The global data center colocation market size reached US$ 57.5 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 120.3 Billion by 2028, exhibiting a growth rate (CAGR) of 12.6% during 2023-2028.
Data center colocation refers to a service that enables enterprises to rent physical space, network bandwidth and other computing resources within an existing data center. These data centers are equipped with in-built networking components, power backup facilities, information protocol (IP) system and cooling units and are usually available in retail and wholesale setups. In comparison to the traditionally used data centers, colocation data centers are more cost-effective, highly reliable, easily scalable, can be located near the users and require minimal technical staff. As a result, they find extensive applications across various industry sectors, such as banking, financial services and insurance (BFSI), healthcare, information technology (IT), manufacturing, energy, government and retail.
Data Center Colocation Market Trends:
Rapid digitization across industries, along with the increasing utilization of hybrid cloud computing and virtualization systems, is one of the key factors driving the growth of the data center colocation market. Data center colocation facilities are located away from the user premises and can be controlled remotely in case of disasters to secure the data. Furthermore, widespread adoption of reliable, scalable and secure infrastructure for efficient data recovery and business continuity requirements, is providing a thrust to the market growth. With the increasing number of small- and medium-sized enterprises (SMEs), especially in the developing economies, there is a substantial rise in the deployment of modular data centers to keep up with the rising network complexities. Other factors, including the growing demand for data storage facilities from the e-commerce industry, along with significant improvements in the IT infrastructure, are anticipated to drive the market further.
Key Market Segmentation:
IMARC Group provides an analysis of the key trends in each sub-segment of the global data center colocation market report, along with forecasts at the global, regional and country level from 2023-2028. Our report has categorized the market based on type, organization size and end use industry.
Breakup by Type:
Breakup by Organization Size:
Small and Medium Enterprises
Breakup by End Use Industry:
IT and Telecom
Entertainment and Media
Breakup by Region:
Middle East and Africa
The report has also analysed the competitive landscape of the market with some of the key players being AT&T Inc., CenturyLink Inc., China Telecom Corporation Limited, Coresite Realty Corporation, Cyrusone Inc., Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Global Switch Limited, Internap Corporation, KDDI Corporation, NTT Communications Corporation (Nippon Telegraph and Telephone Corporation) and Verizon Enterprise Solutions Inc.
Base Year of the Analysis
Type, Organization Size, End Use Industry, Region
Asia Pacific, Europe, North America, Latin America, Middle East and Africa
United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
AT&T Inc., CenturyLink Inc., China Telecom Corporation Limited, Coresite Realty Corporation, Cyrusone Inc., Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Global Switch Limited, Internap Corporation, KDDI Corporation, NTT Communications Corporation (Nippon Telegraph and Telephone Corporation) and Verizon Enterprise Solutions Inc.
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Key Questions Answered in This Report
The global data center colocation market was valued at US$ 57.5 Billion in 2022.
According to the estimates by IMARC Group, the global data center colocation market is expected to witness a CAGR of 12.6% during 2023-2028.
Rapid digitization across industries, along with the increasing utilization of hybrid cloud computing and virtualization systems represents one of the key drivers for the global data center colocation market.
The growing demand for data storage facilities from the e-commerce industry, along with significant improvements in the IT infrastructure represent some of the key trends in the global data center colocation market.
Sudden outbreak of the COVID-19 pandemic has led to the increase demand of data center colocation in healthcare sector to study the data of the patient and to mitigate the spread of the virus.
On the basis of the organization size, the market has been divided into small and medium enterprises, and large enterprises. Among these, large enterprises represent the largest segment.
On the basis of the end-use industry, the market has been segmented into BFSI, manufacturing, IT and telecom, energy, healthcare, government, retail, education, entertainment and media, and others. At present, the IT and telecom industry exhibits a clear dominance in the market.
Region-wise, the market has been classified into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America, where North America dominates the global market.
The key companies in the global data center colocation market are AT&T, Inc., CenturyLink Inc., China Telecom Corporation Limited, Coresite Realty Corporation, Cyrusone Inc., Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Global Switch Limited, Internap Corporation, KDDI Corporation, NTT Communications Corporation (Nippon Telegraph and Telephone Corporation) and Verizon Enterprise Solutions Inc.
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