Press release
Data Center Colocation Market: Skyrocketing Growth to $146.27 billion by 2029, Driven by Cost Efficiency, Scalability, and Evolving Technologies
Data Center Colocation Market
A Surge in the Global Adoption of Data Center Colocation Spurs Market Growth and Innovation
What Is The Projected Market Size Of The Global Data Center Colocation Market And Its Growth Rate?
Data Center Colocation market has seen a significant uptick over the years and is projected to continue growing:
• The market grew from $69.73 billion in 2024 to $78.74 billion in 2025, indicating a compound annual growth rate (CAGR) of 12.9% in the historic period.
• Growth attributes include cost efficiency, scalability, disaster recovery and business continuity, globalization and data accessibility, regulatory compliance requirements.
• Continued expansion is on the horizon with the market size forecasted to reach $146.27 billion in 2029, growing at a CAGR of 16.7%.
• Key growth drivers in the forecast period include edge computing growth, rise in internet of things (IoT) deployments, sustainability and green data centers, increased demand for managed services.
What Is Driving The Growth In The Data Center Colocation Market?
The high cost of managing an in-house data center is a major driver for the growth of the data center colocation market. Companies are finding cost savings by utilizing colocation services rather than maintaining their in-house servers. As an example, the average annual cost of operating a large data center ranges from $10 million to $25 million. Shifting to colocation services allows companies to significantly reduce their IT expenditure.
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Who Are the Key Players Driving Data Center Colocation Market Growth?
• AT&T Inc.
• China Telecom Corporation Limited
• NTT Ltd.
• 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
• Verizon Communications Inc.
What Are The Key Trends In The Data Center Colocation Market?
Emerging trends influencing the data center colocation market include:
• Adoption of modular and prefabricated data centers
• Integration of 5G technology
• Utilization of AI and machine learning for data center optimization
• Increased interconnectivity services
• Emphasis on disaster recovery and business continuity
What Are The Segments Of The Global Data Center Colocation Market?
The Data Center Colocation market is categorized by:
• Type: Retail Colocation, Wholesale Colocation
• Enterprise Size: Large Enterprise, Small Scale Enterprise
• End-User: BFSI, IT And Telecom, Government And Defense, Healthcare, Other End Users
Which Region Leads The Data Center Colocation Market?
North America was the largest region in the data center colocation market in 2024. The regions covered in the market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
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What Is Covered In The Data Center Colocation Market Global Market Report?
- Market Size Analysis: Analyze the Data Center Colocation Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Data Center Colocation Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Data Center Colocation Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Data Center Colocation Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.
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