Data Center Colocation Market
Data Center Colocation Market Forecasts to 2030 - Global Analysis By Type (Retail Colocation, Wholesale Colocation, Hybrid Colocation, Cloud Colocation and Other Types), Data Center Type, Service Model, Application, End User and By Geography
According to Stratistics MRC, the Global Data Center Colocation Market is accounted for $72.7 billion in 2024 and is expected to reach $169.9 billion by 2030 growing at a CAGR of 15.2% during the forecast period. Data center colocation is a service where businesses rent space in a third-party data center to house their servers, hardware, and networking equipment. Instead of building and maintaining their own facilities, companies can leverage the provider’s infrastructure, including power, cooling, security, and network connectivity. Colocation offers cost efficiency, scalability, and reliability while reducing the complexity of managing on-site data centers. It ensures high uptime, disaster recovery options, and access to advanced technology without the large upfront investment required for establishing an independent data center.
Market Dynamics:
Driver:
Growing demand for cloud computing
The increasing demand for cloud computing is significantly driving the growth of the market. Businesses are shifting to cloud-based solutions for scalability, cost efficiency, and flexibility. Colocation services provide secure, high-performance infrastructure to support cloud workloads, enabling enterprises to optimize resources without investing in on-site data centers. This shift toward hybrid and multi-cloud environments is accelerating market expansion, fostering innovation and competition in data center services.
Restraint:
Dependence on colocation provider
Dependence on colocation providers in the market can pose several risks. Businesses may face limited control over their infrastructure, resulting in slower response times for issue resolution. Vendor lock-in can restrict flexibility, making it challenging to switch providers or scale services. Additionally, security concerns arise if a provider experiences breaches or downtime, potentially compromising business operations. Such reliance could also lead to increased costs or operational inefficiencies.
Opportunity:
Expansion of internet penetration
The expansion of internet penetration is fueling growth in the market. As internet access broadens globally, more businesses and consumers demand reliable, high-speed services. This increased connectivity drives the need for secure, scalable data centers that can handle growing volumes of data and support digital transformation. Colocation providers are expanding to meet these demands, ensuring businesses can manage their infrastructure and data effectively across regions.
Threat:
Latency and connectivity issues
Latency and connectivity issues in the can significantly impact performance and user experience. High latency leads to slower data transfer and delays in real-time applications, hindering productivity. Connectivity problems between servers or data centers may cause downtime, disrupt services, or reduce network reliability. These issues can negatively affect customer satisfaction, damage business reputation, and lead to costly troubleshooting or service outages, particularly for time-sensitive operations.
Covid-19 Impact:
The COVID-19 pandemic accelerated the growth of the market as businesses shifted to remote work, increasing demand for cloud services and data storage. However, it also caused temporary disruptions due to supply chain challenges, delays in construction, and staffing shortages. Despite these obstacles, the surge in digital transformation, e-commerce, and data usage boosted the market, emphasizing the need for scalable, secure colocation services to support remote operations.
The enterprise data centers segment is expected to be the largest market share during the forecast period
The enterprise data centers segment is expected to account for the largest market share during the forecast period. While colocation services offer shared data center facilities, some enterprises prefer maintaining private data centers for better control, security, and customization. However, as businesses seek more cost-effective, scalable, and flexible solutions, there is a growing trend toward hybrid models. These combine the benefits of both private enterprise data centers and colocation services to optimize performance.
The healthcare segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the healthcare segment is predicted to witness the highest growth rate. Colocation provides scalable infrastructure, enhancing data storage, disaster recovery, and uptime for critical applications. With growing volumes of healthcare data from electronic health records and telemedicine, colocation helps ensure high availability, secure access, and efficient management of healthcare IT systems, improving overall service delivery and patient care.
Region with largest share:
During the forecast period, the North America region is expected to hold the largest market share due to increased demand for cloud computing, data storage, and high-performance computing. The region's strong digital infrastructure, combined with the rise of industries like e-commerce, healthcare, and finance, drives this growth. Colocation services offer scalable solutions, cost efficiency, and improved security, making them attractive to businesses seeking to optimize IT resources while ensuring reliability and compliance with regional regulations.
