Americas Data Center Colocation Market Size, Share, Opportunities, And Trends By Colocation Model (Wholesale Colocation, Retail Colocation), By End Users (Small Enterprises, Medium Enterprises, Large Enterprises), By Industry Vertical (Banking And Financial Services, Manufacturing, Communication And Technology, Healthcare, Energy, Government, Media And Entertainment, Others), And By Geography - Forecasts From 2024 To 2029

The Americas data center colocation market is expected to grow at a CAGR of 10.9%, reaching a market size of US$44.848 billion in 2029 from US$21.741 billion in 2022.

Information and communications technology are at the heart of the digital economy. It is estimated that increasing investments in information and communications technology will positively impact the colocation market during the forecasted period. The major growth drivers of America's data center colocation market are the presence of a large number of small and big players, increasing adoption of cloud computing solutions, and rising demand from service providers. The other major factor augmenting the colocation market growth is the increasing focus on data privacy and regulation in the country. Enterprises operating in the entertainment and media, healthcare, communication, and government sectors are increasingly outsourcing their IT infrastructure needs and opting for colocation space to focus on their core business operations and reduce operating costs.

Americas Data Center Market Drivers:

• Rising penetration of 5G technology

5G technology is expected to be launched during the forecast period, which is further anticipated to increase the volume of internet traffic and the requirement for the storage of digital data. This is expected to supplement the data center colocation market growth with an increasing amount of data that will be required to be stored in the cloud, and firms with a limited capacity will demand colocation services to meet the growing demand effectively.

• Increasing need for data security compliance

By industry vertical, data security compliance and the requirement for huge data storage are the key aspects of technology deployment in the banking and financial services industry. The industry requires analyzing huge volumes of customer data from different sources to provide efficient and customer-centric services. The BFSI sector is witnessing growth worldwide, and enterprises are constantly upgrading their existing IT infrastructure while moving on to the latest solutions. In developing economies such as Brazil and Mexico, there is a renewed focus on social integration

• The demand for retail colocation is rising

By the colocation model, the market is segmented into retail and wholesale colocation models, which are offered by different colocation service providers. Retail colocation accounts for the major market, while wholesale colocation providers have started focusing on short-term deals to remain competitive. Retail colocation service providers have modified their existing strategy to meet the challenges arising from wholesale colocation solution providers. These providers are purchasing a lot of space from wholesale colocation providers and then selling it to small and medium enterprises catering to another segment of small customers. Additionally, the retail colocation service providers are catering to big companies’ additional requirements

Americas Data Center Market Geographical Outlook

• The United States is expected to grow rapidly during the forecast period.

In the United States, technology and innovation have been advancing rapidly. The introduction of advanced networking technologies accompanying the upcoming sixth-generation (6G) networks is expected to make the implementation of the Industrial Internet of Things (IIoT) easier. Operators have a strong interest in Virginia and the Southeast in general. They invest much money to increase their market share and presence in this region. Oregon, Idaho, Utah, and California are part of the fully developed colocation market in the Western U.S. region. Numerous data center locations in these states provide colocation services to nearby businesses and organizations.

Americas Data Center Market Developments:

• In January 2023, construction started on a new facility for US data center operator EdgeCore Digital Infrastructure in Santa Clara, California. According to the company, the first of two planned data centers has officially started construction on the intersection of Juliet Lane and Laurelwood Road. The two-story SV01 will provide 36 Megawatts and 255,200 square feet of space.
• In March 2022, the colocation business Telehouse opened its sixth data center in London Docklands, stating that once it is fully operational, it will be the largest facility in the world. The company has spent £223 million renovating the structure, originally the location of a Thomson Reuters data center. This has a 2MW power capacity and can accommodate up to 668 racks; an expansion to 2.7MW for an extra data hall is planned by the end of 2023

Americas Data Center Key Market Segmentation:

Americas data centre colocation Market is segmented and analyzed as below:

• By Colocation Model
  • Retail Colocation
  • Wholesale Colocation
• By End Users
  • Small
  • Medium
  • Large
• By Industry Vertical
  • Banking and Financial Services
  • Manufacturing
  • Communication and Technology
  • Healthcare
  • Energy
  • Government
  • Media and Entertainment
  • Others
• By Geography
  • United States
  • Canada
  • Mexico
  • Brazil
  • Argentina
  • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

• • 2.1. Research Design
  • 2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. AMERICAS DATA CENTRE COLOCATION MARKET BY COLOCATION MODEL

5.1. Introduction

5.2. Retail Colocation

5.3. Wholesale Colocation

6. AMERICAS DATA CENTRE COLOCATION MARKET BY END-USERS

6.1. Introduction

6.2. Small

6.3. Medium

6.4. Large

7. AMERICAS DATA CENTRE COLOCATION MARKET BY INDUSTRY VERTICAL

7.1. Introduction

7.2. Banking and Financial Services

7.3. Manufacturing

7.4. Communication and Technology

7.5. Healthcare

7.6. Energy

7.7. Government

7.8. Media and Entertainment

7.9. Others

8. AMERICAS DATA CENTRE COLOCATION MARKET BY GEOGRAPHY

8.1. Introduction

8.2. United States

8.3. Canada

8.4. Mexico

8.5. Brazil

8.6. Argentina

8.7. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Equinix, Inc.

10.2. Apollo (Rackspace Technology)

10.3. Telehouse

10.4. Verizon Partner Solutions

10.5. SoftLayer (IBM Cloud)

10.6. Fidelity Investments and Eight Roads (Colt Technology Services Group Limited)

10.7. EQT Partners and Digital Colony (Zayo Group, LLC)

10.8. Brookfield (Cyxtera Technologies, Inc.)

10.9. Coresite An American Tower Company

10.10. Unitas Global LLC (Internap Holding LLC)

Equinix, Inc.

Apollo (Rackspace Technology)

Telehouse

Verizon Partner Solutions

SoftLayer (IBM Cloud)

Fidelity Investments and Eight Roads (Colt Technology Services Group Limited)

EQT Partners and Digital Colony (Zayo Group, LLC)

Brookfield (Cyxtera Technologies, Inc.)

Coresite An American Tower Company

Unitas Global LLC (Internap Holding LLC)