The data center colocation market is expected to grow from US$ 50,579.1 million in 2021 to US$ 136,647.9 million by 2028; it is estimated to grow at a CAGR of 15.3% from 2021 to 2028
A colocation facility, often called a colo, is a data center where an enterprise can rent space for servers and other equipment; however, a data center colocation provider manages these servers and equipment. The colocation firms offer the building, power, cooling, bandwidth, and physical security. Enterprises can lease space by the cabinet, rack, cage, or room. Being one of the popular alternatives to traditional hosting, data center colocation facilities house multiple businesses (multitenant) that may only need one or two server racks. Moreover, unlike the data centers Colocation Market connected to the big-name cloud vendors such as Google, Amazon, and Microsoft, most colocation data centers are often located in big metropolitan areas. There are several reasons for the use of shared colocation facilities. For starters, the use of colocation data centers can minimize power and cooling expenses, and colocation providers get better deals from internet providers than a single company can handle. Colocation facilities offer power and internet connectivity, which supports in maximizing uptime. Moreover, colocation facility providers are better prepared for potential natural disasters and power outages than most typical enterprises..
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- Equinix Inc.
- IBM Corporation
- AT&T Inc.
- Cyxtera Technologies, Inc.
- Digital Realty Trust LP
- CoreSite Realty Corporation
- CyrusOne, Inc.
- QTS Realty Trust, Inc.
- 365 Data Centers
Impact of COVID-19 Pandemic on Data Center Colocation Market
The COVID-19 pandemic has significantly impacted global economies with extensive lockdowns, which forced people to stay at home. As a result, the sustainability of data centers has become a growing concern for operators as they are widely known to consume a lot of resources. The COVID-19 outbreak has altered the data center construction in many regions. The opening of several new facilities was halted for three months, owing to the limited labor and disruptions in the supply of parts. This is hampering the growth of the data center colocation market in the present scenario. However, the strong presence of some leading providers delivering data centers colocation facilities such as Equinix; CenturyLink; and AT&T, Inc.; is significantly contributing to the market growth through the adoption of strategic collaborations, new product launches, and funding to the technological advancements.
Strategic InsightsPlayers operating in the data center colocation market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:
- In July 2021, PEI-Genesis, a leading provider of the custom-engineered connector and cable connection solutions, expanded its European and African cooperation with global connector maker Positronic. The growth is the result of high demand from clients in these areas.
- In June 2020, Global Switch—a leading owner, operator, and developer of large-scale, carrier and cloud neutral, multi-customer data centres in Europe and Asia Pacific—announced that building the first stage of a new data center in Amsterdam has begun in response to the increased demand.
The global data center colocation market has been segmented as follows:
Data Center Colocation Market – by Type
Data Center Colocation Market – by Enterprise size
- Large Enterprises
Data Center Colocation Market – by Industry
- IT and Telecom
Data Center Colocation Market – by Geography
· North America
- Rest of Europe
· Asia Pacific (APAC)
- South Korea
- Rest of APAC
· Middle East & Africa (MEA)
- South Africa
- Saudi Arabia
- Rest of MEA
· South America (SAM)
- Rest of SAM
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