Global Data Center Colocation Market Report and Forecast 2024-2032

Global Data Center Colocation Market Outlook

The global data center colocation market size reached approximately USD 66.31 billion in 2023. The market is projected to grow at a CAGR of 14.5% between 2024 and 2032, reaching a value of around USD 221.88 billion by 2032.

Key Trends in the Market

Data center colocation, commonly known as colocation, is a service that enables businesses to lease physical space, along with power and cooling resources, within an external data center facility. This arrangement serves as a means for businesses to house their computing equipment and servers. By opting for colocation, businesses can avoid the necessity of constructing and managing their independent data center infrastructure.

• The global data center colocation market growth is being aided by the rise of edge computing, which involves processing data closer to the source of generation. It has surged the need for decentralised data center infrastructure. Colocation providers are strategically positioning their facilities at the edge to support low-latency applications like IoT (Internet of things) devices, autonomous vehicles, and smart cities.

• One of the major global data center colocation market trends is the increasing focus on green technologies owing to the rising environmental concerns and the importance of sustainability in data center operations. Colocation providers are investing in energy-efficient technologies, utilising renewable energy sources, and implementing innovative cooling solutions to minimise their environmental footprint.

• The global data center colocation market demand is propelled by the increasing use of artificial intelligence (AI) and machine learning (ML) technologies. Data centers are required to meet the computational needs of these technologies. Providers of colocation services are enhancing their facilities with the required infrastructure to enable powerful computing for AI and ML tasks.

Market Analysis

Based on colocation type, the market can be bifurcated into retail colocation and wholesale colocation. The global data center colocation market segmentation, based on tier level, includes tier 1, tier 2, tier 3, and tier 4. The market, based on enterprise size, includes small and medium-sized enterprises and large enterprises.

Based on end use, the market divisions include retail, BFSI, IT and telecom, healthcare, and media and entertainment, among others. The major regional markets for data center colocation are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global data center colocation market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

• Digital Realty Trust Inc. 

• Equinix, Inc. 

• NTT Communications Corporation 

• Cyxtera Technologies, Inc. 

• Global Switch Limited 

• Rackspace US, Inc. 

• Iron Mountain Incorporated 

• Flexential Corp.

• Colt Group Holdings Limited

• QTS Realty Trust, LLC 

• China Telecom Global Ltd.

• Others

Market Share by Colocation Type

According to the global data center colocation market analysis, retail colocation is likely to show substantial growth in the coming years. Retail colocation offers businesses the opportunity to lease more compact spaces within a data center, allowing for the management of smaller data volumes and necessitating less infrastructure. This particular feature has played a pivotal role in fostering the popularity of retail colocation, especially among small and medium-sized enterprises (SMEs).

Market Share by End Use

The rapid expansion of the IT and telecom sector significantly influences the data center colocation market share. Technological advancements and breakthroughs in IT and telecommunications have spurred an unprecedented demand for robust and reliable data center services. Moreover, the convergence of various cutting-edge technologies, such as 5G, IoT (Internet of Things), and artificial intelligence, has necessitated the establishment of advanced data centers.

Competitive Landscape

Digital Realty Trust Inc. is a leading international provider of solutions for data centers, colocation, and interconnection services. The company excels in delivering secure and dependable infrastructure solutions to businesses, aiding them in overseeing their digital resources and data-driven activities. With a substantial global presence, Digital Realty boasts data centers and properties strategically situated in key business centers across the globe.

Equinix, Inc. is a prominent global data center and interconnection company that plays a pivotal role in the digital economy. The company was founded in 1998 and is headquartered in California, the United States of America. The company is primarily focused on providing data center and interconnection services. It provides its services to a diverse range of sectors, including technology, finance, healthcare, media, and more.

NTT Communications Corporation is a major global technology services company that specialises in providing a range of information and communications technology (ICT) solutions to businesses and organisations around the world. It is a subsidiary of Nippon Telegraph and Telephone Corporation (NTT), one of the largest telecommunications companies in the world.

Other global data center colocation market players include Cyxtera Technologies, Inc., Global Switch Limited, Rackspace US, Inc., Iron Mountain Incorporated, Flexential Corp., Colt Group Holdings Limited, QTS Realty Trust, LLC, and China Telecom Global Ltd., among others.

Key Highlights of the Report

Data Center Colocation Market Report Snapshots

Data Center Colocation Market Size

Data Center Colocation Market Share

Data Center Colocation Market Analysis

Data Center Colocation Companies