In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Global Data Center Colocation Market Report

The global data center colocation market by revenue is expected to grow at a CAGR of over 7% during the period 2019–2025.
The data center colocation industry is expected to witness high growth during the forecast period due to the increased demand for data center operations among enterprises in several industry verticals. North America contributes around 43% to the overall revenue, which is followed by APAC and Western Europe with a market share of 27% and 18%, respectively. The US, China, and Japan are the prominent revenue contributors to the industry. Colocation providers are expanding their existing facilities, which are likely to drive market revenue during the forecast period. The establishment of new cloud regions, which is, i.e., over 25, by AWS, Google, and Microsoft during the period 2019–2022, is expected to provide a significant boost to wholesale colocation service growth on the global scale.

The rise in demand from several businesses has increased mergers and acquisitions activities to increase their portfolio, thereby increasing the data center colocation market growth. The increase in power consumption and the need to reduce carbon footprint have driven several service providers to procure clean and renewable energy sources to power their existing and upcoming facilities across the globe. The implementation of the 5G network has already started in countries such as the US, China, South Korea, Finland, Japan, and a few countries in Europe. This is projected to increase the demand for edge colocation facilities during the forecast period.

The following factors are likely to contribute to the growth of the global data center colocation market during the forecast period:

  • Introduction of District Heating Concept by Data Centers
  • Increased Renewable Energy Adoption among Colocation Providers
  • M&A Activities to Improve Colocation Market Share
  • Increasing Demand for Edge Data Centers

The study considers the present scenario of the global data center colocation market and its market dynamics for the period 2019_2025. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspect of the market. It profiles and examines leading companies and other prominent ones operating in the market.

Global Data Center Colocation Market Segmentation
The global data center colocation market research report includes a detailed segmentation by electrical infrastructure, mechanical infrastructure, general construction, service type, geography. UPS systems have been the highest contributors to the market revenue through the adoption of VRLA battery-powered systems. The adoption of UPS systems has become a critical task for data center operators and designers as they account for over 30% of failures identified in the facility. The adoption of lithium-ion UPS systems has grown considerably over the past years.

The adoption of generator systems with a capacity of over 2 MW is higher because of the increased construction of large and mega facilities. Most facilities are currently deploying on-site fuel storage for at least 72 hours to power data center operations in case of power outages. Cost, reliability, efficiency, and maintenance are the major factors responsible for the adoption of UPS and generators.

The adoption of cooling units is highly dependent on the IT load; the growth in rack densities and the need to function cooling systems at low loads are driving the installation of the modern cooling infrastructure. Data center operators are procuring innovative cooling solutions that aim to enhance operational efficiency, reduce power consumption, and decrease carbon emissions. Data center operators have adopted innovative and energy-efficient cooling solutions to reduce power consumption by up to 50%, thereby driving the market demand.

The North American market has a strong presence of general contractors and sub-contractors. The competition will increase over the next few years. Expertise in developing data centers within a short span of time, i.e., less than one year, will be a key criterion for the operators in the selection of general contractors. Several operators have strong partnerships with general contractors. Western Europe is the most active market in the European region for data center construction. Several facilities are being designed and built to cover an area of over 100,000 square feet.

The retail colocation industry is likely to grow due to the adoption of single or multiple racks with a total capacity of less than 250 kW. The increasing preference for colocation services among organizations for better control and high bandwidth and interconnectivity is a significant factor, which is influencing the market growth. The growing demand from developing economies is likely to drive colocation services. Also, enterprises with the need for geographically distributed capacity and limited budgets are likely to opt for retail colocation.

