Global Data Center Colocation Market

Global Data Center Colocation Market Size, Trends & Analysis - Forecasts to 2026 By Type (Retail Colocation and Wholesale Colocation), By End User (Small & Medium-Sized Enterprises (SMEs) and Large Enterprises), By Industry (Banking, Financial Services, and Insurance (BFSI), IT & Telecom, Government and Defense, Healthcare, Research & Academics, Retail, Energy, Manufacturing, and Others), By Region (North America, Asia Pacific, Europe, Latin America, Middle East & Africa); End-User Landscape, Company Market Share Analysis, and Competitor Analysis

Category Electronics, Semiconductors and Information & Communication Technology

Format

This report was recently updated on December 19 2024 with the latest and most recent market numbers

Global Data Center Colocation Market Insights

Augmenting awareness of the need to minimize carbon footprints is a fundamental element propelling the data center colocation market and has a significant influence on colocation market size. Furthermore, the cost-effective alternative for organizations as opposed to hosting their servers in their facilities, which preserves floor space and the expense of cooling and heating, as well as the requirement for IT skills, is supporting the expansion of the data center colocation market. The need for a dependable, secured, and scalable data center is a primary driving component in the overall data center colocation market. Aside from that, an additional aspect driving the global data center colocation market is the desire to minimize total operating costs in the IT sectors.

Expensive initial setup costs, data center management and upgrading a huge computing infrastructure, and data center placement are projected to stymie growth in the global data center colocation market throughout the forecast period. Furthermore, impaired data security connected with the use of data center colocation is a significant concern likely to stymie global data center colocation expansion. Such impediments can be surmounted by increased data center traffic and increased smartphone usage throughout the world. The increased demand for uptime robustness for mission-critical operations will fuel the expansion of the data center colocation market. The expansion of the telecom sector is predicted to boost the dimensionality of the market as well.

The recent emergence of the ongoing pandemic significantly influence this market as people were facing lockdown and staying at home, the demand for high-speed internet grew largely, globally almost by 70%. This sudden stress led the data providers to face a lot of issues, as the preliminary infrastructure owned by them was not supporting this sudden surge. However, with the help of the data center colocation, the provider companies could quickly manage their workloads and applications, minimizing their risk factor and costs. In the previous year of 2020, the OTT platforms and the other online social sites witnessed a high surge in users, which has augmented the demand for these systems. Also, because of the introduction of the 5G network, the demand is expected to rise rapidly.

global data center colocation market

Global Data Center Colocation Market: By Type

According to the types, this market is segmented into two divisions, retail colocation, and wholesome colocation. Among these two, the segment of retail colocation is estimated to be the leading segment in the forecast period. Power, space, cooling, cabling, and support services are all offered by retail colocation. It additionally gives IT infrastructure versatility, which is excellent for Small and Medium-Sized Enterprises (SMEs).

Global Data Center Colocation Market: By End User

According to the end-users, this market is segmented into two parts, such as small and medium-sized enterprises (SMEs) and large enterprises. Between these two, the segment of large enterprises is estimated to be the largest market shareholder. Large enterprises are more likely to choose colocation services since they may acquire bigger premises and satisfy their power and computing needs. Furthermore, colocation services enable major organizations to maintain total control over their data center infrastructure. Because of their catastrophe recovery capabilities, these solutions also contribute to enterprise sustainability.

Global Data Center Colocation Market: By Industry

Based on the industries, the market is divided into several categories including, banking, financial services, and insurance (BFSI), IT and telecom, government and defense, healthcare, research and academic, retail, energy, manufacturing, and others. IT and telecoms are estimated to lead as they require less manual support. With the rising population and surge in home-based self-employed jobs, people are demanding more and more high-speed internet. The revenue of this segment was almost 27% of the total market revenue, which arose at the time of the pandemic, as most people were at home. The various social online sites and the rise of OTT platforms are raising the pressure on the IT and telecom industries, and they are, in turn, adapting to colocation services.

asia pacific data center colocation market

Global Data Center Colocation Market: By Region

North America is predicted to have the greatest market share, and this pattern is anticipated to continue in the foreseeable future. This is due to the widespread use of data centers across sectors, the huge foothold of multiple large cloud service providers, SMEs implementing colocation data centers, rising e-commerce revenues, and the market penetration of leading data center service providers. Due to the provision of comprehensive solutions, this area has seen speedy acceptance of the data center colocation system.

