
Data Center Colocation
Description
Global Data Center Colocation Market to Reach US$145.7 Billion by 2030
The global market for Data Center Colocation estimated at US$69.9 Billion in the year 2024, is expected to reach US$145.7 Billion by 2030, growing at a CAGR of 13.0% over the analysis period 2024-2030. IT & Telecom, one of the segments analyzed in the report, is expected to record a 15.6% CAGR and reach US$57.4 Billion by the end of the analysis period. Growth in the BFSI segment is estimated at 13.4% CAGR over the analysis period.
The U.S. Market is Estimated at US$18.9 Billion While China is Forecast to Grow at 11.8% CAGR
The Data Center Colocation market in the U.S. is estimated at US$18.9 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$21.7 Billion by the year 2030 trailing a CAGR of 11.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 12.1% and 10.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 8.8% CAGR.
strong>Global Data Center Colocation Market - Key Trends and Drivers Summarized
What Is Data Center Colocation and How Is It Redefining IT Infrastructure Management?
Data center colocation is a service that allows businesses to rent space for their servers and networking equipment in a third-party facility instead of housing them in-house. Colocation provides the physical environment necessary to maintain and protect these IT assets, including space, power, cooling, and physical security. By opting for colocation, companies can benefit from the economies of scale and advanced infrastructure that would be cost-prohibitive to replicate on their own. These facilities offer high-bandwidth access, superior connectivity, and redundancy systems that ensure operational continuity even in the event of power failures or other disruptions. This setup not only helps businesses manage their capital expenditures more efficiently by eliminating the need to construct, maintain, and upgrade their own data centers but also allows them to focus more on their core operations without the logistical concerns of managing IT infrastructure.
How Does Colocation Facilitate Business Growth and Flexibility?
Colocation services provide businesses with the flexibility to scale their operations rapidly without the usual capital investment and time required to expand physical IT infrastructure. As organizations grow and their data needs increase, colocation facilities make it easier to scale up IT resources swiftly—adding more servers or increasing bandwidth capacity can often be accomplished without the extensive planning and execution involved in expanding a private data center. Additionally, colocation facilities often house multiple carriers and service providers within their premises, giving businesses the ability to switch services or augment their capabilities without significant interruptions or logistical challenges. This aspect is particularly beneficial for businesses that require high levels of network reliability and speed, as they can leverage the competitive environment within the colocation facility to negotiate better service agreements and ensure optimal network performance.
What Are the Key Considerations and Trends Influencing Data Center Colocation?
One of the primary considerations for businesses looking into data center colocation is compliance with regulatory standards and data security requirements. Colocation providers must adhere to stringent standards to ensure that they can support businesses in highly regulated industries such as finance and healthcare. As such, many colocation facilities are equipped with advanced security measures, both physical and digital, and are certified under various compliance regimes like HIPAA, SOC 2, or PCI DSS. Moreover, with the increasing emphasis on sustainability, many colocation providers are now investing in green technologies and practices, such as using renewable energy sources and implementing energy-efficient cooling mechanisms. This shift not only helps reduce the environmental impact of these data-intensive operations but also aligns with the corporate responsibility goals of their clients.
What Drives the Growth in the Data Center Colocation Market?
The growth in the data center colocation market is driven by several factors, including the escalating demand for scalable data storage and processing capabilities amid the surge in data generation by businesses. As companies continue to embrace digital transformation, the need for reliable, secure, and compliant IT infrastructure becomes paramount, fueling the demand for colocation services. The shift towards hybrid cloud environments is also a significant driver, as colocation provides a critical physical infrastructure component for hybrid strategies, offering a way to maintain sensitive data on-premises while leveraging cloud computing for less critical resources. Additionally, the global nature of modern business necessitates a presence in multiple markets, and colocation facilities offer a way to establish a local IT footprint without the high cost and complexity of building private data centers in diverse geographic regions. Together, these trends contribute to the robust growth of the colocation market, highlighting its essential role in the future of global IT strategies.
