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APAC Gains Tremendous Dominance in the Data Center Colocation Spaces, The Investment in Data Center Colocation to Reach USD 43 Billion in 2027 - AriztonCHICAGO, Jan. 10, 2023 /PRNewswire/ -- According to Arizton's latest research report, the global data center colocation market will grow at a CAGR of 6.5% from 2021 to 2027. The data center colocation market is appealing, with data centers providing higher returns on investment (ROI) than other commercial and industrial properties. The data center colocation market in the Americas is a growing market with an increasing presence of local and global data center operators, especially in countries such as the US, Canada, Brazil, Mexico, Chile, and Colombia. Other emerging markets in 2021 included Argentina, Peru, and others. The demand for data centers grew significantly due to the pandemic, with the major workforce shifting to remote working. The demand for colocation services led to a strong use of existing data center space, and service providers' revenue grew by over 10% in those two quarters.  Several governments across the countries and regions provide tax incentives and support to investors looking to invest in the data center colocation market; such measures attract more operators to invest in the industry. In North America, especially in the US, several state governments offer various incentives to data center operators. For instance, Virginia provides tax incentives for the facility's equipment that meets the capital investment and employment requirements. Over the past decade, Amazon Web Services received over USD 4.7 billion in subsidies from the federal and state governments to build offices, data centers, call centers, and other facilities. Global Data Center Colocation Market Report Scope
Click Here to Download the Free Sample Report The construction of data centers continues to grow substantially, leading service providers to invest more than $1 billion in new development and expansions. The rise in demand across several industries has led data center suppliers to sign several M&A contracts to expand their portfolios. The data center market is also interested in the acquisition of data centers by real estate and investment firms. This acquisition is followed by expansion, leading to the market's strong growth. Most investments will be extremely focused on the edge data center market, with unexpected demand from current and new clients in data centers. In April 2021, CapitaLand, a real estate group, acquired a data center campus from AVIC Trust with an investment of around $564.5 million. The campus consists of around four buildings holding a power capacity of around 55 MW and an IT area of around 807,000 square feet. The remote working and online shopping trends have propelled the demand for data centers during the COVID-19 pandemic. Organizations operating across sectors, such as IT services, BFSI, hospitals, and education, initiated remote working for their employees. The strict lockdown imposed by the government to control the spread of the virus has resulted in heightened access to internet-related services. During COVID-19, even government agencies adopted cloud-based services, wherein the confidential data of the state is stored securely. Colocation service providers also witness high demand for cloud connectivity solutions in the region. Moreover, in countries that are likely to be aided by the growth in the internet backbone and colocation facilities, cloud connectivity solutions are expected to grow during the forecast period. Internet-based service providers that include social media applications have prompted them to expand their operations across major Europe, APAC, and North America by constructing hyperscale data centers. Cloud service providers have also increased their wholesale colocation data center spaces by expanding regional operations. The data center market in cloud service adoption is led by the UK, Germany, France, the Netherlands, and Ireland, with locations such as Switzerland, Italy, and Spain in the initial stages of cloud service adoption. Click Here to Download the Free Sample Report 24+ New Entrants in the Data Center Colocation Market Prominent Colocation Investors
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Market Segmentation Colocation Service
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Check Out Some of the Top-Selling Related Research Reports: Data Center Colocation Market in Americas - The Americas data center colocation market is estimated to reach USD 10.58 billion by 2027 from USD 7.75 billion in 2021. The growth in the market is driven by the deployment and advancement of 5G, growth in the application of Artificial Intelligence, Smart city development, renewable energy procurement, adoption of IoT, and Big data. Europe Data Center Colocation Market - The Europe data center colocation market is estimated to reach USD 11.75 billion by 2027 from USD 8.20 billion in 2021. The market will see the continuous adoption of cloud services among SMEs, with the heightened interest shown towards the digital transformation of businesses by adopting solutions such as IoT, big data, and artificial intelligence, attracting more investments into the Europe data center colocation market. Middle East and Africa Data Center Colocation Market - The Middle East and Africa data center colocation market is estimated to reach USD 2.61 billion by 2027 from USD 1.58 billion in 2021. Some of the significant factors that are acting as a factor for the growth of the data center colocation market in the Middle East & Africa include increased digitalization initiatives across several countries, cloud service providers colocating the data centers, growth in connectivity, and others. APAC Data Center Colocation Market - The APAC data center colocation market size by investment was valued at USD 12.06 billion in 2021 and is expected to reach USD 18.23 billion by 2027. APAC is the fastest-growing region, with increased investments from global and local colocation data center operators worldwide. With the construction of additional data centers, local colocation providers in each country also increase their presence, thus boosting market growth. About Us:? Arizton Advisory and Intelligence is an innovative and quality-driven firm that offers cutting-edge research solutions to clients worldwide. We excel in providing comprehensive market intelligence reports and advisory and consulting services. We offer comprehensive market research reports on consumer goods & retail technology, automotive and mobility, smart tech, healthcare, life sciences, industrial machinery, chemicals, materials, I.T. and media, logistics, and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.? Arizton comprises a team of exuberant and well-experienced analysts who have mastered generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.? Click Here to Contact Us? Photo: https://mma.prnewswire.com/media/1980612/Data_Center_Colocation_Market.jpg  
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