Data Center Colocation Market Size, Share, and Growth Analysis

Global Data Center Colocation Market

Data Center Colocation Market By Colocation Type (Retail Colocation and Wholesale Colocation), By Enterprise Size (Large Enterprises and SMEs), By End Use, By Region -Industry Forecast 2025-2032


Report ID: SQMIG45C2036 | Region: Global | Published Date: June, 2025
Pages: 194 |Tables: 91 |Figures: 71

Format - word format excel data power point presentation

Data Center Colocation Market Insights

Global Data Center Colocation Market size was valued at USD 69.6 Billion in 2023 poised to grow between USD 80.46 Billion in 2024 to USD 256.58 Billion by 2032, growing at a CAGR of 15.6% in the forecast period (2025-2032).

As the digital transformation revolution spreads across industries like finance, healthcare and eCommerce, organizations are faced with increasing pressures to increase their IT capacity without the massive costs associated with infrastructure. Data center colocation allows an organization to cost-effectively provision scalable amounts of power, space and cooling through a shared plan with one or more other organizations. When using the colocation approach, organizations can scale up or down based on demand. They get additional security and compliance options, maintenance time and uptime, but do not have the burden associated with fully owned IT infrastructure. Therefore, the increasing demand for agile, scalable IT infrastructure has been one of the driving forces behind growth in the colocation market.

The global shift toward cloud computing and hybrid IT environments has been significant key trend driving the global data center colocation sector. Enterprises increasingly rely on hybrid workloads that span both on-premises and cloud-based systems, demanding seamless integration and low-latency connectivity. Many colocation facilities are near there the big cloud providers. This means they can interconnect directly with them, allowing high-speed data transfer. With colocated infrastructure, organizations can distribute workloads faster, applications perform faster, and they can ensure business continuity in-between cloud providers. Colocation also answers organizations security, data sovereignty and regulatory compliance—vital elements of any hybrid strategy. As cloud adoption increases, colocated infrastructure will function as an essential means to optimize performance of hybrid workloads and operational agility.

How much Power Can AI-Ready Colocation Services Now Support Per Rack?

The rapid rise of artificial intelligence applications is significantly increasing demand for high-density computing infrastructure. AI workloads, especially those involving machine learning and large language models, require powerful GPUs and TPUs, which consume more energy and generate greater heat. This causes data center colocation providers to upgrade facilities with high-power racks, advanced liquid cooling systems, and enhanced connectivity. In response, companies like Digital Realty are launching AI-ready colocation services supporting up to 70 kW per rack. Furthermore, AI is also being used internally by colocation providers to optimize power usage, cooling efficiency, and predictive maintenance, further boosting operational effectiveness.

Deutsche Telekom and Nvidia announced in June 2025 the launch of Europe’s first industrial AI cloud in Germany, powered by Nvidia’s 10,000 AI chips and hosted within Deutsche Telekom’s data center network. This collaboration enhances colocation of market relevance by integrating AI-driven infrastructure directly into industrial data centers.

Market snapshot - 2025-2032

Global Market Size

USD 69.6 Billion

Largest Segment

Retail Colocation

Fastest Growth

Wholesale Colocation

Growth Rate

15.6% CAGR

Global Data Center Colocation Market ($ Bn)
Country Share by North America (%)

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Data Center Colocation Market Segments Analysis

The global data center colocation market is segmented based on colocation type, enterprise size, end use, and region. In terms of colocation type, the market is bifurcated into retail colocation-1 and wholesale colocation. Based on enterprise size, the market is bifurcated into large enterprises and SMEs. Based on end use, the market is segmented into retail, BFSI, IT & telecom, healthcare, media & entertainment, and others. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Central & South America and the Middle East & Africa.

How does Retail Colocation Offer Cost-Effective Infrastructure?

Based on our current global data center colocation market forecast, the retail colocation segment is dominating the industry, evolving with innovations like modular racks, liquid cooling, and value-added managed services aimed at small to mid-sized enterprises. These clients benefit from scalable, shared infrastructure without high capital investment. Its dominance stems from low entry barriers, flexible leasing options, and simplified deployment. Retail colocation meets growing IT demands efficiently, making it the preferred choice for businesses seeking agility, cost control, and access to enterprise-level facilities.

Wholesale colocation is poised for rapid growth in the global data center colation market, as hyperscalers and large enterprises, driven by AI, cloud, and big data demands, increasingly seek entire data halls with high power density and customization. This model delivers economies of scale, lower per‑unit costs, and faster deployment—making it the fastest‑growing segment globally.

How does Hybrid Cloud Connectivity Benefit Large Enterprises?