Segmentation by Electrical Infrastructure

  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • Rack PDU
  • Other Electrical Infrastructure

Segmentation by Mechanical infrastructure

  • Cooling Systems

o CRAC & CRAH Units
o Chiller Units
o Cooling Towers & Dry Coolers
o Economizer & Evaporative Coolers
o Other Units

  • Rack
  • Others Mechanical infrastructure
  • Cooling Technique

o Air-based Cooling
o Liquid-based Cooling
Segmentation by General Construction

  • Building Development
  • Installation & Commissioning Services
  • Building Design
  • Physical Security
  • DCIM

Segmentation by Service Type

  • Retail
  • Wholesale

Insights by Geography
In North America, the US dominates the data center colocation market with a revenue share of around 94% in 2019. North America is the home to approximately 2,000 colocation facilities. Organizations in this region are currently involved in building high- performance computing data centers to continue to innovate in the field of IoT, AI, and connected reality.

Segmentation by Geography

  • North America

o US
o Canada

  • Latin America

o Brazil
o Other Countries

  • Western Europe

o UK
o Germany
o France
o Netherlands
o Ireland
o Others

  • Nordics

o Denmark
o Finland & Iceland
o Sweden
o Norway

  • Central Eastern Europe

o Russia & Czech Republic
o Poland & Austria
o Other Countries

  • Middle East

o Other Countries

  • Africa

o South Africa

The global data center colocation market has witnessed several new entrants. They are expected to provide intense competition toward the growth of revenue for the existing operators. The market will observe several mergers and acquisitions, leading to an increase in market share. In terms of colocation revenue, Equinix is the leading key player in the global industry, with a market share of around 11.5%. Digital Realty follows Equinix. The company generates through its properties as well as through joint ventures. NTT announced its global portfolio expansion with an investment of around $7 billion. NTT communication is among the leading cloud service providers and operates the most interconnected data center network across the world.

Prominent Colocation Data Center Vendors

  • 21Vianet
  • Eaton
  • China Telecom Global
  • CoreSite Realty
  • CyrusOne
  • Digital Realty
  • Equinix
  • Flexential
  • GDS Holdings
  • Global Switch
  • Interxion
  • Quality Technology Services (QTS)
  • ST Telemedia Global Data Centres (STT GDC)
  • NTT Communications

Prominent Data Center Investors

  • AirTrunk Operating
  • Aligned Data Center
  • Aruba SpA
  • Ascenty
  • Bahnhof
  • Batelco (Bahrain Telecommunications Company)
  • Bridge Data Centers
  • Bulk Infrastructure
  • Canberra
  • Colt Data Center Services
  • Compass Data Centers
  • COPT Data Center Solutions
  • Digiplex
  • EdgeConnex
  • Etisalat Group
  • Fifteenfortyseven Critical Systems Realty
  • Iron Mountain
  • Khanza
  • PT Telekomunikasi Group
  • Sabey Data Center
  • Sify Technology
  • Scaleway Data Center
  • ST Telemedia Global Data Centres (STT GDC)
  • SUNeVison
  • Switch
  • Tenglong Holdings Group (Tamron)
  • Teraco Data Environments
  • Turkcell
  • Vantage Data Center

New Entrants

  • EdgeCore Internet Real Estate
  • Prime data centers
  • GIGA Data Centers
  • PointOne
  • Stack Infrastructure
  • Chayora
  • Raxio Data Center
  • NDC Data Center
  • Kepstar Data Center Management
  • Space DC
  • Yotta Infrastructure
  • Regal Orion
  • Princeton Digital Group (PDG)
  • Novva
  • Echelon Data Centers
  • Scala Data Centers
  • BDx (Big Data Exchange)

Key Questions Answered
1. What is the size of the data center colocation market in terms of investments, area, power capacity, service type (retail/wholesale), and revenue in more than 25 countries across the world?
2. What is the market share of retail and wholesale colocation services over 25 countries?
3. What is the market share by leading service providers by investments, area, power capacity, and colocation services?
4. What drivers, trends, and restraints are driving the data center colocation market?
5. Who are the prominent vendors in the data center colocation market?
6. What is the number of new entrants entering the data center colocation market at the global scale?
7. What is the impact of the COVID-19 pandemic on the data center colocation market shares?