North America Data Centre Colocation Market Report and Forecast 2025-2034

North America Data Centre Colocation Market Outlook

The North America data centre colocation market size was valued at USD 16.58 billion in 2024. The market is further projected to grow at a CAGR of 12.40% between 2025 and 2034, reaching a value of USD 47.47 billion by 2034.

Key Takeaways

• In the United States, major data centres are predominantly situated in regions including Northern Virginia, Dallas, Silicon Valley in Northern California, Phoenix, Chicago, Atlanta, the Portland area (including Hillsboro, Oregon), the New York and New Jersey area, the Seattle area (including Quincy, Washington), and Los Angeles.

• In the United States, there are over 2,500 data centres.

• The data centre market in North America is approaching its capacity limits, prompting businesses to seek out colocation services.

Colocation data centres have been instrumental in catering to the rising demand for data storage and processing in the region. Colocation in data centres allows businesses to utilise cutting-edge infrastructure without the necessity of constructing and managing their own data centre. Through colocation, companies can take advantage of a third-party data centre provider's expertise and facilities, accessing premier amenities. This encompasses powerful cooling and power systems that maintain server performance at its peak and avert downtime caused by power failures or overheating. Additionally, the equipment within the facility is protected by stringent physical security protocols, including surveillance cameras, biometric access systems, and the presence of security staff on-site.

Data Centre Colocation Trends Impacting the Data Centre Colocation Market in North America

Evolution of Edge Computing: Edge computing is anticipated to continue playing a crucial role in data centre technology, as it facilitates the processing of data and applications nearer to the end-user. This capability will allow businesses to offer faster responses to user inquiries, enhancing the reliability and security of their infrastructure, thereby impacting the North America data centre colocation market growth.

Data Centre Sustainability: Sustainability in data centres has become a critical concern within the industry, particularly as there is a shift towards renewable energy. To accommodate the increasing need for computing capacity, data centres are required to enhance their efficiency, lower energy use, and incorporate renewable energy into their operations.

Increased Security: Security in data centres will remain a key priority in the foreseeable future. It will be essential for the locations of data centres to consistently integrate the newest security practices to safeguard client data and assets. Organisations will concentrate on enhancing their security framework by adopting increasingly sophisticated security protocols and technologies.

Market Segmentation

North America Data Centre Colocation Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments.

Market Breakup by Type:

• Retail Colocation

• Wholesale Colocation

• Hybrid Cloud-Based Colocation

Market Breakup by Tier Level:

• Tier 1

• Tier 2

• Tier 3

• Tier 4

Market Breakup by Enterprise Size:

• Small and Medium Enterprises (SMEs)

• Large Enterprises

Market Breakup by End User:

• Retail

• BFSI

• IT and Telecom

• Healthcare

• Media and Entertainment

• Others

Market Breakup by Country:

• United States of America

• Canada

Competitive Landscape

Prominent players are making significant investments in R&D to broaden their product offerings, which will contribute to the data center colocation market's continued growth.

• Cologix, Inc.

• Colt Technology Services Group Limited

• CoreSite

• CyrusOne LLC

• Cyxtera Technologies, Inc.

• Digital Realty Trust Inc

• Flexential Corp.

• Equinix, Inc.

• NTT DATA, Inc.

• QTS Realty Trust, LLC

• Telehouse International Corporation of America

• Others

Key Highlights of the Report