Region with highest CAGR:
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR. The rapid shift towards cloud computing services is a primary catalyst, as businesses seek scalable and flexible infrastructure solutions. Enterprises across various sectors are modernizing their IT infrastructure, increasing the demand for reliable colocation services. Additionally, The rise of applications such as artificial intelligence (AI), big data analytics, and the Internet of Things (IoT) necessitates robust data center capabilities.
Key players in the market
Some of the key players in Data Center Colocation market include Microsoft , Amazon Web Services (AWS), Google Cloud, Alibaba Cloud, Vodafone Group,Oracle Cloud, T5 Data Centers, The Internet Archive, Equinix Metal, GDS Services, NTT Data Center Services, Equinix, Digital Realty, Zayo Group, LLC and DataBank.
Key Developments:
In February 2025, Alibaba Cloud has launched a second data center in Thailand. According to the company, the dual data centers will enable Alibaba Cloud to provide ""scalable, elastic, and highly available cloud computing products with enhanced disaster recovery capabilities tailored to Thailand’s dynamic digital landscape while adhering to stringent security and regulatory standards.”
In December 2024, Amazon Web Services, Inc. (AWS), an Amazon.com, Inc. company announced new data center components designed to support the next generation of artificial intelligence (AI) innovation and customers’ evolving needs. These capabilities combine innovations in power, cooling, and hardware design to create a more energy efficient data center that will underpin further customer innovation.
Types Covered:
• Retail Colocation
• Wholesale Colocation
• Hybrid Colocation
• Cloud Colocation
• Other Types
Data Center Types Covered:
• Hyperscale Data Centers
• Enterprise Data Centers
• Edge Data Centers
• Cloud Data Centers
Service Models Covered:
• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS)
• Software as a Service (SaaS)
Applications Covered:
• Cloud Services
• Disaster Recovery and Backup
• Big Data and Analytics
• E-Commerce and Online Gaming
• Content Delivery and Streaming
• Other Applications
End Users Covered:
• IT & Telecom
• Government & Public Sector
• Healthcare
• Retail
• Manufacturing
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Data Center Colocation Market, By Type
5.1 Introduction
5.2 Retail Colocation
5.3 Wholesale Colocation
5.4 Hybrid Colocation
5.5 Cloud Colocation
5.6 Other Types
6 Global Data Center Colocation Market, By Data Center Type
6.1 Introduction
6.2 Hyperscale Data Centers
6.3 Enterprise Data Centers
6.4 Edge Data Centers
6.5 Cloud Data Centers
7 Global Data Center Colocation Market, By Service Model
7.1 Introduction
7.2 Infrastructure as a Service (IaaS)
7.3 Platform as a Service (PaaS)
7.4 Software as a Service (SaaS)
8 Global Data Center Colocation Market, By Application
8.1 Introduction
8.2 Cloud Services
8.3 Disaster Recovery and Backup
8.4 Big Data and Analytics
8.5 E-Commerce and Online Gaming
8.6 Content Delivery and Streaming
8.7 Other Applications
9 Global Data Center Colocation Market, By End User
9.1 Introduction
9.2 IT & Telecom
9.3 Government & Public Sector
9.4 Healthcare
9.5 Retail
9.6 Manufacturing
9.7 Other End Users
10 Global Data Center Colocation Market, By Geography
10.1 Introduction
10.2 North America
10.2.1 US
10.2.2 Canada
10.2.3 Mexico
10.3 Europe
10.3.1 Germany
10.3.2 UK
10.3.3 Italy
10.3.4 France
10.3.5 Spain
10.3.6 Rest of Europe
10.4 Asia Pacific
10.4.1 Japan
10.4.2 China
10.4.3 India
