Data Center Colocation Market: Industry Growth, Size, Share and Forecast to 2025

Posted by Orion Market Research on September 26th, 2019

Global data center colocation market is driven by increase in the amount of data generated. Organizations looking to expand their capacity are adopting data center collocations to scale their business. Organizations across the globe have found data centers colocation as an ideal solution if they are aiming to launch new applications or they just want to increase their storage and power. Additionally, data center colocation offering includes managed services to support their client’s business initiatives. The data center colocation owner provides cooling, power, floor space, and power facility and the customer provides its own storage, servers, and applications. The most important factor that is driving data center colocation market is the increase in data usage across the globe. Internet usage and access are growing at a significant rate. Primarily a data center colocation offers office space, network or Internet bandwidth and other resources within an existing data center to deploy its own data center.

Browse the full report description of “Data Center Colocation Market Size, Share & Trends Analysis Report, by Solution Type (Retail Colocation, Wholesale Colocation), by Verticals (BFSI, IT & Telecom, Healthcare, Government & Defense, Others) - Forecast, 2019-2025” at

Moreover, Asia-Pacific has seen the largest growth among internet users such as in India and China. The internet users in India have crossed 500 million marks, this sudden rise was due to lower data rates in the country and the stiff competition among network providers. Furthermore, an increase in internet users results in the generation of massive amounts of data every day which ultimately creates a need for more data centers. These data centers are required for collecting this large amount of unorganized data, which is then analyzed for strategic decisions hence contributing to the growth of data center colocation market.

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Factors driving the global data center colocation market

  • A massive increase in the amount of data generated
  • The rapid adoption of the Internet of things (IoT)
  • Adopting edge computing
  • Telecom innovation

Network architecture is undergoing a massive change with more companies are looking for a way to streamline the data collection process and more people demanding low latency streaming contents, this problem can be solved using edge computing. By using edge computing the network companies can provide low latency networks and free up bandwidth through positioning services and content closer to end-users. Additionally, companies can provide faster services to users. Datacenter colocation provides the companies with the latest edge computing architecture hence contributing to the growth of the data center colocation market.

Moreover, the rapid adoption of the IoT is additionally fueling the data center colocation market. The widespread adoption of IoT across the globe is challenging due to huge data generation and requirement of high bandwidth, such as there are around 20 terabytes of data generated by a self-driving vehicle every day. Collecting and analyzing this data with existing infrastructure is impossible, hence the need for data center collocation is increasing. Furthermore, new technological innovations in the telecom sector are propelling the growth of data center colocation market, as telecom providers are rolling out their 5G services with the use of collocation services data centers are able to assist them to expand their reach quickly.

Global Data Center Colocation Market -Segmentation

By Solution Type

  • Retail Colocation
  • Wholesale Colocation

By Verticals

  • BFSI
  • IT & Telecom
  • Healthcare
  • Government & Defense
  • Others

Global Data Center Colocation Market -Region

North America           

  • US
  • Canada


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


  • China
  • India
  • Japan
  • Rest of Asia-Pacific

Rest of the World

  • Middle East & Africa
  • Latin America

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