Multi-tenant Data Center Market Report 2026

The multi-tenant data center market size has grown rapidly in recent years. It will grow from $58.86 billion in 2025 to $65.24 billion in 2026 at a compound annual growth rate (CAGR) of 10.8%. The growth in the historic period can be attributed to rising demand for outsourced IT infrastructure, increasing enterprise focus on cost reduction, growth in internet traffic and connectivity needs, expansion of disaster recovery requirements, adoption of virtualization in shared environments.

The multi-tenant data center market size is expected to see rapid growth in the next few years. It will grow to $99.35 billion in 2030 at a compound annual growth rate (CAGR) of 11.1%. The growth in the forecast period can be attributed to increasing adoption of hybrid cloud strategies, growing investments in edge and regional data centers, rising demand for scalable interconnection services, stricter regulatory requirements for data security, expansion of digital services across industries. Major trends in the forecast period include colocation and rack space expansion, high-density power and cooling optimization, enhanced physical security and compliance services, growth in cross-connect and interconnection demand, adoption of modular data center components.

The rising demand for cloud computing services is expected to propel the expansion of the multi-tenant data centre market going forward. Cloud computing services refer to the increasing adoption of internet-based computing resources such as servers, storage systems, and software applications. The growing demand for cloud computing services is driven by the ability of organizations to efficiently manage variable workloads and evolving data requirements. Multi-tenant data centres support this demand by offering scalable, cost-effective shared infrastructure that allows cloud providers to rapidly deploy and expand computing resources. For instance, in April 2025, according to the American Bar Association, a US-based professional organization, approximately 75% of attorneys reported using cloud computing for work-related activities, up from 69% in 2023 and around 70% in 2022. Therefore, the increasing demand for cloud computing services is driving the growth of the multi-tenant data centre market.

Leading companies in the multi-tenant data centre market are concentrating on technological advancements in liquid cooling systems such as high-efficiency liquid cooling solutions that enable higher server density. Liquid cooling systems refer to a technology used in data centres to remove heat from servers and IT equipment by circulating a cooling liquid through heat exchangers. For example, in July 2025, CoreSite Realty Corporation, a US-based multi-tenant colocation data center provider owned by American Tower, launched the SV9 data center facility in Santa Clara, California, which offers high-capacity, AI-ready infrastructure. This is designed to support multi-tenant colocation operations, and the facility delivers scalable power, high-density computing, and robust connectivity for AI, enhancing operational efficiency and infrastructure scalability for customers. The SV9 facility also strengthens CoreSite’s Silicon Valley campus by enabling direct interconnection with major cloud service providers and network operators, helping enterprises deploy latency-sensitive AI workloads while maintaining flexibility and cost efficiency.

In July 2023, Ubiquity Holdings, LLC, a US-based digital infrastructure investment and development company, acquired EdgePresence, Inc. for an undisclosed amount. Through this acquisition, Ubiquity Holdings aimed to accelerate the rollout of sustainable last-mile digital infrastructure by integrating localized edge data center facilities that deliver low-latency and secure computing capacity for carriers, hyperscalers, and network customers. EdgePresence, Inc. is a US-based provider of modular and build-to-suit edge data center infrastructure, including power and cooling systems.

Major companies operating in the multi-tenant data center market are Samsung Electronics Co. Ltd., AT&T Inc., Huawei Technologies Co. Ltd., China Telecom Corporation Limited, International Business Machines Corporation (IBM), Cisco Systems Inc., Intel Corporation, Oracle Corporation, Fujitsu Limited, Telefonaktiebolaget LM Ericsson, Nokia Corporation, HCL Technologies Limited, Equinix Inc., Digital Realty Trust Inc., ST Telemedia Global Data Centres, PCCW Global Inc., NTT Communications Corporation, Rackspace Technology Inc., Zayo Group Holdings Inc., Global Switch Limited.

Tariffs have influenced the multi-tenant data center market by raising costs for imported server hardware, cooling systems, power management equipment, and modular infrastructure components. The impact is strongest in solutions such as data center infrastructure management and energy monitoring, particularly in regions like Asia-Pacific and Europe that depend on global supply chains. Higher costs may slow expansion plans for large enterprises, while also encouraging local sourcing and domestic manufacturing. In some cases, tariffs create opportunities for regional providers to strengthen local supply networks and boost facility investments.

A multi-tenant data center refers to a shared facility operated by a third party where multiple organizations rent space, power, cooling, and network resources to house their IT equipment. It enables companies to benefit from professional data center infrastructure without high upfront capital expenditure by sharing physical resources with other tenants.

The primary components of multi-tenant data centers include solutions and services. Solutions refer to facilities and infrastructure designed to accommodate multiple organizations’ IT systems and networking equipment within a shared environment, delivering secure, scalable, and managed data storage and computing resources. These data centers are adopted across enterprises of varying sizes, including small and medium enterprises and large enterprises. The various applications involved include public cloud, private cloud, and hybrid cloud, while adoption spans end users such as information technology and telecommunication, banking, financial services, and insurance, healthcare, government and defense, manufacturing, retail, and other end users.

The multi-tenant data center market consists of revenues earned by entities by providing services such as colocation services, rack space leasing, power supply and management, cooling and thermal management, network connectivity services, cross-connect services, physical security services, and disaster recovery services. The market value includes the value of related goods sold by the service provider or included within the service offering. The multi-tenant data center market also includes sales of physical security systems, server and storage hardware, virtualization and management software, backup and disaster recovery appliances, monitoring and facility management tools, and modular data center components. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

The multi-tenant data center market research report is one of a series of new reports that provides multi-tenant data center market statistics, including multi-tenant data center industry global market size, regional shares, competitors with a multi-tenant data center market share, detailed multi-tenant data center market segments, market trends and opportunities, and any further data you may need to thrive in the multi-tenant data center industry. This multi-tenant data center market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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