report-image

Global Data Center Colocation Market Size, Industry Analysis By Segmentations, Top Key Players, Trends, Future Development & Forecast 2024-2035

  • PUBLISHED ON
  • 10/11/2022
  • NO OF PAGES
  • 252
  • CATEGORY
  • Information Technology

Market Overview:

The global data center colocation market size was valued at USD 48.08 billion in 2022, and is projected to reach at USD 204.71 billion by 2032 at a CAGR of 15.0% from 2022 to 2032.

Data center colocation is a service that allows businesses to rent space in a data center facility to host their servers and other IT infrastructure. The facility is owned and managed by a third-party service provider that provides the necessary power, cooling, and connectivity to ensure that the hosted equipment is always available and running efficiently. One of the primary advantages of data center colocation is that it allows businesses to outsource the management and maintenance of their IT infrastructure, which can be a costly and time-consuming task. By renting space in a data center, businesses can focus on their core operations and leave the technical details to the service provider. Data center colocation also offers a high degree of scalability, as businesses can easily add or remove equipment as needed without having to invest in new facilities or infrastructure. In addition, data centers are typically designed to be highly secure, with multiple layers of physical and digital security measures in place to protect against unauthorized access and cyberattacks.

Data center colocation is used by a wide range of businesses across various industries, including e-commerce, finance, healthcare, and more. It is particularly useful for businesses that require high levels of uptime and reliability, such as those that rely on e-commerce or financial transactions. The adoption of data center colocation has been steadily increasing in recent years, as businesses recognize the benefits of outsourcing their IT infrastructure. According to a report by Grand View Research, the global data center colocation market was valued at $48.22 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 12.9% from 2021 to 2028.

The increasing demand for outsourcing IT infrastructure management and the need for high uptime and reliability are driving the growth of the data center colocation market.

Data center colocation refers to the practice of leasing data center space from a third-party provider. This allows businesses to outsource their IT infrastructure management, including servers, storage, networking equipment, and other computing resources. The provider typically offers a range of services, including power and cooling, security, and connectivity, allowing businesses to focus on their core operations without worrying about managing their own data centers. One of the primary drivers of the data center colocation market is the increasing demand for outsourcing IT infrastructure management. Many businesses are realizing the benefits of colocation, including cost savings, scalability, and improved reliability. By outsourcing their IT infrastructure to a colocation provider, businesses can reduce their capital expenditures, avoid the costs of maintaining their own data centers, and scale their computing resources up or down as needed.

Another driver of the market is the need for high uptime and reliability. Downtime can be costly for businesses, leading to lost revenue, productivity, and customer satisfaction. Colocation providers typically offer high levels of uptime and reliability, backed by robust power and cooling infrastructure, redundant network connectivity, and skilled personnel to manage the data center environment.

Segmentation:

By Type

·         Retail Colocation

·         Wholesale Colocation

By Enterprise Size

·         Small-Medium Enterprises

·         Large Enterprises

 

Geography:

North America dominates the data center colocation market, followed by Europe and Asia-Pacific. The United States is the largest market for data center colocation services, driven by the presence of large technology companies and the need for high-speed connectivity and low-latency networks. Europe is also a significant market, with the UK, Germany, and the Netherlands among the largest markets in the region. The Asia-Pacific region is expected to grow rapidly due to the increasing demand for cloud services and the adoption of digital technologies in emerging economies such as China and India.

Impact of COVID-19 on the global Data Center Colocation Market:

The COVID-19 pandemic has had a significant impact on the data center colocation market. The pandemic has led to an increase in demand for digital services, including cloud computing, online collaboration, and e-commerce. As a result, businesses have had to rapidly adapt to new ways of working and delivering services, which has driven demand for colocation services. However, the pandemic has also led to disruptions in supply chains, construction delays, and staffing challenges for colocation providers, which has led to some short-term market uncertainty. Additionally, the pandemic has led to increased focus on business continuity and disaster recovery planning, which has driven demand for resilient colocation services with high levels of uptime and availability. Overall, the impact of COVID-19 on the data center colocation market has been mixed, with both positive and negative effects. However, the long-term outlook for the market remains positive, as businesses continue to adopt digital technologies and outsource their IT infrastructure to colocation providers in order to focus on their core operations.

