Press release
Global Data Center Colocation Market Investment to Reach USD 216.37 Billion by 2031 - Arizton
Explore the Latest Industry Analysis Now: https://www.arizton.com/market-reports/global-data-center-colocation-market
Global Data Center Colocation Market Scope
Market Size by Investment 2031: USD 216.37 Billion
Market Size by Investment 2025: USD 88.91 Billion
CAGR - Investment (2025-2031):15.98%
Market Size Area (2031): 72.93 Million sq. feet
Power Capacity (2031):18,723 MW
Market Size - Revenue (2031): USD 175.52 Billion
Base Year:2021
Forecast Year:2026-2031
Market Segmentation: Colocation Service, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, Tier Standards, and Geography
Geographical Analysis: North America, Latin America, Western Europe, Nordic, Central & Eastern Europe, Middle East, Africa, APAC and Southeast Asia
Global Data Center Colocation Investment is Expanding Across Emerging Regional Markets
• U.S.: The Southeast is emerging as a major colocation market, expected to account for around 28% of market share as investment expands beyond established data center locations.
• Europe: More than $46.51 billion in colocation investment is expected, with Western Europe accounting for the largest share, followed by the Nordics and Central & Eastern Europe. The Nordic region continues to benefit from renewable power availability and natural free cooling.
• APAC: Southeast Asia is becoming an important investment market, while China continues to lead the region in colocation data center development.
• Africa: South Africa is expected to account for around 43% of investment share, while Nigeria and Kenya are gaining momentum as enterprise demand and connectivity infrastructure improve.
• Middle East: Geopolitical disruptions are increasing energy, freight, and infrastructure costs, putting additional pressure on data center development economics across the value chain.
• Latin America: The region is projected to attract $23.14 billion in cumulative colocation investment through 2031, with Brazil, Chile, and Mexico emerging as key investment markets.
Get detailed market forecasts, competitive benchmarking, and pricing trends: https://www.arizton.com/market-reports/global-data-center-colocation-market
AI Adoption Is Increasing Demand for High-Density Data Center Infrastructure
The rapid adoption of artificial intelligence (AI) is increasing demand for hyperscale data centers and AI-ready infrastructure, as more facilities are being designed to support high-density AI workloads. AI-focused hyperscale capacity is expected to nearly triple over the next five to six years, creating a growing need for data center capacity that can support these workloads. Europe is seeing stronger demand as enterprises expand their use of AI, cloud, and data-driven technologies, while Latin America is accelerating AI infrastructure investment through national initiatives and large-scale projects. Brazil's $4 billion National AI Plan, Colombia's $116 million National AI Policy, and Mexico's planned $1 billion NVIDIA-powered HPC and AI center highlight the growing investment in AI and data center infrastructure across the region.
Renewable Power Is Becoming More Important to Data Center Development
Renewable energy is also becoming a larger consideration as data center operators expand capacity and look to reduce environmental impact. Latin America is strengthening its position as a sustainable data center market, with Argentina, Chile, Colombia, and Mexico advancing clean energy targets that support future hyperscale projects. Colombia released more than 5 GW of grid connection capacity in 2025 for new solar and wind projects, while Argentina's proposed OpenAI-Sur Energy Stargate project connects AI infrastructure with dedicated renewable energy supply. The Nordic region is also attracting hyperscale investment through its renewable power base. Equinix's Stockholm facilities use 100% renewable energy, EcoDataCenter's Falun campus runs on wind and hydropower, and Amazon has 772 MW of contracted renewable energy capacity in Finland.
Cloud Growth Is Increasing Demand for Hyperscale and Colocation Capacity
The continued adoption of cloud computing services and applications is driving the development of large-scale hyperscale data centers and increasing demand for cloud connectivity. Colocation providers are seeing stronger demand for connectivity solutions as internet backbone and colocation infrastructure expand across key markets. Microsoft, Google, Oracle, and AWS remain among the leading cloud providers, alongside Alibaba Cloud, Tencent Cloud, OVHcloud, and IBM Cloud. Google's planned $40 billion investment in Texas through 2027 will expand its cloud and AI infrastructure footprint through new data center campuses in Armstrong and Haskell counties. The Haskell County facility is also planned alongside a solar and battery energy storage project, adding a sustainability component to the expansion.
