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Data Center Colocation Market size was valued at USD 46.10 billion in 2022 and is poised to grow from USD 53.15 billion in 2023 to USD 166.02 billion by 2031, growing at a CAGR of 15.3% during the forecast period (2024-2031).

The data center colocation market is characterized by intense competition among key players, who are constantly striving to offer innovative solutions to customers. These companies are focused on expanding their market presence through strategic partnerships, mergers and acquisitions, and investments in new technologies. In addition, there is a growing trend towards offering specialized colocation services, such as edge computing and hybrid cloud solutions, to meet the specific needs of different industries. 'Equinix, Inc. (US)', 'Digital Realty Trust, Inc. (US)', 'NTT Communications Corporation (Japan)', 'China Telecom Corporation Limited (China)', 'CyrusOne Inc. (US)', 'Switch (UK)', 'Interxion Holding NV (Netherlands)', 'Level 3 Communications, LLC (US)', 'Verizon Communications Inc. (US)', 'CoreSite Realty Corporation (US)', 'Telehouse (UK)', 'China Unicom (China)', 'AT&T Inc. (US)', 'Zayo Group Holdings, Inc. (US)', 'CenturyLink, Inc. (US)', 'KDDI Corporation (Japan)', 'Deutsche Telekom AG (Germany)', 'Colt Technology Services Group Limited (UK)', 'Digital Bridge Holdings, LLC (US)', 'Corespace, Inc. (US)'

One major driver for the data center colocation market is the increasing demand for cost-effective and scalable data storage and processing solutions. Many businesses, particularly small and medium-sized enterprises, are unable to bear the high costs of building and maintaining their own data centers. Data center colocation provides an affordable alternative by allowing these businesses to rent space in a data center facility, while also offering flexibility in terms of server control and the ability to scale up as needed.

One key trend in the data center colocation market is the growing adoption of edge computing solutions. Edge computing involves processing data closer to the source, which helps to reduce latency and improve network connectivity. As businesses increasingly rely on real-time data processing for mission-critical applications, the demand for edge computing solutions is expected to rise. In addition, there is a growing trend towards hybrid cloud solutions, which combine the benefits of public and private cloud infrastructure with on-premises data storage.

North America dominated the data center colocation market due to the strong presence of established colocation providers in the region. The region is characterized by high technological advancements, with the US being one of the largest markets for data center colocation services globally. The demand for data center colocation services in North America is driven by the growth of e-commerce, social media, and cloud computing.

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Global Data Center Colocation Market

Product ID: SQMIG45C2036