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Data Center Colocation Market Trends

  • Report ID: GMI2419
  • Published Date: Sep 2023
  • Report Format: PDF
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Data Center Colocation Market Trends

The trend toward hybrid and multi-cloud adoption is driving colocation providers to become crucial enablers of seamless cloud integration. They offer connectivity, infrastructure, and managed services necessary for enterprises to leverage the advantages of hybrid & multi-cloud strategies while maintaining control, scalability, and data security. Colocation providers are developing their services to offer enhanced connectivity options including direct connections to major Cloud Service Providers (CSPs) such as AWS, Azure, and Google Cloud. They are also providing infrastructure & network capabilities necessary for seamless integration between on-premises data centers and various cloud environments. Colocation facilities are strategically located near major cloud regions to reduce latency and improve the performance of hybrid & multi-cloud deployments. These data centers offer reliable and low-latency connections, ensuring that data can flow seamlessly between on-premises infrastructure and cloud services.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

Market size for data center colocation was valued at USD 69.3 billion in 2022 and is projected to grow at a CAGR of over 11.5% between 2023 and 2032, favored by the growing demand for hybrid cloud and virtualization technologies.

The market share from BFSI segment is expected to grow at a CAGR of around 14% through 2032 as the sector faces rigorous data security and compliance regulations, and colocation providers offer data centers with robust security measures and compliance certifications.

North America held a dominant market share of over 40% in 2022 and will continue growing in the coming years as the businesses in the region are increasingly adopting hybrid cloud strategies, which involve a mix of on-premises, private, and public cloud resources.

Prominent industry players are Equinix, Inc. Digital Realty, NTT Communications, and China Telecom Corporation.

Data Center Colocation Market Scope

  • Data Center Colocation Market Size
  • Data Center Colocation Market Trends
  • Data Center Colocation Market Analysis
  • Data Center Colocation Market Share

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    Premium Report Details

    • Base Year: 2022
    • Companies covered: 19
    • Tables & Figures: 287
    • Countries covered: 21
    • Pages: 262
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