Regionally, the Asia Pacific region is estimated to grow at the highest CAGR during the forecasting period. Solely the rising population in the emerging countries and the increasing disposable incomes are causing the consumers to demand high-speed internet. The various schemes and implementations to digitalize everything, taken by the governments, are rising the need for mobile data connections, which is, in turn, raising the demand for these systems. Furthermore, the rising use of smart products and technologies has culminated in greater data volumes, prompting enterprises from a variety of industries to establish data centers.

Global Data Center Colocation Market Share and Competitor Analysis

NTT Communication Corporation, Digital Realty Trust, Inc., Cyxtera Technologies, Inc., CyrusOne Inc., Equinix, Inc., Global Switch, AT&T, Inc., CoreSite Realty Corporation, China Telecom Corporation Limited, Verizon Enterprise Solutions, Inc., and NaviSite, Inc. are some of the key players of this market.

Please note: This is not an exhaustive list of companies profiled in the report.

Zadara Storage Inc. established technical cooperation with Cyxtera in May 2020. Zadara's fully managed storage-as-a-service is now accessible in Cyxtera's global network of 62 highly linked, hybrid-ready data centers. By providing sophisticated storage on demand, the two firms are revolutionizing storage and reducing financial and operational risk.

Chapter 1 Methodology

1.1 Market Scope & Definitions

1.2 Estimates & Forecast Calculation

1.3 Historical Data Overview And Validation

1.4 Data Sources

1.4.1 Secondary

1.4.2 Primary

Chapter 2 Report Outlook

2.1 Global Data Center Colocation Industry Overview, 2016-2026

2.1.1 Industry Overview

2.1.2 Type Overview

2.1.3 End User Overview

2.1.4 Industry Overview

2.1.5 Regional Overview

Chapter 3 Global Data Center Colocation Market Trends

3.1 Market Segmentation

3.2 Industry Background, 2016-2026

3.3 Market Key Trends

3.3.1 Positive Trends

3.3.1.1 Growing Demand for Hybrid Cloud and Virtualization Technologies

3.3.1.2 Increasing Requirement of Reliable, Secure and Scalable Data Center

3.3.2 Industry Challenges

3.3.2.1 High Initial Setup Cost

3.4 Prospective Growth Scenario

3.4.1 Type Growth Scenario

3.4.2 End User Growth Scenario

3.4.3 Industry Growth Scenario

3.5 COVID-19 Influence over Industry Growth

3.6 Porter’s Analysis

3.7 PESTEL Analysis

3.8 Value Chain & Supply Chain Analysis

3.9 Regulatory Framework

3.9.1 North America

3.9.2 Europe

3.9.3 APAC

3.9.4 LATAM

3.9.5 MEA

3.10 Technology Overview

3.11 Market Share Analysis, 2020

3.11.1 Company Positioning Overview, 2020

Chapter 4 Global Data Center Colocation Market, By Type

4.1 Type Outlook

4.2 Retail Colocation

4.2.1 Market Size, By Region, 2016-2026 (USD Million)

4.3 Wholesale Colocation

4.3.1 Market Size, By Region, 2016-2026 (USD Million)

Chapter 5 Global Data Center Colocation Market, By End User

5.1 End User Outlook

5.2 Small & Medium-Sized Enterprises (SMEs)

5.2.1 Market Size, By Region, 2016-2026 (USD Million)

5.3 Large Enterprises

5.3.1 Market Size, By Region, 2016-2026 (USD Million)

Chapter 6 Global Data Center Colocation Market, By Industry

6.1 Industry Outlook

6.2 Banking, Financial Services, and Insurance (BFSI)

6.2.1 Market Size, By Region, 2016-2026 (USD Million)

