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Data Center Colocation Market Research, Size, Share And Demand Analysis By 2033
Data Center Colocation Market
Data Center Colocation Global Market Report 2024 by The Business Research Company offers comprehensive market insights, empowering businesses with a competitive edge. It includes detailed estimates for numerous segments and sub-segments, providing valuable strategic guidance.
The Market Size Is Expected To Reach $124.15 billion In 2028 At A CAGR Of 14.9% :
The data center colocation market size has grown rapidly in recent years. It will grow from $62.46 billion in 2023 to $71.27 billion in 2024 at a compound annual growth rate (CAGR) of 14.1%. The growth in the historic period can be attributed to cost efficiency and scalability needs, focus on core business functions, disaster recovery and business continuity, globalization and data accessibility, regulatory compliance requirements.
The data center colocation market size is expected to see rapid growth in the next few years. It will grow to $124.15 billion in 2028 at a compound annual growth rate (CAGR) of 14.9%. The growth in the forecast period can be attributed to edge computing growth, rise in internet of things (IoT) deployments, sustainability and green data centers, increased demand for managed services. Major trends in the forecast period include modular and prefabricated data centers, integration of 5G technology, AI and machine learning for data center optimization, increased interconnectivity services, focus on disaster recovery and business continuity.
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Data Center Colocation Market Major Segments
The data center colocation market covered in this report is segmented -
1) By Type: Retail Colocation, Wholesale Colocation
2) By Enterprise Size: Large Enterprise, Small Scale Enterprise
3) By End-User: BFSI, IT And Telecom, Government And Defense, Healthcare, Other End Users
Key Driver - The Cost Efficiency Surge In Data Center Colocation Services
The high cost of an in-house data center is encouraging companies to adopt data center colocation services which in turn is propelling the demand for the data center colocation market. Colocation services result in significant cost savings as compared to managing an in-house data center. For instance, the average annual cost of operating a large data center ranges from $10 million to $25 million. With data center colocation services, companies can reduce their spending on managing and maintaining an in-house server, which in turn reduces the overall IT expenditure of the companies. Therefore, the high cost of an in-house data center is increasing the demand for the data center colocation market growth.
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Prominent Trend - The Impact Of Underwater Data Centers On Colocation Markets
The introduction of the underwater data center is shaping the data center colocation market. The underwater data center is designed to use renewable electricity from tides and waves. It occupies less land onshore and is capable of using the flowing seawater to efficiently cool the electronics. In January 2021, Beijing Highlander Digital Technology Co, a China-based marine electronic technology products firm, and Guangzhou Shipyard International Co, a China-based shipbuilding enterprise, together introduced an underwater data center that involves the installation of internet facilities such as servers in airtight pressure vessels with the required cooling performance under the surface of the ocean. This underwater data center helps in reducing the amount of energy that is consumed and acts as a sustainable data center solution.
Data Center Colocation Market Players
Major companies operating in the data center colocation market report are AT&T Inc., China Telecom Corporation Limited, NTT Ltd., Fidelity National Information Services Inc., DuPont Fabros Technology Inc., Element Critical, Global Switch Limited, Equinix Inc., Iron Mountain Incorporated, Digital Realty Trust Inc., Rackspace Technology Inc., Zayo Group Holdings Inc., CyrusOne Inc., CoreSite Realty Corporation, Sungard AS, Cyxtera Technologies Inc., Switch Ltd., QTS Realty Trust Inc., EdgeConneX Inc., Aligned Energy LLC, Netrality Data Centers Inc., Evoque Data Center Solutions, 365 Data Centers, Stream Data Centers, Compass Datacenters LLC, ServerFarm LLC, Digital Fortress Inc., RagingWire Data Centers Inc., DataBank Inc., Sabey Data Centers LLC, Telecity Group plc, Verizon Communications Inc.
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Largest And Fastest Growing Region In The Market
North America was the largest region in the data center colocation market in 2023. The regions covered in the data center colocation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The Table Of Content For The Market Report Include:
1. Executive Summary
2. Data Center Colocation Market Report Structure
3. Data Center Colocation Market Trends And Strategies
4. Data Center Colocation Market - Macro Economic Scenario
5. Data Center Colocation Market Size And Growth
…..
27. Data Center Colocation Market Competitor Landscape And Company Profiles
28. Key Mergers And Acquisitions
29. Future Outlook and Potential Analysis
30. Appendix
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