Press release
Data Centre Colocation Market 2025 | Driving Growth, AI Integration & Global Investment Trends
Data Centre Colocation Market
Data Centre Colocation Market size reached US$ 39.9 billion in 2022 and is expected to reach US$ 58.8 billion by 2031, growing with a CAGR of 6.3% during the forecast period 2024-2031.
Key Development:
United States: Recent Colocation & Data Centre Investments
✅ In July 2025, investment firms KKR and Energy Capital Partners launched a $4 billion data centre campus near Dallas, Texas (190 MW) to meet booming AI infrastructure demand.
✅ In August 2025, EdgeConneX broke ground on a $440 million colocation facility ("AUS02") in Bastrop County, Texas, as part of a larger data campus; it's expected to deliver up to ~96 MW per building.
✅ In June-August 2025, U.S. data centre construction spending reached a record $40 billion annually, up ~28% year-over-year, driven by major tech firms (Amazon, Microsoft, Google, Meta) pushing AI/hyperscale capacity.
Japan: Recent Colocation & Data Centre Developments
✅ In January 2025, EdgeConneX secured a land lease with Kagoya Asset Management to build a 200+ MW data centre campus in the Greater Osaka-Kyoto area, targeted for ready-for-service in 2027.
✅ In May 2025, ESR and STACK began construction on KIX01A, the first facility (72 MW campus) in Keihanna, Japan, expanding capacity toward meeting regional AI and cloud demands.
✅ In mid-2025, Japan's government launched its "Watt-Bit Collaboration" strategy to co-locate AI data centres with clean energy & develop policy frameworks to ensure energy infrastructure keeps up with data centre growth.
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Data Centre Colocation is a service model where businesses rent space within a third-party data center facility to host their servers, networking equipment, and storage systems. These facilities provide essential infrastructure such as power supply, cooling, physical security, and high-speed connectivity, allowing companies to benefit from reliable and scalable IT operations without building their own data centers. Colocation supports cost efficiency, business continuity, and flexibility, making it a key solution for enterprises, cloud providers, and digital service operators.
Key Players:
Equinix, Inc., CenturyLink, CyrusOne, China Telecom Corporation Limited, Digital Realty Trust (DuPont Fabros Technology), Telehouse (KDDI), NTT Communications, China Unicom, Global Switch Corporation and Teraco Data Environments.
Growth Forecast Projected:
The Global Data Centre Colocation Market is anticipated to rise at a considerable rate during the forecast period, between 2024 and 2031. In 2023, the market is growing at a steady rate, and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.
Research Process:
Both primary and secondary data sources have been used in the global Data Centre Colocation Market research report. During the research process, a wide range of industry-affecting factors are examined, including governmental regulations, market conditions, competitive levels, historical data, market situation, technological advancements, upcoming developments, in related businesses, as well as market volatility, prospects, potential barriers, and challenges.
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Key Segments:
By Type: Retail Data Centre Colocation, Wholesale Data Centre Colocation
By End-User: Banking, Financial Services, and Insurance (BFSI), IT and Telecom, Healthcare, Government and Defence, Others
Regional Analysis for Data Centre Colocation Market:
⇥ North America (U.S., Canada, Mexico)
⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)
⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)
⇥ South America (Colombia, Brazil, Argentina, Rest of South America)
⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)
Benefits of the Report:
Chapter 1: Sets the stage by outlining the report's coverage, summarizing key market segments by region, product type, and application. Presents a snapshot of market sizes, growth potential across segments, and anticipated industry evolution both short and long term.
Chapter 2: Highlights pivotal market insights and uncovers the most significant emerging trends driving change within the industry.
Chapter 3: Offers an in-depth look at the competitive landscape among Data Centre Colocation producers, including revenue shares, strategic moves, and recent mergers and acquisitions.
Chapter 4: Presents comprehensive profiles of the market's key players, delving into details such as revenue, profit margins, product portfolios, and company milestones.
Chapters 5 & 6: Analyze Data Centre Colocation revenue at both regional and country levels, providing quantitative breakdowns of market sizes, growth opportunities, and development prospects worldwide.
Chapter 7: Focuses on different market segments by type, examining their individual sizes and potential, guiding readers toward high-impact, untapped market areas.
Chapter 8: Explores segmentation by application, evaluating industry growth potential in various downstream markets and pinpointing promising sectors for expansion.
Chapter 9: Provides a thorough review of the industry's supply chain mapping out both upstream and downstream activities.
Chapter 10: Concludes with a summary of the report's key findings and highlights the most critical takeaways for industry stakeholders.
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FAQ
What is the current size of the Data Centre Colocation Market?
A: In 2022, the Data Centre Colocation Market was valued at US$ 39.9 billion, reflecting its strong industry presence.
Q2: How large is the Data Centre Colocation Market expected to be by 2031?
A: By 2031, industry forecasts suggest the Data Centre Colocation Market will grow to around US$ 58.8 billion, demonstrating significant expansion.
Q3: What is the growth rate of the Data Centre Colocation Market?
A: The market is projected to expand at a compound annual growth rate (CAGR) of 6.3% during the forecast period from 2024 to 2031.
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