Large enterprises segment dominate the global data center colocation market, adopting advanced colocation solutions featuring hybrid cloud connectivity, high-density racks, and sustainable infrastructure to support complex, data-intensive operations. Innovations like software-defined networking and AI-based energy optimization are tailored to meet their needs. Their dominance in the market is driven by large-scale IT requirements, strict compliance demands, and the need for secure, scalable environments—making colocation a cost-effective and reliable alternative to building and managing private data centers.

SMEs are the fastest‑growing segment in the global data center colocation market, due to cost-effective, scalable IT infrastructure that avoids high capital expenditure. They benefit from pay-as-you-go leasing, advanced security, and managed services—enabling agility and digital growth. As their data needs to expand, colocation becomes the preferred, flexible alternative.

Global Data Center Colocation Market By Colocation Type (%)

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Data Center Colocation Market Regional Insights

How does Enterprise Demand Shape the Colocation Market in North America?

As per the global data center colocation market analysis, North America leads the industry, driven by strong digital infrastructure, high cloud adoption, and rising AI and hyperscale demands. Major markets like the U.S. and Canada host key colocation hubs in Virginia, Texas, and California. Growth is fueled by enterprise demand for scalable, secure facilities and the integration of renewable energy solutions, positioning the region as a leader in innovation, capacity, and sustainable colocation development.

US Data Center Colocation Market

The United States is the largest contributor to North America’s data center colocation market, driven by widespread digitalization, strong cloud adoption, and demand from hyperscalers. Major hubs like Northern Virginia, Silicon Valley, and Dallas support large-scale infrastructure with high power capacity and network density. Investments in AI-ready facilities and renewable energy integration further enhance the U.S.’s dominance, making it a global leader in colocation capacity and innovation.

Canada Data Center Colocation Market

Canada is emerging as a key player in North America’s data center colocation market, supported by its stable climate, renewable energy availability, and rising demand for edge and cloud services. Data center

growth in cities like Toronto, Montreal, and Vancouver is accelerating, with hyperscalers and enterprises expanding operations. Government support, competitive electricity rates, and focus on sustainable infrastructure are driving Canada's increasing role in the regional location.

What Green Initiatives are Shaping Colocation Infrastructure in Europe?

Europe is experiencing significant growth in the global data center colocation market share, driven by rising cloud adoption, AI workload demand, and strict data localization regulations like GDPR. Major hubs such as Frankfurt, London, Amsterdam, and Paris are expanding rapidly, while secondary markets like Milan and Warsaw are emerging. Additionally, strong sustainability mandates, including renewable energy usage and heat reuse initiatives, are shaping colocation strategies and driving green infrastructure investments across the region.

Germany Data Center Colocation Market

Germany is a leading contributor to Europe’s data center colocation market, driven by high data localization standards, strong industrial digitization, and Frankfurt’s role as a major internet exchange hub. The country’s colocation demand is fueled by enterprises and hyperscalers seeking secure, scalable infrastructure. With robust connectivity, renewable energy initiatives, and smart city projects, Germany continues to attract large-scale investments, cementing its position as a strategic and sustainable colocation destination in Europe.

France Data Center Colocation Market

France plays a pivotal role in the Europe data center colocation market with Paris serving as a central hub for data centers. Strict GDPR compliance, strong telecom infrastructure, and support for green data initiatives attract both regional and international clients. With government support and rising AI investments, France is rapidly scaling high-density colocation facilities, making it a preferred destination for hyperscalers and cloud service providers seeking performance, regulation compliance, and energy-efficient infrastructure.

UK Data Center Colocation Market

The United Kingdom, particularly London, is a major colocation center due to its role in global finance, mature cloud ecosystem, and high network density. Home to leading providers and interconnection hubs like LINX, the UK supports mission-critical workloads. Despite Brexit, strong regulatory standards, sustainable energy integration, and hyperscaler expansions have sustained growth, positioning the UK as a resilient and technologically advanced colocation market in the global data center ecosystem.

Why are digital Economies Fueling Colocation Demand in Asia Pacific?

Asia Pacific is witnessing rapid growth in the global data center colocation market due to increasing cloud adoption, expanding digital economies, and investments in AI and 5G. Countries like China, India, Japan, and Australia lead the region, while emerging markets like Malaysia, Indonesia, and Vietnam are gaining momentum. The region’s strategic connectivity, rising data localization policies, and focus on green infrastructure make it a key global destination for colocation expansion and innovation.

Japan Data Center Colocation Market

Japan plays a significant role in the Asia Pacific data center colocation market, supported by strong digital infrastructure and high demand for cloud and AI services. Tokyo and Osaka serve as major data center hubs, attracting investments from global providers like Equinix and Digital Realty. The country’s emphasis on energy-efficient, earthquake-resistant facilities and rapid digital transformation across industries strengthens its position as a stable, technologically advanced colocation destination in the Asia Pacific region.

