The “Data Center Colocation Market – Global Outlook & Forecast 2022-2027” report published by ResearchAndMarkets.com predicts that the global data center colocation market is expected to grow at a CAGR of 6.5% from 2021 to 2027, growing from $29.59 Billion in 2021 to $43.18 Billion in 2027.
The data center colocation market growth was aided by previously announced projects and expansions of facilities in a few locations. Cloud-based service providers contribute to the most demand for data center services. Growth continues to spur across infrastructure categories, leading to a sustainable facilities environment.
The APAC region dominates the data center colocation market in terms of investment, followed by North America and Western Europe. Other regions, such as the Middle East, Africa, and Latin America, are among the emerging colocation markets expected to grow during the forecast period.
The US, China, Canada, Japan, the UK, France, Germany, and the Netherlands lead the market in terms of the generation of colocation revenue. Other countries in Latin America, the Middle East & Africa will grow due to more investments by global and local operators.
The major data center colocation market operators are Equinix, Digital Realty, CyrusOne, STACK Infrastructure, QTS Realty Trust, ST Telemedia Global Data Centres, and others that are adopting renewable energy and taking significant steps toward sustainability.
The companies are engaged in a signed Power Purchase Agreement (PPA) with several energy companies to procure renewable energy, such as wind and solar energy, to power their facilities. The procurement of renewable energy is expected to continue during the forecast period.
The global data center colocation market in terms of investments in 2021 was led by Digital Realty, holding the largest industry share. Digital Realty invested in over 79 projects across several locations worldwide, including investments along with its subsidiaries, such as Interxion, icolo.io, MC Digital Realty, Ascenty, and others. Vendors focus on continuous development to sustain the colocation industry.
