Global Data Center Colocation Market size was USD 62.3 billion in 2024 and is projected to reach USD 158.7 billion by 2033, with a CAGR of 10.9% during the forecast period.
The global data center colocation market is experiencing robust growth, driven by increasing demand for scalable and cost-effective data storage solutions, rising adoption of cloud and edge computing, and advancements in high-tier and secure colocation facilities for enhanced performance. Data center colocation services, available in retail and wholesale types, are valued for their shared infrastructure, reduced capital expenditure, and flexibility in applications across BFSI, IT & telecom, and healthcare. From 2021 to 2023, the market expanded due to accelerated digital transformation post-pandemic, growth in data traffic from streaming and IoT, and innovations in Tier IV facilities for maximum uptime. Key trends include the dominance of wholesale colocation for large-scale needs, the prominence of Tier III for balanced reliability, and the rise of large enterprises for complex data requirements. Asia Pacific holds the largest market share, led by China due to its massive digital economy and cloud investments. North America is the fastest-growing region, fueled by tech giants and data sovereignty trends in the United States. Challenges such as high energy consumption, cybersecurity risks in shared environments, and regulatory hurdles for data localization persist, but opportunities in sustainable facilities and emerging markets drive growth through 2033. Debates over energy efficiency and data privacy highlight the need for green solutions, with empathy for providers balancing scalability and sustainability.
