Dublin, Oct. 28, 2024 (GLOBE NEWSWIRE) — The “Global Data Center Colocation Market – Forecasts from 2024 to 2029” report has been added to ResearchAndMarkets.com’s offering.
The global data center colocation market is estimated to be around US$84.135 billion in 2024 and is anticipated to grow to US$162.676 billion by 2029 at a CAGR of 14.10%.
The global data center colocation market is sure to witness rising growth, especially with the rise of internet usage worldwide. The global data center colocation market is also forecasted to rise as the demand for colocation in the healthcare industry has grown significantly worldwide. Furthermore, the rising incidents of cyber and phishing attacks across the globe can act as a major hindrance to market growth. The wholesale will attain a greater market share in the market’s colocation model segment. In contrast, medium enterprises will grow significantly in the enterprise size category of the market.
A colocation facility is a type of facility that refers to renting out space in a data center. The colocation center allows companies to rent equipment, bandwidth, and space for computing services. The market for data centers is being driven by the increasing use of cloud services, which have taken a growing portion of data center usage. At the same time, colocation or in-house systems have maintained a somewhat constant supply.
As the increasing applications of 5G, wearable devices, the Internet of Things, and artificial intelligence continue to create a booming need for processing capacity, larger enterprises are looking to scale out their data centers to ensure the stability and dependability of data services. The trend is visible across the world. For instance, as per JLL, a global real estate firm, India’s colocation data center industry is expected to double by the end of 2023.
The colocation of data centers is being fueled by as many public sector organizations as possible in India that use colocation services for their operations. For instance, in September 2022, Power Grid Corporation India Ltd and Tele India Datacenter, also known as “Datasamudra,” India’s first ON-DEMAND and ON-REQUIREMENT data center based in Bangalore, offering globally aligned colocation, hosting & cloud services, signed a Memorandum of Understanding to pool their resources to enhance user experience. Additionally, in May 2022, US colocation provider Cyxtera began offering colocation services in India owing to its strategic partnership with SifyTechnologies Limited.
Global Data Center Colocation Market Drivers:
Increasing use of the internet across the globe.
One of the major driving factors for the global data center colocation market is estimated to be the expansion of global internet usage. With the expansion of global internet usage, data creation is forecasted to expand across the globe. The population of individuals using the internet worldwide has witnessed a massive increase, majorly with the introduction of new technologies like 5G, IoT, and AI, among others.
The International Telecommunication Union (ITU), in its global statistics, stated that in 2021, about 62% of the global population had access to the internet, which was about 4.9 billion individuals. This number increased to about 5.1 billion, or about 64% of the total global population. The total number of individuals using the internet in the globe increased to about 5.4 billion, or about 67% of the total population.
Global Data Center Colocation Market Geographical Outlook
North America is anticipated to hold a significant share of the Global Data Center Colocation Market.
The data center colocation market has been classified by geography into North America, South America, Europe, the Middle East and Africa (MEA), and the Asia Pacific. The number of data centers in various states across the US provides valuable insights into the data center colocation market growth. The concentration of data centers in specific states signifies a robust industry within those regions. With 239 data centers, California stands out as a prominent hub for data center infrastructure.
Texas follows closely with 185 data centers, indicating a substantial presence within the state. Florida, New York, and Virginia also exhibit many data centers, with 113, 106, and 100, respectively. These figures suggest a growing demand for data center infrastructure and indicate potential opportunities for colocation services. The states with higher numbers of data centers may present a favorable market for colocation providers, as businesses in those regions seek to outsource their data center needs to specialized facilities. Additionally, the concentration of data centers in certain states, such as Virginia’s Ashburn area, signifies a thriving ecosystem for data centers, further promoting the growth of the data center colocation market in the US.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 142 |
| Forecast Period | 2024 – 2029 |
| Estimated Market Value (USD) in 2024 | $84.14 billion |
| Forecasted Market Value (USD) by 2029 | $162.68 billion |
| Compound Annual Growth Rate | 14.1% |
| Regions Covered | Global |
Report Coverage:
- Historical data & forecasts from 2022 to 2029
- Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
- Competitive Positioning, Strategies, and Market Share Analysis
- Revenue Growth and Forecast Assessment of segments and regions including countries
- Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)
Some of the key companies profiled in this Global Data Center Colocation Market report include:
- Equinix Inc.
- Telehouse
- Rackspace US Inc.
- Colt Technology Services Group Ltd.
- Zayo Group LLC
- NTT Communications
- Cyxtera Technologies
- SaskTel
- eStruxture
- Centrilogic
- Hut 8
- Vantage
- RackBank
The Global Data Center Colocation Market is segmented and analyzed as follows:
By Colocation Model
By Enterprise Size
By End-User Industry
- Communication and Technology
- Manufacturing
- Government
- Healthcare
- BFSI
- Media and Entertainment
- Others
By Geography
- North America
- United States
- Mexico
- Canada
- South America
- Europe
- United Kingdom
- Germany
- France
- Spain
- Italy
- Others
- Middle East and Africa
- Asia Pacific
- China
- Japan
- India
- South Korea
- Taiwan
- Thailand
- Indonesia
- Others
For more information about this report visit https://www.researchandmarkets.com/r/e9i8sv
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- Global Data Center Colocation Market
