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Data Center Colocation Market - Forecasts from 2024 to 2029

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    Report

  • 142 Pages
  • September 2024
  • Region: Global
  • Knowledge Sourcing Intelligence LLP
  • ID: 6014346
The global data center colocation market is estimated to be around US$84.135 billion in 2024 and is anticipated to grow to US$162.676 billion by 2029 at a CAGR of 14.10%.

The global data center colocation market is sure to witness rising growth, especially with the rise of internet usage worldwide. The global data center colocation market is also forecasted to rise as the demand for colocation in the healthcare industry has grown significantly worldwide. Furthermore, the rising incidents of cyber and phishing attacks across the globe can act as a major hindrance to market growth. The wholesale will attain a greater market share in the market's colocation model segment. In contrast, medium enterprises will grow significantly in the enterprise size category of the market.

A colocation facility is a type of facility that refers to renting out space in a data center. The colocation center allows companies to rent equipment, bandwidth, and space for computing services. The market for data centers is being driven by the increasing use of cloud services, which have taken a growing portion of data center usage. At the same time, colocation or in-house systems have maintained a somewhat constant supply.

As the increasing applications of 5G, wearable devices, the Internet of Things, and artificial intelligence continue to create a booming need for processing capacity, larger enterprises are looking to scale out their data centers to ensure the stability and dependability of data services. The trend is visible across the world. For instance, as per JLL, a global real estate firm, India's colocation data center industry is expected to double by the end of 2023.

The colocation of data centers is being fueled by as many public sector organizations as possible in India that use colocation services for their operations. For instance, in September 2022, Power Grid Corporation India Ltd and Tele India Datacenter, also known as "Datasamudra," India's first ON-DEMAND and ON-REQUIREMENT data center based in Bangalore, offering globally aligned colocation, hosting & cloud services, signed a Memorandum of Understanding to pool their resources to enhance user experience. Additionally, in May 2022, US colocation provider Cyxtera began offering colocation services in India owing to its strategic partnership with SifyTechnologies Limited.

Global Data Center Colocation Market Drivers:

  • Increasing use of the internet across the globe.
One of the major driving factors for the global data center colocation market is estimated to be the expansion of global internet usage. With the expansion of global internet usage, data creation is forecasted to expand across the globe. The population of individuals using the internet worldwide has witnessed a massive increase, majorly with the introduction of new technologies like 5G, IoT, and AI, among others.
The International Telecommunication Union (ITU), in its global statistics, stated that in 2021, about 62% of the global population had access to the internet, which was about 4.9 billion individuals. This number increased to about 5.1 billion, or about 64% of the total global population. The total number of individuals using the internet in the globe increased to about 5.4 billion, or about 67% of the total population.

Global Data Center Colocation Market Geographical Outlook

  • North America is anticipated to hold a significant share of the Global Data Center Colocation Market.
The data center colocation market has been classified by geography into North America, South America, Europe, the Middle East and Africa (MEA), and the Asia Pacific. The number of data centers in various states across the US provides valuable insights into the data center colocation market growth. The concentration of data centers in specific states signifies a robust industry within those regions. With 239 data centers, California stands out as a prominent hub for data center infrastructure. Texas follows closely with 185 data centers, indicating a substantial presence within the state. Florida, New York, and Virginia also exhibit many data centers, with 113, 106, and 100, respectively. These figures suggest a growing demand for data center infrastructure and indicate potential opportunities for colocation services. The states with higher numbers of data centers may present a favorable market for colocation providers, as businesses in those regions seek to outsource their data center needs to specialized facilities. Additionally, the concentration of data centers in certain states, such as Virginia's Ashburn area, signifies a thriving ecosystem for data centers, further promoting the growth of the data center colocation market in the US.

Reasons for buying this report::

  • Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, other sub- segments.
  • Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
  • Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape up future market developments.
  • Actionable Recommendations: Utilize the insights to exercise strategic decision to uncover new business streams and revenues in a dynamic environment.
  • Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.

What do businesses use our reports for?

Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence

Report Coverage:

  • Historical data & forecasts from 2022 to 2029
  • Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
  • Competitive Positioning, Strategies, and Market Share Analysis
  • Revenue Growth and Forecast Assessment of segments and regions including countries
  • Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

The Global Data Center Colocation Market is segmented and analyzed as follows:

  • By Colocation Model
    • Wholesale
    • Retail
  • By Enterprise Size
    • Small
    • Medium
    • Large
  • By End-User Industry
    • Communication and Technology
    • Manufacturing
    • Government
    • Healthcare
    • BFSI
    • Media and Entertainment
    • Others
  • By Geography
    • North America
      • United States
      • Mexico
      • Canada
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • United Kingdom
      • Germany
      • France
      • Spain
      • Italy
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • UAE
      • Others
    • Asia Pacific
      • China
      • Japan
      • India
      • South Korea
      • Taiwan
      • Thailand
      • Indonesia
      • Others

Table of Contents

1. INTRODUCTION
1.1. Market Overview
1.2. Market Definition
1.3. Scope of the Study
1.4. Market Segmentation
1.5. Currency
1.6. Assumptions
1.7. Base and Forecast Years Timeline
1.8. Key benefits for the stakeholders
2. RESEARCH METHODOLOGY
2.1. Research Design
2.2. Research Process
3. EXECUTIVE SUMMARY
3.1. Key Findings
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
4.5. Analyst View
5. GLOBAL DATA CENTER COLOCATION MARKET BY COLOCATION MODEL
5.1. Introduction
5.2. Wholesale
5.3. Retail
6. GLOBAL DATA CENTER COLOCATION MARKET BY ENTERPRISE SIZE
6.1. Introduction
6.2. Small
6.3. Medium
6.4. Large
7. GLOBAL DATA CENTER COLOCATION MARKET BY END-USER INDUSTRY
7.1. Introduction
7.2. Communication and Technology
7.3. Manufacturing
7.4. Government
7.5. Healthcare
7.6. BFSI
7.7. Media and Entertainment
7.8. Others
8. GLOBAL DATA CENTER COLOCATION MARKET BY GEOGRAPHY
8.1. Introduction
8.1. North America
8.1.1. By Colocation Model
8.1.2. By Enterprise Size
8.1.3. By End-User Industry
8.1.4. By Country
8.1.4.1. United States
8.1.4.2. Canada
8.1.4.3. Mexico
8.2. South America
8.2.1. By Colocation Model
8.2.2. By Enterprise Size
8.2.3. By End-User Industry
8.2.4. By Country
8.2.4.1. Brazil
8.2.4.2. Argentina
8.2.4.3. Others
8.3. Europe
8.3.1. By Colocation Model
8.3.2. By Enterprise Size
8.3.3. By End-User Industry
8.3.4. By Country
8.3.4.1. United Kingdom
8.3.4.2. Germany
8.3.4.3. France
8.3.4.4. Spain
8.3.4.5. Italy
8.3.4.6. Others
8.4. Middle East and Africa
8.4.1. By Colocation Model
8.4.2. By Enterprise Size
8.4.3. By End-User Industry
8.4.4. By Country
8.4.4.1. Saudi Arabia
8.4.4.2. UAE
8.4.4.3. Others
8.5. Asia Pacific
8.5.1. By Colocation Model
8.5.2. By Enterprise Size
8.5.3. By End-User Industry
8.5.4. By Country
8.5.4.1. China
8.5.4.2. Japan
8.5.4.3. India
8.5.4.4. South Korea
8.5.4.5. Taiwan
8.5.4.6. Thailand
8.5.4.7. Indonesia
8.5.4.8. Others
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Market Share Analysis
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Competitive Dashboard
10. COMPANY PROFILES
10.1. Equinix Inc.
10.2. Telehouse
10.3. Rackspace US Inc.
10.4. Colt Technology Services Group Ltd.
10.5. Zayo Group LLC
10.6. NTT Communications
10.7. Cyxtera Technologies
10.8. SaskTel
10.9. eStruxture
10.10. Centrilogic
10.11. Hut 8
10.12. Vantage
10.13. RackBank

Companies Mentioned

Some of the key companies profiled in this Global Data Center Colocation Market report include:
  • Equinix Inc.
  • Telehouse
  • Rackspace US Inc.
  • Colt Technology Services Group Ltd.
  • Zayo Group LLC
  • NTT Communications
  • Cyxtera Technologies
  • SaskTel
  • eStruxture
  • Centrilogic
  • Hut 8
  • Vantage
  • RackBank

Methodology

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Table Information