Businesses’ Digital Transformation, Content Consumption, and Advanced Technologies Fuel Growth in a Mature Market
The North American data center colocation services market is a mature yet growing market due to the constantly increasing demand for digital services and the continued availability of land, energy, and financial power. It has over 150 providers with a diverse footprint, customer focus (retail and hyperscaler), and capabilities. Some have a global reach. Competition varies by the local market, based on the number of competitors, available capacity, and target market.
Hyperscale demand, edge+5G convergence, and sustainability-related factors are the main trends moving the market. Northern Virginia - the most extensive data center market globally - keeps growing, with providers continuously planning projects for that area. Colocation providers report higher competitiveness at the regional and local levels, where countrywide footprints overlap with smaller, local companies. Competitiveness is likely to increase as market participants establish edge facilities in less saturated areas.
The publisher projects the North American data center colocation services market to record a 5.6% CAGR from 2020 to 2026.