Impact of the Russia-Ukraine War on the global Data Center Colocation Market:

The ongoing conflict between Russia and Ukraine has the potential to impact the data center colocation market in a number of ways. One of the main concerns is the disruption to internet connectivity, as the conflict could damage or destroy critical internet infrastructure, such as undersea cables, that provides connectivity to the region. In addition, the conflict could lead to increased political and economic instability in the region, which could impact the business environment and investment climate. This could lead to a slowdown in the adoption of digital technologies and a decrease in demand for colocation services in the affected regions. Furthermore, the conflict could also lead to increased geopolitical tensions and trade restrictions, which could impact the global data center colocation market. For example, if economic sanctions or trade restrictions are imposed on Russia, this could impact the ability of Russian colocation providers to do business with international customers, and could also impact the ability of international providers to operate in Russia.

Overall, the impact of the Russia-Ukraine conflict on the data center colocation market remains uncertain, but there is a potential for disruptions to internet connectivity, political and economic instability, and geopolitical tensions that could impact the market in both the short and long term.

Company Profiles:

·         Equinix

·         Digital Realty Trust

·         NTT Communications

·         China Telecom Global

·         Interxion

·         Global Switch

·         CyrusOne

·         GDS Holdings

·         CoreSite Realty Corporation

·         KDDI Corporation

·         ST Telemedia Global Data Centres

·         Iron Mountain Incorporated

·         Zayo Group Holdings

·         Cyxtera Technologies

·         Telehouse, a subsidiary of KDDI Corporation


Global Data Center Colocation Market: Regional Analysis
All the regional segmentation has been studied based on recent and future trends, and the market is forecasted throughout the prediction period. The countries covered in the regional analysis of the Global Data Center Colocation market report are U.S., Canada, and Mexico in North America, Germany, France, U.K., Russia, Italy, Spain, Turkey, Netherlands, Switzerland, Belgium, and Rest of Europe in Europe, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, China, Japan, India, South Korea, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), and Argentina, Brazil, and Rest of South America as part of South America.

Global Data Center Colocation Market: Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the size of the market and to estimate the size of various other dependent sub-markets of various marketspaces. The key players in the markets are identified through secondary research, and their market contributions in different applications across regions and globally were determined through primary and secondary research. This entire process included the study of the annual and financial reports of the top market players and extensive interviews for key insights with industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to arrive at the final quantitative and qualitative data. This data has been consolidated, and detailed inputs and analysis from Analytics Market Research added before being presented in this report.

Frequently Asked Questions
• What is the market size and growth projections?
• What is the market size and growth projection for each of the market segments and sub-segments across Countries & Regions?
• What are the top performing segments, and countries / regions of each of the markets?
• What is the market size and growth rate across key countries / regions?
• How big is the global & regional market in terms of revenue and volume?
• How far market will grow in forecast period in terms of revenue and volume?
• What factors will influence demand and supply trends across each markets during the forecast period?
• What are the technology trends shaping various markets?
• Which country / region has more opportunities?
• What is the COVID-19 impact on the market and how long will it take to recover?
• Who are the key competitors of market Players?
• What are the market share (%) of Key Players?
• What are the Merger & Acquisition, New Product Launch, Recent Development within each of the Markets?
• What are PEST analysis, Ecosystem Analysis, Porter's Five Forecast Analysis, Ansoff Matrix, and SWOT Analysis among other analyses for diverse markets?
Base Year: 2023
Historic Year: 2016-2022
Forecast: 2024-2035


