US Data Center Colocation Market Trends, Growth, Industry Application and Future Technology 2025

The US data center colocation market is estimated to grow modestly at a CAGR of 12.9% during the forecast period. The US data center colocation market is attributing to the significant presence of some crucial providers offering data centers colocation facilities, such as CenturyLink, Equinix, and AT&T, Inc. in the country. CenturyLink's colocation services are available in more than 60 data centers located across the globe, which incorporates more than 2.5 million square feet of space around the world, enabling the company to effectively deliver their services to the client locations and support them to achieve a faster time to market. Each data center provides service level agreements (SLAs) for temperatures and humidity, structured cabling, and 100% power uptime SLA.

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The companies which are contributing to the growth of the US data center colocation market include AT&T, Inc., Equinix, Inc., Digital Realty Trust, Inc., IBM Corp., and Verizon Communications Inc.

Moreover, there are multiple data center clusters all over the US offering abundant colocation opportunities. The major colocation data center markets in the US include Los Angeles, New York, Washington DC Area, Chicago, and Bay Area. The US is well-linked to Asia-Pacific and Europe with submarine cables. Large carrier-neutral American data centers characterize advanced equipment and rich ecosystem that facilitates maximum uptime and connectivity to a large number of service providers. Energy is a major concern for data centers and the US has better coverage of the energy sector. This contributes to the rising number of data centers across the country.

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The market players are considerably contributing to the market growth by the adoption of various strategies including new product launch, merger, and acquisition, collaborations with government, funding to the start-ups and technological advancements to stay competitive in the market. For instance, in February 2019, Google has selected Equinix, Inc. for its Los Angeles area cable landing station (CLS) to support the Curie subsea cable system. It is the first subsea cable to Chile over the last 20 years.

US Data Center Colocation Market Segmentation

US Data Center Colocation Market by Solution Type

o Retail Colocation
o Wholesale Colocation

US Data Center Colocation Market by Verticals

o BFSI
o IT & Telecom
o Healthcare
o Government and Defense
o Others (Media and Entertainment)

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