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Data Center Colocation Market Worth USD 58.4 Billion to 2031 - Exclusive Report by InsightAce Analytic Pvt. Ltd.
[May 16, 2024]

Data Center Colocation Market Worth USD 58.4 Billion to 2031 - Exclusive Report by InsightAce Analytic Pvt. Ltd.

JERSEY CITY, N.J., May 16, 2024 /PRNewswire/ -- InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the "Global Data Center Colocation Market- (By Colocation Service (Retail Colocation and Wholesale Colocation), By Infrastructure (Electrical Infrastructure, Mechanical Infrastructure, and General Construction), By Cooling Techniques (Air-based Cooling and Liquid-based Cooling) By End-user (Retail, BFSI, IT & Telecom, Healthcare, Media & Entertainment and Others) Trends, Industry Competition Analysis, Revenue and Forecast To 2031."


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According to the latest research by InsightAce Analytic, the Global Data Center Colocation Market is valued at US$ 31.9 Bn in 2023, and it is expected to reach US$ 58.4 Bn by 2031, with a CAGR of 8.04% during the forecast period of 2024-2031.

The data center colocation market is a subset of the information technology sector wherein organizations and businesses lease space in shared data center facilities for their computing hardware, such as servers, instead of owning and operating their dedicated data centers. The data center colocation industry is booming because one of the main reasons for the market's expansion is the rising expense of owning and operating data centers, which forces businesses to deal with unpredictable data volumes.

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The need for data center colocation is also rising due to the widespread use of various cutting-edge technologies, such as cloud computing, the IoT, autonomous vehicles, and advanced robotics. With these technologies continuing to advance, smart gadgets are becoming more popular, increasing the demand for lower latency.

Moreover, with the proliferation of smart devices, there will be an amplified demand for enhanced connectivity and quicker data transfers, thereby potentially bolstering the capacity of colocation data centers. The rising popularity of cloud data centers, driven by their cost-effectiveness, is anticipated to boost market expansion. Additionally, numerous elements, including increased efficiency, rising speed, technical progress, and supportive governmental policies, are expected to lead the industry.

List of Prominent Players in the Data Center Colocation Market:

  • China Telecom Corporation Ltd.
  • Cologix
  • Colt Technology Services Group Ltd.
  • CoreSite
  • CyrusOne
  • Cyxtera Technologies, Inc.
  • Digital Realty Trust
  • Equinix, Inc.
  • Flexential
  • Iron Mountain Inc.
  • NTT Ltd.
  • QTS Realty Trust, LLC
  • Rackspace Technology
  • Telehouse
  • Zayo Group, LLC

Data Center Colocation Market Report Scope:

Report Attribute


Market Size Value In 2023

USD 31.9 Bn

Revenue Forecast In 2031

USD 58.4 Bn

Growth Rate CAGR

CAGR of 8.04% from 2024 to 2031

Quantitative Units

Representation of revenue in US$ Bn and CAGR from 2024 to 2031

Historic Year

2019 to 2023

Forecast Year


Report Coverage

The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends

Segments Covered

By Colocation Services, By Infrastructure, By Cooling Techniques, By End-user and By Region

Regional Scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country Scope

U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; Southeast Asia; South Korea

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Market Dynamics:


Worldwide, data center colocation services are in high demand due to the rising need for scalable data management solutions in the face of exponential data growth across sectors, which is propelling the data center colocation market.

Colocation services allow businesses to make use of modern technology without having to spend a fortune on establishing their facilities. This expansion is being driven by the increasing popularity of cloud computing, the drive towards digital transformation, and the necessity to improve data security while remaining compliant with legislation. Market expansion is being propelled by the fact that colocation enables greater proximity to end-users, which in turn reduces latency and costs. As a result, they are driving the data center colocation market.


Data Center Colocation Market growth is hindered because of the high costs of setup and operation for data center colocations. Modern colocation facilities necessitate heavy financial outlays for infrastructure, cutting-edge cooling systems, and safety precautions.