South Korea Data Center Colocation Market

South Korea contributes significantly to the Asia Pacific data center colocation market with its advanced connectivity, dense urban infrastructure, and rising demand for AI, 5G, and cloud computing services. Seoul is the central hub for major colocation providers, including KT Cloud and SK Broadband. Government initiatives supporting smart cities and digital innovation, along with investments from global players, are fueling market growth and enhancing South Korea’s reputation as a high-performance, reliable colocation environment.

Global Data Center Colocation Market By Geography
  • Largest
  • Fastest

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Data Center Colocation Market Dynamics

Data Center Colocation Market Drivers

Rising Cloud Adoption

  • The rapid adoption of cloud computing services by enterprises is a major driver of the global data center colocation market growth. Businesses prefer colocated facilities to host cloud infrastructure due to their scalability, cost-efficiency, and high connectivity. This demand supports the expansion of both hyperscale and edge colocation environments worldwide.

Surge in AI and Data-Intensive Workloads

  • The exponential growth of AI, machine learning, and big data applications is accelerating demand for high-density computing environments. Colocation providers offer the necessary power, cooling, and network infrastructure to support such workloads. This trend is pushing enterprises and tech giants to shift toward purpose-built colocation facilities for performance and reliability.

Data Center Colocation Market Restraints

Limited Availability of Suitable Locations

  • Establishing colocation facilities requires access to stable power supply, low-latency connectivity, and favourable environmental conditions. In many regions, especially in developing countries, the lack of reliable infrastructure and land availability restricts colocation growth. Urban zoning laws and environmental regulations also delay or complicate the development of new data center sites.

Latency Issues in Remote Regions

  • While colocation offers centralized infrastructure advantages, businesses in remote or rural areas may face latency challenges due to physical distance from major data center hubs. This limits the effectiveness of real-time applications and hinders adoption in less-connected regions, where edge computing may be a more viable alternative to centralized colocation.

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Data Center Colocation Market Competitive Landscape

The global data center colocation market outlook is highly competitive, with key players including Equinix, Digital Realty, NTT Communications, CyrusOne, and China Telecom. Companies focus on global expansion, strategic partnerships, and sustainability. For example, Equinix is investing in green energy and expanding in emerging markets, while Digital Realty is focusing on AI-ready infrastructure and interconnection services. NTT is enhancing edge capabilities to support 5G and IoT demands across Asia and beyond.

As pe the global data center colocation industry analysis, the market is witnessing a surge in startup activity, driven by rising demand for energy efficiency, edge infrastructure, and AI-optimized computing. These startups focus on modular designs, green power integration, and rapid deployment models to meet evolving enterprise needs. By leveraging advanced R&D, they provide innovative alternatives to traditional colocation models, addressing gaps in scalability, sustainability, and specialized workload support—particularly for AI and data-intensive applications across diverse geographies.

  • Founded in 2025, Crusoe is a U.S.-based startup pioneering modular colocation specifically designed for AI computing. One of its standout facilities houses 13,000 AMD MI355X GPUs optimized for AI inference. Its product combines high-density hardware with prefabricated deployment for faster time-to-market. R&D breakthroughs in modular architecture have allowed Crusoe to rapidly build energy-efficient, AI-optimized data centers, offering flexible capacity to hyperscalers seeking alternatives to traditional colocation infrastructure with greater performance and scalability.
  • Established in 2023, Exowatt focuses on solving energy challenges in colocation markets by delivering thermal energy modules powered by renewables. Its flagship product offers on-site, clean baseload power, replacing conventional diesel generators. R&D efforts produced over 50 prototypes before launching a scalable system that stores and converts solar heat. This innovation enables data centers to reduce carbon emissions and operational costs, helping clients meet sustainability goals while maintaining uninterrupted high-performance colocation services.

Top Player’s Company Profiles

  • Equinix (USA)
  • Digital Realty (USA)
  • NTT Communications (Japan)
  • China Telecom (China)
  • CyrusOne (USA)
  • Global Switch (United Kingdom)
  • KDDI Corporation / Telehouse (Japan)
  • IBM Cloud (USA)
  • Colt Data Centre Services (United Kingdom)
  • CoreSite Realty Corporation (USA)
  • ST Telemedia Global Data Centres (Singapore)
  • NEXTDC (Australia)
  • Atman (Poland)
  • Maincubes (Germany)
  • Iron Mountain Data Centers (USA)

Recent Developments in Data Center Colocation Market

  • In June 2025, Amazon Web Services announced a $20 billion investment to develop multiple data center campuses across Pennsylvania. This expansion aims to meet soaring demand for AI and cloud workloads. The initiative will create 1,250 high-tech jobs and significantly strengthen AWS's colocation capabilities, supporting enterprise scalability and hyperscale AI infrastructure across North America.
  • In March 2025, Microsoft expanded its colocation presence between San Antonio and Austin, Texas, increasing data center power capacity fourfold since 2020. This development addresses skyrocketing demand for AI and cloud services. However, the scale of growth also highlights regional energy constraints, signaling future challenges in balancing hyperscale infrastructure growth with sustainable power supply.
  • In October 2024, Equinix entered a $15 billion joint venture with GIC (Singapore) and CPP Investments (Canada) to build 1.5 GW of hyperscale colocation capacity in the U.S. This move directly supports AI and interconnection demands. The investment allows Equinix to triple its hyperscale footprint, accelerating deployment of AI-optimized colocation infrastructure across major metro markets.

