The global data center colocation market is expected to grow from US$ 50,579.1 million in 2021 to US$ 136,647.9 million by 2028; it is estimated to grow at a CAGR of 15.3% from 2021 to 2028.
Increasing enterprise demands for cost-effective solutions to reduce overall IT costs and growing disaster recovery and business continuity requirements are driving the global data center colocation market. However, high initial and maintenance costs may hinder the growth of the market in some applications. Despite some limitations, developments in edge computing and surge in demand for advanced data center infrastructure due to the advent of 5G services are the major factors anticipated to drive the data center colocation market.
The data center colocation market’s key stakeholders are land providers, real estate, colocation facility providers, managed service providers, security service providers, cloud providers, and end users. The land and real estate provide basic building infrastructure for data center construction. The data center colocation service providers offer racks, cross-connects, facility management, power & cooling, helpdesk, and other facilities. Security service providers play a crucial role in the ecosystem. The cloud providers such as Google, Microsoft, and Amazon offer public cloud applications. The end users include the key customers from various industries using the data center colocation services.
Impact of COVID-19 Pandemic on Data Center Colocation Market
The COVID-19 pandemic has had a beneficial impact on the expansion of the data center colocation market, as data center colocation technologies assist businesses in meeting the increased demands of internet traffic. According to most internet and data service providers, worldwide internet traffic is growing at 30-45% each year. There is an increasing need to ensure that data center colocation service providers have the ability and capacity to supply high-performance data center colocation services during periods of elevated traffic demand. As a result, service providers are investing heavily in data center colocation in a variety of scenarios. Furthermore, the COVID-19 pandemic presents an opportunity for the data center colocation market as data center colocation services assist organizations worldwide in achieving their business objectives while working from home by providing high data security. However, due to the shutdowns of manufacturing facilities for data center and maintenance equipment, some setbacks in the data center colocation process occurred during the lockdown.
The overall data center colocation market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the data center colocation market with respect to all the segments. It also provides the overview and forecast for the market based on all the segmentation provided with respect to five major regions?North America, Europe, Asia Pacific, Middle East & Africa, and South America. Also, primary interviews were conducted with industry participants and commentators to validate data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the data center colocation market. A few major players operating in the market are Equinix Inc.; IBM Corporation; AT&T Inc.; Cyxtera Technologies, Inc.; Digital Realty Trust LP; CoreSite Realty Corporation; CyrusOne, Inc.; QTS Realty Trust, Inc.; 365 Data Centers; and UnitedLayer.