1 Data Center Colocation Introduction and Market Overview
1.1 Objectives of the Study
1.2 Overview of Data Center Colocation
1.3 Data Center Colocation Market Scope and Market Size Estimation
1.3.1 Market Concentration Ratio and Market Maturity Analysis
1.3.2 Global Data Center Colocation Revenue and Growth Rate from 2016-2030
1.4 Market Segmentation
1.4.1 Types of Data Center Colocation
1.4.2 Applications of Data Center Colocation
1.4.3 Research Regions
1.5 Market Dynamics
1.5.1 Data Center Colocation Industry Trends
1.5.2 Data Center Colocation Drivers
1.5.3 Data Center Colocation Market Challenges
1.5.4 Data Center Colocation Market Restraints
1.6 Industry News and Policies by Regions
1.6.1 Industry News
1.6.2 Industry Policies
1.7 Mergers & Acquisitions, Expansion Plans
1.8 Data Center Colocation Industry Development Trends under COVID-19 Outbreak
1.8.1 Global COVID-19 Status Overview
1.8.2 Influence of COVID-19 Outbreak on Data Center Colocation Industry Development

2 Industry Chain Analysis
2.1 Upstream Raw Material Supply and Demand Analysis
2.1.1 Global Data Center Colocation Major Upstream Raw Material and Suppliers
2.1.2 Raw Material Source Analysis
2.2 Major Players of Data Center Colocation
2.2.1 Major Players Manufacturing Base of Data Center Colocation in 2020
2.2.2 Major Players Market Distribution in 2020
2.3 Data Center Colocation Manufacturing Cost Structure Analysis
2.3.1 Production Process Analysis
2.3.2 Manufacturing Cost Structure of Data Center Colocation
2.3.3 Labor Cost of Data Center Colocation
2.4 Market Channel Analysis of Data Center Colocation
2.5 Major Down Stream Customers by Application

3 Global Data Center Colocation Market, by Type
3.1 Global Data Center Colocation Revenue and Market Share by Type (2016-2021)
3.2 Global Data Center Colocation Production and Market Share by Type (2016-2021)
3.3 Global Data Center Colocation Revenue and Growth Rate by Type (2016-2021)
3.3.1 Global Data Center Colocation Revenue and Growth Rate of Retail Colocation
3.3.2 Global Data Center Colocation Revenue and Growth Rate of Wholesale Colocation
3.4 Global Data Center Colocation Price Analysis by Type (2016-2021)
3.4.1 Explanation of Different Type Product Price Trends

4 Data Center Colocation Market, by Application
4.1 Downstream Market Overview
4.2 Global Data Center Colocation Consumption and Market Share by Application (2016-2021)
4.3 Global Data Center Colocation Consumption and Growth Rate by Application (2016-2021)
4.3.1 Global Data Center Colocation Consumption and Growth Rate of Large Enterprises (2016-2021)
4.3.2 Global Data Center Colocation Consumption and Growth Rate of Small and Medium Enterprises (SME) (2016-2021)

5 Global Data Center Colocation Consumption, Revenue ($) by Region (2016-2021)
5.1 Global Data Center Colocation Revenue and Market Share by Region (2016-2021)
5.2 Global Data Center Colocation Consumption and Market Share by Region (2016-2021)
5.3 Global Data Center Colocation Consumption, Revenue, Price and Gross Margin (2016-2021)
5.4 North America Data Center Colocation Consumption, Revenue, Price and Gross Margin (2016-2021)
5.4.1 North America Data Center Colocation Market Under COVID-19
5.4.2 North America Data Center Colocation SWOT Analysis
5.5 Europe Data Center Colocation Consumption, Revenue, Price and Gross Margin (2016-2021)
5.5.1 Europe Data Center Colocation Market Under COVID-19
5.5.2 Europe Data Center Colocation SWOT Analysis
5.6 China Data Center Colocation Consumption, Revenue, Price and Gross Margin (2016-2021)
5.6.1 China Data Center Colocation Market Under COVID-19
5.6.2 China Data Center Colocation SWOT Analysis
5.7 Japan Data Center Colocation Consumption, Revenue, Price and Gross Margin (2016-2021)
5.7.1 Japan Data Center Colocation Market Under COVID-19
5.7.2 Japan Data Center Colocation SWOT Analysis
5.8 Middle East and Africa Data Center Colocation Consumption, Revenue, Price and Gross Margin (2016-2021)
5.8.1 Middle East and Africa Data Center Colocation Market Under COVID-19
5.8.2 Middle East and Africa Data Center Colocation SWOT Analysis
5.9 India Data Center Colocation Consumption, Revenue, Price and Gross Margin (2016-2021)
5.9.1 India Data Center Colocation Market Under COVID-19
5.9.2 India Data Center Colocation SWOT Analysis
5.10 South America Data Center Colocation Consumption, Revenue, Price and Gross Margin (2016-2021)
5.10.1 South America Data Center Colocation Market Under COVID-19
5.10.2 South America Data Center Colocation SWOT Analysis
5.11 South Korea Data Center Colocation Consumption, Revenue, Price and Gross Margin (2016-2021)
5.11.1 South Korea Data Center Colocation Market Under COVID-19
5.11.2 South Korea Data Center Colocation SWOT Analysis
5.12 Southeast Asia Data Center Colocation Consumption, Revenue, Price and Gross Margin (2016-2021)
5.12.1 Southeast Asia Data Center Colocation Market Under COVID-19
5.12.2 Southeast Asia Data Center Colocation SWOT Analysis