Data Center Colocation Key Market Trends

Data Center Colocation Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

As per SkyQuest analysis, the global data center colocation industry is evolving rapidly, driven by digital transformation, AI adoption, and the proliferation of hybrid IT environments. As enterprises seek scalable, cost-effective, and high-performance infrastructure, colocation emerges as a strategic enabler—offering advanced connectivity, operational agility, and sustainability. AI’s growing computational demands are accelerating the shift toward high-density, GPU-ready colocation facilities, while startups introduce modular, energy-efficient solutions.

Simultaneously, the global data center colocation market share is witnessing strong regional momentum, especially in North America, Europe, and Asia Pacific. With rising cloud workloads and ESG mandates, colocation providers are investing in green technologies and expanding strategic partnerships. Together, these trends highlight colocation’s central role in the future of enterprise IT, cloud integration, and AI-ready digital infrastructure across global industries.

Report Metric Details
Market size value in 2023 USD 69.6 Billion
Market size value in 2032 USD 256.58 Billion
Growth Rate 15.6%
Base year 2024
Forecast period 2025-2032
Forecast Unit (Value) USD Billion
Segments covered
  • Colocation Type
    • Retail Colocation
    • Wholesale Colocation
  • Enterprise Size
    • Large Enterprises
    • SMEs
  • End Use
    • Retail
    • BFSI
    • IT & Telecom
    • Healthcare
    • Media & Entertainment
    • Others
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Equinix (USA)
  • Digital Realty (USA)
  • NTT Communications (Japan)
  • China Telecom (China)
  • CyrusOne (USA)
  • Global Switch (United Kingdom)
  • KDDI Corporation / Telehouse (Japan)
  • IBM Cloud (USA)
  • Colt Data Centre Services (United Kingdom)
  • CoreSite Realty Corporation (USA)
  • ST Telemedia Global Data Centres (Singapore)
  • NEXTDC (Australia)
  • Atman (Poland)
  • Maincubes (Germany)
  • Iron Mountain Data Centers (USA)
Customization scope

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Data Center Colocation Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Data Center Colocation Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Data Center Colocation Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Data Center Colocation Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Data Center Colocation Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

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Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

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FAQs

Global Data Center Colocation Market size was valued at USD 69.6 Billion in 2023 poised to grow between USD 80.46 Billion in 2024 to USD 256.58 Billion by 2032, growing at a CAGR of 15.6% in the forecast period (2025-2032).

The global data center colocation market outlook is highly competitive, with key players including Equinix, Digital Realty, NTT Communications, CyrusOne, and China Telecom. Companies focus on global expansion, strategic partnerships, and sustainability. For example, Equinix is investing in green energy and expanding in emerging markets, while Digital Realty is focusing on AI-ready infrastructure and interconnection services. NTT is enhancing edge capabilities to support 5G and IoT demands across Asia and beyond.'Equinix (USA)', 'Digital Realty (USA)', 'NTT Communications (Japan)', 'China Telecom (China)', 'CyrusOne (USA)', 'Global Switch (United Kingdom)', 'KDDI Corporation / Telehouse (Japan)', 'IBM Cloud (USA)', 'Colt Data Centre Services (United Kingdom)', 'CoreSite Realty Corporation (USA)', 'ST Telemedia Global Data Centres (Singapore)', 'NEXTDC (Australia)', 'Atman (Poland)', 'Maincubes (Germany)', 'Iron Mountain Data Centers (USA)'

The rapid adoption of cloud computing services by enterprises is a major driver of the global data center colocation market growth. Businesses prefer colocated facilities to host cloud infrastructure due to their scalability, cost-efficiency, and high connectivity. This demand supports the expansion of both hyperscale and edge colocation environments worldwide.

Surge in AI-Optimized Colocation Infrastructure: The rapid rise of AI workloads is driving demand for colocation facilities designed with high-density power, advanced cooling, and GPU-ready infrastructure. Providers are reconfiguring existing data centers and building AI-specific zones to accommodate large-scale model training, inference processing, and data-heavy applications from enterprises and hyperscalers seeking scalable, high-performance environments.

How does Enterprise Demand Shape the Colocation Market in North America?

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