Market Analysis 

The global data colocation market share is predicted to touch USD 114.48 billion at a healthy 13.48% CAGR between 2020- 2030, states the recent Market Research Future (MRFR) analysis. Data center colocation, simply put, is a process to rent out network bandwidth, physical space, and other resources by a company in an existing data center. This process allows sharing the resources of the existing data center for hosting and deploying data center solutions for external organizations. Large scale and small scale are the different service types, while server and storage, cooling units, network hardware, and others are its different components. Owing to its alluring features and plentiful benefits, data colocation has wide applications in energy, government, healthcare, IT and telecom, banking and insurance, and others. 

Various factors are propelling the global data colocation market share. According to the recent MRFR report, such factors include the growing need for scalable data centers, increasing data center complexities, reduced overall IT expenditure, and growing adoption of online shopping. Additional factors adding market growth include the rise in smartphone users, the need to cut down operational cost and capital expenditure, availability of wide choices for small companies, full control of server, required power backup, and security of information. 

On the contrary, stringent government policies and regulations, location restraints for colocation facilities, high start-up and maintenance costs, and the on-going COVID-19 impact are factors that may limit the global data colocation market growth over the forecast period. 

Some of the key trends in the Data Colocation market include a focus on smaller and more flexible deployments, AI optimization, and a strong emphasis on green and sustainable data center solutions. Additionally, the use of edge computing and the increasing demand for hybrid cloud solutions are expected to drive further growth in the market. Overall, the Data Colocation market is expected to continue to experience strong growth in the coming years.

Key Players 

Leading players profiled in the global data colocation market report include American Telephone & Telegraph, Inc. (U.S.), DuPont Fabros Technology, Inc. (U.S.), Interxion Holding NV (Netherlands, Europe), Verizon Communication, Inc. (U.S.), KDDI Telehouse Corporation (Japan), Global Switch Corporation (UK), CoreSite Realty Corporation(U.S.), CenturyLink, Inc.(U.S.), SunGard Availability Services (U.S.), and Equinix, Inc. (U.S.). Industry players have incorporated strategies such as acquisitions, partnerships, mergers, joint ventures, collaborations, new product developments, strategic alliances, and contracts, among others, to stay at the forefront. 

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Market Segmentation

The MRFR report highlights an inclusive segmental analysis of the global data colocation market based on end users, components, and service type. 

By service type, the global data colocation market is segmented into large scale and small scale. Of these, the large scale segment will lead the market over the forecast period. 

By components, the global data colocation market is segmented into server and storage, cooling units, network hardware, and others. 

By end users, the global data colocation market is segmented into energy, government, healthcare, IT and telecom, banking and insurance, and others. Of these, the IT and telecom segment will dominate the market over the forecast period. 

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Regional Analysis

Based on the region, the global data colocation market report covers the growth opportunities and recent trends across the Asia Pacific (APAC), North America, Europe, and the Rest of the World (RoW). Of these, North America will have the lions share in the market over the forecast period. The growing number of data center needs in IT capacity, presence of top data center service providers, use of advanced infrastructural architecture, and the rising adoption from different industries including BFSI, government, and others are adding to the global data colocation market growth in the region. 

The global data colocation market in the APAC region is predicted to grow at a fast pace over the forecast period. The surging rise in data production and the booming telecom and IT sector is adding to the global data colocation market growth in the region. 

The global data colocation market in Europe is predicted to have sound growth over the forecast period. Increasing investments by top industry players are adding to the global data colocation market growth in the region.