Data Center Colocation - Company Evaluation Report, 2025 (Abridged Report)
Description
The Data Center Colocation Companies Quadrant is a comprehensive industry analysis that provides valuable insights into the global market for Data Center Colocation. This quadrant offers a detailed evaluation of key market players, technological advancements, product innovations, and emerging trends shaping the industry. MarketsandMarkets 360 Quadrants evaluated over 100 companies, of which the Top 19 Data Center Colocation Companies were categorized and recognized as quadrant leaders.
Data center colocation involves placing an organization’s computing infrastructure—such as servers, storage, and networking equipment—within a third-party facility that offers power, cooling, physical security, and high-speed connectivity. This approach allows businesses to expand their IT operations without the need to invest in or maintain their own on-premise data centers. Colocation reduces capital expenditures, supports higher uptime, and provides access to redundant, secure, and carrier-neutral infrastructure, while still allowing customers to maintain full control over their hardware and applications.
Based on insights from various sources and associations, MarketsandMarkets defines data center colocation as a service model where businesses rent space within a third-party data center facility to house their servers, storage systems, and networking equipment. Instead of building and maintaining their own data centers, organizations colocate their IT infrastructure in professionally managed environments that provide robust power, cooling, security, and connectivity. This arrangement allows enterprises to retain control over their hardware and software while benefiting from the economies of scale, reliability, and geographic redundancy offered by colocation providers. Colocation services are typically categorized into retail colocation, where clients lease smaller units such as racks or cabinets, and wholesale colocation, where larger, dedicated spaces such as entire suites or data halls are leased to meet custom requirements.
The 360 Quadrant maps the Data Center Colocation companies based on criteria such as revenue, geographic presence, growth strategies, investments, and sales strategies for the market presence of the Data Center Colocation quadrant. The top criteria for product footprint evaluation included By SERVICE TYPE (Traditional Colocation, Managed Colocation), By SERVICE SCALE (Retail Colocation, Wholesale Colocation), By WORKLOAD TYPE (High Performance Computing, General Purpose IT), By ORGANIZATION SIZE (SMEs, Large Enterprises), and By END USER (Hyperscalers, Enterprises).
Key players in the Data Center Colocation market include major global corporations and specialized innovators such as Equinix, Digital Realty, NTT Data, QTS Data Centers, KDDI Corporation, Iron Mountain, China Telecom Corporation Ltd, CyrusOne, CenterSquare, Vantage Data Centers, EdgeConnex, Switch, Coresite, Flexential, TierPoint, Cologix, AT&T, Global Data Systems, and Verne Global. These companies are actively investing in research and development, forming strategic partnerships, and engaging in collaborative initiatives to drive innovation, expand their global footprint, and maintain a competitive edge in this rapidly evolving market.
Top 3 Companies
Equinix
Equinix is a leader in the global data center colocation market, consistently maintaining its position through strategic investments in global expansion, interconnection services, and platform innovation. With revenues rising from USD 4,596 million in 2020 to an estimated USD 6,525 million in 2024, Equinix continues to benefit from the shift toward hybrid IT and digital infrastructure modernization. The company's highly interconnected IBX data centers and Platform Equinix cater to both enterprise and hyperscale clients, driving strong demand.
Digital Realty
Digital Realty exhibits strong revenue momentum, growing its revenues from USD 3,903.6 million in 2020 to approximately USD 5,555 million in 2024. As a top choice for hyperscale and colocation customers, Digital Realty's presence in high-growth markets and its focus on sustainable infrastructure enhances its market competitiveness. The company's PlatformDIGITAL ecosystem supports data gravity and hybrid cloud strategies, which are critical for modern data demands.
NTT Global Data Centers
NTT Global Data Centers has shown a robust upward trajectory with revenues increasing from USD 1,251.3 million in 2020 to USD 1,808.1 million in 2024, reflecting a CAGR of approximately 9.7%. This growth is driven by NTT's global expansion strategy, strong presence in APAC and Europe, and the increasing demand for managed colocation solutions. With high-density, energy-efficient data centers and value-added services, NTT meets the evolving needs of enterprise and cloud-native clients.
Data center colocation involves placing an organization’s computing infrastructure—such as servers, storage, and networking equipment—within a third-party facility that offers power, cooling, physical security, and high-speed connectivity. This approach allows businesses to expand their IT operations without the need to invest in or maintain their own on-premise data centers. Colocation reduces capital expenditures, supports higher uptime, and provides access to redundant, secure, and carrier-neutral infrastructure, while still allowing customers to maintain full control over their hardware and applications.
