With 14.4% CAGR, Data Center Colocation Market Size to Surpass US$ 172.36 Billion by 2030

Market Research Future Highlights

The data center colocation market is a segment of the data center industry that involves the leasing of physical space, power, and cooling infrastructure to companies that need to house their own servers and IT equipment. Colocation providers offer a range of services, including rack space, power, cooling, connectivity, and security, to ensure that customers’ IT infrastructure is housed in a secure and reliable environment.

The global data center colocation market was valued at USD 31.52 billion in 2020 and is projected to reach USD 172.36 billion by 2030, growing at a compound annual growth rate (CAGR) of 14.4% during the forecast period.

Key Players

The market is highly competitive and includes a mix of global and regional players.

Some of the key players in the data center colocation market include

• Equinix
• Digital Realty Trust
• NTT Communications
• CenturyLink
• CyrusOne
• Interxion

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Regional Analysis

The data center colocation market is a global market with significant regional variations in terms of demand, supply, and competitive landscape. The market is segmented into several regions, including North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

North America is the largest regional market for data center colocation, driven by the presence of several major colocation providers such as Equinix, Digital Realty Trust, and CyrusOne. The region is also home to a large number of technology companies that require high-performance and reliable data center services. The United States, in particular, is the largest market within North America and accounts for the majority of the region’s revenue.

Europe is another significant regional market for data center colocation, with countries such as the United Kingdom, Germany, and France accounting for a significant share of the market. The region is characterized by a large number of colocation providers and a highly competitive landscape. Factors such as the growing demand for cloud-based services, increasing data traffic, and the need for low-latency connectivity are expected to drive the growth of the market in this region.

Asia Pacific is the fastest-growing regional market for data center colocation, driven by factors such as the rapid growth of the digital economy, increasing adoption of cloud-based services, and the growing demand for data storage and management solutions. The region is home to several emerging markets, including China, India, and Southeast Asia, which are expected to drive the growth of the market in the coming years.

Latin America and the Middle East & Africa are smaller regional markets for data center colocation, but they are expected to grow at a significant rate in the coming years. The growing demand for cloud-based services, increasing adoption of mobile devices, and the need for reliable data center services are expected to drive the growth of the market in these regions.

Overall, the regional analysis of the data center colocation market shows that the market is highly diverse and driven by a range of factors that vary by region. The growth of the market in each region is influenced by factors such as economic growth, technology adoption, and regulatory environment, among others.

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Market Segmentation

The data center colocation market is segmented on the basis of several factors, including type, industry vertical, and geography.

By type, the data center colocation market can be segmented into retail colocation and wholesale colocation. Retail colocation refers to the leasing of smaller spaces within a data center facility, typically ranging from a single server rack to several cabinets, and is designed for smaller businesses or those with limited IT infrastructure needs. Wholesale colocation, on the other hand, involves leasing larger spaces within a data center facility, typically with a minimum commitment of several hundred kilowatts of power, and is designed for larger businesses or those with more extensive IT infrastructure needs.

By industry vertical, the data center colocation market can be segmented into banking, financial services, and insurance (BFSI), healthcare, government and defense, IT and telecom, energy, retail, and others. The IT and telecom sector is the largest vertical within the data center colocation market, accounting for a significant share of the market revenue. Other sectors, such as BFSI and healthcare, are also significant users of data center colocation services, as they require high-performance and secure IT infrastructure to support their operations.

By geography, the data center colocation market can be segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Each region has its unique characteristics and growth drivers, as discussed earlier in this conversation.

Overall, the market segmentation of the data center colocation market helps in understanding the market trends, demand, and supply dynamics, and also enables service providers to target their offerings to specific customer segments and geographic regions.

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