Data Center Colocation Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Retail Colocation, Wholesale Colocation, and Hybrid Cloud-based Colocation), Enterprise Size (Large

The Data Center Colocation market size was valued at US$ 74.13 billion in 2024 and is expected to reach US$ 182.58 billion by 2031; it is estimated to record a CAGR of 13.7% from 2025 to 2031.

South and Central America is segmented into Brazil, Argentina, and the Rest of SAM. The South and Central America data center colocation market is at an inflection point. Data center electricity consumption remains relatively modest, often below 1% of total national energy demand. However, growing urbanization, cloud migration, and e-government initiatives are accelerating demand across major economies such as Brazil, Mexico, and Chile. Government policies are increasingly supportive. Brazil's energy regulators and environmental agencies are encouraging renewable power for industrial and digital infrastructure. Countries align with the Paris Agreement targets by implementing incentives to expand solar and wind energy capacity. For instance, Brazil aims to have renewable energy account for over 50 % of its electricity mix by mid-2030s, boosting the availability of green power for colocation operators. Key drivers include enterprise demand for latency-sensitive services in regional hubs like São Paulo, along with multinationals' requirements for data residency. These dynamics are encouraging both global hyperscalers and regional providers to expand their footprint via colocation. Regionwide, the business narrative is clear. The growing digital economies, sustainability commitments, and rising enterprise cloud penetration are converging to drive data center colocation market growth. Providers that can reliably scale green power, offer efficient PUE ratings, and comply with environmental regulations will gain a strategic advantage in this emerging landscape.

Brazil holds a key position in the global data center colocation market, supported by its large digital economy, improving connectivity, and regulatory reforms. The Brazilian Internet Steering Committee (CGI.br) reports that internet penetration exceeds 80%, with rising demand for cloud and streaming services. The National Bank for Economic and Social Development (BNDES) is investing in digital infrastructure, including submarine cables such as EllaLink, which enhance Brazil's global connectivity. Due to their reliable power supply and robust fiber networks, São Paulo, Rio de Janeiro, and Fortaleza have emerged as key colocation hubs. Brazil's General Data Protection Law (LGPD), which aligns closely with the EU's GDPR, is driving corporate demand for compliant colocation solutions. Additionally, the Ministry of Mines and Energy highlights Brazil's renewable energy matrix (over 80% from hydro, wind, and solar), supporting sustainable data center operations. The Central Bank of Brazil also notes rapid fintech growth, driving the demand for low-latency, secure colocation facilities.

CoreSite Realty Corporation, CyrusOne Inc, Iron Mountain Inc, Digital Realty Trust Inc, Equinix Inc, Telehouse, NTT Data Corp, International Business Machines Corp, Rittal GmbH & Co KG, and ATandT are among the key Data Center Colocation market players that are profiled in this market study.

The overall Data Center Colocation market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the Data Center Colocation market size. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the Data Center Colocation market.

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