6 Global Data Center Colocation Production by Top Regions (2016-2021)
6.1 Global Data Center Colocation Production by Top Regions (2016-2021)
6.2 North America Data Center Colocation Production and Growth Rate
6.3 Europe Data Center Colocation Production and Growth Rate
6.4 China Data Center Colocation Production and Growth Rate
6.5 Japan Data Center Colocation Production and Growth Rate
6.6 India Data Center Colocation Production and Growth Rate

7 Global Data Center Colocation Consumption by Regions (2016-2021)
7.1 Global Data Center Colocation Consumption by Regions (2016-2021)
7.2 North America Data Center Colocation Consumption and Growth Rate
7.3 Europe Data Center Colocation Consumption and Growth Rate
7.4 China Data Center Colocation Consumption and Growth Rate
7.5 Japan Data Center Colocation Consumption and Growth Rate
7.6 Middle East & Africa Data Center Colocation Consumption and Growth Rate
7.7 India Data Center Colocation Consumption and Growth Rate
7.8 South America Data Center Colocation Consumption and Growth Rate
7.9 South Korea Data Center Colocation Consumption and Growth Rate
7.10 Southeast Asia Data Center Colocation Consumption and Growth Rate

8 Competitive Landscape
8.1 Competitive Profile
8.2 Interxion Holding NV Market Performance Analysis
8.2.1 Company Profiles
8.2.2 Data Center Colocation Product Profiles, Application and Specification
8.2.3 Interxion Holding NV Sales, Revenue, Price, Gross Margin 2016-2021
8.2.4 Company Recent Development
8.2.5 Strategies for Company to Deal with the Impact of COVID-19
8.3 Equinix Market Performance Analysis
8.3.1 Company Profiles
8.3.2 Data Center Colocation Product Profiles, Application and Specification
8.3.3 Equinix Sales, Revenue, Price, Gross Margin 2016-2021
8.3.4 Company Recent Development
8.3.5 Strategies for Company to Deal with the Impact of COVID-19
8.4 NTT Communications Market Performance Analysis
8.4.1 Company Profiles
8.4.2 Data Center Colocation Product Profiles, Application and Specification
8.4.3 NTT Communications Sales, Revenue, Price, Gross Margin 2016-2021
8.4.4 Company Recent Development
8.4.5 Strategies for Company to Deal with the Impact of COVID-19
8.5 Apple Market Performance Analysis
8.5.1 Company Profiles
8.5.2 Data Center Colocation Product Profiles, Application and Specification
8.5.3 Apple Sales, Revenue, Price, Gross Margin 2016-2021
8.5.4 Company Recent Development
8.5.5 Strategies for Company to Deal with the Impact of COVID-19
8.6 Alibaba Market Performance Analysis
8.6.1 Company Profiles
8.6.2 Data Center Colocation Product Profiles, Application and Specification
8.6.3 Alibaba Sales, Revenue, Price, Gross Margin 2016-2021
8.6.4 Company Recent Development
8.6.5 Strategies for Company to Deal with the Impact of COVID-19
8.7 Verizon Communication Ltd Market Performance Analysis
8.7.1 Company Profiles
8.7.2 Data Center Colocation Product Profiles, Application and Specification
8.7.3 Verizon Communication Ltd Sales, Revenue, Price, Gross Margin 2016-2021
8.7.4 Company Recent Development
8.7.5 Strategies for Company to Deal with the Impact of COVID-19
8.8 SunGuard Availability Services Market Performance Analysis