Research Objective
MARKET SEGMENTATION
Scope of the Study
Key Questions Answered in the Report
Chapter 1 Research Methodology
1.1 Research Objective
1.2 Market Research Process
1.2.1 Data Procurement and Data Mining
1.2.2 Data Analysis and Standardization
1.2.3 Data Processing and Market Formulation
1.2.4 Data Validation
1.3 Market Research Approach
1.3.1 Residential Research
1.3.2 Commercial Research
1.3.3 Assumptions & Limitations
1.4 Year Considered for the Study
Chapter 2 Executive Summary
2.1 Global Data Center Colocation Market Snapshot
2.2 Global Data Center Colocation Market
Chapter 3 Market Variables and Scope
3.1 Introduction to Data Center Colocation
3.2 Classification and Scope
Chapter 4 Market Dynamics and Trends
4.1 Global Data Center Colocation Market Dynamics
4.2 Global Data Center Colocation Market Dynamics, Impact Analysis
4.3 Market Drivers
4.3.1 Driver 1
4.3.2 Driver 2
4.4 Market Restraints
4.4.1 Restraint 1
4.4.2 Restraint 2
4.5 Market Opportunity
4.5.1 Opportunity 1
4.5.2 Opportunity 2
Chapter 5 Premium Insights
5.1 Porters Five Forces Analysis
5.1.1 Bargaining Power of Suppliers
5.1.2 Bargaining Power of Buyers
5.1.3 Threat of Substitute Types
5.1.4 Rivalry among Existing Firms
5.1.5 Threat of New Entrants
5.2 Supply Chain Analysis
5.3 Market Share Analysis of Key Players, 2024
5.4 Market Entry Strategy Assessment
5.5 Strategic Recommendation for Stakeholders
Chapter 6 Global Data Center Colocation Market, By Type
6.1 Global Data Center Colocation Market, By Type, 2025 - 2033
6.2 Retail Colocation
6.3 Wholesale Colocation
Chapter 7 Global Data Center Colocation Market, By Tier Level
7.1 Global Data Center Colocation Market, By Tier Level, 2025 - 2033
7.2 Tier I
7.3 Tier II
7.4 Tier III
7.5 Tier IV
Chapter 8 Global Data Center Colocation Market, By Organization Size
8.1 Global Data Center Colocation Market, By Organization Size, 2025 - 2033
8.2 Small & Medium Enterprises
8.3 Large Enterprises
Chapter 9 Global Data Center Colocation Market, By Deployment
9.1 Global Data Center Colocation Market, By Deployment, 2025 - 2033
9.2 Edge Colocation
9.3 Core Colocation
Chapter 10 Global Data Center Colocation Market, By End-Use Industry
10.1 Global Data Center Colocation Market, By End-Use Industry, 2025 - 2033
10.2 BFSI
10.3 IT & Telecom
10.4 Healthcare
10.5 Manufacturing
10.6 Retail & E-commerce
10.7 Media & Entertainment
10.8 Government
10.9 Others
Chapter 11 Global Data Center Colocation Market, By Region
11.1 Overview
11.2 North America
11.2.1 North America Data Center Colocation Market, By Country
11.2.2 North America Data Center Colocation Market, By Type
11.2.3 North America Data Center Colocation Market, By Tier Level
11.2.4 North America Data Center Colocation Market, By Organization Size
11.2.5 North America Data Center Colocation Market, By Deployment
11.2.6 North America Data Center Colocation Market, By End-Use Industry
11.2.7 United States
11.2.7.1 United States Data Center Colocation Market, By Type
11.2.7.2 United States Data Center Colocation Market, By Tier Level
11.2.7.3 United States Data Center Colocation Market, By Organization Size
11.2.7.4 United States Data Center Colocation Market, By Deployment
11.2.7.5 United States Data Center Colocation Market, By End-Use Industry
11.2.8 Canada
11.2.8.1 Canada Data Center Colocation Market, By Type
11.2.8.2 Canada Data Center Colocation Market, By Tier Level
11.2.8.3 Canada Data Center Colocation Market, By Organization Size
11.2.8.4 Canada Data Center Colocation Market, By Deployment
11.2.8.5 Canada Data Center Colocation Market, By End-Use Industry
11.2.9 Others
11.2.9.1 Others Data Center Colocation Market, By Type
11.2.9.2 Others Data Center Colocation Market, By Tier Level
11.2.9.3 Others Data Center Colocation Market, By Organization Size
11.2.9.4 Others Data Center Colocation Market, By Deployment
11.2.9.5 Others Data Center Colocation Market, By End-Use Industry
11.3 Europe
11.3.1 Europe Data Center Colocation Market, By Country
11.3.2 Europe Data Center Colocation Market, By Type
11.3.3 Europe Data Center Colocation Market, By Tier Level
11.3.4 Europe Data Center Colocation Market, By Organization Size
11.3.5 Europe Data Center Colocation Market, By Deployment
11.3.6 Europe Data Center Colocation Market, By End-Use Industry
11.3.7 United Kingdom
11.3.7.1 United Kingdom Data Center Colocation Market, By Type
11.3.7.2 United Kingdom Data Center Colocation Market, By Tier Level
11.3.7.3 United Kingdom Data Center Colocation Market, By Organization Size
11.3.7.4 United Kingdom Data Center Colocation Market, By Deployment
11.3.7.5 United Kingdom Data Center Colocation Market, By End-Use Industry
11.3.8 Germany
11.3.8.1 Germany Data Center Colocation Market, By Type
11.3.8.2 Germany Data Center Colocation Market, By Tier Level
11.3.8.3 Germany Data Center Colocation Market, By Organization Size
11.3.8.4 Germany Data Center Colocation Market, By Deployment
11.3.8.5 Germany Data Center Colocation Market, By End-Use Industry
11.3.9 France
