Data Center Colocation Market– Impact Of Covid-19 And Benchmarking (2018-2025)

Overview of the Data Center Colocation Market

Infoholic’s market research report predicts that the global data center colocation market will grow at a CAGR of more than 13% during the forecast period 2019–2025. The market trends for data center colocation are primarily driven by the increasing demand from organizations to reduce the cost associated in the services of hosting servers and storages. The colocation vendor simply provides the power, cooling, and suitable environment for storing the hardware equipment of clients. The colocation providers also focus on providing proper bandwidth for high-speed data for multiple clients.

Enormous data are generated through sensors and mobile applications these days. Globally, organizations are facing scalability issues in data centers and considering moving their hardware equipment to a third-party rather than moving to cloud. Several colocation vendors are focusing on expanding their services in Middle East Africa and Latin America.

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According to our analysis of data center colocation market, North America accounts for the largest market share in 2019. With presence of numerous tier I companies in North America, the data center colocation is expected to rapidly increase in the US and Canada. Several enterprises in this region are proactively looking for areas to reduce the costs in hosting servers and data storages. Asia Pacific is anticipated to grow substantially due to the market potential in China, India, & Australia and investments in outsourcing of IT infrastructure. The data center colocation market is growing with an increase in colocation vendors who are expanding its services and providing low-cost alternative to hosting on-premises IT equipment. The Asia Pacific region is anticipated to grow at a high CAGR owing to the presence of many growing large & emerging enterprises increasing its customer base. The significant adoption of data center colocation is expected to be witnessed in BFSI and IT & Telecom. The colocation vendors are focusing on emerging markets such as Latin America and Middle East Africa. One of the important features that data center colocation provide is expertise in hosting scalable hardware equipment for multiple clients.

Data Center Colocation Competitive Analysis and Key Vendors

The report covers and analyzes the data center colocation market. The organizations maintain a rental relationship with the colocation vendors where colocation vendors offers space storing electronic equipment. The key players in the market are adopting various organic growth strategies, i.e., expansion in new markets. The data center colocation help in bringing easy alternative to hosting on-premises infrastructure. It is typically helpful for large enterprises which doesn’t prefer to move to cloud but are looking for scalable solution for IT infrastructure.

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Some of the Key Vendors in the Data Center Colocation Market:

  • Equinix
  • Digital Realty Trust
  • China Telecom
  • Century Link
  • China Unicom
  • Verizon
  • NTT Communications
  • BT
  • Interxion
  • CtrlS

These companies are striving in the market sphere by leveraging latest infrastructure empowering power and cooling, and energy management. The colocation vendors are focusing on the uptime of servers.

These vendors have been studied based on the portfolio, geographical presence, marketing & distribution channels, revenue generation, and significant investments in R&D for analysis of the entire ecosystem.

Data Center Colocation Segmentation By Tier

  • Tier I & Tier II Data Center
  • Tier III Data Center
  • Tier IV Data Center

The Tier IV segment is expected to grow at a highest CAGR during the forecast period 2019–2025.

Data Center Colocation Segmentation By Industry

  • BFSI
  • IT & ITeS
  • Government & Defense
  • Healthcare
  • Retail & Ecommerce
  • Manufacturing
  • Others

The IT & ITeS segment is estimated to hold the largest market share in 2019 and this trend is likely to continue during the forecast period 2019–2025.


The report provides an in-depth analysis of the data center colocation market. Though there are several risks in control over data, they also have advantage to maintain and repair quickly by the colocation vendors. While the GDPR is focusing European organizations to implement data center equipment in the European region, the Europe market is growing substantially. Also, tier IV data centers are growing owing to more number of enterprises looking to outsource their data center hosting and along with hyperconverged infrastructure, the establishment of tier IV data centers are increasing. The report discusses the market size in terms of tier, industry, and region. Furthermore, the report provides details about the major challenges impacting the market growth.

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