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.
Competitive Landscape
Some of the Major Key Players in the Data Center Colocation Market are
- 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
- Zayo Group, LLC
- Other Prominent Players
Market Segmentation:
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.
Based on the Colocation Service, the Retail Colocation Segment Dominate the market
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.
Air-based Cooling Segment to Witness Growth at a Rapid Rate
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.
In the Region, the North American Data Center Colocation Market Holds a Significant Revenue Share
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.
Recent Developments:
- In February 2024, Bridge Data Centres International Pte Ltd joined forces with the Singaporean firm Red Dot Analytics Pte Ltd in a strategic alliance to further BDC’s aims in data center resilience, energy efficiency, and sustainability through the use of RDA’s data center Digital Twin AI technology.
- In March 2024, CoreSite, a division of American Tower Corporation and a frontrunner in hybrid IT solutions announced its certification as an NVIDIA DGX-Ready Data Center. This means it can now host high-performance, scalable infrastructure for companies that want to take advantage of the increasing demand for AI, ML, and other high-density applications.
Global Data Center Colocation Market Report Scope
|
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. |
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