Global Data Center Colocation Market Size was valued at USD 34.1 Bn in 2024 and is predicted to reach USD 74.3 Bn by 2034 at a 8.2% CAGR during the forecast period for 2025-2034.
Data center colocation is the practice of leasing space from an external facility for housing digital infrastructure, such as servers. Companies use colocation so they may avoid the expenses and hassles of running their own data center by putting their IT equipment in a managed facility. The global expansion of data center colocations drives the data center colocation is becoming more popular as a result of the widespread use of cutting-edge technologies like cloud computing, the IoT, autonomous vehicles, and sophisticated robotics.
Reduced latency is necessary because these technologies are constantly improving and because intelligent gadgets are becoming more popular. Also, colocation data centers are projected to see a surge in interest caused by the increasing necessity for faster data transfers and enhanced network connectivity resulting from the widespread use of smart gadgets. In addition, the market is anticipated to be propelled by increased investments in market research and development and technology advancement.
However, the expansion of the data center colocation industry is being affected by high initial costs, stringent regulations, and the need for expertise, which can slow the growth of the worldwide industry. During the projected period, the global data center colocation market is anticipated to experience growth because spending on cutting-edge production tools is on the rise. The hosted infrastructure’s overall stability and uptime are enhanced by its robust power and technical development in data center colocation.
The data center colocation market is segmented based on colocation service, infrastructure, cooling techniques and end-user. Based on colocation service, the market is segmented into retail colocation and wholesale colocation. By infrastructure, the market is segmented into electrical infrastructure, mechanical infrastructure, and general construction. By electrical infrastructure segment includes UPS systems, generators, transfer switches & switchgear, PDUs, and others. By mechanical infrastructure, the market is segmented into cooling systems, racks, and others. Cooling systems includes CRAC & CRAH units, chiller units, cooling towers, condensers & dry coolers, economizers & evaporative coolers, and others. By cooling techniques, the market is segmented into air-based cooling and liquid-based cooling. By general construction, the market is segmented into core & shell development, installation & commissioning services, engineering & building design, fire detection & suppression, physical security, and DCIM/BMS solutions.
The retail colocation data center market is expected to hold a major global market share in 2023 because companies of all kinds are growing in need of dependable and extensible data center solutions. Retail colocation providers can help their clients individualize their IT systems to fulfill their specific requirements by providing them with dedicated space, power, and connectivity within shared data centers. Retail colocation has been seeing explosive advancements brought about by the rising need for data processing and storage capacity, which it meets with cost-effectiveness and flexibility.
The air-based cooling segment is projected to grow rapidly in the global data center colocation market because it uses less energy and is more cost-effective than other cooling systems. In order to cut costs as much as possible without sacrificing efficiency, colocation facilities should consider air-based systems because they are easier to install and operate. The need for air-based systems is increasing, which is fueling the expansion of this category due to the rise in data traffic.
The North American data center colocation market is expected to register the highest market share in revenue in the near future. This is because of a number of reasons, including initiatives taken by the government to encourage the growth of data centers, the establishment of new industrial zones, the speed with which submarine cable connectivity is improving, investments made by cloud service providers, and joint ventures formed by global colocation operators. In addition, Asia Pacific is anticipated to expand in the data center colocation market globally because major CSPs and SMEs are establishing colocation data centers across the area, driving up demand for high-bandwidth internet due to rapid expenditures in 5G technologies, which drives up demand in this region will boost the market's growth.
