North America Colocation Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Retail, Wholesale, Hybrid), And By Enterprise Size (Small, Medium, Large), By Industry Vertical (BFSI, Communication & Technology, Education, Healthcare, Media & Entertainment, Retail & E-commerce, Others), And By Country - Forecasts From 2022 To 2027

The North America colocation market is expected to grow at a CAGR of 11.71% over the forecast period to reach US$40.368 billion by 2027 from US$18.597 billion in 2020. The renting space provided by colocation facilities to business companies for servers and computing hardware enables them to remove in-house servers & data centers. The advanced data center technology access provided by colocation offers high security, continuity, and scalability for various applications and data systems. North American region consisting of major economies like the United States and Canada is witnessing a significant increase in their internet and digital technology users owing to which the government of such countries is actively involved in the establishment of laws & regulations relating to data protection. For instance, in June 2022, Canada’s Minister of Innovation, Science and Justice along with the Minister of Justice and Attorney General established the Digital Charter Implementation Act 2022 which aims to provide high security and transparency during the handling of personal information of Canadian by organizations. Furthermore, US Congress representatives, in June 2022, introduced American Data Privacy and Protection Act which aims to provide extra protection to sensitive data linked to any device or person. Such law establishment will surge the demand for colocation services owing to their high data security feature thereby boosting the market growth during the forecast period.

Based on enterprise size, the North America colocation market is segmented as a small, medium, and large. The large enterprise is expected to grow at a significant rate during the forecast period of the North America colocation market, owing to the investments undertaken by major North American countries such as the United States and Canada for digitizing their sectors.  For instance, in March 2022, Quebec’s Education Minister announced investments of US$10 million for two years to digitize Quebec’s education network. Furthermore, in June 2021, the US Department of Health and Human Services along with the Office of the National Coordinator of Human Health Technology announced an US$80 million Public Health Informatics & Technology Workforce Development Program for strengthening the United States public health Information technology.

Growing 5G deployment and government digital schemes are positively impacting the colocation market growth in the North American region. 5G deployment has increased the volume of data traffic which has made companies shift from the traditional on-premises data center to flexible and efficient colocation data centers for enjoying a high level of security and operability during data processing. To promote the usage of 5G technology necessary schemes, investments, and product launches are being undertaken by the countries in North America. For instance, Mexico’s America Movil, in February 2022, launched its 5G services in 18 major Mexico cities. Moreover, in October 2020, US Federal Communication Commission announced funds of US$9 billion to boost the deployment of advanced 5G services in rural America. Besides 5G promotion, digital schemes are being also undertaken, for instance, the Government of Canada, in August 2022, launched Digital Ambition 2022, which aims to digitize federal services and enhance cyber security and data privacy. Such developments will boost colocation service demand in North America for effective data handling, storage, and security thereby augmenting the market growth.

Recent Developments

• In September 2020, Flexential collaborated with American Tower to launch its remote data center namely “Flexential Local Edge Solution” which will provide colocation services and easy access to the FlexAnywhere™ platform, thereby establishing easy connectivity for edge applications.
• In July 2019, Option announced additional colocation coverage in its Equinix TR1, TR2, and TMX Markham data centers, which would enable its trading firm clients to avail of low-latency exchange feeds.

Covid-19 Impact on the North America Colocation Market

The lockdown restrictions to prevent the widespread of COVID-19 positively impacted the colocation services in the North American region, as the widespread adoption of remote working increased the reliance on the internet which raised the demand for colocation data centers from companies for automation & remote monitoring of employee’s work.

North America Colocation Market Scope:

Segmentation

• By Type
  • Retail
  • Wholesale
  • Hybrid
• By Enterprise Size
  • Small
  • Medium
  • Large
• By Industry Vertical
  • BFSI
  • Communication & Technology
  • Education
  • Healthcare
  • Media & Entertainment
  • Retail & E-commerce
  • Others
• By Country
  • United States
  • Canada
  • Mexico