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Data Center Colocation Global Market Report 2021: COVID-19 Growth And Change

·3-min read

Major players in the data center colocation market are Digital Realty Trust Inc, CyrusOne Inc, Global Switch, Cyxtera Technologies, Equinix Inc, China Telecom Corp. Ltd. , Verizon Communication Ltd, AT&T Inc, Rackspace, NTT Ltd.

New York, Aug. 26, 2021 (GLOBE NEWSWIRE) -- announces the release of the report "Data Center Colocation Global Market Report 2021: COVID-19 Growth And Change" -
, CoreSite Realty Corp., NaviSite, SunGuard Availability Services, Telecity Group, and DuPont Fabros Technology Inc.

The global data center colocation market is expected to grow from $39.05 billion in 2020 to $47.02 billion in 2021 at a compound annual growth rate (CAGR) of 20.4%. The growth is mainly due to growing demand for data center colocation owing to increase in costs of maintaining an in-house data center. The market is expected to reach $87.73 billion in 2025 at a CAGR of 16.9%.

The data center colocation market consists of sales of data center colocation services by entities (organizations, sole traders, or partnerships) that are engaged in providing colocation services for the businesses. Data center collocation is a method of renting actual office space, network or internet bandwidth, and other services from an existing data center to third parties to set up their own data center.

The main types of data center colocation are retail colocation and wholesale colocation.The retail colocation is a space where the consumer takes the space for lease that is within the data center such as rack space within the rack of caged-off area.

A wholesale colocation is where one where a single customer rented a facility owned by a third party.The different sizes of enterprises include large enterprise and small scale enterprise.

It is implemented in various verticals such as BFSI, IT and telecom, government and defense, healthcare and others.

North America was the largest region in the data center colocation market in 2020. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The introduction of the underwater data center is shaping the data center colocation market.The underwater data center is designed to use renewable electricity from tides and waves.

It occupies less land onshore and is capable of using the flowing seawater to efficiently cool the electronics.In January 2021, Beijing Highlander Digital Technology Co, a China-based marine electronic technology products firm, and Guangzhou Shipyard International Co, a China-based shipbuilding enterprise together introduced an underwater data center that involves the installation of internet facilities such as servers in airtight pressure vessels with the required cooling performance under the surface of the ocean.

This underwater data center helps in reducing the amount of energy that is consumed and acts as a sustainable data center solution.

In March 2020, Digital Realty, a US-based company that provides colocation and peering services acquired Interxion for $8.4 billion. The acquisition aims to meet the colocation demands and requirements that are needed for businesses. Interxion is a Netherland-based company that provides carrier and cloud-neutral colocation data center services.

The high cost of an in-house data center is encouraging companies to adopt data center colocation services which in turn is propelling the demand for the data center colocation market.Colocation services result in significant cost savings as compared to managing an in-house data center.

For instance, the average annual cost of operating a large data center ranges from $10 million to $25 million.With data center colocation services, companies can reduce their spending on managing and maintaining an in-house server, which in turn reduces the overall IT expenditure of the companies.

Therefore, the high cost of an in-house data center is increasing the demand for the data center colocation market.

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

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