8.8.1 Company Profiles
8.8.2 Data Center Colocation Product Profiles, Application and Specification
8.8.3 SunGuard Availability Services Sales, Revenue, Price, Gross Margin 2016-2021
8.8.4 Company Recent Development
8.8.5 Strategies for Company to Deal with the Impact of COVID-19
8.9 CenturyLink Technology Solutions Market Performance Analysis
8.9.1 Company Profiles
8.9.2 Data Center Colocation Product Profiles, Application and Specification
8.9.3 CenturyLink Technology Solutions Sales, Revenue, Price, Gross Margin 2016-2021
8.9.4 Company Recent Development
8.9.5 Strategies for Company to Deal with the Impact of COVID-19
8.10 China Telecom Market Performance Analysis
8.10.1 Company Profiles
8.10.2 Data Center Colocation Product Profiles, Application and Specification
8.10.3 China Telecom Sales, Revenue, Price, Gross Margin 2016-2021
8.10.4 Company Recent Development
8.10.5 Strategies for Company to Deal with the Impact of COVID-19
8.11 Bridge Data Centres Market Performance Analysis
8.11.1 Company Profiles
8.11.2 Data Center Colocation Product Profiles, Application and Specification
8.11.3 Bridge Data Centres Sales, Revenue, Price, Gross Margin 2016-2021
8.11.4 Company Recent Development
8.11.5 Strategies for Company to Deal with the Impact of COVID-19

9 Global Data Center Colocation Market Analysis and Forecast by Type and Application
9.1 Global Data Center Colocation Market Revenue & Volume Forecast, by Type (2021-2026)
9.1.1 Retail Colocation Market Revenue and Volume Forecast (2021-2026)
9.1.2 Wholesale Colocation Market Revenue and Volume Forecast (2021-2026)
9.2 Global Data Center Colocation Market Revenue & Volume Forecast, by Application (2021-2026)
9.2.1 Large Enterprises Market Revenue and Volume Forecast (2021-2026)
9.2.2 Small and Medium Enterprises (SME) Market Revenue and Volume Forecast (2021-2026)

10 Data Center Colocation Market Supply and Demand Forecast by Region
10.1 North America Market Supply and Demand Forecast (2021-2026)
10.2 Europe Market Supply and Demand Forecast (2021-2026)
10.3 China Market Supply and Demand Forecast (2021-2026)
10.4 Japan Market Supply and Demand Forecast (2021-2026)
10.5 Middle East and Africa Market Supply and Demand Forecast (2021-2026)
10.6 India Market Supply and Demand Forecast (2021-2026)
10.7 South America Market Supply and Demand Forecast (2021-2026)
10.8 South Korea Market Supply and Demand Forecast (2021-2026)
10.9 Southeast Asia Market Supply and Demand Forecast (2021-2026)
10.10 Explanation of Market Size Trends by Region
10.11 Data Center Colocation Market Trends Analysis

11 New Project Feasibility Analysis
11.1 Industry Barriers and New Entrants SWOT Analysis
11.2 Analysis and Suggestions on New Project Investment

12 Expert Interview Record
13 Research Finding and Conclusion
14 Appendix
14.1 Methodology
14.2 Research Data Source
 

Quality Assurance Process

  1. We Market Research’s Quality Assurance program strives to deliver superior value to our clients.

We Market Research senior executive is assigned to each consulting engagement and works closely with the project team to deliver as per the clients expectations.