6.3 IT & Telecom

6.3.1 Market Size, By Region, 2016-2026 (USD Million)

6.4 Government & Defense

6.4.1 Market Size, By Region, 2016-2026 (USD Million)

6.5 Research & Academics

6.5.1 Market Size, By Region, 2016-2026 (USD Million)

6.6 Healthcare

6.6.1 Market Size, By Region, 2016-2026 (USD Million)

6.7 Retail

6.7.1 Market Size, By Region, 2016-2026 (USD Million)

6.8 Energy

6.8.1 Market Size, By Region, 2016-2026 (USD Million)

6.9 Manufacturing

6.9.1 Market Size, By Region, 2016-2026 (USD Million)

6.10 Others

6.10.1 Market Size, By Region, 2016-2026 (USD Million)

Chapter 7 Global Data Center Colocation Market, By Region

7.1 Regional outlook

7.2 North America

7.2.1 Market Size, By Country, 2016-2026 (USD Million)

7.2.2 Market Size, By Type, 2016-2026 (USD Million)

7.2.3 Market Size, By End User, 2016-2026 (USD Million)

7.2.4 Market Size, By Industry, 2016-2026 (USD Million)

7.2.5 U.S.

7.2.5.1 Market Size, By Type, 2016-2026 (USD Million)

7.2.5.2 Market Size, By End User, 2016-2026 (USD Million)

7.2.5.3 Market Size, By Industry, 2016-2026 (USD Million)

7.2.6 Canada

7.2.6.1 Market Size, By Type, 2016-2026 (USD Million)

7.2.6.2 Market Size, By End User, 2016-2026 (USD Million)

7.2.6.3 Market Size, By Industry, 2016-2026 (USD Million)

7.3 Europe

7.3.1 Market Size, By Country, 2016-2026 (USD Million)

7.3.2 Market Size, By Type, 2016-2026 (USD Million)

7.3.3 Market Size, By End User, 2016-2026 (USD Million)

7.3.4 Market Size, By Industry, 2016-2026 (USD Million)

7.3.5 Germany

7.3.5.1 Market Size, By Type, 2016-2026 (USD Million)

7.3.5.2 Market Size, By End User, 2016-2026 (USD Million)

7.3.5.3 Market Size, By Industry, 2016-2026 (USD Million)

7.3.6 UK

7.3.6.1 Market Size, By Type, 2016-2026 (USD Million)

7.3.6.2 Market Size, By End User, 2016-2026 (USD Million)

7.3.6.3 Market Size, By Industry, 2016-2026 (USD Million)

7.3.7 France

7.3.7.1 Market Size, By Type, 2016-2026 (USD Million)

7.3.7.2 Market Size, By End User, 2016-2026 (USD Million)

7.3.7.3 Market Size, By Industry, 2016-2026 (USD Million)

7.3.8 Italy

7.3.8.1 Market Size, By Type, 2016-2026 (USD Million)

7.3.8.2 Market Size, By End User, 2016-2026 (USD Million)

7.3.8.3 Market Size, By Industry, 2016-2026 (USD Million)

7.3.9 Spain

7.3.9.1 Market Size, By Type, 2016-2026 (USD Million)

7.3.9.2 Market Size, By End User, 2016-2026 (USD Million)

7.3.9.3 Market Size, By Industry, 2016-2026 (USD Million)

7.3.10 Russia

7.3.10.1 Market Size, By Type, 2016-2026 (USD Million)

7.3.10.2 Market Size, By End User, 2016-2026 (USD Million)

7.3.10.3 Market Size, By Industry, 2016-2026 (USD Million)

7.4 Asia Pacific

7.4.1 Market Size, By Country, 2016-2026 (USD Million)

7.4.2 Market Size, By Type, 2016-2026 (USD Million)

7.4.3 Market Size, By End User, 2016-2026 (USD Million)

7.4.4 Market Size, By Industry, 2016-2026 (USD Million)

7.4.5 China

7.4.5.1 Market Size, By Type, 2016-2026 (USD Million)

7.4.5.2 Market Size, By End User, 2016-2026 (USD Million)

7.4.5.3 Market Size, By Industry, 2016-2026 (USD Million)

7.4.6 India

7.4.6.1 Market Size, By Type, 2016-2026 (USD Million)

7.4.6.2 Market Size, By End User, 2016-2026 (USD Million)

7.4.6.3 Market Size, By Industry, 2016-2026 (USD Million)

7.4.7 Japan

7.4.7.1 Market Size, By Type, 2016-2026 (USD Million)

7.4.7.2 Market Size, By End User, 2016-2026 (USD Million)

