The global data center colocation market size was US$ 41.4 billion in 2021. The global data center colocation market is forecast to grow to US$ billion by 2030 by growing at a compound annual growth rate (CAGR) of 13.6% during the forecast period from 2022 to 2030.

Datacenter colocation is considered as the data center facility through which businesses can rent space for servers. The physical infrastructure of data center colocation includes data center equipment such as cooling equipment, power equipment, rack and cage, networking equipment, and others used for colocation services.

Factors Influencing the Market

The growing popularity cloud-based services due to their flexibility and cost-effectiveness will surge the growth of the global data center colocation market.

Companies deploy data center colocation to improve the flexibility and scalability of their business. Thus, this factor will drive the global data center colocation market forward.

Datacenter colocation is regarded as a secure and cost-efficient platform. Thus, it will surge the growth of the data center colocation market. In addition, the wide applications of data center colocation in various sectors such as government, banking, BFSI, and aerospace and defense, will escalate the growth of the global data center colocation market.

Growing urbanization and increasing automation across various industrial verticals will benefit the global data center colocation market.

Favorable policies by governments are forecast to escalate the demand for data center colocation. In addition, a growing number of data centers will also benefit the overall market. For instance, Cyxtera Technologies introduced a new data center in Frankfurt 2019 with the aim of satisfying growing customer demand for the companys secure colocation and infrastructure solutions.

COVID-19 Impact Analysis

Due to the wake of the Covid-19 pandemic, colocation became necessary for enterprises to stay connected, collaborate, and move forward in a cost-effective and safe way. The demand for data center colocation increased from the healthcare segment. Thus, it was beneficial for the global data center colocation market.

Regional Analysis

The Asia-Pacific data center colocation market is forecast to grow at the fastest growth rate. It is due to the growing automation in the healthcare industry. China is forecast to have the maximum contribution in the data center colocation market. It is due to the growing enterprise data coupled with the rising concern related to data security and recovery in large and small enterprises. In addition, growing automation across various industrial verticals will contribute to the growth of the data center colocation market.

Competitors in the Market

NTT Communication Corporation
Digital Realty Trust, Inc.
Cyxtera Technologies, Inc.
Equinix, Inc.
CyrusOne Inc.
Global Switch
CoreSite Realty Corporation
AT&T, Inc.
China Telecom Corporation Limited
Verizon Enterprise Solutions, Inc.
Other Prominent Players
Market Segmentation

The global data center colocation market segmentation focuses on Solution, End-User, and Region.

By Solution Type Outlook

Retail Colocation
Wholesale Colocation
By End-User Outlook

BFSI
IT & Telecom
Healthcare
Government & Defense
Others
By Region

North America
The U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Eastern Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific
Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa
Rest of MEA
South America
Brazil
Argentina
Rest of South America