Data Center Infrastructure Is Moving Toward Higher Resilience
• UPS Systems: Larger facilities are increasingly using >750 kVA UPS systems with N+1, N+N, and 2N redundancy, while smaller and hyperscale facilities may use lower-capacity and in-rack UPS solutions. Sify Technologies' Rabale facility uses N+N UPS, while KIO Networks' MEX 6 operates with a 900 kVA UPS system.
• Backup Generators: Generators remain essential where grid reliability and power stability are concerns, despite their carbon impact. Africa Data Centres' JHB1 provides 48 hours of generator-backed power, while Gulf Data Hub's Dubai facility uses a 16,000 kVA N+1 generator system with 24-hour backup fuel storage.
• Cooling Systems: Data centers are increasingly combining advanced cooling technologies, containment systems, and redundancy to improve thermal efficiency and reliability. Examples include water-cooled systems and cold aisle containment at NTT DATA's Ho Chi Minh City 1 facility, and N+1 direct evaporative cooling at Urbacon's DC5 facility.
Major Vendors in the Global Data Center Colocation Market
The report covers 246 vendors in the global data center colocation market, including major investors such as AirTrunk, Aligned Data Centers, CDC Data Centres, CloudHQ, Compass Datacenters, CyrusOne, DataBank, Digital Realty, EdgeConneX, Equinix, Global Switch, Iron Mountain, NTT DATA, QTS Realty Trust, STACK Infrastructure, ST Telemedia Global Data Centres (STT GDC), Switch, and Vantage Data Centers, among others.
What Key Findings Will Our Research Analysis Reveal?
• How big is the global data center colocation market?
• What is the growth rate of the global data center colocation market?
• What are the key trends in the global data center colocation market?
• What is the estimated market size in terms of area in the global data center colocation market by 2031?
• How much MW of power capacity is expected to reach the global data center colocation market by 2031?
Some of Ours Top Selling Market Reports
Global Data Center Market Landscape 2026-2031
https://www.arizton.com/market-reports/data-center-market-investment-forecast
Global Data Center UPS Market Landscape 2026-2031
https://www.arizton.com/market-reports/data-center-ups-market-size
About Arizton Advisory & Intelligence
Founded in 2017, Arizton Advisory & Intelligence delivers data-driven market research and strategic consulting that empowers clients to make informed decisions and drive growth. Combining quantitative and qualitative insights, we provide in-depth analysis across industries including Agriculture, Consumer Goods, Technology, Automotive, Healthcare, Data Centers, and Logistics. Recognized by top-tier media, our expert team transforms complex market data into actionable strategies, helping clients anticipate trends, seize opportunities, and stay ahead of the competition.
Contact Us
Mail: enquiry@arizton.com
Contact Us: https://www.arizton.com/contact-us
Website: https://www.arizton.com/
Call: +1 312-680-2940
Source: Arizton Advisory & Intelligence
This release was published on openPR.
Permanent link to this press release:
Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Global Data Center Colocation Market Investment to Reach USD 216.37 Billion by 2031 - Arizton here
News-ID: 4600592 • Views: …
More Releases from Arizton Advisory & Intelligence
Auto-ID Market to Hit $50.62 Billion by 2031: 2D Barcodes, AI Vision & GS1 Sunri …
Arizton's latest research identifies two technology trends reshaping the global Auto-ID and Labelling Solutions Market: the transition to 2D barcodes and GS1 Digital Links, and the growing adoption of AI-enabled Auto-ID solutions.