Market Research Process




We Market Research monitors 3 important attributes during the QA process- Cost, Schedule & Quality. We believe them as a critical benchmark in achieving a project’s success.

To mitigate risks that can impact project success, we deploy the follow project delivery best practices:
  • Project kickoff meeting with client
  • Conduct frequent client communications
  • Form project steering committee
  • Assign a senior SR executive as QA Executive
  • Conduct internal editorial & quality reviews of project deliverables
  • Certify project staff in SR methodologies & standards
  • Monitor client satisfaction
  • Monitor realized value post-project

Case Study- Automotive Sector

One of the key manufacturers of automotive had plans to invest in electric utility vehicles. The electric cars and associated markets being a of evolving nature, the automotive client approached Straits Research for a detailed insight on the market forecasts. The client specifically asked for competitive analysis, regulatory framework, regional prospects studied under the influence of drivers, challenges, opportunities, and pricing in terms of revenue and sales (million units).

Solution

The overall study was executed in three stages, intending to help the client meet its objective of precisely understanding the entire market before deciding on an investment. At first, secondary research was conducted considering political, economic, social, and technological parameters to get a gist of the various aspects of the market. This stage of the study concluded with the derivation of drivers, opportunities, and challenges. It also laid substantial emphasis on understanding and collecting data not only on a global scale but also on the regional and country levels. Data Extraction through Primary Research

The second stage involved primary research in which several market players and automotive parts suppliers were contacted to study their viewpoint concerning the development of their market and production capacity, clientele, and product line. This stage concluded in a brief understanding of the competitive ecosystem and also glanced through the strategies and pricing of the companies profiled.

Market Estimates and Forecast

In the final stage of the study, market forecasts for the electric utility were derived using multiple market engineering approaches. This data helped the client to get an overview of the market and accelerate the process of investment.

Case Study- ICT Sector

Business process outsourcing, being one of the lucrative markets from both supply- and demand- side, has appealed to various companies. One of the prominent corporations based out of Japan approached us with their requirements regarding the scope of the procurement outsourcing market for around 50 countries. Additionally, the client also sought key players operating in the market and their revenue breakdown in terms of region and application.


Business Solution

An exhaustive market study was conducted based on primary and secondary research that involved factors such as labor costs in various countries, skilled and technical labors, manufacturing scenario, and their respective contributions in the global GDP. A comparative study of the market was conducted from both supply- and demand side, with the supply-side comprising of notable companies, such as GEP, Accenture, and others, that provide these services. On the other hand, large manufacturing companies from them demand-side were considered that opt for these services.


Conclusion

The report aided the client in understanding the market trends, including country-level business scenarios, consumer behavior, and trends in 50 countries. The report also provided financial insights of crucial players and detailed market estimations and forecasts till 2028.


CHOOSE LICENSE TYPE
QLOUD
Pricing

Select a license type that suits your business needs

Single User Access

US $3950

Only Three Thousand Nine Hundred Fifty US dollar

  • 1 User access
  • 15% Additional Free Customization
  • Free Unlimited post-sale support
  • 100% Service Guarantee until achievement of ROI
Multi User Cost

US $4950

Only Four Thousand Nine Hundred Fifty US dollar

  • 5 Users access
  • 25% Additional Free Customization
  • Access Report summaries for Free
  • Guaranteed service
  • Dedicated Account Manager
  • Discount of 20% on next purchase
  • Get personalized market brief from Lead Author
  • Printing of Report permitted
  • Discount of 20% on next purchase
  • 100% Service Guarantee until achievement of ROI
Enterprise User Cost

US $5950

Only Five Thousand Nine Hundred Fifty US dollar

  • Unlimited User Access
  • 30% Additional Free Customization
  • Exclusive Previews to latest or upcoming reports
  • Discount of 30% on next purchase
  • 100% Service Guarantee until achievement of ROI