Market Analysis

Market Research Future (MRFR) projects the global data center colocation market to reach USD 172.36 billion at a 14.4% CAGR from 2020 to 2030 (forecast period)

Data Center Colocation is a solution in which the servers and hardware can be kept on lease by the colocation providers. It aids companies in data center management, planning, operational strategies, risk management, and other areas, which has increased the market for data center colocation. Various companies are developing new opportunities, such as emerging digital technology trends, and cloud computing, which has necessitated the need for data center colocation. The growing need for resources, growth strategies, delivery methods, and disaster recovery methodologies in the IT department necessitates the need for data center colocation. According to the report, green data centers are upcoming industry trends in which energy usage is reduced, and the system's energy efficiency is optimized. The benefit of colocations is that they can lease computing servers, storage, network resources, and other items that are required for business operations. Data center colocation providers are collaborating with cloud service providers to deliver cloud services to their colocation clients. The cost-effective services, as well as the ease of use of colocation, are leading the top and secondary markets to invest in new services for customers.

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Key Players

Notable players in the global data center colocation market are – Keppel Data Center Pte Ltd. (Singapore), Equinix, Inc. (US), Fibernet Inc. (US), NTT Communications Corporation (Japan), CoreSite Realty Corporation (US), AT&T Inc. (US), Cogent Communications (US), Cyxtera Technologies, Inc. (US), Rahi Systems Inc (US), DuPont Fabros Technology, Inc. (US), Digital Realty Trust, Inc. (US), and Verizon Communications, Inc. (US) among others. 

Market Segmentation

The global data center colocation system industry has been segmented based on type, deployment type, and end-users. 

Based on type, the global data center colocation system market has been segmented into retail colocation, wholesale colocation, and others. 

Based on deployment type, the global data center colocation system market has been segmented into cloud, on-premises, and others. 

By end-user, the global data center colocation system market has been segmented into BFSI, IT and telecom, government and defense, healthcare, and others.

Regional Analysis

The regional analysis of the global data center colocation market is being studied for the region as Asia Pacific, North America, Europe, and the Rest of the World.

North America is one of the world's leading regions in terms of data center colocation market share. Data center colocation providers are expanding to provide better service in North America, while the Asia Pacific region is emerging to have the highest CAGR due to lower operating costs, lower latency, and a focus on medium-sized local businesses.

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