Data Center Colocation Market Set for Moderate Growth, To Reach USD 1,19,842 Million By 2027: Facts and Factors

According to the report, the global data center colocation market was valued approximately USD 36,329 million in 2018 and is expected to reach a value of around USD 1,19,842 million by 2027, at a CAGR of around 14.2% between 2019 and 2027.

There are two major types of data center colocation—retail and wholesale. Retail colocation centers are small spaces in large facilities with the option of installing IT equipment in racks and rows. Retail colocation center providers facilitate the management and distribution of space, physical power, cooling, support, and cabling services to SMEs. They also provide the management software to integrate cooling, IT rooms, and power for facilitating the management of data centers with ease. On the other hand, wholesale colocation centers are constructed colocation facility for large enterprises, which generally ranges from 10,000 to 20,000 square feet and can even be larger. Enterprises bear the cost of network connectivity, capacity, internal staff, and power. Wholesale colocation users benefit from economies of scale, due to reduced power and cooling costs in comparison to retail colocation centers. Wholesale colocation services are used by customers who require complete control and autonomy over the infrastructure along with having their own resources.

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Need for security, scalability, and reliability of infrastructure majorly driving the data center colocation market

Data colocation escalated the business potential by lowering operational costs and maximizing the focus on the core business. Thus, the rising awareness regarding carbon footprints reduction is majorly driving the data center colocation market. Additionally, the cost-effective solution for enterprises, as compared to storing their server at the premises that save room space requirement and cost of cooling and heating along with the need for IT expertise, are also fueling the data center colocation market.

Retail colocation centers are projected to dominate the type segment

Retail colocation centers are small spaces, in comparison to wholesale colocation centers, in large facilities that come with an installment option of IT equipment in racks and rows. The providers of retail colocation center handle the management and distribution of space, physical power, cooling, support, and cabling services. The main user of these retail colocation centers is SMEs. They also provide the management software to integrate cooling, IT rooms, and power for facilitating the management of data centers with ease. Thus, the retail colocation centers are likely to dominate the type segment of the data center colocation market in the years ahead.

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SMEs are likely to register the highest CAGR in the future

SMEs have fewer infrastructure autonomy requirements, as compared to large enterprises. Thus, they are increasingly adopting retail colocation services, as they provide SMEs with security and flexibility. This demand is likely to rise in the future, which will enable SMEs to register the highest CAGR in the data center colocation market over the estimated timeframe.

North America leads the global data center colocation market

In 2017, North America accounted for the largest share of the global data center colocation market, due to the presence of a large number of data centers across various regional industries. The U.S. is likely to register a notable CAGR in this regional market over the forecast time period, owing to the installation of energy-efficient infrastructure and procurement of renewable energy sources for facilities across the country.

Key players operating in the data center colocation market are Atlantech Online, Coreix Limited, Digital Realty Trust, Equinix, First Colo, H5 DATA CENTERS, Interoute Communications, Linxdatacenter, NextraOne, NTT Corporation, North Shore, RACKSPACE US, Sentinel Data Centers, Viettel, Red Level Networks, IBSCY Ltd., Sabey Data Center Properties, CYRUSONE, CE Colo, and ANEXIO, among others.

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This report segments the data center colocation market into:

Global Data Center Colocation Market: By Type

Retail
Wholesale

Global Data Center Colocation Market: By End-User

SMEs
Large Enterprises

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