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Global Data Center Colocation Trends and Growth Opportunities

  • Report
  • 37 Pages
  • April 2022
  • Region: Global
  • Frost & Sullivan
  • ID: 5594674

Evolving Customer Needs and Technology Shifts Drive Future Growth Potential

Data centers represent the backbone of the digital economy. Enterprises and governments need to rely on best-in-class data centers and digital infrastructure in today's digital world. Enterprises increasingly outsource their data operations to third-party colocation services providers specializing in data center operations. The capability of colocation service providers to build scale in terms of physical space, adequate power supply, and cooling systems for servers and network connectivity backed by effective operations to ensure high SLAs boost enterprise confidence in outsourcing services.

Demand for data center colocation services is forecast to be fueled by the growing need for hyperscale capacity from public cloud providers, OTT content, and media segments. COVID-19 is accelerating the digital adoption journey of enterprises further, creating higher demand for storage and compute capabilities. While data center providers invest heavily to build new capacity to address demand, deployment of emerging technologies like artificial intelligence and machine learning also encourages service providers to invest in new data center designs to boost efficiencies. Competition in the industry is intensifying to address global demand from carrier-neutral and telecom service providers. While it is critical for service providers to invest in favorable locations, optimize energy costs, and provide best-in-class services, they also need to develop strategic differentiation in highly-competitive markets and align with global trends to enhance customer value. This report highlights the key trends shaping the global data center colocation services industry.

Table of Contents

1. Strategic Imperatives

  • Why Is It Increasingly Difficult to Grow?
  • The Strategic Imperative 8™
  • Impact of the Top 3 Strategic Imperatives on the Data Center Colocation Services Industry

2. Growth Opportunities Fuel the Growth Pipeline Engine™

  • Growth Opportunity Analysis
  • Growth Drivers
  • Growth Restraints

3. Colocation Trends

  • Key Trends Impacting the Data Center Colocation Services Industry
  • Focus on Building Scale to Address Hyperscale Demand
  • Designing Data Centers with High-Density Colocation Capabilities
  • Accelerated Focus on Edge Data Centers
  • Increasing Role of PE Firms and Wealth Funds in the Data Center Industry
  • AI Becoming Pivotal to Competitive Colocation Services
  • Regulatory Frameworks
  • Increasing Impact of Regulatory Frameworks

4. Growth Opportunity Universe

  • Growth Opportunity 1 - Development of Data Centers Offering Colocation Services
  • List of Exhibits
  • Legal Disclaimer