04-09-2025 09:28 AM CET |
Press release from: Insightace Analytic Pvt Ltd.
Data Center Colocation Market
InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the "Global Data Center Colocation Market- (By Colocation Service (Retail Colocation and Wholesale Colocation), By Infrastructure (Electrical Infrastructure, Mechanical Infrastructure, and General Construction), By Cooling Techniques (Air-based Cooling and Liquid-based Cooling) By End-user (Retail, BFSI, IT & Telecom, Healthcare, Media & Entertainment and Others) Trends, Industry Competition Analysis, Revenue and Forecast To 2031."
According to the latest research by InsightAce Analytic, the Global Data Center Colocation Market is valued at US$ 31.9 Bn in 2023, and it is expected to reach US$ 58.4 Bn by 2031, with a CAGR of 8.04% during the forecast period of 2024-2031.
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The data center colocation market, a key segment within the broader information technology sector, involves organizations leasing space in shared data center facilities to house their computing infrastructure-such as servers-instead of managing privately owned data centers. This market is experiencing substantial growth, primarily driven by the escalating costs associated with owning and maintaining dedicated data centers, as well as the increasing complexity of managing fluctuating data volumes.
The adoption of advanced technologies-including cloud computing, the Internet of Things (IoT), autonomous vehicles, and robotics-is further contributing to the demand for colocation services. As these technologies evolve, the need for low-latency data processing and real-time connectivity continues to rise, particularly due to the growing use of smart devices.
Furthermore, the widespread deployment of smart technologies is expected to significantly increase the demand for high-speed data transmission and enhanced connectivity, positioning colocation data centers as critical infrastructure. The market is also expected to benefit from the increasing preference for cloud-based data centers, which offer a cost-efficient alternative to on-premises solutions. Enhanced operational efficiency, rapid technological advancements, and favorable government policies are additional factors poised to drive the continued growth of the global data center colocation industry.
List of Prominent Players in the Data Center Colocation Market:
•China Telecom Corporation Ltd.
•Cologix
•Colt Technology Services Group Ltd.
•CoreSite
•CyrusOne
•Cyxtera Technologies, Inc.
•Digital Realty Trust
•Equinix, Inc.
•Flexential
•Iron Mountain Inc.
•NTT Ltd.
•QTS Realty Trust, LLC
•Rackspace Technology
•Telehouse
•Zayo Group, LLC
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Market Dynamics
Drivers:
The global demand for data center colocation services is being driven by the increasing need for scalable data management solutions, particularly in response to the exponential growth of data across industries. Colocation services provide organizations with access to advanced technological infrastructure without the substantial capital investment required to develop and maintain proprietary data centers. Key factors contributing to this market growth include the rising adoption of cloud computing, accelerated digital transformation initiatives, and the growing need to enhance data security while adhering to stringent regulatory frameworks. Moreover, colocation services support low-latency performance by enabling closer proximity to end-users, thereby reducing operational costs and enhancing service delivery.
Challenges:
Despite its growth potential, the data center colocation market faces several challenges. High initial capital requirements for establishing state-of-the-art colocation facilities-incorporating advanced cooling systems, robust security infrastructure, and compliance mechanisms-pose significant barriers. Operational complexity and the ongoing cost of maintaining compliance with evolving data protection and environmental regulations further exacerbate these challenges. Additionally, the rapid pace of technological advancement necessitates frequent infrastructure upgrades, which can deter businesses from expanding their colocation investments. A general lack of awareness regarding the benefits and operational processes of colocation services also limits broader market adoption.
Regional Trends:
North America is expected to dominate the data center colocation market, both in terms of revenue share and projected compound annual growth rate (CAGR). This growth is fueled by the region's expanding number of data centers, accelerating digital transformation, and the strong presence of leading colocation service providers. The region also benefits from a robust digital infrastructure and advanced industrial ecosystem. Meanwhile, Europe holds a significant market share, driven by the increasing deployment of data centers, the availability of comprehensive colocation solutions, and the surge in data traffic volumes. These trends are contributing to the widespread adoption of colocation services across the region.
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Recent Developments:
•In February 2024, Bridge Data Centres International Pte Ltd joined forces with the Singaporean firm Red Dot Analytics Pte Ltd in a strategic alliance to further BDC's aims in data center resilience, energy efficiency, and sustainability through the use of RDA's data center Digital Twin AI technology..
•In March 2024, CoreSite, a division of American Tower Corporation and a frontrunner in hybrid IT solutions announced its certification as an NVIDIA DGX-Ready Data Center. This means it can now host high-performance, scalable infrastructure for companies that want to take advantage of the increasing demand for AI, ML, and other high-density applications.
Segmentation of Data Center Colocation Market-
By Colocation Services
•Retail Colocation
•Wholesale Colocation
By Infrastructure
•Electrical Infrastructure
oUPS Systems
oGenerators
oTransfer Switches & Switchgear
oPDUs
oOthers
•Mechanical Infrastructure
oCooling Systems
CRAC & CRAH Units
Chiller Units
Cooling Towers, Condensers & Dry Coolers
Economizers & Evaporative Coolers
Other
oRacks
oOthers
•General Construction
oCore & Shell Development
oInstallation & Commissioning Services
oEngineering & Building Design
oFire Detection & Suppression
oPhysical Security
oDCIM/BMS Solutions
By Cooling Techniques
•Air-based Cooling
•Liquid-based Cooling
By End-user
•Retail
•BFSI
•IT & Telecom
•Healthcare
•Media & Entertainment
•Others
By Region
North America-
•The US
•Canada
•Mexico
Europe-
•Germany
•The UK
•France
•Italy
•Spain
•Rest of Europe
Asia-Pacific-
•China
•Japan
•India
•South Korea
•South East Asia
•Rest of Asia Pacific
Latin America-
•Brazil
•Argentina
•Rest of Latin America
Middle East & Africa-
•GCC Countries
•South Africa
•Rest of the Middle East and Africa
About Us:
InsightAce Analytic is a market research and consulting firm that enables clients to make strategic decisions. Our qualitative and quantitative market intelligence solutions inform the need for market and competitive intelligence to expand businesses. We help clients gain competitive advantage by identifying untapped markets, exploring new and competing technologies, segmenting potential markets and repositioning products. Our expertise is in providing syndicated and custom market intelligence reports with an in-depth analysis with key market insights in a timely and cost-effective manner.
Contact us:
InsightAce Analytic Pvt. Ltd.
Visit: www.insightaceanalytic.com
Tel : +1 551 226 6109
Asia: +91 79 72967118
info@insightaceanalytic.com
This release was published on openPR.
