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Global Multi-Tenant Data Center Market to Grow at 7.49% During 2022-2027, Spurred by Advent of Green Data Centers

Published on Oct 30, 2020

According to the latest report by IMARC Group, titled "Multi-Tenant Data Center Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027," the global multi-tenant data center market reached a value of US$ 31.2 Billion in 2021. A multi-tenant data center (MTDC) refers to a service that caters to multiple clients with a single software application. It enables multiple organizations to rent physical space for hosting their data, along with network bandwidth and other data center resources simultaneously. Also known as a colocation data center, it is operated by a third party that provides service at minimal costs by reducing the capital expenditures in data centers. Widely available in two formats, namely retail and wholesale colocation, its usage offers quick responses in competitive business processes while overcoming the challenge of hiring skilled employees for the same. Additionally, it provides elaborate integrations of the cloud with other applications with minimal maintenance requirements. Consequently, it is widely used across numerous industry verticals, including IT, defense, retail and manufacturing.

We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.

Global Multi-Tenant Data Center Market Trends:

The market is primarily driven by significant developments in data center facilities across the globe. The rising focus of enterprises on operational and business expansion activities on the global level has contributed to the growing demand for efficient data centers. This, in turn, has contributed to the escalating adoption of MTDCs by various organizations, thereby providing a thrust to the market growth. The market is further driven by the considerable increase in internet traffic and the utilization of software-defined data centers (SDDCs). Moreover, the growing applications of MTDCs in the healthcare sector is acting as another major growth-inducing factor. The industry is heavily dependent on cloud computing for managing electronic records of patient’s health and various other laboratory operations, which is facilitating the uptake of MTDCs. Furthermore, the introduction of green data centers is creating a positive outlook for the market significantly. This can be accredited to the growing awareness regarding the adverse effects of increasing carbon emission as a result of utilizing traditional data centers. Enhanced focus on sustainable development among the masses has, therefore, led to the growing adoption of these environment-friendly alternatives. Some of the other factors contributing to the market growth include considerable growth in the information technology (IT) sector and the significant improvements in the telecommunication infrastructure. On account of the aforementioned factors, the market is expected to grow at a CAGR of 7.49% during the forecast period (2022-2027).

Market Summary:

  • On the basis of the solution type, the market has been bifurcated into retail and wholesale colocation.
  • Based on the application, the market has been divided into public and private clouds.
  • On the basis of the organization size, the market has been classified into small and medium enterprises, and large enterprises.
  • Based on the end use industry, the market has been categorized into IT and telecom, BFSI, healthcare, government and defense, manufacturing, retail, and others.
  • On the geographical front, the market has been segregated into North America (the United States and Canada), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia and others), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia and others), Latin America (Brazil, Mexico and others), and Middle East and Africa.
  • The competitive landscape of the market has been studied in the report with the detailed profiles of the key players. Some of these players include AT&T Inc., CentriLogic Inc., CenturyLink, Inc., Digital Realty Trust, Inc., Equinix Inc., Fujitsu Limited (Furukawa Group), Global Switch Limited, HCL Technologies Limited, IBM Corporation, Internap Corporation, NTT Communications Corporation (Nippon Telegraph and Telephone Corporation), and Rackspace Technology Inc.

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