7.4.7.3 Market Size, By Industry, 2016-2026 (USD Million)

7.4.8 Australia

7.4.8.1 Market Size, By Type, 2016-2026 (USD Million)

7.4.8.2 Market size, By End User, 2016-2026 (USD Million)

7.4.8.3 Market Size, By Industry, 2016-2026 (USD Million)

7.4.9 South Korea

7.4.9.1 Market Size, By Type, 2016-2026 (USD Million)

7.4.9.2 Market Size, By End User, 2016-2026 (USD Million)

7.4.9.3 Market Size, By Industry, 2016-2026 (USD Million)

7.5 Latin America

7.5.1 Market Size, By Country, 2016-2026 (USD Million)

7.5.2 Market Size, By Type, 2016-2026 (USD Million)

7.5.3 Market Size, By End User, 2016-2026 (USD Million)

7.5.4 Market Size, By Industry, 2016-2026 (USD Million)

7.5.5 Brazil

7.5.5.1 Market Size, By Type, 2016-2026 (USD Million)

7.5.5.2 Market Size, By End User, 2016-2026 (USD Million)

7.5.5.3 Market Size, By Industry, 2016-2026 (USD Million)

7.5.6 Mexico

7.5.6.1 Market Size, By Type, 2016-2026 (USD Million)

7.5.6.2 Market Size, By End User, 2016-2026 (USD Million)

7.5.6.3 Market Size, By Industry, 2016-2026 (USD Million)

7.5.7 Argentina

7.5.7.1 Market Size, By Type, 2016-2026 (USD Million)

7.5.7.2 Market Size, By End User, 2016-2026 (USD Million)

7.5.7.3 Market Size, By Industry, 2016-2026 (USD Million)

7.6 MEA

7.6.1 Market Size, By Country, 2016-2026 (USD Million)

7.6.2 Market Size, By Type, 2016-2026 (USD Million)

7.6.3 Market Size, By End User, 2016-2026 (USD Million)

7.6.4 Market Size, By Industry, 2016-2026 (USD Million)

7.6.5 Saudi Arabia

7.6.5.1 Market Size, By Type, 2016-2026 (USD Million)

7.6.5.2 Market Size, By End User, 2016-2026 (USD Million)

7.6.5.3 Market Size, By Industry, 2016-2026 (USD Million)

7.6.6 UAE

7.6.6.1 Market Size, By Type, 2016-2026 (USD Million)

7.6.6.2 Market Size, By End User, 2016-2026 (USD Million)

7.6.6.3 Market Size, By Industry, 2016-2026 (USD Million)

7.6.7 South Africa

7.6.7.1 Market Size, By Type, 2016-2026 (USD Million)

7.6.7.2 Market Size, By End User, 2016-2026 (USD Million)

7.6.7.3 Market Size, By Industry, 2016-2026 (USD Million)

Chapter 8 Company Landscape

8.1 Competitive Analysis, 2020

8.2 NTT Communication Corporation

8.2.1 Company Overview

8.2.2 Financial Analysis

8.2.3 Strategic Positioning

8.2.4 Info Graphic Analysis

8.3 Digital Realty Trust, Inc.

8.3.1 Company Overview

8.3.2 Financial Analysis

8.3.3 Strategic Positioning

8.3.4 Info Graphic Analysis

8.4 Cyxtera Technologies, Inc.

8.4.1 Company Overview

8.4.2 Financial Analysis

8.4.3 Strategic Positioning

8.4.4 Info Graphic Analysis

8.5 CyrusOne Inc.

8.5.1 Company Overview

8.5.2 Financial Analysis

8.5.3 Strategic Positioning

8.5.4 Info Graphic Analysis

8.6 Equinix, Inc.

8.6.1 Company Overview

8.6.2 Financial Analysis

8.6.3 Strategic Positioning

8.6.4 Info Graphic Analysis

8.7 Global Switch

8.7.1 Company Overview

8.7.2 Financial Analysis

8.7.3 Strategic Positioning

8.7.4 Info Graphic Analysis

8.8 AT&T, Inc.

8.8.1 Company Overview

8.8.2 Financial Analysis

8.8.3 Strategic Positioning

8.8.4 Info Graphic Analysis

8.9 CoreSite Realty Corporation

8.9.1 Company Overview

8.9.2 Financial Analysis

8.9.3 Strategic Positioning

8.9.4 Info Graphic Analysis

8.10 China Telecom Corporation Limited

8.10.1 Company Overview

8.10.2 Financial Analysis

8.10.3 Strategic Positioning

8.10.4 Info Graphic Analysis

8.11 Verizon Enterprise Solutions, Inc.

