The global data center colocation market is anticipated to witness investment of around $31 billion by 2023, growing at an impressive CAGR of approximately 8% during 2017-2023. The research report offers market size analysis regarding colocation services during the forecast period.
The service providers are building facilities that support a rack power density of 20 kW because of the increased use of high-performance computing infrastructure in the global data center colocation market. The deployment of edge datacenters with modular facilities, integrated power, and the cooling component will create lucrative opportunities for vendors in the market.
The global data center colocation market is driven by the deployment of new facilities across countries such as Brazil, Sweden, Norway, Finland, Ireland, Denmark, Canada, India, Japan, Indonesia, and South Korea. The significant investments in submarine cable projects from datacenter service providers and telecommunication providers will contribute to the revenues in the global market.
The report considers the present scenario of the global data center colocation market and its market dynamics for the period 2018-2023. It covers a detailed overview of various data center colocation growth enablers, restraints, and trends. The study covers both the demand and supply sides of the market. It also profiles and analyzes the leading companies and various other prominent companies operating in the global data center colocation market.
Data Center Colocation Market - Dynamics
The growing demand for a wide range of service offerings is propelling the growth of the global data center colocation market. The leading facility operators are providing colocation services and other services such asmanaged colocation services, cloud connectivity, interconnection, and cloud-based managed hosting services in the global market.
The implementation of effective DCIM solutions will improve the functioning of facilities across the global market. These systems are designed to record regular maintenance of infrastructure and offer real-time monitoring of power consumption that will result in significant cost savings in the market.
The use of artificial intelligence in the management of facilities will increase the reliability, scalability, and efficiency of datacenter operations and contribute to the revenues in the global data center colocation market. The exponential growth of connected devices across the business and consumer segments led to the popularity of the concept of edge computing in the global data center colocation market. Major locations such as Texas, New York, Virginia, London, Stockholm, Frankfurt, Paris, Dubai, Mumbai, Osaka, Sydney, Melbourne, and Auckland are attracting high investments from colocation providers in the global market.
Data Center Colocation Market - Segmentation
This market research report includes a detailed segmentation of the market by investment, service type, and geography. The investment segment in the data center colocation marketis divided into electrical infrastructure, mechanical infrastructure, and general construction. General construction segment occupied the second largest market share in 2017, growing at a CAGR of more than 8% during the forecast period. The increasing number of greenfield and brownfield developments is contributing to the growth of this segment in the global market.
The data center colocation market by service type is segmented into retail and wholesale. Wholesale services are the fastest growing segment in the global market, at a CAGR of approximately 15% during the forecast period. The growing demand for high capacityfrom global enterprises, cloud providers, big data, and IoT organizationsis augmenting the growth of this segment in the global data center colocation market. The key service providers are offering customized wholesale colocation solutions to attract a maximum number of consumers and gain a large market share.
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Report Coverage 4.1 Market Definition 4.2 Base Year 4.3 Scope of Study
6 Market at a Glance 7 Introduction 7.1 Internet and Data Growth 7.2 Data Center Site Selection Criteria 7.3 Data Center Construction Project Flow 7.4 Electricity Prices Across Major Data Center Locations
8 Market Dynamics 8.1 Market Growth Drivers 8.1.1 Cloud Computing, Cloud Connectivity, and Hybrid Infrastructure Services Drive Colocation Demand 8.1.2 Growing Hyperscale Deployments by Colocation Providers 8.1.3 Increasing Demand for Colocation Services 8.1.4 Construction of Green Data Center Facilities 8.1.5 Tax Incentives Save Colocation OPEX and Customer Costs 8.1.6 Data Regulation Will Increase Data Center Investment 8.2 Market Growth Restraints 8.2.1 Self-built Traditional and Modular Data Centers Threat to Colocation Services 8.2.2 Data Center Power Consumption Increases OPEX 8.2.3 Carrier Neutrality in Locations with Lack of Multiple Fiber Connections 8.2.4 Location Constraints for Data Center Construction 8.2.5 Increased Carbon Emissions from Data Centers 8.2.6 Increasing Water Consumption by Data Centers 8.3 Market Opportunities & Trends 8.3.1 Introduction of District Heating Concept by Data Centers 8.3.2 DCIM Crucial Component of Colocation Data Centers 8.3.3 Increased Renewable Energy Adoption among Colocation Providers 8.3.4 M&A Activities to Improve Colocation Market Share 8.3.5 Growing Rack Power Density 8.3.6 Increasing Demand for Edge Data Centers 8.3.7 Growing Adoption of Lithium-ion Batteries and Fuel Cells
9 Global Data Center Colocation Market 9.1 Market Overview 9.2 Colocation Investment 9.3 Colocation Services 9.4 Porter's Five Forces Analysis
10 Investment by Infrastructure
11 Investment in Electrical Infrastructure 11.1 Uninterruptible Power Supply (UPS) Systems 11.2 Rack Power Distribution Units (PDUs) 11.3 Generators 11.4 Transfer Switches & Switchgears 11.5 Other Electrical Infrastructure 11.6 Market Size & Forecast
12 Investment in Mechanical Infrastructure 12.1 Cooling Systems 12.2 Rack 12.3 Other Mechanical Infrastructure 12.4 Market Size & Forecast
13 Investment in General Construction 13.1 Building Development 13.2 Installation and Commissioning Services 13.3 Building Design 13.4 Physical Security 13.5 Data Center Infrastructure Management (DCIM) 13.6 Market Size & Forecast
14 Colocation Data Center Market by Net Rentable Area
15 Data Center Colocation Market by Power Capacity