Data Center Colocation Market Analysis, Size, Regional Outlook, Competitive Strategies and Forecasts to 2026

The data center colocation market is expected to grow significantly by 2026, driven by the trend of smart cities and the roll-out of 5G technology in various countries. Expansion of business organizations worldwide have led to massive data generation, consequently sparking the need for adequate data storage capacity.

Companies that are seeking to upgrade their traditional infrastructure facilities by integrating latest technologies are required to pump huge investments for setting up large-scale data centers. Adoption of data center colocation could help such firms bypass the need for hefty investments. These centers offer equipment, space, and bandwidth on rental basis to customers. Increasing awareness of these centers could boost the demand for colocation service providers, consequently helping clients overcome the challenges associated with storing massive amounts of data.

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Colocation has gained massive traction globally and is being adopted with the intent of reducing the expenses related to the management and building of the data centers. With the growing need to manage data securely and to prevent any form of data-leak, companies are setting up new data centers or changing their existing infrastructure to large-scale data centers with the use of modern technologies.

A massive shift towards the colocation hosting by large enterprises and SMEs has led to huge investments, which will drive the revenue scale of the data center colocation market in the near future.

The coronavirus outbreak has driven the need for data center colocation services among corporates to ensure business continuity. With people across the globe working from home, due to the need to control the spread of infections at the workplace, there is a growing need to manage the huge data being generated in order to ensure there is no loss of work. As businesses have shifted to a remote work culture, the consumption of the internet has grown drastically. All this and the need to store data efficiently has boosted the demand for colocation data centers.  

The emergence of 5G technology in various countries along with the establishment of smart cities has further supported developments in the data center colocation market. Many companies noticing the robust demand for the commercialization of 5G services is entering into a partnership, strategic alliance, or acquisitions to strengthen their offerings and position in the market.

For instance, in the year 2018, the Chinese government was exploring the merger of the country’s leading wireless carriers with an aim to speed up the development of the 5G mobile network. The merger between China Unicom and China Telecom created a market capitalization of more than USD 70 billion. Such growth in telecom sector will certainly foster need for data center services.

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Geographically speaking, the Latin America data center colocation market is witnessing substantial growth owing to increasing investments and number of data centers. There are more than 100 colocation data centers across Chile, Peru, Argentina, Brazil, Colombia, and Uruguay. Among these, Brazil is a promising avenue for colocation data centers. International companies in the region, such as Google, Microsoft Corporation, and IBM Corporation are focusing on expansions owing to considerable growth opportunities.

Globally, companies operating in the data center colocation market include Equinix, Inc., Global Switch Corporation, Singapore Telecommunications Limited, Digital Realty, KDDI Corporation, CyrusOne, NTT Communications, China Unicom, Interxion N.V., and China Telecommunications Corporation.

Major Key Points from Table of Content:

Chapter 5   Data Center Colocation Market, By Type

5.1    Key trends by type

5.2    Retail colocation

5.2.1    Market estimates and forecast, 2016 - 2026

5.3    Wholesale colocation

5.3.1    Market estimates and forecast, 2016 - 2026

Chapter 6   Data Center Colocation Market, By End-Use

6.1    Key trends by end-use

6.2    SMEs

6.2.1    Market estimates and forecast, 2016 - 2026

6.3    Large enterprises

6.3.1    Market estimates and forecast, 2016 - 2026

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