8.11.1 Company Overview

8.11.2 Financial Analysis

8.11.3 Strategic Positioning

8.11.4 Info Graphic Analysis

8.12 NaviSite, Inc.

8.12.1 Company Overview

8.12.2 Financial Analysis

8.12.3 Strategic Positioning

8.12.4 Info Graphic Analysis

8.13 Other Companies

8.13.1 Company Overview

8.13.2 Financial Analysis

8.13.3 Strategic Positioning

8.13.4 Info Graphic Analysis

The Global Data Center Colocation Market has been studied from the year 2019 till 2026. However, the CAGR provided in the report is from the year 2021 to 2026. The research methodology involved three stages: Desk research, Primary research, and Analysis & Output from the entire research process.

The desk research involved a robust background study which meant referring to paid and unpaid databases to understand the market dynamics; mapping contracts from press releases; identifying the key players in the market, studying their product portfolio, competition level, annual reports/SEC filings & investor presentations; and learning the demand and supply-side analysis for the Data Center Colocation Market.

The primary research activity included telephonic conversations with more than 50 tier 1 industry consultants, distributors, and end-use product manufacturers.

Finally, based on the above thorough research process, an in-depth analysis was carried out considering the following aspects: market attractiveness, current & future market trends, market share analysis, SWOT analysis of the company and customer analytics.

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Frequently Asked Questions

What is the projected market size of the global data center colocation market?

The global data center colocation market size is projected to grow at a CAGR of 14.5% during the forecast period (2021-2026).

Who are the major vendors in the data center colocation market?

Key and innovative vendors in the data center colocation market include NTT Communication Corporation, Digital Realty Trust, Inc., Cyxtera Technologies, Inc., CyrusOne Inc., Equinix, Inc., Global Switch, AT&T, Inc., CoreSite Realty Corporation, China Telecom Corporation Limited, Verizon Enterprise Solutions, Inc., and NaviSite, Inc.

Which region has the highest market share in the data center colocation market?

North America is estimated to hold the highest market share in the data center colocation market.

What is the Covid-19 impact on future data center colocation manufacturers?

Globally, Covid-19 impact on the future data center colocation market will be quite significant for the manufacturers since demand has fluctuated owing to lockdown in key nations throughout the world. North America would be leading because of the widespread use of data centers across sectors. Subsequently, the Asia Pacific market will be growing the fastest because of the expanding demand for high-speed internet.

What are the major drivers in the data center colocation market?

The major driving factors for the data center colocation market include the augmenting awareness of the need to minimize carbon footprints; rising need for sophisticated IT skill workforce; expanding need for a dependable, secured, and scalable data center; desire to minimize total operating costs in the IT sectors; burgeoning data center traffic and smartphone usage; introduction of the 5G network and OTT platforms.