|
Report Attribute |
Specifications |
|
Market Size Value In 2024 |
USD 34.1 Bn |
|
Revenue Forecast In 2034 |
USD 74.3 Bn |
|
Growth Rate CAGR |
CAGR of 8.2% from 2025 to 2034 |
|
Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2025 to 2034 |
|
Historic Year |
2021 to 2024 |
|
Forecast Year |
2025-2034 |
|
Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
|
Segments Covered |
By Colocation Services, By Infrastructure, By Cooling Techniques, By End-user and By Region |
|
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; Southeast Asia; South Korea |
|
Competitive Landscape |
China Telecom Corporation Ltd., Cologix, Colt Technology Services Group Ltd., CoreSite, CyrusOne, Cyxtera Technologies, Inc., Digital Realty Trust, Equinix, Inc., Flexential, Iron Mountain Inc., NTT Ltd., QTS Realty Trust, LLC, Rackspace Technology, Telehouse, and Zayo Group, LLC. |
|
Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
Chapter 1. Methodology and Scope
1.1. Research Methodology
1.2. Research Scope & Assumptions
Chapter 2. Executive Summary
Chapter 3. Global Data Center Colocation Market Snapshot
Chapter 4. Global Data Center Colocation Market Variables, Trends & Scope
4.1. Market Segmentation & Scope
4.2. Drivers
4.3. Challenges
4.4. Trends
4.5. Investment and Funding Analysis
4.6. Industry Analysis – Porter’s Five Forces Analysis
4.7. Competitive Landscape & Market Share Analysis
4.8. Impact of Covid-19 Analysis
Chapter 5. Market Segmentation 1: by Colocation Services Estimates & Trend Analysis
5.1. by Colocation Services & Market Share, 2024 & 2034
5.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2021 to 2034 for the following by Colocation Services:
5.2.1. Retail Colocation
5.2.2. Wholesale Colocation
Chapter 6. Market Segmentation 2: by Infrastructure Estimates & Trend Analysis
6.1. by Infrastructure & Market Share, 2024 & 2034
6.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2021 to 2034 for the following by Infrastructure:
6.2.1. Electrical Infrastructure
6.2.1.1. UPS Systems
6.2.1.2. Generators
6.2.1.3. Transfer Switches & Switchgear
6.2.1.4. PDUs
6.2.1.5. Other Electrical Infrastructure
6.2.2. Mechanical Infrastructure
6.2.2.1. Cooling Systems
6.2.2.1.1. CRAC & CRAH Units
6.2.2.1.2. Chiller Units
6.2.2.1.3. Cooling Towers, Condensers & Dry Coolers
6.2.2.1.4. Economizers & Evaporative Coolers
6.2.2.1.5. Other Cooling Units
6.2.2.2. Racks
6.2.2.3. Other Mechanical Infrastructure
6.2.3. General Construction
6.2.3.1. Core & Shell Development
6.2.3.2. Installation & Commissioning Services
6.2.3.3. Engineering & Building Design
6.2.3.4. Fire Detection & Suppression
6.2.3.5. Physical Security
6.2.3.6. DCIM/BMS Solutions
Chapter 7. Market Segmentation 3: by Cooling Techniques Estimates & Trend Analysis
7.1. by Cooling Techniques & Market Share, 2024 & 2034
7.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2021 to 2034 for the following by Cooling Techniques:
7.2.1. Air-based Cooling
7.2.2. Liquid-based Cooling
Chapter 8. Market Segmentation 4: by End-User Estimates & Trend Analysis
8.1. by End-User & Market Share, 2024 & 2034
8.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2021 to 2034 for the following by End-User:
8.2.1. Retail
8.2.2. BFSI
8.2.3. IT & Telecom
8.2.4. Healthcare
8.2.5. Media & Entertainment
8.2.6. Others
Chapter 9. Data Center Colocation Market Segmentation 6: Regional Estimates & Trend Analysis
9.1. North America
9.1.1. North America Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by Colocation Services, 2021-2034
9.1.2. North America Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by Infrastructure, 2021-2034
9.1.3. North America Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by Cooling Techniques, 2021-2034
9.1.4. North America Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by End-User, 2021-2034
9.1.5. North America Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by country, 2021-2034
9.2. Europe
9.2.1. Europe Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by Colocation Services, 2021-2034
9.2.2. Europe Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by Infrastructure, 2021-2034
9.2.3. Europe Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by Cooling Techniques, 2021-2034
9.2.4. Europe Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by End-User, 2021-2034
9.2.5. Europe Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by country, 2021-2034
9.3. Asia Pacific
9.3.1. Asia Pacific Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by Colocation Services, 2021-2034
9.3.2. Asia Pacific Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by Infrastructure, 2021-2034
