Data Center Colocation Market Update: Fast Change Strategies for 2023-2029 | Equinix, GDS, Lumen

HTF Market Report

Updated · Jun 05, 2023

Data Center Colocation Market Update: Fast Change Strategies for 2023-2029 | Equinix, GDS, Lumen

Published Via 11Press : According to HTF Market Intelligence, the market for Global Data Center Colocation is expected to register a CAGR of 8.85% during the forecast period to 2028.

Data center colocation alludes to a procedure provided for organizations and organizations the spot they can recruit regions for servers and different figuring equipment. It assists the association in data with average administration, arranging, functional methodologies, and risk organization and more noteworthy has extended the interest for records center colocation. They are outfitted with a power reinforcement office, an IP framework, and a cooling unit. At the point when an association or undertaking can’t have its own realities center colocation, they buy the house in expressions of rack or pantries from various colocation measurements focuses. In assessing the generally utilized data habitats, colocation realities offices are additionally practical, genuinely solid, without trouble adaptable, may likewise be set close to the clients, and require negligible specialized staff. Besides, Colocation measurements offices have totally excess local area associations ensuring that clients’ modern business fundamental capabilities constantly run continuously. Additionally, Colocation records offices supply power overt repetitiveness through a blend of several power lattices, diesel energy generators, twofold battery reinforcement frameworks, and exceptional well-being rehearses and moreover give buyers the capacity to burst to higher data transmission stages to oblige their guest’s interest other than making rehash capital ventures. Since realities spikes are dispensed extra time during various clients, data transmission costs are quite diminished.

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Key Developments in the Market:

On July 22, 2022, UpStack, a global IT infrastructure advisory firm announced that it had gained, a server farm colocation warning firm situated in the US. This securing assisted UpStack with growing its administrations and abilities in the data center colocation market, especially in North America. The procurement likewise carried extra skill and assets to UpStack’s current group of specialists, further improving its capacity to exhort clients on IT framework arrangements. On Walk 18, 2022, Equinix, a global data center company reported that it had procured four data centers from Entel, a Chilean broadcast communications organization, for $705 million. This obtaining was supposed to grow Equinix’s presence in Latin America and empower the organization to satisfy the rising need for a computerized foundation in the district. They obtaining remembered two data centers for Santiago and one each in Peru and Argentina. The arrangement was supposed to shut down in the last part of 2023, dependent upon administrative endorsement.

Data Center Colocation Market Key Players

Below are the most prominent enterprise Data Center Colocation industry players.

  • AT&T, Inc. (US)
  • Verizon Enterprise Solutions, Inc. (United States)
  • Equinix, Inc. (United States)
  • Digital Realty Trust, Inc. (United States)
  • China Telecom Corporation Limited (China)
  • NTT Communication Corporation (Japan)
  • KDDI Telehouse
  • CyrusOne Inc. (United States)
  • GDS
  • Lumen
  • CoreSite Realty Corporation (United States)
  • Cyxtera Technologies, Inc. (United States)
  • 21Vianet
  • Chindata Group Holdings Limited
  • IBM, Flexential
  • Global Switch (United Kingdom)
  • Internap Holding LLC
  • NaviSite, Inc.

Data Center Colocation Market Key Business Segments

By Product Type

  • Retail Data Center Colocation
  • Wholesale Data Center Colocation
  • Hybrid Cloud-Based Colocation

By End Use Application

  • Server Virtualization
  • Hybrid Cloud Deployments
  • Edge Computing
  • Artificial Intelligence

Data Center Colocation Market

Market Growth Drivers

  • The global data center colocation market is being driven by a few elements, including the rising reception of distributed computing and large information investigation, rising interest for information capacity and handling, the requirement for data center union and cost improvement, and the developing significance of information security and administrative consistence.
  • The market is likewise being driven by the ascent of edge figuring, the rising number of associated gadgets and the development of the Web of Things (IoT), and the ascent of man-made brainpower and AI, which require enormous measures of information handling and stockpiling abilities. Furthermore, the worldwide shift towards remote work and web-based business is additionally expanding the interest in data center colocation administrations.

Influencing Trends

  • The data center colocation market is continually developing, and the most recent patterns and progressions in this field are outfitted towards working on the effectiveness and maintainability of these offices. Edge processing, half-and-half cloud arrangements, and environmentally friendly power are a portion of the top patterns in this market.
  • The development of IoT gadgets and the requirement for constant information handling has prompted the rise of edge registering, which includes setting server farms nearer to end clients. Mixture cloud arrangements offer organizations the advantages of both private and public cloud assets.
  • Sustainable power sources are being utilized by data center colocation suppliers to drive their offices, in accordance with the developing accentuation on supportability. Man-made intelligence is being utilized to streamline the exhibition of data centers, while the rollout of 5G innovation is supposed to drive interest in data center colocation administrations.

Major Development in the Data Center Colocation Market

Report Highlights

Report Attributes Details
CAGR 8.85 %
Market Forecast (2029) USD 67242 Mn
Current Market Size (2022) USD 40421 Mn
Dominating Segment Large Enterprises
Major Players Profiled AT&T (United States), Verizon Enterprise Solutions (United States), Equinix, Inc. (United States), Digital Realty Trust, Inc. (US), China Telecom Corporation Limited (China), NTT Communication Corporation, KDDI Telehouse, CyrusOne Inc. (US), GDS, Lumen, CoreSite Realty Corporation (United States), Cyxtera Technologies (United States), 21Vianet, Chindata Group Holdings Limited, IBM, Flexential, Global Switch (United Kingdom), Internap Holding, NaviSite.
Base Year 2022


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  • Significant expense, security concerns, reliance on power, restricted accessibility of talented labor force, and administrative consistence are the essential variables restricting development in the Global data center colocation market. The expense of setting up and keeping a data center is high, and this goes about as a hindrance to the section for new players on the lookout.
  • Moreover, data center house delicate and classified data, and security breaks can prompt huge monetary and reputational harm. Besides, server farms require a constant and dependable power supply to work, and any interruptions to the power supply can cause a huge margin of time and loss of income.
  • Besides, the data center industry requires a profoundly talented labor force, and there is a lack of gifted experts on the lookout, hampering the market’s development. data centers need to conform to different guidelines and norms, and the inability to do so can bring about legitimate and monetary punishments, consequently, a section into the market frequently becomes troublesome and hampers development.

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HTF Market Intelligence Consulting Private Limited
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[email protected]

Content has been published via 11press. for more details please contact at [email protected]

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