Global Data Center Colocation Market Size, Share 2025-2034

Data Center Colocation Market: Overview

According to Custom Market Insights (CMI), The Global Data Center Colocation Market  was valued at USD 84.49 Billion in the year 2025 and it is expected to grow to USD 274.74 Billion by the year 2034 growing at a compound annual growth rate of 13.94% during the forecast period 2025 and 2034.

Data center colocation Market offers a comprehensive and deep evaluation of the market stature. Also, the market report estimates the market size, revenue, price, market share, market forecast, growth rate, and competitive analysis.

Data center colocation is when a service provider rents out vast amounts of floor space, internet bandwidth, and network from an existing data center to establish its own data center, store massive amounts of data, and oversee the server operations of big businesses. It enables data center colocation by sharing the existing infrastructure of data center resources.

As a result of the Covid-19 outbreak, colocation is becoming an essential component of staying connected, collaborating, and moving forward cost-effectively and safely. Healthcare organizations analyze patient outcomes using data and anticipate the spread of diseases using artificial intelligence. Strong network connectivity at Telehouse colocation centers in New York enables them to provide a range of commercial solutions.

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Data Center Colocation Market: Growth Drivers

Over the projected period, it is predicted that the fast expansion of structured and unstructured data and the rising demand for cloud computing will drive the growth of the worldwide data center colocation market. Another factor anticipated to accelerate the development of colocation data centers is the rising capital expense associated with owning and maintaining sizable computing facilities.

A trend that is anticipated to continue during the projected period is that predictable prices, high dependability, simple scalability, and overall reduced costs are some of the primary reasons impacting colocation demand. High-capacity networks are becoming increasingly important as edge computing applications take off. Multi-locational hybrid data architectures have developed due to network latency challenges and the demand for instantaneous real-time insights.

Data transmission between data centers or private exchange points has therefore become crucial. Additionally, as more companies move their operations to the cloud, more bandwidth is needed to support quicker data processing and smoother data transfer. The growth of immersive technologies like augmented reality, virtual reality, and artificial intelligence (AI), as well as 5G technology, has further contributed to the requirement for providing larger bandwidths for data transfer across organizations.

The continuous use of several disruptive technologies, including cloud computing, IoT, autonomous cars, and sophisticated robotics, is another factor driving the growing demand for colocation in data centers. Lower latency has become increasingly in demand due to the ongoing development of these technologies and the ensuing adoption of smart devices. As a result, colocation gives cloud service providers the chance to relocate their data center facilities close to the consumers, resulting in high bandwidth and low latency in data transfer.

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Data Center Colocation Market: Regional Analysis

North America held the biggest market share in the data center colocation market. This is because several significant cloud service providers are well-represented in the area, and SMEs are also setting up colocation data centers there. Additionally, rising e-commerce sales in the United States foster regional market expansion. To determine client buying habits and product requests based on several categories, such as area, gender, and age group, retailers are investing extensively in their IT infrastructure to keep customer data.

Data Center Colocation Market: Recent developments

• July 2020: The second-biggest data center in the world and the largest in Asia were opened by Indian real estate juggernaut Yotta Infrastructure in Navi Mumbai.
• June 2017: By introducing a 10Gbps large-volume network to link its Enterprise Cloud for businesses collocated at more than 30 data centers worldwide, NTT increased the size of its data center network.

Key Players:

• China Telecom Corp. Ltd.
• CoreSite Realty Corp.
• CyrusOne Inc.
• NaviSite
• NTT Communications Corp.
• Cyxtera Technologies Inc.
• Digital Realty Trust Inc.
• Equinix Inc.
• Global Switch
• Telehouse

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The global Data Center Colocation market is segmented as follows:

By Type

• Retail
• Wholesale

By Enterprise Size

• SMEs
• Large Enterprises

By End Use Insights

• Retail
• BFSI
• IT & Telecom
• Healthcare
• Others

On the basis of Geography

North America

• The U.S.
• Canada
• Mexico

Europe

• France
• The UK
• Spain
• Germany
• Italy
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America

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