11.3.9.1 France Data Center Colocation Market, By Type
11.3.9.2 France Data Center Colocation Market, By Tier Level
11.3.9.3 France Data Center Colocation Market, By Organization Size
11.3.9.4 France Data Center Colocation Market, By Deployment
11.3.9.5 France Data Center Colocation Market, By End-Use Industry
11.3.10 Italy
11.3.10.1 Italy Data Center Colocation Market, By Type
11.3.10.2 Italy Data Center Colocation Market, By Tier Level
11.3.10.3 Italy Data Center Colocation Market, By Organization Size
11.3.10.4 Italy Data Center Colocation Market, By Deployment
11.3.10.5 Italy Data Center Colocation Market, By End-Use Industry
11.3.11 Spain
11.3.11.1 Spain Data Center Colocation Market, By Type
11.3.11.2 Spain Data Center Colocation Market, By Tier Level
11.3.11.3 Spain Data Center Colocation Market, By Organization Size
11.3.11.4 Spain Data Center Colocation Market, By Deployment
11.3.11.5 Spain Data Center Colocation Market, By End-Use Industry
11.3.12 Others
11.3.12.1 Others Data Center Colocation Market, By Type
11.3.12.2 Others Data Center Colocation Market, By Tier Level
11.3.12.3 Others Data Center Colocation Market, By Organization Size
11.3.12.4 Others Data Center Colocation Market, By Deployment
11.3.12.5 Others Data Center Colocation Market, By End-Use Industry
11.4 Asia Pacific
11.4.1 Asia Pacific Data Center Colocation Market, By Country
11.4.2 Asia Pacific Data Center Colocation Market, By Type
11.4.3 Asia Pacific Data Center Colocation Market, By Tier Level
11.4.4 Asia Pacific Data Center Colocation Market, By Organization Size
11.4.5 Asia Pacific Data Center Colocation Market, By Deployment
11.4.6 Asia Pacific Data Center Colocation Market, By End-Use Industry
11.4.7 China
11.4.7.1 China Data Center Colocation Market, By Type
11.4.7.2 China Data Center Colocation Market, By Tier Level
11.4.7.3 China Data Center Colocation Market, By Organization Size
11.4.7.4 China Data Center Colocation Market, By Deployment
11.4.7.5 China Data Center Colocation Market, By End-Use Industry
11.4.8 Japan
11.4.8.1 Japan Data Center Colocation Market, By Type
11.4.8.2 Japan Data Center Colocation Market, By Tier Level
11.4.8.3 Japan Data Center Colocation Market, By Organization Size
11.4.8.4 Japan Data Center Colocation Market, By Deployment
11.4.8.5 Japan Data Center Colocation Market, By End-Use Industry
11.4.9 India
11.4.9.1 India Data Center Colocation Market, By Type
11.4.9.2 India Data Center Colocation Market, By Tier Level
11.4.9.3 India Data Center Colocation Market, By Organization Size
11.4.9.4 India Data Center Colocation Market, By Deployment
11.4.9.5 India Data Center Colocation Market, By End-Use Industry
11.4.10 South Korea
11.4.10.1 South Korea Data Center Colocation Market, By Type
11.4.10.2 South Korea Data Center Colocation Market, By Tier Level
11.4.10.3 South Korea Data Center Colocation Market, By Organization Size
11.4.10.4 South Korea Data Center Colocation Market, By Deployment
11.4.10.5 South Korea Data Center Colocation Market, By End-Use Industry
11.4.11 Australia
11.4.11.1 Australia Data Center Colocation Market, By Type
11.4.11.2 Australia Data Center Colocation Market, By Tier Level
11.4.11.3 Australia Data Center Colocation Market, By Organization Size
11.4.11.4 Australia Data Center Colocation Market, By Deployment
11.4.11.5 Australia Data Center Colocation Market, By End-Use Industry
11.4.12 Others
11.4.12.1 Others Data Center Colocation Market, By Type
11.4.12.2 Others Data Center Colocation Market, By Tier Level
11.4.12.3 Others Data Center Colocation Market, By Organization Size
11.4.12.4 Others Data Center Colocation Market, By Deployment
11.4.12.5 Others Data Center Colocation Market, By End-Use Industry
11.5 Latin America
11.5.1 Latin America Data Center Colocation Market, By Country
11.5.2 Latin America Data Center Colocation Market, By Type
11.5.3 Latin America Data Center Colocation Market, By Tier Level
11.5.4 Latin America Data Center Colocation Market, By Organization Size
11.5.5 Latin America Data Center Colocation Market, By Deployment
11.5.6 Latin America Data Center Colocation Market, By End-Use Industry
11.5.7 Brazil
11.5.7.1 Brazil Data Center Colocation Market, By Type
11.5.7.2 Brazil Data Center Colocation Market, By Tier Level
11.5.7.3 Brazil Data Center Colocation Market, By Organization Size
11.5.7.4 Brazil Data Center Colocation Market, By Deployment
11.5.7.5 Brazil Data Center Colocation Market, By End-Use Industry
11.5.8 Others
11.5.8.1 Others Data Center Colocation Market, By Type
11.5.8.2 Others Data Center Colocation Market, By Tier Level
11.5.8.3 Others Data Center Colocation Market, By Organization Size
11.5.8.4 Others Data Center Colocation Market, By Deployment
11.5.8.5 Others Data Center Colocation Market, By End-Use Industry
11.6 Middle East and Africa (MEA)
11.6.1 Middle East and Africa (MEA) Data Center Colocation Market, By Country
11.6.2 Middle East and Africa (MEA) Data Center Colocation Market, By Type
