Comprehensive Insights of the Global Data Center Colocation Market: Key Drivers, Trends and Forecast for 2025-2034

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The Business Research Company's Data Center Colocation Global Market Report 2025 – Market Size, Trends, And Global Forecast 2025-2034

LONDON, GREATER LONDON, UNITED KINGDOM, June 5, 2025 /EINPresswire.com/ -- The Business Research Company’s Latest Report Explores Market Driver, Trends, Regional Insights - Market Sizing & Forecasts Through 2034

What Is The Momentum Behind The Rapid Growth In Data Center Colocation Market Size?

The data center colocation market size has grown rapidly in recent years. It will grow from $69.73 billion in 2024 to $78.74 billion in 2025 at a compound annual growth rate CAGR of 12.9%. The growth in the historic period can be attributed to cost efficiency and scalability needs, focus on core business functions, disaster recovery and business continuity, globalization and data accessibility, regulatory compliance requirements.

How Does The Forecast Period Look Like For The Data Center Colocation Market?

The data center colocation market size is expected to see rapid growth in the next few years. It will grow to $146.27 billion in 2029 at a compound annual growth rate CAGR of 16.7%. The growth in the forecast period can be attributed to edge computing growth, rise in internet of things IoT deployments, sustainability and green data centers, increased demand for managed services. Major trends in the forecast period include modular and prefabricated data centers, integration of 5G technology, AI and machine learning for data center optimization, increased interconnectivity services, focus on disaster recovery and business continuity.

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What Role Does Cloud Adoption Play In Driving The Growth Of Data Center Colocation Market?

The increasing demand for cloud adoption is expected to propel the growth of data center colocation market going forward. Cloud adoption refers to the process by which individuals, organizations, or businesses integrate and use cloud computing services and resources to enhance their IT capabilities and achieve specific objectives. Cloud adoption used in data center colocation to offer businesses a secure, reliable, and well-connected environment, enabling seamless integration, supporting hybrid deployments, and providing the scalability and flexibility required in dynamic business environments.

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Who Are The Key Players And What Are Emerging Trends In Data Center Colocation Market?

Major companies operating in the data center colocation market include AT&T Inc., China Telecom Corporation Limited, NTT Ltd., Element Critical, Global Switch Limited, Equinix Inc., Iron Mountain Incorporated, Digital Realty Trust Inc., Rackspace Technology Inc., Zayo Group Holdings Inc., CyrusOne Inc., CoreSite Realty Corporation, Sungard AS, Cyxtera Technologies Inc., Switch Ltd., QTS Realty Trust Inc., EdgeConneX Inc., Aligned Energy LLC, Netrality Data Centers Inc., Evoque Data Center Solutions, 365 Data Centers, Stream Data Centers, Compass Datacenters LLC, ServerFarm LLC, Digital Fortress Inc., RagingWire Data Centers Inc., DataBank Inc., Sabey Data Centers LLC, Verizon Communications Inc. These market leaders are focusing on the development of advanced solutions for specific applications, such as high-density colocation for AI workloads, to gain a competitive advantage. High-density colocation for AI workloads offers specialized data center solutions designed to support the intensive computing and storage requirements of artificial intelligence applications through scalable infrastructure and advanced power management.

How Is The Data Center Colocation Market Segmented?

The data center colocation market covered in this report is segmented –

1 By Type: Retail Colocation, Wholesale Colocation
2 By Enterprise Size: Large Enterprise, Small Scale Enterprise
3 By End-User: BFSI, IT And Telecom, Government And Defense, Healthcare, Other End Users

Subsegments:

1 By Retail Colocation: Single Cabinets, Half Cabinets, Full Cabinets, Caged Space, Custom Suites
2 By Wholesale Colocation: Private Data Center Suites, Dedicated Data Center Space, Large-Scale Colocation

What Are The Regional Insights Into Data Center Colocation Market?
North America was the largest region in the data center colocation market in 2024. The regions covered in the data center colocation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the data center colocation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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