Data Center Colocation Market to Grow by CAGR of 13% Between 2019 And 2027
Data center colocation is a shared facility provided by the companies that offer to expand or consolidate the data center of the businesses for daily operations, situated outside the organization premises. The colocation companies provide safe and secure environment to the server and necessary hardware, related to data storage owing to its capacity to efficiently manage complexity and scalability of businesses. The center colocation market is anticipated to witness significant opportunities and is estimated to grow at a CAGR of around 13 % over the forecast period i.e. 2019-2027. This can be attributed to the ability of data center to provide data management solutions within the regulations and increase IT operational efficiency of the organizations. Moreover, external data center support businesses with increased uptime and solutions, along with managing risks in a cost-effective manner. The global data center colocation market is segmented by type, industry and region.
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Geographically, the data center colocation market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Among these regions, the market in North America holds the highest share owing to the presence of major players coupled with growing technological advancements leading to increase in number of data centers in the region. Additionally, the Asia Pacific market is expected to grow with highest growth rate owing to increased penetration of data centers across numerous sectors, along with, rising investments in R&D activities in the region.
Mergers of Colocation Centers to Drive the Market Growth
Mergers of colocation centers in order to save costs and raise the security levels by adhering to compliances, are anticipated to drive the growth of the market in near future. Moreover, data center colocation provides an efficient, effective and high bandwidth connectivity at significantly lower price. These are some of the notable factors that are estimated to support the growth of global data center colocation market in near future.
However, damage of hardware or loss of data, coupled with, the concerns related to inability of service providers to resolve IT issues in a timely manner are estimated to limit the adoption of data center colocations over the forecast period.
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This report also provides the existing competitive scenario of some of the key players of the data center colocation market which includes company profiling of key companies such as AT&T Inc. (NYSE: T), ANEXIO Inc., Cyxtera Technologies, Inc., Cogent Communications (NASDAQ: CCOI), Inc., Coreix Limited, First Colo GmbH, GTT Communications, Inc. (NYSE: GTT), Interxion (NYSE: INXN), Sentinel Data Centers and Sungard Availability Services.
The profiling enfolds key information of the companies which encompasses business overview, products and services, key financials and recent news and developments. Conclusively, the report titled “Global Data Center Colocation Market Outlook 2027”, analyses the overall data center colocation market industry to help new entrants to understand the details of the market. In addition to that, this report also guides existing players looking for expansion and major investors looking for investment in the global data center colocation market in the near future.
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