The global data center colocation market size is expected to grow to USD 159,852.82 million by 2030 growing at a CAGR of 13.7% during the forecast period (2022–2030).
The largest revenue contributor is North America, which is expected to generate USD 50,392.18 million by 2030 with a CAGR of 10.9% according to Straight Research, a leading market research organization.
A data center colocation offers a site for the company’s servers and computing infrastructure, as well as the appropriate cooling, energy, and security. As a bridge between on-cloud and on-premises data centers, it also gives businesses more control over their technology and access to higher data transport.
Data processing is becoming more and more in-demand by various companies since it enables greater rack density, scalability, and flexibility.
The cost of adding more racks, enclosures, and cooling technology is significant. Additionally, the cost of security personnel and fire suppression equipment for upkeep and repair goes toward business expenses. Due to the high cost of running a data center, there is a great demand for colocation services.
The data center colocation industry has a favorable trend due to the growing utilization of data centers across all business sectors. The demand for higher bandwidth connections, rising data traffic, and the need for more network capacity all contribute to the expansion of the data center colocation market size.
Moreover, the emergence of retail and wholesale colocation solutions give organizations the flexibility to fulfill their capacity needs.