SCOPE OF STUDY:The report analyzes the Data Center Colocation market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Type (Retail Colocation, Wholesale Colocation); Application (IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail, Other Applications)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.
Select Competitors (Total 44 Featured) -
- AT&T, Inc.
- China Telecom Corporation Ltd.
- CoreSite Realty Corporation
- Cyrusone LLC
- Cyxtera Technologies, Inc.
- Digital Realty Trust, Inc.
- Dupont Fabros Technology, Inc.
- Equinix, Inc.
- Global Switch Holdings Ltd.
- Internap Corporation
- Interxion Holding NV
- KDDI Corporation
- Level 3 Communications, Inc.
- NTT Communications Corporation
- Verizon Enterprise Solutions
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Table of Contents
- I. METHODOLOGY
- II. EXECUTIVE SUMMARY
- 1. MARKET OVERVIEW
- Influencer Market Insights
- Data Center Colocation – Global Key Competitors Percentage Market Share in 2025 (E)
- Global Economic Update
- Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2025 (E)
- 2. FOCUS ON SELECT PLAYERS
- 3. MARKET TRENDS & DRIVERS
- Rising Real Estate Costs Drive Adoption of Colocation Data Centers
- Increasing Need for Scalable IT Infrastructure Spurs Growth in Colocation Services
- Shift Toward Green Computing Bodes Well for Sustainable Data Center Colocation
- Integration of Advanced Networking Capabilities Enhances Colocation Offerings
- Surge in Cloud Service Providers Expands Opportunities for Colocation Markets
- Adoption of High-Density Servers Spurs Innovations in Colocation Space Design
- Technological Advancements in Cooling and Power Systems Drive Colocation Efficiency
- Increasing Focus on Disaster Recovery and Business Continuity Strengthens Colocation Demand
- Demand for 5G Infrastructure Support Bodes Well for Colocation Centers
- 4. GLOBAL MARKET PERSPECTIVE
- TABLE 1: World Recent Past, Current & Future Analysis for BFSI by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
- TABLE 2: World 6-Year Perspective for BFSI by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
- TABLE 3: World Recent Past, Current & Future Analysis for Healthcare by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
- TABLE 4: World 6-Year Perspective for Healthcare by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
- TABLE 5: World Recent Past, Current & Future Analysis for IT & Telecom by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
- TABLE 6: World 6-Year Perspective for IT & Telecom by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
- TABLE 7: World Recent Past, Current & Future Analysis for Retail by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
- TABLE 8: World 6-Year Perspective for Retail by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
- TABLE 9: World Recent Past, Current & Future Analysis for Other Applications by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
- TABLE 10: World 6-Year Perspective for Other Applications by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
- TABLE 11: World Recent Past, Current & Future Analysis for Retail Colocation by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
- TABLE 12: World 6-Year Perspective for Retail Colocation by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
- TABLE 13: World Recent Past, Current & Future Analysis for Wholesale Colocation by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
- TABLE 14: World 6-Year Perspective for Wholesale Colocation by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
- TABLE 15: World Recent Past, Current & Future Analysis for Media & Entertainment by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
- TABLE 16: World 6-Year Perspective for Media & Entertainment by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
- TABLE 17: World Data Center Colocation Market Analysis of Annual Sales in US$ Million for Years 2015 through 2030
- TABLE 18: World Recent Past, Current & Future Analysis for Data Center Colocation by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
- TABLE 19: World 6-Year Perspective for Data Center Colocation by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets for Years 2025 & 2030
- III. MARKET ANALYSIS
- UNITED STATES
- Data Center Colocation Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2025 (E)
- TABLE 20: USA Recent Past, Current & Future Analysis for Data Center Colocation by Application - IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 21: USA 6-Year Perspective for Data Center Colocation by Application - Percentage Breakdown of Value Sales for IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications for the Years 2025 & 2030
