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Data Center Colocation Market Size Worth $104.77 Billion by 2027: Grand View Research, Inc.
[June 02, 2020]

Data Center Colocation Market Size Worth $104.77 Billion by 2027: Grand View Research, Inc.

SAN FRANCISCO, June 2, 2020 /PRNewswire/ -- The global data center colocation market size is expected to reach USD 104.77 billion by 2027, expanding at a CAGR of 12.9% from 2020 to 2027, according to a study conducted by Grand View Research, Inc. Colocation is the practice of renting infrastructure and space for servers and various storage devices at a third-party provider's facility. Colocation providers provide enterprises with infrastructure, along with other related services, such as physical security, networking, and power and cooling components. Reduction in the overall IT cost, enhanced security for the data, free maintenance of servers, and predictable yearly or monthly costs are motivating enterprises to adopt colocation services.

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Key suggestions from the report:

  • By colocation type, the wholesale segment is projected to expand at the fastest CAGR of 16.2% over the forecast period as global companies, such as Microsoft Corporation and Oracle Corporations, are renting wholesale colocation centres for their servers
  • On the basis of enterprise size, the SMEs segment is expected to expand at the fastest CAGR of 15.5% from 2020 to 2027. This is due to the cost reduction benefits offered by colocation providers for SMEs that rely on digital infrastructure for their business growth
  • Based on end use, the IT and telecom segment held the largest market share of 26.58% in 2019.This is attributed to escalating number of mobile internet users, which has led to a rise in the volume of digital data
  • The market is characterized by intense competition owing to the presence of several large organizations. Key players in the market are focused on expansion of their geographical presence to sustain competition

Read 164 page research report with ToC on "Data Center Colocation Market Size, Share & Trends Analysis Report By Colocation Type (Retail, Wholesale), By Enterprise Size (SMEs, Large Enterprises), By End Use, By Region, And Segment Forecasts, 2020 - 2027" at:

Rising adoption of online shopping is anticipated to upkeep the market growth over the next few years. Rising number of online shoppers directly translates to an increased volume of data across the retail industry. Large volume of data has led to increased investments in IT infrastructure, especially in data centers. In order to save IT costs, more and more retilers are opting for colocation centers, which is driving the market in the retail sector.

Increasing number of smartphone users has led to a large volume of data for telecom operators to manage. Considering the rising disposable income in developing economies, the number of smartphone users is bound to rise, which will result in additional volume of data. Telecom operators are opting for colocation centers to minimize their IT expenditure and manage data efficiently, thus fueling the market growth. However, security concerns among customers can hinder the market growth over the forecast period. Colocation providers are offering additional services such as facility monitoring over CCTV cameras to gain the trust of their customers.

Grand View Research has segmented the global data center colocation market on the basis of colocation type, enterprise size, end use, and region:

  • Data Center Colocation Type Outlook (Revenue, USD Billion, 2016 - 2027)
    • Retail
    • Wholesale
  • Data Center Colocation Enterprise Size Outlook (Revenue, USD Billion, 2016 - 2027)
    • SMEs
    • Large Enterprises
  • Data Center Colocation End-use Outlook (Revenue, USD Billion,2016 - 2027)
    • Retail
    • BFSI
    • IT & Telecom
    • Healthcare
    • Media & Entertainment
    • Others
  • Data Center Colocation Regional Outlook (Revenue, USD Billion, 2016 - 2027)
    • North America
      • U.S.
      • Canada
    • Europe
      • Germany
      • U.K.
      • France
    • Asia Pacific
      • China
      • India
      • Japan
    • Latin America
      • Brazil
      • Mexico
    • Middle East & Africa
  • List of Key Players of Data Center Colocation Market:
    • China Telecom Corporation Limited
    • CoreSite Realty Corporation
    • CyrusOne Inc.
    • Cyxtera Technologies, Inc.
    • Digital Realty Trust, Inc.
    • Equinix, Inc.
    • Global Switch
    • NaviSite
    • NTT Communications Corporation
    • Telehouse

Find more research reports on Communications Infrastructure Industry, by Grand View Research:

  • Fiber Optics Market – The global fiber optics market size was valued at USD 6.5 billion in 2018 and is projected to exhibit a CAGR of 4.6% from 2019 to 2025.
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  • Direct Attach Cable Market – Increasing investments by manufacturers in order to meet evolving requirements of high bandwidth applications and high-density applications, and lower power consumption are expected to drive demand for active optical cables (AOCs) and direct attach copper (DAC) cables.

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About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.


Sherry James
Corporate Sales Specialist, USA
Grand View Research, Inc.
Phone: +1-415-349-0058
Toll Free: 1-888-202-9519

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