Data Center Colocation Market size to exceed $100bn by 2025

Data Center Colocation Market size is set to surpass USD 100 billion by 2025; according to a new research report by Global Market Insights, Inc.

The rise in the amount of data generated is driven by various factors such as the growing use of mobile data & internet and smart devices and the increasing adoption of cloud-based technologies, IoT, and digitization. This exponential rise in the amount of data generated is driving the demand for more storage space. Online shopping has gained traction in several regions and the traditional brick and mortar stores are increasingly being replaced by online stores. Online activities tend to generate large amounts of customer-related information, such as financial data and historical preferences, causing companies to invest in the construction and modernization of data centers. The increasing reliance of people on online transactions has led to a rapid rise in the amount of data generated, driving the data center colocation market. SMEs operating in China, India, Singapore, and Indonesia are adopting online channels to stay connected with their customers. The organizations are adapting to the changes in their ecosystem by incorporating digital solutions to create digitally enhanced business models.


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Favorable government initiatives for industrial development in Asia Pacific

The Asia Pacific data center market has witnessed a strong demand for cloud-based deployment due to an increasing number of businesses in recent years. Various government initiatives, such as Smart Cities and Digital India, are further boosting the implementation of the IoT and cloud computing in the region. Australia, Taiwan, Singapore, and South Korea are developed markets with governments in these regions investing in IT infrastructure facilities. For instance, in February 2019, the New South Wales Government in Australia invested over USD 400 million in its ‘Regional Digital Connectivity Package’ initiative. The funding includes the construction of data center facilities in the region. Global companies, such as Google, Facebook, and Microsoft, are investing a large amount of money for establishing their IT facilities in the region, which is a major factor driving the data center colocation market.

Rising adoption of colocation services by small enterprises to reduce operating and maintenance cost

Colocation services help small enterprises to reduce the cost from infrastructure by renting hardware and services from third-party companies. The cost of building telecom infrastructure for countries including Nigeria, Morocco, and the Philippines are critical and for entering and harnessing such potential markets and operators are adopting colocation and sharing telecom infrastructure. Constructing a new data center drains a company’s vital resources such as time, labor, and money. Colocation providers are offering enhanced services, such as power, cooling, and maintenance of infrastructure and connectivity solutions, fueling the adoption across the sector. Moreover, the development of 5G and high-speed networks across several countries will create future growth prospects for the data center colocation market in the telecom & IT sector.

Browse key industry insights spread across 210 pages with 196 market data tables and 31 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), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 – 2025” in detail along with the table of contents:

Ongoing construction of data centers and business expansion in Latin America

Rise in the number of data centers coupled with growing investments by various business entities across the region will fuel the Latin America data center colocation market growth. International companies, such as IBM Corporation, Google, and Microsoft Corporation, are increasingly focusing on market expansion in the region owing to significant growth opportunities. There are over 100 col-located data centers spread across Argentina, Chile, Colombia, Peru, Uruguay, Peru, and Brazil. Brazil is a major market for colocation data centers. Hyperscale cloud data center and colocation providers are gaining importance in the region. Investments by colocation service providers are driving the Brazilian data center market. Around 1,500 companies collocate in Equinix’s data centers in Brazil for connecting with customers and business partners across their digital supply chains. Equinix provides a total of 1,664 square feet of colocation space.

Industry players are adopting collaboration strategies to remain competitive in the market

Key players operating in the data center colocation market are Singapore Telecommunications Limited, NTT Communications, KDDI Corporation, Interxion N.V., Global Switch Corporation, Equinix, Inc., Digital Realty, CyrusOne, China Unicom, and China Telecommunications Corporation. Increasing adoption of cloud technology by organizations is expected to fuel market growth. Despite various challenges and adverse economic scenario, IT firms are increasingly investing in data centers. Investments in the region can be attributed to enhancements in applicaton performance, reduced network latency, and fast & efficient data transmission.

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