Based on insights from various sources and associations, MarketsandMarkets defines data center colocation as a service model where businesses rent space within a third-party data center facility to house their servers, storage systems, and networking equipment. Instead of building and maintaining their own data centers, organizations colocate their IT infrastructure in professionally managed environments that provide robust power, cooling, security, and connectivity. This arrangement allows enterprises to retain control over their hardware and software while benefiting from the economies of scale, reliability, and geographic redundancy offered by colocation providers. Colocation services are typically categorized into retail colocation, where clients lease smaller units such as racks or cabinets, and wholesale colocation, where larger, dedicated spaces such as entire suites or data halls are leased to meet custom requirements.
The 360 Quadrant maps the Data Center Colocation companies based on criteria such as revenue, geographic presence, growth strategies, investments, and sales strategies for the market presence of the Data Center Colocation quadrant. The top criteria for product footprint evaluation included By SERVICE TYPE (Traditional Colocation, Managed Colocation), By SERVICE SCALE (Retail Colocation, Wholesale Colocation), By WORKLOAD TYPE (High Performance Computing, General Purpose IT), By ORGANIZATION SIZE (SMEs, Large Enterprises), and By END USER (Hyperscalers, Enterprises).
Key players in the Data Center Colocation market include major global corporations and specialized innovators such as Equinix, Digital Realty, NTT Data, QTS Data Centers, KDDI Corporation, Iron Mountain, China Telecom Corporation Ltd, CyrusOne, CenterSquare, Vantage Data Centers, EdgeConnex, Switch, Coresite, Flexential, TierPoint, Cologix, AT&T, Global Data Systems, and Verne Global. These companies are actively investing in research and development, forming strategic partnerships, and engaging in collaborative initiatives to drive innovation, expand their global footprint, and maintain a competitive edge in this rapidly evolving market.
Top 3 Companies
Equinix
Equinix is a leader in the global data center colocation market, consistently maintaining its position through strategic investments in global expansion, interconnection services, and platform innovation. With revenues rising from USD 4,596 million in 2020 to an estimated USD 6,525 million in 2024, Equinix continues to benefit from the shift toward hybrid IT and digital infrastructure modernization. The company's highly interconnected IBX data centers and Platform Equinix cater to both enterprise and hyperscale clients, driving strong demand.
Digital Realty
Digital Realty exhibits strong revenue momentum, growing its revenues from USD 3,903.6 million in 2020 to approximately USD 5,555 million in 2024. As a top choice for hyperscale and colocation customers, Digital Realty's presence in high-growth markets and its focus on sustainable infrastructure enhances its market competitiveness. The company's PlatformDIGITAL ecosystem supports data gravity and hybrid cloud strategies, which are critical for modern data demands.
NTT Global Data Centers
NTT Global Data Centers has shown a robust upward trajectory with revenues increasing from USD 1,251.3 million in 2020 to USD 1,808.1 million in 2024, reflecting a CAGR of approximately 9.7%. This growth is driven by NTT's global expansion strategy, strong presence in APAC and Europe, and the increasing demand for managed colocation solutions. With high-density, energy-efficient data centers and value-added services, NTT meets the evolving needs of enterprise and cloud-native clients.