11.6.3 Middle East and Africa (MEA) Data Center Colocation Market, By Tier Level
11.6.4 Middle East and Africa (MEA) Data Center Colocation Market, By Organization Size
11.6.5 Middle East and Africa (MEA) Data Center Colocation Market, By Deployment
11.6.6 Middle East and Africa (MEA) Data Center Colocation Market, By End-Use Industry
11.6.7 United Arab Emirates
11.6.7.1 United Arab Emirates Data Center Colocation Market, By Type
11.6.7.2 United Arab Emirates Data Center Colocation Market, By Tier Level
11.6.7.3 United Arab Emirates Data Center Colocation Market, By Organization Size
11.6.7.4 United Arab Emirates Data Center Colocation Market, By Deployment
11.6.7.5 United Arab Emirates Data Center Colocation Market, By End-Use Industry
11.6.8 Others
11.6.8.1 Others Data Center Colocation Market, By Type
11.6.8.2 Others Data Center Colocation Market, By Tier Level
11.6.8.3 Others Data Center Colocation Market, By Organization Size
11.6.8.4 Others Data Center Colocation Market, By Deployment
11.6.8.5 Others Data Center Colocation Market, By End-Use Industry
Chapter 12 Competitive Landscape
12.1 Strategic Move Analysis
12.1.1 Top Player Positioning/Market Share Analysis
12.1.2 Top Winning Strategies, By Year, 2021-2024
12.1.3 Competitive Analysis by Revenue, 2022-2024
12.2 Recent Developments by the Market Participants (2024-25)
Chapter 13 Company Profiles
13.1 Equinix Inc.
13.1.1 Company Snapshot
13.1.2 Company Overview
13.1.3 Financial Performance
13.1.4 Product Portfolio
13.1.5 Strategic Growth
13.2 Digital Realty Trust Inc.
13.2.1 Company Snapshot
13.2.2 Company Overview
13.2.3 Financial Performance
13.2.4 Product Portfolio
13.2.5 Strategic Growth
13.3 NTT Communications Corporation
13.3.1 Company Snapshot
13.3.2 Company Overview
13.3.3 Financial Performance
13.3.4 Product Portfolio
13.3.5 Strategic Growth
13.4 China Telecom Corporation Limited
13.4.1 Company Snapshot
13.4.2 Company Overview
13.4.3 Financial Performance
13.4.4 Product Portfolio
13.4.5 Strategic Growth
13.5 CoreSite Realty Corporation (American Tower)
13.5.1 Company Snapshot
13.5.2 Company Overview
13.5.3 Financial Performance
13.5.4 Product Portfolio
13.5.5 Strategic Growth
13.6 Zayo Group Holdings Inc.
13.6.1 Company Snapshot
13.6.2 Company Overview
13.6.3 Financial Performance
13.6.4 Product Portfolio
13.6.5 Strategic Growth
13.7 CyrusOne Inc.
13.7.1 Company Snapshot
13.7.2 Company Overview
13.7.3 Financial Performance
13.7.4 Product Portfolio
13.7.5 Strategic Growth
13.8 Cyxtera Technologies Inc.
13.8.1 Company Snapshot
13.8.2 Company Overview
13.8.3 Financial Performance
13.8.4 Product Portfolio
13.8.5 Strategic Growth
13.9 GTT Communications Inc.
13.9.1 Company Snapshot
13.9.2 Company Overview
13.9.3 Financial Performance
13.9.4 Product Portfolio
13.9.5 Strategic Growth
13.10 Iron Mountain Incorporated
13.10.1 Company Snapshot
13.10.2 Company Overview
13.10.3 Financial Performance
13.10.4 Product Portfolio
13.10.5 Strategic Growth
13.11 Global Switch Limited
13.11.1 Company Snapshot
13.11.2 Company Overview
13.11.3 Financial Performance
13.11.4 Product Portfolio
13.11.5 Strategic Growth
13.12 QTS Realty Trust Inc.
13.12.1 Company Snapshot
13.12.2 Company Overview
13.12.3 Financial Performance
13.12.4 Product Portfolio
13.12.5 Strategic Growth
13.13 Rackspace Technology Inc.
13.13.1 Company Snapshot
13.13.2 Company Overview
13.13.3 Financial Performance
13.13.4 Product Portfolio
13.13.5 Strategic Growth
13.14 Switch Inc.
13.14.1 Company Snapshot
13.14.2 Company Overview
13.14.3 Financial Performance
13.14.4 Product Portfolio
13.14.5 Strategic Growth
13.15 Telehouse (KDDI Corporation)
13.15.1 Company Snapshot
13.15.2 Company Overview
13.15.3 Financial Performance
13.15.4 Product Portfolio
13.15.5 Strategic Growth
13.16 Cologix Inc.
13.16.1 Company Snapshot
13.16.2 Company Overview
13.16.3 Financial Performance
13.16.4 Product Portfolio
13.16.5 Strategic Growth
1. What is data center colocation?
Data center colocation is a service where businesses rent space, power, cooling, and network infrastructure to host their servers and IT hardware in third-party facilities.
2. What factors are driving the data center colocation market?
Growth is fueled by rising cloud adoption, increasing data traffic, 5G expansion, and the need for cost-effective and scalable infrastructure across industries.
3. Which colocation types are most in demand?
Wholesale colocation is gaining significant traction among large enterprises for high-capacity needs, while retail colocation remains popular for smaller deployments.
4. Which regions lead the global colocation market?
Asia Pacific holds the largest share due to strong digital infrastructure growth in China, while North America is the fastest-growing region driven by U.S. hyperscale demand.
5. What challenges does the colocation market face?
Key challenges include high energy consumption, cybersecurity vulnerabilities in shared environments, and strict data localization and compliance regulations.
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