Colocation Edge Data Center Industry Report 2025-2034: Market Dynamics, Trends, And Forecasts

The Colocation Edge Data Center Market Report by The Business Research Company delivers a detailed market assessment, covering size projections from 2025 to 2034. This report explores crucial market trends, major drivers and market segmentation by [key segment categories].

How Big Is the Colocation Edge Data Center Market Size Expected to Be by 2034?
In recent years, the colocation edge data center market has seen substantial growth. The market, which is projected to expand from $9.88 billion in 2024 to $12.44 billion in 2025, is anticipated to have a compound annual growth rate (CAGR) of 26.0%. The surge during the historic period is due to a myriad of factors such as increased digital transformation investment, the broadening application of cloud-based solutions, IT and telecom industry expansion, the launch of novel data center facilities, and the rise of online service utilization.

In the coming years, the market size of the colocation edge data center is projected to surge significantly, amassing a net worth of $31 billion in 2029, calculated at a compound annual growth rate (CAGR) of 25.6%. The predicted growth during this forecast period can be ascribed to the escalating adoption of 5G networks, a surge in edge data centers demand as a service, appetite for state-of-the-art technologies, increasing usage of cloud services, and an expansion in data centers and edge computing solutions. Key trends for this forecast period compose of a drive to enhance data handling and customer services, utilization of edge solutions, evolution of hybrid cloud infrastructure, elevated integration of cloud-based solutions, and the incorporation of sophisticated technologies into pre-existing systems.

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What Are the Emerging Segments Within the Colocation Edge Data Center Market?
The colocation edge data center market covered in this report is segmented -

1) By Type: Retail Colocation, Wholesale Colocation
2) By Application: Banking, Financial Services And Insurance (BFSI), Energy, Government And Defense, Healthcare, Information Technology And Telecom, Manufacturing, Retail, Other Applications
3) By End-Use: Small And Midsize Enterprise (SMEs), Large Enterprises

Subsegments:
1) By Retail Colocation: Single Rack Or Cabinet Leasing, Customized Space Solutions For Small To Medium Businesses, Managed Services With Colocation, Cloud Connectivity Solutions For Retail Colocation, Colocated Infrastructure For Enterprises And SMBs, Scalable And Flexible Rack Space Options
2) By Wholesale Colocation: Large-Scale Data Center Leasing, Dedicated Space For Large Enterprises And Service Providers, High-Density Colocation Solutions, Direct Connectivity To Cloud Providers, Customized Power, Cooling, And Rack Configurations, Cross-Connects And Interconnection Services For Wholesale Clients

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What Long-Term Drivers Are Shaping Colocation Edge Data Center Market Trends?
The escalation in the uptake of 5G network technology is anticipated to spearhead the expansion of the colocation edge data center market. 5G network technology, standing for the fifth generation of mobile network technology, signifies a notable evolution from its antecedents (2G, 3G, and 4G/LTE, or Long-Term Evolution). The integration of 5G is fuelled by the necessity for enhanced data velocities, diminished latency, and expanded network capacity, catering to the escalating necessities of IoT, streaming services, and burgeoning technologies such as autonomous vehicles and smart cities. Colocation edge data centers facilitate the wide-scale incorporation of 5G technology by bestowing low-latency, high-performance computing resources at the network edge. These establishments authorize edge computing, scalability, reliability, and IoT deployments, supplying the infrastructure requisite to completely exploit 5G networks. For example, in April 2023, as per 5G Americas, a US-based industry trade association, there was a 76% augmentation in global 5G wireless connections from the conclusion of 2021 to the conclusion of 2022, hitting a total of 1.05 billion connections. Hence, the escalating integration of 5G networks is bolstering the growth of the colocation edge data center market.

Who Are the Top Competitors in Key Colocation Edge Data Center Market Segments?
Major companies operating in the colocation edge data center market are Verizon Communications Inc., Dell Inc., Huawei Technologies Co. Ltd., NTT Communications Corporation, Hitachi Ltd., China Telecom Global Limited, International Business Machines Corporation, Cisco Systems Inc., KDDI Corporation, Schneider Electric SE, Fujitsu Limited, Hewlett Packard Enterprise Company, NVIDIA Corporation, NEC Corporation, Eaton Corporation PLC, Inventec Corporation, ASUSTeK Computer Inc., Singapore Telecommunications Limited, Equinix Inc., Vertiv Group Corporation, Super Micro Computer Inc., Digital Realty Trust Inc., Rackspace Inc., Arm Ltd., Inspur Co. Ltd., Arrcus Inc.

What Are the Latest Developing Trends in the Colocation Edge Data Center Market?
Key players in the colocation edge data center sector are redirecting their focus towards constructing advanced solutions specifically designed for certain applications, including high-density colocation for AI workloads, to maintain their industry lead. Such colocation services for AI workloads offer customized data center solutions that meet the strenuous computing and storage requirements of artificial intelligence applications, through the use of scalable infrastructure and intricate power control. An example of this was seen in October 2022, when US startup DCX, a newcomer in the data center industry, introduced itself as a brand centered around high-density colocation for AI workloads. DCX's goal is to meet the sophisticated needs of digital infrastructure. Their debut facility, DCX Goodyear 1, based in the Greater Phoenix area, is designed to support AI and machine learning (ML) applications. The facility is located in Goodyear, a rising data center hub in Phoenix, and sits on a six-acre campus featuring two operational suites that can handle up to six megawatts of power, with room for expansion up to 12 megawatts. Each data suite has a capacity range of 700 kW to 1 megawatt and is equipped with key infrastructure components like uninterrupted power supply (UPS) systems and waterless cooling systems.

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Which Regions Are Becoming Hubs for Colocation Edge Data Center Market Innovation?
North America was the largest region in the colocation edge data center market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the colocation edge data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Colocation Edge Data Center Market?
2. What is the CAGR expected in the Colocation Edge Data Center Market?
3. What Are the Key Innovations Transforming the Colocation Edge Data Center Industry?
4. Which Region Is Leading the Colocation Edge Data Center Market?

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