Table of Contents
126 Pages
- 1 Introduction
- 1.1 Market Definition
- 1.2 Inclusions And Exclusions
- 1.3 Stakeholders
- 2 Executive Summary
- 3 Market Overview And Industry Trends
- 3.1 Introduction
- 3.2 Market Dynamics
- 3.2.1 Drivers
- 3.2.1.1 Rising Demand For Ai & High-density Gpu Workloads
- 3.2.1.2 Surge In Use Of Hybrid-multicloud Interconnected Ecosystems
- 3.2.1.3 Implementation Of Data-sovereignty Regulations
- (Hosting, Residency, Ai Privacy)
- 3.2.2 Restraints
- 3.2.2.1 Long Lead Times For Critical Electrical & Mechanical Gear
- 3.2.2.2 High Up-front Capital Costs
- 3.2.3 Opportunities
- 3.2.3.1 Integrating Sustainability In Data Colocation
- 3.2.3.2 Managed Ai-infrastructure-as-a-service
- 3.2.4 Challenges
- 3.2.4.1 Skilled Labor Shortage
- 3.2.4.2 Transforming Legacy Halls For Cutting-edge Liquid Cooling Solutions
- 3.3 Ecosystem Analysis
- 3.4 Supply Chain Analysis
- 3.5 Patent Analysis
- 3.5.1 List Of Major Patents
- 3.6 Technology Analysis
- 3.6.1 Key Technology
- 3.6.1.1 Power & Cooling Infrastructure
- 3.6.1.2 Remote Monitoring And Data Center Infrastructure Management
- 3.6.1.3 Physical Security & Access Control Systems
- 3.6.1.4 Interconnection & Carrier-neutral Connectivity
- 3.6.2 Complimentary Technology
- 3.6.2.1 Ai & Machine Learning For Predictive Maintenance
- 3.6.2.2 Liquid & Immersion Cooling
- 3.6.2.3 Software-defined Wide Area Network
- 3.6.2.4 Data Center As A Service
- 3.6.3 Adjacent Technology
- 3.6.3.1 Public & Hybrid Cloud Platforms
- 3.6.3.2 Edge Computing
- 3.6.3.3 Content Delivery Networks
- 3.6.3.4 Enterprise Storage & Backup Solutions
- 3.7 Porter’s Five Forces Analysis
- 3.7.1 Threat Of New Entrants
- 3.7.2 Threat Of Substitutes
- 3.7.3 Bargaining Power Of Suppliers
- 3.7.4 Bargaining Power Of Buyers
- 3.7.5 Intensity Of Competitive Rivalry
- 3.8 Key Conferences And Events, 2025
- 3.9 Trends/Disruptions Impacting Customer Business
- 3.10 Impact Of Ai/Gen Ai In Data Center Colocation Market
- 3.10.1 Top Use Cases And Market Potential
- 3.10.1.1 Key Use Cases
- 3.10.2 Case Study
- 3.10.2.1 Use Case 1: Coreweave Partners With Digital Realty To Deploy Ai-ready High-density Gpu Colocation
- 3.10.3 Vendor Initiative
- 3.10.3.1 Cyrusone
- 3.10.3.2 Digital Realty
- 4 Competitive Landscape
- 4.1 Introduction
- 4.2 Key Players’ Strategies/Right To Win
- 4.3 Revenue Analysis
- 4.4 Market Share Analysis, 2024
- 4.5 Brand/Product Comparison
- 4.5.1 Equinix
- 4.5.2 Digital Realty
- 4.5.3 Ntt Global Data Centers
- 4.5.4 Kddi
- 4.5.5 Qts
- 4.6 Company Evaluation Matrix: Key Players, 2024
- 4.6.1 Stars
- 4.6.2 Emerging Leaders
- 4.6.3 Pervasive Players
- 4.6.4 Participants
- 4.6.5 Company Footprint: Key Players, 2024
- 4.6.5.1 Company Footprint
- 4.6.5.2 Region Footprint
- 4.6.5.3 Service Type Footprint
- 4.6.5.4 Service Scale Footprint
- 4.6.5.5 End User Footprint
- 4.7 Company Evaluation Matrix: Startups/Smes, 2024
- 4.7.1 Progressive Companies
- 4.7.2 Responsive Companies
- 4.7.3 Dynamic Companies
- 4.7.4 Starting Blocks
- 4.7.5 Competitive Benchmarking: Startup/Smes, 2024
- 4.7.5.1 Detailed List Of Key Startups/Smes
- 4.7.5.2 Competitive Benchmarking Of Startups/Smes
- 4.8 Company Valuation And Financial Metrics Of Key Vendors