The operational complexities and costs are further compounded by the need to comply with tight regulations pertaining to data security and environmental effects. These considerations of the reality that technology is advancing at a quick pace that necessitates regular facility upgrades can discourage businesses from enhancing their colocation capacities. Additionally, market expansion could be hindered by a lack of knowledge about colocation centers and the procedures of data center colocations.

Regional Trends:

The North American data center colocation market is anticipated to register a major market share in revenue. It is projected to grow at a high CAGR in the near future because of the region's growing number of data centers, fast digitization, top data center colocation providers' presence, and the existence of world-class manufacturing hubs all contribute to an improved digital infrastructure, and data center colocation services contributing to the region's growth.

Besides, Europe had a substantial market share due to the proliferation of data centers, which has led to fast acceptance, comprehensive solutions being readily available, and ever-increasing data center traffic volumes are raising the need for data center colocations in this region.

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Recent Developments:

  • In February 2024, Bridge Data Centres International Pte Ltd joined forces with the Singaporean firm Red Dot Analytics Pte Ltd in a strategic alliance to further BDC's aims in data center resilience, energy efficiency, and sustainability through the use of RDA's data center Digital Twin AI technology.
  • In March 2024, CoreSite, a division of American Tower Corporation and a frontrunner in hybrid IT solutions announced its certification as an NVIDIA DGX-Ready Data Center. This means it can now host high-performance, scalable infrastructure for companies that want to take advantage of the increasing demand for AI, ML, and other high-density applications.

Segmentation of Data Center Colocation Market-

By Colocation Services

  • Retail Colocation
  • Wholesale Colocation

By Infrastructure

  • Electrical Infrastructure
    • UPS Systems
    • Generators
    • Transfer Switches & Switchgear
    • PDUs
    • Others
  • Mechanical Infrastructure
    • Cooling Systems
      • CRAC & CRAH Units
      • Chiller Units
      • Cooling Towers, Condensers & Dry Coolers
      • Economizers & Evaporative Coolers
      • Other
    • Racks
    • Others
  • General Construction
    • Core & Shell Development
    • Installation & Commissioning Services
    • Engineering & Building Design
    • Fire Detection & Suppression
    • Physical Security
    • DCIM/BMS Solutions

By Cooling Techniques

  • Air-based Cooling
  • Liquid-based Cooling

By End-user

  • Retail
  • BFSI
  • IT & Telecom
  • Healthcare
  • Media & Entertainment
  • Others

By Region

North America-

  • The US
  • Canada
  • Mexico


  • Germany
  • The UK
  • France
  • Italy
  • Spain
  • Rest of Europe


  • China
  • Japan
  • India
  • South Korea
  • South East Asia
  • Rest of Asia Pacific

Latin America-

  • Brazil
  • Argentina
  • Rest of Latin America

 Middle East & Africa-

  • GCC Countries
  • South Africa
  • Rest of the Middle East and Africa

Why should buy this report:

  • To receive a comprehensive analysis of the prospects for global Data Center Colocation market
  • To receive industry overview and future trends of global Data Center Colocation market
  • To analyze the Data Center Colocation market drivers and challenges
  • To get information on the Data Center Colocation market size value (US$ Mn) forecast till 2031
  • Major Investments, Mergers & Acquisition in global Data Center Colocation market industry

Other Related Reports Published by InsightAce Analytic:

Sustainable Data Center Market

Data Center Fire Detection and Suppression Market

Carbon Neutral Data Center Market

Data Center Liquid Cooling Market

About Us:

InsightAce Analytic is a market research and consulting firm that enables clients to make strategic decisions. Our qualitative and quantitative market intelligence solutions inform the need for market and competitive intelligence to expand businesses. We help clients gain competitive advantage by identifying untapped markets, exploring new and competing technologies, segmenting potential markets and repositioning products. Our expertise is in providing syndicated and custom market intelligence reports with an in-depth analysis with key market insights in a timely and cost-effective manner.

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InsightAce Analytic PVT. LTD
Tel.: +1 551 226 6109
Email: [email protected]
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