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Data Center Colocation Market worth over $145bn by 2027

  • Published Date: September 28, 2021

Data Center Colocation Market size is set to surpass USD 145 billion by 2027, according to a new research report by Global Market Insights Inc.

The growing penetration of compute-intensive technologies, such as AI & IoT, is driving the market demand for edge data centers that offer faster data processing services to customers. A rapid increase in computing power and the adoption of IoT devices have encouraged market leaders to deploy data centers to the network edge to cater to the demands of IoT and AI applications. Edge data centers enable data to be analyzed and processed closer to the customer’s location, i.e., the point of data creation. The edge data center colocation technique reduces latency as data does not travel over longer distances. Furthermore, increasing demand for edge computing solutions that ensure faster processing speeds will support the edge data center colocation business growth.

The coronavirus (COVID-19) pandemic supported the data center colocation market expansion in 2020. The strict lockdown measures imposed by government organizations increased the utilization of digital services such as online grocery shopping, contactless payments, and virtual meetings. The IT & telecom sector is under stress due to the sudden transition to remote working and e-learning technologies by corporate & academic institutions. High-quality data center colocation services are crucial for the seamless implementation of these technologies to ensure the uninterrupted interconnection of remote devices. This factor coupled with the growing acceptance of digital payment technologies will boost the demand for data management solutions, in turn, supporting the industry growth.

Increasing demand for wholesale colocation from large business organizations will propel the demand for data center colocation services

U.S. Data Center Colocation Market Size, By Type

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The rising requirement for global IT services by government agencies will offer growth opportunities to the wholesale data center colocation market. Government authorities are investing in the process of transforming traditional methods and creating a virtual platform to optimize several processes. To store the massive amount of data generated, wholesale colocation providers lease the entire data center facility for a long period while also offering the latest technology upgrades. Wholesale data center colocation providers will also focus on entering long-term partnerships with government organizations to cater to their specific large-scale data storage requirements.

Browse key industry insights spread across 300 pages with 248 market data tables and 32 figures & charts from the report, “Data Center Colocation Market Size By Type (Retail Colocation, Wholesale Colocation), By End-Use (SMEs, Large Enterprises), By Application (BFSI, Energy, Government & Defense, Healthcare, Manufacturing, IT & Telecom, Retail), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:

Focus on integrating AI & IoT for process optimization by the manufacturing industry in Europe will support the market value

The growing emphasis on deploying technologies, such as Artificial Intelligence (AI) and Internet of Things (IoT), across the manufacturing sector is resulting in a sharp rise in data. Manufacturers are using big data analytics, machine learning & AI to predict machine failure, optimize processes, and develop smart services & supply chains. According to the European Union, the manufacturing industry combined with AI and industrial IoT will impact the European economy by around USD 234 billion by 2030. The increasing data traffic will also contribute to the rising demand for IT infrastructures, fostering the industry expansion.

Companies are focusing on expansion opportunities in multiple markets

Prominent players operating in the data center colocation market include NTT Communications Corporation, China Telecom Corporation Limited, China Unicom, Digital Realty, Cogent Communications, Inc., Singapore Telecommunications Limited, Cologix, Inc., CyrusOne, Cyxtera Technologies, Inc., eStruxture Data Centers, Equinix, Inc., Internap Corporation, Interxion Holding NV, KDDI Corporation, Ltd., Rackspace Inc., Sungard Availability Services, TeraGo Networks, Telstra Corporation Limited, Verizon Communications Inc., and Zayo Group, LLC. Industry leaders are focusing on launching or upgrading their data centers to expand market reach.

Authors: Preeti Wadhwani, Saloni Gankar