- TABLE 22: USA Recent Past, Current & Future Analysis for Data Center Colocation by Type - Retail Colocation and Wholesale Colocation - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 23: USA 6-Year Perspective for Data Center Colocation by Type - Percentage Breakdown of Value Sales for Retail Colocation and Wholesale Colocation for the Years 2025 & 2030
- CANADA
- TABLE 24: Canada Recent Past, Current & Future Analysis for Data Center Colocation by Application - IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 25: Canada 6-Year Perspective for Data Center Colocation by Application - Percentage Breakdown of Value Sales for IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications for the Years 2025 & 2030
- TABLE 26: Canada Recent Past, Current & Future Analysis for Data Center Colocation by Type - Retail Colocation and Wholesale Colocation - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 27: Canada 6-Year Perspective for Data Center Colocation by Type - Percentage Breakdown of Value Sales for Retail Colocation and Wholesale Colocation for the Years 2025 & 2030
- JAPAN
- Data Center Colocation Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2025 (E)
- TABLE 28: Japan Recent Past, Current & Future Analysis for Data Center Colocation by Application - IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 29: Japan 6-Year Perspective for Data Center Colocation by Application - Percentage Breakdown of Value Sales for IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications for the Years 2025 & 2030
- TABLE 30: Japan Recent Past, Current & Future Analysis for Data Center Colocation by Type - Retail Colocation and Wholesale Colocation - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 31: Japan 6-Year Perspective for Data Center Colocation by Type - Percentage Breakdown of Value Sales for Retail Colocation and Wholesale Colocation for the Years 2025 & 2030
- CHINA
- Data Center Colocation Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2025 (E)
- TABLE 32: China Recent Past, Current & Future Analysis for Data Center Colocation by Application - IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 33: China 6-Year Perspective for Data Center Colocation by Application - Percentage Breakdown of Value Sales for IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications for the Years 2025 & 2030
- TABLE 34: China Recent Past, Current & Future Analysis for Data Center Colocation by Type - Retail Colocation and Wholesale Colocation - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 35: China 6-Year Perspective for Data Center Colocation by Type - Percentage Breakdown of Value Sales for Retail Colocation and Wholesale Colocation for the Years 2025 & 2030
- EUROPE
- Data Center Colocation Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2025 (E)
- TABLE 36: Europe Recent Past, Current & Future Analysis for Data Center Colocation by Application - IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 37: Europe 6-Year Perspective for Data Center Colocation by Application - Percentage Breakdown of Value Sales for IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications for the Years 2025 & 2030
- TABLE 38: Europe Recent Past, Current & Future Analysis for Data Center Colocation by Type - Retail Colocation and Wholesale Colocation - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 39: Europe 6-Year Perspective for Data Center Colocation by Type - Percentage Breakdown of Value Sales for Retail Colocation and Wholesale Colocation for the Years 2025 & 2030
- TABLE 40: Europe Recent Past, Current & Future Analysis for Data Center Colocation by Geographic Region - France, Germany, Italy, UK and Rest of Europe Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
- TABLE 41: Europe 6-Year Perspective for Data Center Colocation by Geographic Region - Percentage Breakdown of Value Sales for France, Germany, Italy, UK and Rest of Europe Markets for Years 2025 & 2030
- FRANCE
- Data Center Colocation Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2025 (E)
- TABLE 42: France Recent Past, Current & Future Analysis for Data Center Colocation by Application - IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 43: France 6-Year Perspective for Data Center Colocation by Application - Percentage Breakdown of Value Sales for IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications for the Years 2025 & 2030
- TABLE 44: France Recent Past, Current & Future Analysis for Data Center Colocation by Type - Retail Colocation and Wholesale Colocation - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 45: France 6-Year Perspective for Data Center Colocation by Type - Percentage Breakdown of Value Sales for Retail Colocation and Wholesale Colocation for the Years 2025 & 2030
- GERMANY
- Data Center Colocation Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2025 (E)
