Global Data Center Colocation Market is anticipated to achieve a market of US$108,612.767 million in 2026

Knowledge Sourcing Intelligence announces the publication of a new report on the Global Data Center Colocation Market from 2019 to 2026 to their offering.

The global data center colocation market is expected to grow at a compound annual growth rate of 13.84% over the analyzed period to reach a market size of US$108,612.767 million in 2026 from US$43,838.252 million in 2019.

Data Center Colocation is defined as a practice of outsourcing the in-house server equipment in the third-party data center.  It is a solution through which a colocation service provider can rent network or internet bandwidth, physical office spaces, and other resources within an existing data center in order to store their data storage equipment and other related devices. Apart from infrastructure and space, the colocation centers provide cooling & power components, physical security, and networking services required in the data centers. This helps the company in the data center management, operational strategies, risk management, and planning among others which are positively impacting the market demand of the data center colocation.

The enterprises are required to provide only storage devices and servers which reduce the additional overheads which are primarily driving the market demand by eliminating the capital expenditure associated with infrastructure, maintenance, power & cooling, and building for the data centers. Businesses are preferring outsourcing so they can utilize their data centers for more productive activities that contribute to the expansion of their business.

Data center colocation benefits the company by saving the capital expenditure. Other benefits include Uptime reliability, lower cost, easy scalability, fewer technical staff, and predictable monthly or yearly expenses. The data center colocation is built with high specifications for redundancy thus is often up and running in comparison to the private data centers. Various of the enterprise is focusing and offering emerging trends of the digital technology, cloud computing enforces the requirement of the data center colocation. The rising requirement of the resources, expansion strategies, IT department, disaster recovery methodologies, and delivery methods need the need of the data center colocation. The surge in the volume of data from OTT platforms and social media is driving the market demand of data center's colocation. The user of social media is expected to surge even further in the forecasted period which is further expected to augment the market growth of the data centers colocation market.

The most prominent trend in the data center colocation market is the green data centers. The surge in the concern regarding air pollution due to the emission of greenhouse gases (GHG) from industries is leading to a shift in the focus on achieving maximum energy efficiency globally. This rise in concern is leading to the growing popularity of green data centers that offer similar benefits and functionalities as the conventional facility but with minimized and optimize energy efficiency and lower electricity consumption. The adoption of ENERGY STAR-rated power supply systems, and energy-efficient heating, ventilation, and air conditioning (HVAC) equipment, centralized humidification systems, light-emitting diode (LED) lighting, routers, and servers, such facilities can be used to save a significant amount of energy thus resulting in various environmental benefits. The cost-effective services along with easy-to-use colocation are prompting the investment in the offering of the new services to the customers.

The data center colocation is segmented on the basis of the Colocation Model as wholesale and retail. While the data center colocation is segmented on basis of the End-User Industry as BFSI, Manufacturing, Communication & Technology, Government, Healthcare, Media & Entertainment, and Others. The data center colocation is segmented on basis of Enterprise Size as Small, Medium, and Large.

The retail colocation segment on the basis of the colocation model dominates the market. Retail allows the enterprise to rent space within the data center and offer various benefits such as flexibility in terms of infrastructure for the management of a small volume of data or requirement of infrastructure for a limited period.  Thus, generating higher revenue in the data center colocation market.  Retail is available at a lower cost which is beneficial for companies that do not have a restricted budget. Retail colocation is used by companies that do not deal with a large amount of data, have limited storage and limited time. While Wholesale is anticipated to grow at the fastest CAGR during the forecasted period on account of rising in the requirement for the data centers for an organization with broad customer bases and which is operating in multiple regions. Cloud service providers such as, Inc., and IBM have leased wholesale data centers in the U.S.

The outbreak of the covid-19 pandemic has a positive impact on the data center colocation market. The subsequent lockdown led to rise in internet usage, economic slowdown, and companies outsourcing the non-core operation to reduce the financial constraints. Thus, the companies are preferring third-party service providers for cost-cutting instead of the installation of new data centers due to the high initial cost. DuPont announced the acquisition in the early month of 2021 of Immediate, a provider of cloud, colocation and management services operating in South Carolina, North Carolina, Indiana, and Ohio with 8 data centers.

As a part of the report, the major players operating in the canned food market, which have been covered are Equinix Inc, Telehouse, Rackspace US Inc, Colt Technology Services Group Ltd., CenturyLink, Internap Corporation, Anexio Inc., and Zayo Group LLC

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This report segmented the global data center colocation market on the basis following terms

  • By Colocation Model
    • Wholesale
    • Retail
  • By End-User Industry
    • BFSI
    • Manufacturing
    • Communication and Technology
    • Government
    • Healthcare
    • Media and Entertainment
    • Others
  • By Enterprise Size
    • Small
    • Medium
    • Large
  • By Geography
    • North America
      • United States
      • Mexico
      • Canada
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • France
      • Spain
      • United Kingdom
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • South Africa
      • Others
    • Asia Pacific
      • China
      • Japan
      • India
      • South Korea
      • Others