other, we have an acute short-term problem with energy prices in the colocation sector.

These issues combine to create an uncomfortable phase in the market right now.

The Data Center Sector: An Uncertain Juncture

There’s a remarkable sense of uncertainty in the data center sector right now.

Some of the biggest global markets have seen unprecedented disruption to data center development as regulators and utility companies attempt to work through critical issues surrounding the long-term sustainability of the industry. 

At the same time, the war in Ukraine has fueled tremendous volatility in European wholesale power prices, bringing further stress to an industry that’s fundamentally dependent on vast amounts of power. Let’s unpack the current situation.

The Major Uncertainties of the Global Bandwidth Sector

It is said that only three things are certain in life. The future of the global bandwidth market is not one of them.

Beyond persistent demand growth and price erosion—the two most predictable trends—operators will have to navigate the major uncertainties of an evolving sector.

According to our freshly updated Global Bandwidth Research Service, these key factors will impact the long-haul capacity market in the coming years.

The Key Aspects of Colocation Pricing

The colocation data center sector is characterized by remarkable price stability—remarkable in that such external pressures as a global pandemic, geopolitical uncertainty, and regulatory restrictions have failed to dramatically sway prices in one direction or the other.

To be sure, there are sometimes short-term movements, but over the span of several years, collective rates shift only slowly from their baseline.

Let's delve into the key aspects of colocation pricing.

Data Center Sector Remains Stable in Uncertain Times

As we publish the latest update to our Data Center Research Service, the COVID-19 pandemic continues to turn the global marketplace on its head.

Network and data center services have never been more critical to connect a world in relative isolation. That's why we supplemented our 2020 data center site survey by asking global data center operators for their assessment of the pandemic's impact on their operations as of September 2020. (We shared some preliminary findings earlier this year.)

Here's the latest report.