Market Overview:
The Global Data Center Colocation Market size is expected to grow from USD 70.24 billion in 2022 to USD 181.51 billion by 2030, at a CAGR of 12.6 % during the forecast period (2023-2030).
The data center colocation market includes the process of renting out data center space and infrastructure, such as power, network bandwidth, physical security, and cooling components, to end users. According to the needs of the customers, these facilities are separated into two main categories, namely retail colocation and wholesale colocation. Retail colocation gives customers the option to rent space, racks, and cages as opposed to wholesale colocation, which involves renting entire rooms and facilities to house IT equipment. Due to how much less money businesses must spend overall on IT, the data center colocation industry is predicted to grow. The growing amount of data generated by social media and Over-The-Top (OTT) platforms has increased the demand for data centers and colocation services.
Top Key Players in Data Center Colocation Market:
China Telecom Corporation Limited, Coresite Realty Corporation, Cyrusone Inc., Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Global Switch, KDDI Corporation, NTT Communications Corporation-, Verizon Enterprise Solutions Inc, Other Major Key Players
Market Dynamics and Factors for Data Center Colocation Market:
Drivers:
Reduction in The Overall IT Cost
The reduction in overall IT costs can indeed drive growth in the Data Center Colocation Market. Data center colocation refers to the practice of housing IT infrastructure and equipment in third-party data centers, which offers several cost-related benefits.
Data center colocation eliminates the need for businesses to invest in building, equipping, and maintaining their own data centers. By outsourcing their IT infrastructure to colocation providers, companies can significantly reduce capital expenditures associated with constructing and operating on-premises facilities. Colocation facilities provide shared resources, such as power, cooling, security, and maintenance, which results in cost savings through economies of scale. Businesses can optimize their operational expenditures by leveraging the efficient infrastructure of colocation providers.
Opportunities:
Increasing Disaster Recovery And Business Continuity Requirements
Increasing disaster recovery (DR) and business continuity (BC) requirements indeed present a significant opportunity for growth in the Data Center Colocation Market. Data center colocation services offer a range of features and benefits that align well with the needs of businesses seeking robust DR and BC solutions.
Data center colocation facilities are designed with redundancy in mind, including multiple power sources, backup generators, and diverse network connectivity. This level of infrastructure resilience enhances DR and BC capabilities, ensuring that businesses can maintain operations even in the event of infrastructure failures.
Segmentation Analysis of the Data Center Colocation Market:
By Type, the Retail segment had the largest market share. Retail colocation type enables businesses to rent smaller spaces within a data center, which allows businesses to manage smaller volumes of data and requires limited infrastructure.
By End-User, SMEs are likely to dominate in this area. SMEs are increasingly adopting cloud services owing to factors, such as eliminating the need for IT staff, scalable low costs, and having lesser overheads.
Regional Analysis of the Data Center Colocation Market:
North America is anticipated to dominate the data center colocation market during the forecast period. The development of colocation data centers by significant CSPs and SMEs throughout the region is responsible for the expansion of the regional market. Cyxtera Technologies, Inc., Digital Realty Trust, Inc., and CyrusOne, Inc. are a few notable firms with roots in the North American data center colocation market. Retailers in the area have made significant investments in IT infrastructure for storing and analyzing customer data, buying trends, and other information.
Key Industry Development:
In September 2021, in order to create a connected future that will benefit global enterprise clients and hyperscalers, NTT, a Leader in the IDC MarketScape Worldwide Data Center Colocation and Interconnection Services 2021 Vendor Assesment1, continues to grow its worldwide data center footprint by 20%.
Regional Outlook (Revenue in USD Million; Volume in Units, 2023-2030)
North America
- The U.S.
- Canada
- Mexico
Eastern Europe
- Russia
- Bulgaria
- The Czech Republic
- Hungary
- Poland
- Romania
- Rest of Eastern Europe
Western Europe
- Germany
- UK
- France
- Netherlands
- Italy
- Spain
- Rest of Western Europe
Asia Pacific
- China
- India
- Japan
- Singapore
- Australia
- New-Zealand
- Rest of APAC
Middle East & Africa
- Turkey
- Saudi Arabia
- Qatar
- UAE
- Israel
- South Africa
South America
- Brazil
- Argentina
- Rest of SA