- TABLE 46: Germany Recent Past, Current & Future Analysis for Data Center Colocation by Application - IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 47: Germany 6-Year Perspective for Data Center Colocation by Application - Percentage Breakdown of Value Sales for IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications for the Years 2025 & 2030
- TABLE 48: Germany Recent Past, Current & Future Analysis for Data Center Colocation by Type - Retail Colocation and Wholesale Colocation - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 49: Germany 6-Year Perspective for Data Center Colocation by Type - Percentage Breakdown of Value Sales for Retail Colocation and Wholesale Colocation for the Years 2025 & 2030
- ITALY
- TABLE 50: Italy Recent Past, Current & Future Analysis for Data Center Colocation by Application - IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 51: Italy 6-Year Perspective for Data Center Colocation by Application - Percentage Breakdown of Value Sales for IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications for the Years 2025 & 2030
- TABLE 52: Italy Recent Past, Current & Future Analysis for Data Center Colocation by Type - Retail Colocation and Wholesale Colocation - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 53: Italy 6-Year Perspective for Data Center Colocation by Type - Percentage Breakdown of Value Sales for Retail Colocation and Wholesale Colocation for the Years 2025 & 2030
- UNITED KINGDOM
- Data Center Colocation Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2025 (E)
- TABLE 54: UK Recent Past, Current & Future Analysis for Data Center Colocation by Application - IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 55: UK 6-Year Perspective for Data Center Colocation by Application - Percentage Breakdown of Value Sales for IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications for the Years 2025 & 2030
- TABLE 56: UK Recent Past, Current & Future Analysis for Data Center Colocation by Type - Retail Colocation and Wholesale Colocation - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 57: UK 6-Year Perspective for Data Center Colocation by Type - Percentage Breakdown of Value Sales for Retail Colocation and Wholesale Colocation for the Years 2025 & 2030
- REST OF EUROPE
- TABLE 58: Rest of Europe Recent Past, Current & Future Analysis for Data Center Colocation by Application - IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 59: Rest of Europe 6-Year Perspective for Data Center Colocation by Application - Percentage Breakdown of Value Sales for IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications for the Years 2025 & 2030
- TABLE 60: Rest of Europe Recent Past, Current & Future Analysis for Data Center Colocation by Type - Retail Colocation and Wholesale Colocation - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 61: Rest of Europe 6-Year Perspective for Data Center Colocation by Type - Percentage Breakdown of Value Sales for Retail Colocation and Wholesale Colocation for the Years 2025 & 2030
- ASIA-PACIFIC
- Data Center Colocation Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2025 (E)
- TABLE 62: Asia-Pacific Recent Past, Current & Future Analysis for Data Center Colocation by Application - IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 63: Asia-Pacific 6-Year Perspective for Data Center Colocation by Application - Percentage Breakdown of Value Sales for IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications for the Years 2025 & 2030
- TABLE 64: Asia-Pacific Recent Past, Current & Future Analysis for Data Center Colocation by Type - Retail Colocation and Wholesale Colocation - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 65: Asia-Pacific 6-Year Perspective for Data Center Colocation by Type - Percentage Breakdown of Value Sales for Retail Colocation and Wholesale Colocation for the Years 2025 & 2030
- REST OF WORLD
- TABLE 66: Rest of World Recent Past, Current & Future Analysis for Data Center Colocation by Application - IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 67: Rest of World 6-Year Perspective for Data Center Colocation by Application - Percentage Breakdown of Value Sales for IT & Telecom, BFSI, Healthcare, Media & Entertainment, Retail and Other Applications for the Years 2025 & 2030
- TABLE 68: Rest of World Recent Past, Current & Future Analysis for Data Center Colocation by Type - Retail Colocation and Wholesale Colocation - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 69: Rest of World 6-Year Perspective for Data Center Colocation by Type - Percentage Breakdown of Value Sales for Retail Colocation and Wholesale Colocation for the Years 2025 & 2030
- IV. COMPETITION
Pricing
Currency Rates