9.3.3. Asia-Pacific Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by Cooling Techniques, 2021-2034
9.3.4. Asia Pacific Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by End-User, 2021-2034
9.3.5. Asia Pacific Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by country, 2021-2034
9.4. Latin America
9.4.1. Latin America Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by Colocation Services, 2021-2034
9.4.2. Latin America Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by Infrastructure, 2021-2034
9.4.3. Latin America Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by Cooling Techniques, 2021-2034
9.4.4. Latin America Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by End-User, 2021-2034
9.4.5. Latin America Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by country, 2021-2034
9.5. Middle East & Africa
9.5.1. Middle East & Africa Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by Colocation Services, 2021-2034
9.5.2. Middle East & Africa Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by Infrastructure, 2021-2034
9.5.3. Middle East & Africa Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by Cooling Techniques, 2021-2034
9.5.4. Middle East & Africa Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by End-User, 2021-2034
9.5.5. Middle East & Africa Data Center Colocation Market Revenue (US$ Million) Estimates and Forecasts by country, 2021-2034
Chapter 10. Competitive Landscape
10.1. Major Mergers and Acquisitions/Strategic Alliances
10.2. Company Profiles
10.2.1. China Telecom Corporation Ltd.
10.2.2. Cologix
10.2.3. Colt Technology Services Group Ltd.
10.2.4. CoreSite
10.2.5. CyrusOne
10.2.6. Cyxtera Technologies, Inc.
10.2.7. Digital Realty Trust
10.2.8. Equinix, Inc.
10.2.9. Flexential
10.2.10. Iron Mountain Inc.
10.2.11. NTT Ltd.
10.2.12. QTS Realty Trust, LLC
10.2.13. Rackspace Technology
10.2.14. Telehouse
10.2.15. Zayo Group, LLC
10.2.16. Other Prominent Players
Data Center Colocation Market- By Colocation Services
Data Center Colocation Market- By Infrastructure
Data Center Colocation Market- By Cooling Techniques
Data Center Colocation Market- By End-user
Data Center Colocation Market- By Region
North America-
Europe-
Asia-Pacific-
Latin America-
Middle East & Africa-
InsightAce Analytic follows a standard and comprehensive market research methodology focused on offering the most accurate and precise market insights. The methods followed for all our market research studies include three significant steps – primary research, secondary research, and data modeling and analysis - to derive the current market size and forecast it over the forecast period. In this study, these three steps were used iteratively to generate valid data points (minimum deviation), which were cross-validated through multiple approaches mentioned below in the data modeling section.
Through secondary research methods, information on the market under study, its peer, and the parent market was collected. This information was then entered into data models. The resulted data points and insights were then validated by primary participants.
Based on additional insights from these primary participants, more directional efforts were put into doing secondary research and optimize data models. This process was repeated till all data models used in the study produced similar results (with minimum deviation). This way, this iterative process was able to generate the most accurate market numbers and qualitative insights.
Secondary research
The secondary research sources that are typically mentioned to include, but are not limited to:
The paid sources for secondary research like Factiva, OneSource, Hoovers, and Statista
Primary Research:
Primary research involves telephonic interviews, e-mail interactions, as well as face-to-face interviews for each market, category, segment, and subsegment across geographies
The contributors who typically take part in such a course include, but are not limited to:
Data Modeling and Analysis:
In the iterative process (mentioned above), data models received inputs from primary as well as secondary sources. But analysts working on these models were the key. They used their extensive knowledge and experience about industry and topic to make changes and fine-tuning these models as per the product/service under study.
The standard data models used while studying this market were the top-down and bottom-up approaches and the company shares analysis model. However, other methods were also used along with these – which were specific to the industry and product/service under study.
To know more about the research methodology used for this study, kindly contact us/click here.
