The German Data Center Colocation market will witness a CAGR of 15.44% during the forecast period, reaching a total market size of US$3.233 billion in 2025 from US$1.366 billion in 2019. Germany is one of the major markets for data center colocation. The increasing cloud service providers and the information technology industry is boosting the data center colocation market in Germany. An increase in data generation every year is forcing many companies to double their on-premise storage from time to time. More companies are opting for the data center as it addresses their storage issues without substantial upfront costs. The data center colocation market is highly driven by advanced Information Technology (IT) infrastructure available in Germany. Growing data security concerns combined with the emergence of advanced technology and better telecommunication infrastructure within the country is also fueling the market growth of data center colocation in Germany.
The Germany Data Center Colocation market is segmented as a colocation model, enterprise size, and industry vertical. By the colocation model, the market is segmented into wholesale and retail. By enterprise size, the Germany Data Center Colocation market is segmented into small, medium, and large. By industry vertical, the market is classified as communication and technology, BFSI, government, healthcare, manufacturing, media and entertainment, and others.
Companies having big-budget and those who need more space for storing data are going for wholesale data center colocation. Small and medium are focusing on retail colocation model for hiring space for storing data. It helps small and medium enterprises to reduce operating costs and focus on their business as they do not need to invest in IT infrastructure. The rising number of smart hospitals in Germany owing to rising investments in digital healthcare infrastructure in the country. Increasing investments in communication and technology are boosting the market growth of data center colocation in Germany.