Global Data Center Colocation Market Size forecast = $131.8 Billion by 2030 at a 14.2% CAGR

According to a market research study published by Custom Market Insights, the  Global Data Center Colocation Market size and share revenue was valued at approximately USD $50.4 Billion in 2021 and is expected to reach USD $57.2 billion in 2022 and is expected to reach around USD $131.8 Billion by 2030, at a CAGR of 14.2% between 2022 and 2030.

The key market players listed in the report with their sales, revenues and strategies are China Telecom Corp. Ltd., CoreSite Realty Corp., CyrusOne Inc., NaviSite, NTT Communications Corp., Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Global Switch, Telehouse, and others.

“According to the latest research study, the demand for global Data Center Colocation Market size & share was valued at approximately USD 50.4 Billion in 2021 and is expected to reach USD 57.2 billion in 2022 and is expected to reach a value of around USD 131.8 Billion by 2030, at a compound annual growth rate (CAGR) of about 14.2% during the forecast period 2022 to 2030.”

Data center colocation market offers a comprehensive and deep evaluation of the market stature. Also, the market report estimates the market size, revenue, price, market share, market forecast, growth rate, and competitive analysis.

Data center colocation is when a service provider rents out vast amounts of floor space, internet bandwidth, and network from an existing data center to establish its own data center, store massive amounts of data, and oversee the server operations of big businesses. It enables data center colocation by sharing the existing infrastructure of data center resources.

As a result of the Covid-19 outbreak, colocation is becoming an essential component of staying connected, collaborating, and moving forward cost-effectively and safely. Healthcare organizations analyze patient outcomes using data and anticipate the spread of diseases using artificial intelligence. Robust network connectivity at Telehouse colocation centers in New York enables them to provide a range of commercial solutions.

Over the projected period, it is predicted that the fast expansion of structured and unstructured data and the rising demand for cloud computing will drive the growth of the global data center colocation market. Another factor anticipated to accelerate the development of colocation data centers is the rising capital expense associated with owning and maintaining sizable computing facilities.

A trend that is anticipated to continue during the projected period is that predictable prices, high dependability, simple scalability, and overall reduced costs are some of the primary reasons impacting colocation demand. High-capacity networks are becoming increasingly crucial as edge computing applications take off. Multi-locational hybrid data architectures have developed due to network latency challenges and the need for instantaneous real-time insights.

Data transmission between data centers or private exchange points has therefore become crucial. Additionally, as more companies move their operations to the cloud, more bandwidth is needed to support quicker data processing and smoother data transfer. The growth of immersive technologies like augmented reality, virtual reality, and artificial intelligence (AI), as well as 5G technology, has further contributed to the requirement for providing larger bandwidths for data transfer across organizations.

The continuous use of several disruptive technologies, including cloud computing, IoT, autonomous cars, and sophisticated robotics, is another factor driving the growing demand for colocation in data centers. In addition, lower latency has become increasingly in the market due to the ongoing development of these technologies and the ensuing adoption of intelligent devices. As a result, colocation gives cloud service providers a chance to relocate their data center facilities close to the consumers, resulting in high bandwidth and low latency in data transfer.

Key questions answered in this report:

  • What is the size of the Data Center Colocation market and what is its expected growth rate?
  • What are the primary driving factors that push the Data Center Colocation market forward?
  • What are the Data Center Colocation Industry’s top companies?
  • What are the different categories that the Data Center Colocation Market caters to?
  • What will be the fastest-growing segment or region?
  • In the value chain, what role do essential players play?
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Segmental Overview

The data center colocation market is segmented into type, enterprise size, and end-use insights. According to the class, the retail colocation category is expected to increase quickly. Numerous advantages this kind offers, including managed service, which results in cheaper costs for data center maintenance, high data security, and others, are credited with the segment’s rise.

The global market is divided into small and minimum-scale enterprises and large enterprises, depending on the enterprise size. However, large-scale organizations had the majority of the market share for data center colocation and are anticipated to keep expanding over the projected period. Heavy investment by big-size organizations in data centers is credited with this increase. Additionally, the worldwide market for data center colocation is being driven by significant enterprises’ increasing need for substantial data storage.

The market is divided into IT & Telecom, BFSI, Healthcare, and others. The IT and telecom industries had the most significant proportion in 2021, followed by the banking, financial, and insurance sectors. In the projection term, the CAGR for the IT & Telecom category is expected to be high. In addition, due to ongoing patient data monitoring and storage, which have greatly expanded since the COVID-19 pandemic in 2021, the healthcare subsegment also offers significant development potential throughout the projection period.

North America held the most significant market share in the data center colocation market. This is because several necessary cloud service providers are well-represented in the area, and SMEs also set up colocation data centers there. Additionally, rising e-commerce sales in the United States foster regional market expansion. To determine client buying habits and product requests based on several categories, such as area, gender, and age group, retailers are investing extensively in their IT infrastructure to keep customer data.


Another forecast is even more bullish, predicting a Global Data Center Colocation market size of  $202.71 Billion by 2030 as per this chart: