The global data center colocation market was valued at approximately USD 31 billion in 2017 and is expected to generate revenue of around USD 105 billion by 2026, growing at a CAGR of around 14.2% between 2018 and 2026, according to a new report published by Zion Market Research.
North America is anticipated to lead the data center colocation market globally over the forecast timeframe. The European data center colocation market accounted for nearly 24.8% revenue share in 2017. The market in these regions is mainly driven by the increase in modular data center deployments by government agencies, educational institutes, enterprises, and various vendors, such as NTT Communications, Equinix, Digital Realty, Interxion, Global Switch, and T-Systems.
Moreover, the rise in the demand for interconnection services with various facilities and cloud connectivity service with several cloud platforms is attracting more customers. Besides, retail colocation centers provide more control to enterprises over IT infrastructural operations other than managed hosting services, which, in turn, is likely to act as an advantage for the customers.
Asia Pacific is projected to showcase a high growth rate in the data center colocation market in the future. The region is a major hub for IT outsourcing across various industry verticals.
IP transit, power, and space cost more in China, which, in turn, is increasing the difficulties in maintaining the country’s data centers. China has more Internet users though, which indicate the scope for immense development. China’s connectivity ecosystem is made of 53 cloud service providers (CSPs) and 75 colocation data centers. Japan has a high Internet literacy rate in comparison to China apart from having a high density of colocation. Thus, these are some factors that are likely to drive this region’s data center colocation market in the future.
The Middle Eastern and African and Latin American regions are likely to emerge as a potential market for data center colocation in the estimated time period, says Zion Market Research. This can be attributed to the growing demand for data colocation services from organizations, especially in the Middle East and Africa and the rising demand for high computing capacity from big data, global enterprises, cloud providers, and IoT organizations in both the regions.
The full report published by Zion Market Research on the global data center colocation market “Data Center Colocation Market by Lease Type (Retail and Wholesale) and by End-User (Small & Medium Enterprises and Large Enterprises): Global Industry Perspective, Comprehensive Analysis, and Forecast, 2018—2026” can be found here.
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