Global Data Center Colocation Industry Report 2022-2027 - Higher Anticipated Growth in Wholesale Datacenter Colocation Spaces to Propel Demand
DUBLIN, July 12, 2022 /PRNewswire/ -- The "Data Center Colocation Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)" report has been added to ResearchAndMarkets.com's offering.
The global data center colocation market is expected to register a CAGR of 10.92% over the period 2021-2026.
Organizations are turning into colocation data centers as a manner of expanding the reach and capabilities of their network. Data centers have the computing tools to adapt huge data analytics workloads, particularly in the instance of software-defined data centers (SDDCs), which may offer scalable virtualized server options at a low price. Further, the trends towards colocation products that attempt to seamlessly integrate hyperscale and edge data centers to support new applications for AI, Internet of Things, autonomous vehicles, big data, etc. significantly caters to the market growth.
The growing adoption of cloud services drives the market. Over the past five years, cloud services have supplied an increasing share of data-center use, while the supply by colocation or in-house systems has remained roughly steady by comparison. Customers can benefit from a 100% uptime SLA and focus on core business rather than managing a data center. With cloud services, the provider supplies and manages hardware infrastructure, including servers, storage, and network elements. According to CBRE, in 2019, U.S. businesses paid for a record-high 396.4 megawatts of power in the country's largest data-center markets, up 33% from 2018 amid soaring demand for cloud services. This significantly caters to the market demand for data center colocation.
Further introduction of various government regulations and complaints stimulates the demand. For instance, the introduction of GDPR in the European Union, and it's potential EUR 20 million1 penalties for breach, have made companies very focused on being GDPR compliant. In April 2019, Cyxtera Technologies launched a new data center in Frankfurt at the CyxteraCon, its annual user conference, in a view to satisfying growing customer demand for the company's secure colocation and infrastructure solutions, in the changing GDPR landscape.
Furthermore, due to the COVID-19 pandemic, colocation becomes a more important part of staying connected, collaborating, and moving forward in a cost-effective and safe way. Healthcare is utilizing data to study patient outcomes and artificial intelligence to project the spread of disease. Telehouse New York colocation centers with robust network connectivity are providing solutions among enterprises, including healthcare in New Jersey and New York during this pandemic. This makes the Telehouse Tier 3 New York Telepot data center a vital link managed services capabilities and network connectivity.
Further, in the COVID-19 outbreak, QTS reported significant increases in usage of SDP (Service Delivery Platform) that allows customers to manage and optimize data center infrastructure remotely through full digitization, meeting critical market. To support the growth, in May 2020, QTS Realty Trust announced an expanded hybrid colocation services agreement with Abacus Solutions and an IBM i marked managed service cloud provider.
The data center colocation market is fragmented, owing to the presence of many players in the market. Some of the predominant players of the market are AT&T Inc., NTT Communications, IBM Corporation, SoftBank Group Corporation, British Telecommunications PLC, among others. Further, with intense competition, many market players are using various strategies to stay ahead of the competition, such as partnerships and developments is one of the strategies which the top players are following to increase their market penetration and strengthen their positions in the market. Some recent developments are:
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SOURCE Research and Markets