Data Center Colocation Market Size to Grow by USD 46.76 Bn at a CAGR of 13.96%| Retail Colocation segment is expected to witness lucrative growth | Technavio – QNT Press Release

NEW YORK, May 27, 2022 /PRNewswire/ — The Data Center Colocation Market size is expected to grow by USD 46.76 billion with a YOY growth of 13.35% during the forecast period. The increased demand for data center colocation facilities is one of the primary reasons driving growth in the data center colocation industry. The report offers an up-to-date analysis of the current market scenario and information from several leading manufacturers.

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This market research report extensively covers Data Center Colocation Market segmentations by the following:

  • Type – Retail colocation and Wholesale colocation
    • The retail colocation segment will gain considerable market share in data center colocation. The market for retail colocation data centers is expanding as a result of the growing adoption of data centers by SMEs, who typically choose colocation to save on both CAPEX and operating costs (OPEX ). Because the cost of owning and maintaining traditional data centers is increasing, colocation facilities are becoming more popular. Companies will have complete control over their IT infrastructure at inexpensive pricing, resulting in a steady transition toward colocation data centers. The global data center colocation market will benefit from this.
  • Geography – North AmericaAPAC, Europe, Middle East and Africaand South America
    • North America will account for 35% of the market’s growth. In North America, the United States and Canada are the most important markets for data center colocation. The market in this region will grow faster than the markets in Europethe Middle Eastand South America.
    • Over the forecast period, the data center colocation market in North America will benefit from increased investments by hyperscale cloud providers, colocation service providers, and enterprises upgrading their IT infrastructure to support edge computing, 5G, multi-cloud services, big data analytics, and IoT.

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Data Center Colocation Market Dynamics

Market Driver
The increased demand for data center colocation facilities is one of the primary reasons driving growth in the data center colocation industry. When compared to an enterprise that builds its own data center, a colocation facility provides greater benefits. Collocation lowers infrastructure CAPEX while also improving the connectivity needed for operational services. Private racks are built inside colocation facilities, which businesses can rent to run their IT infrastructure. They assist SMEs in adopting contemporary infrastructure while lowering subscription expenses.

Market Trend
A prominent data center colocation market trend that is predicted to have a favorable impact in the next years is innovative approaches like undersea data centers. Heat is generated in traditional data centers. Many service providers are attempting to shift data center locations to cooler nations in order to save money on power and cooling systems. Cooling systems absorb 30 percent to 40 percent of the energy used in data centers. Data center facilities use free cooling and liquid immersion cooling techniques to lower their power consumption.

Market Challenge
The emergence of containerized data centers will be a major challenge for the data center colocation market. A modular data center with portable data compartments is also known as a containerized data center. These modular data centers can be installed anywhere. Several industry companies are introducing new containerized data centers to meet the increased need for expansion and replacement of existing and traditional brick-and-mortar data centers.

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Data Center Colocation Market Scope

Report Coverage


Page number


Base year


Forecast period


Growth momentum & CAGR

Accelerate at a CAGR of 13.96%

Market growth 2022-2026

$46.76 billion

Market structure


YoY growth (%)


Regional analysis

North America, APAC, Europe, Middle East and Africa, and South America

Performing market contribution

North America at 35%

Key consumer countries

US, Canada, China, UK, and Germany

Competitive landscape

Leading companies, Competitive strategies, Consumer engagement scope

Key companies profiled

Ascenty, AT and T Inc., BT Group Plc, China Telecom Global Ltd., Cloudscene Pty Ltd., CoreSite Realty Corp., CyrusOne Inc., Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Flexential Corp. , Fujitsu Ltd., Internap Corp., Lumen Technologies Inc., Nippon…

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