Data Center Colocation Market 2019 Size & Share, Industry analysis and Forecast

Posted by Faraz on January 30th, 2020

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.

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Key players operating in the market include NTT Communications Corp., Digital Realty Trust, Inc., BT Group PLC, AT&T Inc., CoreSite Realty Corp., and others.

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.

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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

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

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