- 4.8.1 Company Valuation Of Key Vendors
- 4.8.2 Financial Metrics Of Key Vendors
- 4.9 Competitive Scenario And Trends
- 4.9.1 Product Launches
- 4.9.2 Deals
- 5 Company Profiles
- 5.1 Introduction
- 5.2 Major Players
- 5.2.1 Equinix
- 5.2.1.1 Business Overview
- 5.2.1.2 Products/Solutions/Services Offered
- 5.2.1.3 Recent Developments
- 5.2.1.3.1 Product Launches
- 5.2.1.3.2 Deals
- 5.2.1.3.3 Expansions
- 5.2.1.4 Mnm View
- 5.2.1.4.1 Right To Win
- 5.2.1.4.2 Strategic Choices
- 5.2.1.4.3 Weaknesses And Competitive Threats
- 5.2.2 Digital Realty
- 5.2.2.1 Business Overview
- 5.2.2.2 Products/Solutions/Services Offered
- 5.2.2.3 Recent Developments
- 5.2.2.3.1 Product Launches
- 5.2.2.3.2 Deals
- 5.2.2.3.3 Expansions
- 5.2.2.4 Mnm View
- 5.2.2.4.1 Right To Win
- 5.2.2.4.2 Strategic Choices
- 5.2.2.4.3 Weaknesses And Competitive Threats
- 5.2.3 Ntt Data
- 5.2.3.1 Business Overview
- 5.2.3.2 Products/Solutions/Services Offered
- 5.2.3.3 Recent Developments
- 5.2.3.3.1 Deals
- 5.2.3.3.2 Expansions
- 5.2.3.4 Mnm View
- 5.2.3.4.1 Right To Win
- 5.2.3.4.2 Strategic Choices
- 5.2.3.4.3 Weaknesses And Competitive Threats
- 5.2.4 Qts Data Centers
- 5.2.4.1 Business Overview
- 5.2.4.2 Products/Solutions/Services Offered
- 5.2.4.3 Recent Developments
- 5.2.4.3.1 Product Launches
- 5.2.4.3.2 Deals
- 5.2.4.4 Mnm View
- 5.2.4.4.1 Right To Win
- 5.2.4.4.2 Strategic Choices
- 5.2.4.4.3 Weaknesses And Competitive Threats
- 5.2.5 Kddi Corporation
- 5.2.5.1 Business Overview
- 5.2.5.2 Products/Solutions/Services Offered
- 5.2.5.3 Recent Developments
- 5.2.5.3.1 Product Launches
- 5.2.5.3.2 Deals
- 5.2.5.4 Mnm View
- 5.2.5.4.1 Right To Win
- 5.2.5.4.2 Strategic Choices
- 5.2.5.4.3 Weaknesses And Competitive Threats
- 5.2.6 Iron Mountain
- 5.2.6.1 Business Overview
- 5.2.6.2 Products/Solutions/Services Offered
- 5.2.6.3 Recent Developments
- 5.2.6.3.1 Deals
- 5.2.6.3.2 Expansions
- 5.2.7 China Telecom Corporation Ltd
- 5.2.7.1 Business Overview
- 5.2.7.2 Products/Solutions/Services Offered
- 5.2.7.3 Recent Developments
- 5.2.7.3.1 Product Launches
- 5.2.7.3.2 Expansions
- 5.2.8 Cyrusone
- 5.2.8.1 Business Overview
- 5.2.8.2 Products/Solutions/Services Offered
- 5.2.8.3 Recent Developments
- 5.2.8.3.1 Product Launches
- 5.2.8.3.2 Deals
- 5.2.8.3.3 Expansions
- 5.2.9 Centersquare
- 5.2.9.1 Business Overview
- 5.2.9.2 Products/Solutions/Services Offered
- 5.2.9.3 Recent Developments
- 5.2.9.3.1 Deals
- 5.2.10 Vantage Data Centers
- 5.2.10.1 Business Overview
- 5.2.10.2 Products/Solutions/Services Offered
- 5.2.10.3 Recent Developments
- 5.2.10.3.1 Deals
- 5.2.10.3.2 Expansions
- 5.3 Other Players
- 5.3.1 Databank
- 5.3.2 Edgeconnex
- 5.3.3 Switch
- 5.3.4 Coresite
- 5.3.5 Aligned Data Centers
- 5.3.6 Flexential
- 5.3.7 Tierpoint
- 5.3.8 Cologix
- 5.3.9 Trg Datacenters
- 5.3.10 Scalematrix
- 5.3.11 At&T
- 5.3.12 Global Data Systems
- 5.3.13 Verne Global
- 5.3.14 365 Data Group
- 5.3.15 Bdx Data Centers
- 6 Appendix
- 6.1 Research Methodology
- 6.1.1 Research Approach
- 6.1.1.1 Secondary Data
- 6.1.1.2 Primary Data
- 6.1.2 Market Forecast
- 6.1.3 Research Assumptions
- 6.1.4 Research Limitations
- 6.2 Company Evaluation Matrix: Methodology
- 6.3 Author Details
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