The United States colocation market is expected to grow at a CAGR of 11.97% over the forecast period to reach US$36.521 billion by 2027 from US$16.551 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. Major developed economies like the United States is witnessing a significant increase in their internet users owing to which it is actively involved in the establishment of laws & regulation relating to data protection. For instance, in June 2022, US Congress representatives 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 United States colocation market is segmented as small, medium, and large. The large enterprise is expected to grow at a significant rate during the forecast period of the United States colocation market, owing to the investments by the government for digitizing major sectors in the US such as healthcare.  For instance, 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.

Favorable government initiatives related to 5G deployment are positively impacting the colocation market growth in the United States. The adoption and Deployment of 5G have created a boom in the volume of data traffic thereby creating a shift by companies from the traditional on-premises data center to flexible and efficient colocation data center for enjoying a high level of security and operability during data processing. The United States government realizing the growing trend of 5G adoption is actively participating in the establishment of such technology in the country. For instance, in October 2020, US Federal Communication Commission announced funds of US$9 billion to boost the deployment of advanced 5G services in rural America. Such initiatives to promote 5G technology will boost colocation service demand in the United States for effective data handling and storage during the forecast period 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.

Covid-19 Impact on the United States Colocation Market

The lockdown restrictions to prevent the widespread COVID pandemic positively impacted the colocation services in the United States, as the widespread adoption of remote working, and increased reliance on the internet raised the need for colocation data centers for automation & remote monitoring.

United States 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