10.4.4 Australia
10.4.5 New Zealand
10.4.6 South Korea
10.4.7 Rest of Asia Pacific
10.5 South America
10.5.1 Argentina
10.5.2 Brazil
10.5.3 Chile
10.5.4 Rest of South America
10.6 Middle East & Africa
10.6.1 Saudi Arabia
10.6.2 UAE
10.6.3 Qatar
10.6.4 South Africa
10.6.5 Rest of Middle East & Africa
11 Key Developments
11.1 Agreements, Partnerships, Collaborations and Joint Ventures
11.2 Acquisitions & Mergers
11.3 New Product Launch
11.4 Expansions
11.5 Other Key Strategies
12 Company Profiling
12.1 Microsoft
12.2 Amazon Web Services (AWS)
12.3 Google Cloud
12.4 Alibaba Cloud
12.5 Vodafone Group
12.6 Oracle Cloud
12.7 T5 Data Centers
12.8 The Internet Archive
12.9 Equinix Metal
12.10 GDS Services
12.11 NTT Data Center Services
12.12 Equinix
12.13 Digital Realty
12.14 Zayo Group, LLC
12.15 DataBank
List of Tables
1 Global Data Center Colocation Market Outlook, By Region (2022-2030) ($MN)
2 Global Data Center Colocation Market Outlook, By Type (2022-2030) ($MN)
3 Global Data Center Colocation Market Outlook, By Retail Colocation (2022-2030) ($MN)
4 Global Data Center Colocation Market Outlook, By Wholesale Colocation (2022-2030) ($MN)
5 Global Data Center Colocation Market Outlook, By Hybrid Colocation (2022-2030) ($MN)
6 Global Data Center Colocation Market Outlook, By Cloud Colocation (2022-2030) ($MN)
7 Global Data Center Colocation Market Outlook, By Other Types (2022-2030) ($MN)
8 Global Data Center Colocation Market Outlook, By Data Center Type (2022-2030) ($MN)
9 Global Data Center Colocation Market Outlook, By Hyperscale Data Centers (2022-2030) ($MN)
10 Global Data Center Colocation Market Outlook, By Enterprise Data Centers (2022-2030) ($MN)
11 Global Data Center Colocation Market Outlook, By Edge Data Centers (2022-2030) ($MN)
12 Global Data Center Colocation Market Outlook, By Cloud Data Centers (2022-2030) ($MN)
13 Global Data Center Colocation Market Outlook, By Service Model (2022-2030) ($MN)
14 Global Data Center Colocation Market Outlook, By Infrastructure as a Service (IaaS) (2022-2030) ($MN)
15 Global Data Center Colocation Market Outlook, By Platform as a Service (PaaS) (2022-2030) ($MN)
16 Global Data Center Colocation Market Outlook, By Software as a Service (SaaS) (2022-2030) ($MN)
17 Global Data Center Colocation Market Outlook, By Application (2022-2030) ($MN)
18 Global Data Center Colocation Market Outlook, By Cloud Services (2022-2030) ($MN)
19 Global Data Center Colocation Market Outlook, By Disaster Recovery and Backup (2022-2030) ($MN)
20 Global Data Center Colocation Market Outlook, By Big Data and Analytics (2022-2030) ($MN)
21 Global Data Center Colocation Market Outlook, By E-Commerce and Online Gaming (2022-2030) ($MN)
22 Global Data Center Colocation Market Outlook, By Content Delivery and Streaming (2022-2030) ($MN)
23 Global Data Center Colocation Market Outlook, By Other Applications (2022-2030) ($MN)
24 Global Data Center Colocation Market Outlook, By End User (2022-2030) ($MN)
25 Global Data Center Colocation Market Outlook, By IT & Telecom (2022-2030) ($MN)
26 Global Data Center Colocation Market Outlook, By Government & Public Sector (2022-2030) ($MN)
27 Global Data Center Colocation Market Outlook, By Healthcare (2022-2030) ($MN)
28 Global Data Center Colocation Market Outlook, By Retail (2022-2030) ($MN)
29 Global Data Center Colocation Market Outlook, By Manufacturing (2022-2030) ($MN)
30 Global Data Center Colocation Market Outlook, By Other End Users (2022-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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