The global Auto-ID and Labelling Solutions Market is projected to reach USD 50.62 billion by 2031, supported by the transition from traditional 1D identification to 2D formats and the growing adoption of AI-enabled vision for identification, inspection, and monitoring…
Heat Pumps Set to Shape Europe's USD 58.67 Billion HVAC Market Through 2031 | Ar …
The Europe's HVAC market is entering a major heating transition as replacement of conventional heating systems increasingly overlaps with the expansion of heat pumps. According to Arizton, the Europe HVAC market was valued at USD 45 billion in 2025 and is expected to reach USD 58.67 billion by 2031, growing at a CAGR of 4.52% during the forecast period. New construction continues to generate equipment demand, while significant replacement and…
Maternity Apparel Market: What's Driving Moms Toward Rental and Resale?
Maternity Wear Used to Expire at Delivery - Not Anymore
For decades, maternity clothing carried an unspoken expiration date: useful for nine months, then packed away, resold at a loss, or forgotten in the back of a closet. That math is starting to look outdated. As more women return to work sooner, shop online, and think harder about value per wear, the maternity apparel market is being pulled toward garments -…
$240 Billion and Rising: Inside APAC's Next Hyperscale Data Center Wave | Arizto …
APAC is moving toward one of the largest hyperscale data center investment cycles globally, with the market increasingly defined by the scale of capital required and the infrastructure needed to support next-generation workloads. AI applications are pushing computing and rack-density requirements higher, while data sovereignty is strengthening the need for locally hosted capacity across national markets. Together, these factors are expanding both the demand for hyperscale capacity and the infrastructure…
More Releases for Data
Data Catalog Market: Serving Data Consumers
Data Catalog Market size was valued at US$ 801.10 Mn. in 2022 and the total revenue is expected to grow at a CAGR of 23.2% from 2023 to 2029, reaching nearly US$ 3451.16 Mn.
Data Catalog Market Report Scope and Research Methodology
The Data Catalog Market is poised to reach a valuation of US$ 3451.16 million by 2029. A data catalog serves as an organized inventory of an organization's data assets, leveraging…
Big Data Security: Increasing Data Volume and Data Velocity
Big data security is a term used to describe the security of data that is too large or complex to be managed using traditional security methods. Big data security is a growing concern for organizations as the amount of data generated continues to increase. There are a number of challenges associated with securing big data, including the need to store and process data in a secure manner, the need to…
HOW TO TRANSFORM BIG DATA TO SMART DATA USING DATA ENGINEERING?
We are at the cross-roads of a universe that is composed of actors, entities and use-cases; along with the associated data relationships across zillions of business scenarios. Organizations must derive the most out of data, and modern AI platforms can help businesses in this direction. These help ideally turn Big Data into plug-and-play pieces of information that are being widely known as Smart Data.
Specialized components backed up by AI and…
Test Data Management (TDM) Market - test data profiling, test data planning, tes …
The report categorizes the global Test Data Management (TDM) market by top players/brands, region, type, end user, market status, competition landscape, market share, growth rate, future trends, market drivers, opportunities and challenges, sales channels and distributors.
This report studies the global market size of Test Data Management (TDM) in key regions like North America, Europe, Asia Pacific, Central & South America and Middle East & Africa, focuses on the consumption…
Data Prep Market Report 2018: Segmentation by Platform (Self-Service Data Prep, …
Global Data Prep market research report provides company profile for Alteryx, Inc. (U.S.), Informatica (U.S.), International Business Corporation (U.S.), TIBCO Software, Inc. (U.S.), Microsoft Corporation (U.S.), SAS Institute (U.S.), Datawatch Corporation (U.S.), Tableau Software, Inc. (U.S.) and Others.
This market study includes data about consumer perspective, comprehensive analysis, statistics, market share, company performances (Stocks), historical analysis 2012 to 2017, market forecast 2018 to 2025 in terms of volume, revenue, YOY…
Long Term Data Retention Solutions Market - The Increasing Demand For Big Data W …
Data retention is a technique to store the database of the organization for the future. An organization may retain data for several different reasons. One of the reasons is to act in accordance with state and federal regulations, i.e. information that may be considered old or irrelevant for internal use may need to be retained to comply with the laws of a particular jurisdiction or industry. Another reason is to…
