Data Center Colocation Market Analysis

The global Data Center Colocation Market size is predicted to reach USD 150.59 billion by 2030 with a CAGR of 13.6% from 2024-2030. Factors such as rise of Internet of Things technologies, expansion of high-speed internet services and rising volume of healthcare data leads to the growth of the market. Nevertheless, initial cost with data center colocation hinders the market expansion. On the contrary, integration of artificial intelligence opens up great opportunities for industry growth.Moreover, top players such as Equinix, Inc., CoreSite, and others are launching products in order to stay in competition. The increasing demand for data-driven solutions is projected to impel significant growth in the market positioning it as a important component of modern IT infrastructure strategies.

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The rise in the volume of healthcare data increases demand for scalable, secure and compliant infrastructure to store and process sensitive medical records, patient information and research data that propels the growth of this services. The National Institute of Health states that nearly 30% of global data volume is produced by the medical industry and it is predicted to grow at a CAGR of 36% by 2025. This massive data generation creates demand for colocation services that provide healthcare organizations with reliable solutions to handle sensitive patient information.

The data center collocation market report is segmented on the basis of type, tier level, enterprise size, end-users, and region. On the basis of type, the market is segmented into retail, wholesale, and hybrid cloud. On the basis of tier level, the market is distributed into tier 1, tier 2, tier 3, and tier 4. On the basis of enterprise size, the market is classified into small and medium sized enterprise (SMEs) and large enterprise. On the basis of end-users, the market is segmented into BFSI, IT and telecom, government, energy and utilities, and other end users. The regional breakdown includes regions such as North America, Europe, Asia-Pacific, and the Rest of the World (RoW).

Various market players operating in the data center colocation industry are Equinix, Inc., CoreSite, Ascenty Holding Brasil SA, TierPoint, LLC, NTT Communications Corporation, Digital Realty Trust Inc., Iron Mountain, Inc., CyrusOne, Cirion Technologies, Centersquare, Colt Technology Services Group Limited, Flexential, QTS Realty Trust, LLC, Rackspace Technology, Telehouse International Corporation, and others. These companies continue to adopt various strategies including partnerships and business expansion to maintain their dominance in the sector.