Data Center Colocation Market size is set to grow by USD 66.57 bn from 2024-2028, American Tower Corp., AT and T Inc. & BT Group Plc, and more to emerge as Some of the Key Vendors, Technavio

NEW YORK, March 25, 2024 /PRNewswire/ -- The global data center colocation market size is estimated to grow by USD 66.57 bn from 2024 to 2028, according to Technavio. The market is estimated to grow at a CAGR of about 14.8% during the forecast period. North America held the largest share of the global market in 2023, and the market in the region is estimated to witness an incremental growth of  32%. 

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Major Players in the Market

Numerous companies are capitalizing on this growing trend by implementing strategic measures such as alliances, partnerships, mergers, and acquisitions. Among the notable players in the cheese based snacks market are:

American Tower Corp., AT and T Inc., BT Group Plc, China Telecom Corp. Ltd., Cologix Inc., Colt Technology Services Group Ltd., Corporate Technologies LLC, CtrlS Datacenters Ltd., Custodian Data Centres, CyrusOne LLC, Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., eStruxture Data Centers, Flexential Corp., Fujitsu Ltd., Internap Holding LLC, Iron Mountain Inc., Lumen Technologies Inc., Microsoft Corp., NEXTDC Ltd., Nippon Telegraph and Telephone Corp., Retelit S.p.A., Stream Realty Partners LP, Switch Inc., Telstra Corp. Ltd., Web Werks India Pvt. Ltd.

Analyst Review

In today's hybrid cloud landscape, the Data Center Colocation Market plays a pivotal role in facilitating IT infrastructure needs. Colocation providers offer businesses the benefits of on-premises server utilization and cloud-based resources through virtualization technologies. This approach allows for optimal rack space utilization and improved uptime, minimizing downtime. Colocation data centers provide essential facilities for IT requirements, including power, cooling, and connectivity. With the increasing adoption of cloud services, renewable energy sources, and advanced technologies like AI startup development, IoT, and autonomous vehicles, the demand for low latency and high IT load capacity is escalating. Submarine cables and advanced connectivity solutions enable seamless communication between various cloud services and colocation data centers. SMEs and large enterprises alike can leverage colocation services to optimize their hybrid cloud infrastructure, ensuring uninterrupted access to critical applications and services. In summary, the Data Center Colocation Market is a vital component of the evolving IT infrastructure landscape, offering businesses the flexibility, reliability, and scalability they need to thrive in the era of hybrid cloud computing.

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Key Market Drivers

The Data Center Colocation Market refers to the rental of computing servers, storage, and network equipment in third-party facilities. This model offers significant cost savings on capital expenditures (CAPEX) for enterprises, as they avoid the expense of building and maintaining their own data centers. Colocation facilities provide improved connectivity for operational services and are particularly beneficial for Small and Medium-sized Enterprises (SMEs). With the increasing trend of enterprises building and operating their own cloud platforms, the demand for colocation services has grown rapidly. The market is characterized by the availability of private racks for rent, enabling enterprises to operate their IT infrastructure using modern facilities at reduced subscription costs.

Challenges and Opportunities

The Data Center Colocation Market is experiencing robust growth due to the increasing adoption of cloud-based services and big data analytics. With the digitization trend leading to a surge in data generation and processing, powerful networking becomes essential for service providers. Manufacturers like Intel, Seagate, and Western Digital are innovating to enhance storage system efficiency. As small and medium-sized businesses expand, they are likely to adopt cloud-based or in-house storage infrastructure, further fueling market growth.

The Data Center Colocation Market has experienced a surge in Mergers and Acquisitions (M&A) activities since 2020. This trend is driven by the expanding business needs of customers, enabling colocation providers to rapidly expand their infrastructure. Acquiring pre-existing facilities offers cost and time savings compared to new construction, making it an attractive option for businesses looking to meet the growing demand for data center services. Notable transactions include Iron Mountain Inc.'s acquisition of a data center in Frankfurt from Calcium DC Pte. in July 2021.

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Market Overview

The Data Center Colocation Market is a significant segment of the technology industry, where businesses rent space and resources from third-party data center providers to house their IT infrastructure. This approach offers numerous benefits, including cost savings, increased security, and improved disaster recovery capabilities. The market is experiencing robust growth, driven by the increasing adoption of cloud computing, the proliferation of the Internet of Things (IoT), and the rising demand for high-performance computing. Key players in the market include Equinix, Digital Realty, and CyrusOne, among others. These companies offer a range of colocation services, from basic rack space to fully managed solutions, catering to various industries and use cases. The market is expected to continue its expansion in the coming years, fueled by the ever-increasing digital transformation initiatives of businesses worldwide.

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Table of Contents:

 1 Executive Summary
 2 Market Landscape
 3 Market Sizing
 4 Historic Market Size
 5 Five Forces Analysis
 6 Market Segmentation
 7 Customer Landscape
 8 Geographic Landscape
 9 Drivers, Challenges, and Trends
10 Venodr Landscape
11 Vendor Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio