Global Data Center Colocation Market

As stated in our extensive report; the Global Data Center Colocation Market accounted for USD 50.1 Billion in the year 2021.

Data centers, which manage vital corporate applications, have become an integral aspect of contemporary business processes. Over time, IT infrastructure has become increasingly important for firms that want to operate successfully. Cloud and colocation services have become essential resources for many companies that need to expand their IT capabilities. The need for data centers has risen over the past several years.

Click To Get a Free Sample On the Research Study

Key factors influencing Data Center Colocation Market Growth

The growth of the global Data Center Colocation market can be attributable to the following:

  1. Data Center Colocation were a godsend for businesses needing speedy IT upscaling but needing more knowledge or financial resources. As a result, high costs associated with owning and operating a data center, especially for businesses that produce variable volumes of data, are anticipated to be a major factor in promoting market expansion.
  2. Customers can save money on capital expenses and other advantages provided by the colocation of data centers. According to research reports, owning or building a data center facility can cost more than USD 300 per square foot, in addition to installing the necessary fiber cable.
  3. For SMEs, handling a whole data center facility in-house comes at a hefty cost, but large-scale enterprises may easily cover this expense. One solution that provides SMEs with a practical and cost-effective option for renting data center space is data center colocation, which is anticipated to propel market expansion over the forecast period.
  4. The need for data centers and colocation services has increased due to the increasing volume of data from social media and Over-The-Top (OTT) platforms.
  5. Social media users are becoming increasingly active, exponentially increasing the data collected on these platforms. For instance, in 2020, there were roughly 2.74 billion monthly active Facebook users, up from 2.38 billion in 2019.
  6. The number of people using social media is predicted to increase even more in the upcoming years, which will increase demand for colocation facilities.
  7. The Covid-19 pandemic has also caused a rise in OTT and streaming service consumption, which has increased data volumes and is projected to drive market growth.
  8. Higher bandwidths and faster data processing are now more in demand due to the development of technologies like the Internet of Things (IoT), cloud computing, driverless vehicles, and advanced robotics.
  9. Lower latency and faster network connectivity are necessary to use these technologies effectively. Data Center Colocation are a good fit to meet these needs since the operators can place their data center facilities close to the users and provide better networking and storage services.
  10. The development of 5G is also anticipated to accelerate the spread of colocation services because it would allow colocation providers to offer services in remote areas.
  11. Because of their lower prices, cloud data centers are becoming increasingly popular, which is projected to restrain industry expansion. Cloud services are becoming increasingly popular among smaller businesses since they are scalable, affordable, don’t require an IT staff, and have lower overheads.
  12. Also, colocation facilities provide flexibility in terms of entire server control and long-term cost advantages. Because of these benefits, businesses are increasingly choosing colocation services. 

North America Region to Lead the Market

North America Data Center Colocation market is getting more significant with maximum market share during the forecast period. Due to the considerable presence of numerous major cloud service providers and SMEs establishing Data Center Colocation around the region, it is anticipated that the regional market will continue to grow at a significant CAGR during the projected period. Additionally, rising e-commerce sales in the United States foster regional market expansion. To determine client buying habits and product requests based on several categories, such as area, gender, and age group, retailers are extensively investing in their IT infrastructure to keep customer data.

A growing number of internet users throughout the area is expected to cause Asia Pacific to see the greatest CAGR during the projection period. The expansion of the market is also being aided by the presence of some of the biggest software businesses and IT BPO outsourcing service providers in the area. Additionally, as smart technology and appliances become more widely used, the volume of data generated has expanded, forcing businesses from various industries to set up data centers.


Rising Social Media Users positively influence the overall Data Center Colocation market.

Some of the key players in the Global Data Center Colocation Market include- China Telecom Corporation Limited (China), Coresite Realty Corporation (US), Cyrusone Inc. (US), Cyxtera Technologies Inc. (US), Digital Realty Trust Inc. (US), Equinix Inc. (US) and others.