Data Center Colocation Services Market on Track to Reach $97.9 Billion by 2031

 

Meticulous Research®—a leading global market research company, published a research report titled, ‘Data Center Colocation Services Market by Facility (Retail, Wholesale, Hybrid), Service (Space & Infrastructure (Rack, Cage & Cabinet, Suite), Disaster Recovery), Tier, Size, End User (Managed, Cloud, Enterprises), and Geography - Global Forecasts to 2031.’

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In a recent report by Meticulous Research®, the global data center colocation services market is projected to reach $97.9 billion by 2031, with a notable CAGR of 10.7% from 2024 to 2031. This growth reflects the rising demand for efficient and secure data storage solutions, increased reliance on outsourced IT infrastructure, and the integration of cloud computing across various industries. Additionally, the expansion of edge data centers is set to create new growth opportunities. However, significant upfront capital investments and concerns about data security and privacy could pose challenges to market expansion.

Market Dynamics

The data center colocation services market is segmented by facility type, service offerings, tier standards, organizational size, and end-user segments. Retail colocation leads among facility types, driven by the growing demand for cost-effective colocation services among small and medium-sized enterprises (SMEs). Hybrid cloud-based colocation is expected to experience the highest growth due to its seamless integration capabilities and robust disaster recovery strategies.

Service Offerings

Space and infrastructure services are anticipated to dominate the market, reflecting the increased need for space rental within data centers and the demand for enhanced security measures. Meanwhile, network connectivity and security services are expected to register the highest growth rate, fueled by the emphasis on low-latency connections and stringent security protocols.

Geographic Overview

North America is predicted to hold a significant share of the global data center colocation services market, supported by robust network infrastructure, strict data security regulations, and the adoption of hybrid IT models. The Asia-Pacific region is forecasted to witness the highest CAGR during the forecast period, driven by digital transformation initiatives, growing cloud adoption, and the increasing need for scalable infrastructure solutions among SMEs.

Key Players

Leading companies in the data center colocation services market include Equinix, Digital Realty Trust, NTT Ltd., CoreSite, and Global Data Solutions. These key players are at the forefront of driving innovation and shaping the competitive landscape through strategic partnerships, technological advancements, and geographic expansions.

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About Meticulous Research®:

Meticulous Research® was founded in 2010 and incorporated as Meticulous Market Research Pvt. Ltd. in 2013 as a private limited company under the Companies Act, 1956. Since its incorporation, the company has become the leading provider of premium market intelligence in North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

The name of our company defines our services, strengths, and values. Since the inception, we have only thrived to research, analyze, and present the critical market data with great attention to details. With the meticulous primary and secondary research techniques, we have built strong capabilities in data collection, interpretation, and analysis of data including qualitative and quantitative research with the finest team of analysts. We design our meticulously analyzed intelligent and value-driven syndicate market research reports, custom studies, quick turnaround research, and consulting solutions to address business challenges of sustainable growth.

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