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Data Center Colocation Market - Global Outlook and Forecast 2020-2025: Cloud Computing, Cloud Connectivity, & Hybrid Infrastructure Services Drive Colocation Demand

Research and Markets
·8-min read

Dublin, Nov. 10, 2020 (GLOBE NEWSWIRE) -- The "Data Center Colocation Market - Global Outlook and Forecast 2020-2025" report has been added to's offering.

The global data center colocation market by revenue is expected to grow at a CAGR of over 7% during the period 2019-2025.

The data center colocation industry is expected to witness high growth during the forecast period due to the increased demand for data center operations among enterprises in several industry verticals. North America contributes around 43% to the overall revenue, which is followed by APAC and Western Europe with a market share of 27% and 18%, respectively.

The US, China, and Japan are the prominent revenue contributors to the industry. Colocation providers are expanding their existing facilities, which are likely to drive market revenue during the forecast period. The establishment of new cloud regions, which is, i.e., over 25, by AWS, Google, and Microsoft during the period 2019-2022, is expected to provide a significant boost to wholesale colocation service growth on the global scale.

The rise in demand from several businesses has increased mergers and acquisitions activities to increase their portfolio, thereby increasing the data center colocation market growth. The increase in power consumption and the need to reduce carbon footprint have driven several service providers to procure clean and renewable energy sources to power their existing and upcoming facilities across the globe. The implementation of the 5G network has already started in countries such as the US, China, South Korea, Finland, Japan, and a few countries in Europe. This is projected to increase the demand for edge colocation facilities during the forecast period.

Global Data Center Colocation Market Segmentation

The global data center colocation market research report includes a detailed segmentation by electrical infrastructure, mechanical infrastructure, general construction, service type, geography. UPS systems have been the highest contributors to the market revenue through the adoption of VRLA battery-powered systems. The adoption of UPS systems has become a critical task for data center operators and designers as they account for over 30% of failures identified in the facility. The adoption of lithium-ion UPS systems has grown considerably over the past years.

The adoption of generator systems with a capacity of over 2 MW is higher because of the increased construction of large and mega facilities. Most facilities are currently deploying on-site fuel storage for at least 72 hours to power data center operations in case of power outages. Cost, reliability, efficiency, and maintenance are the major factors responsible for the adoption of UPS and generators.

The adoption of cooling units is highly dependent on the IT load; the growth in rack densities and the need to function cooling systems at low loads are driving the installation of the modern cooling infrastructure. Data center operators are procuring innovative cooling solutions that aim to enhance operational efficiency, reduce power consumption, and decrease carbon emissions. Data center operators have adopted innovative and energy-efficient cooling solutions to reduce power consumption by up to 50%, thereby driving the market demand.

The North American market has a strong presence of general contractors and sub-contractors. The competition will increase over the next few years. Expertise in developing data centers within a short span of time, i.e., less than one year, will be a key criterion for the operators in the selection of general contractors. Several operators have strong partnerships with general contractors. Western Europe is the most active market in the European region for data center construction. Several facilities are being designed and built to cover an area of over 100,000 square feet.

The retail colocation industry is likely to grow due to the adoption of single or multiple racks with a total capacity of less than 250 kW. The increasing preference for colocation services among organizations for better control and high bandwidth and interconnectivity is a significant factor, which is influencing the market growth. The growing demand from developing economies is likely to drive colocation services. Also, enterprises with the need for geographically distributed capacity and limited budgets are likely to opt for retail colocation.


1. What is the size of the data center colocation market in terms of investments, area, power capacity, service type (retail/wholesale), and revenue in more than 25 countries across the world?
2. What is the market share of retail and wholesale colocation services over 25 countries?
3. What is the market share by leading service providers by investments, area, power capacity, and colocation services?
4. What drivers, trends, and restraints are driving the data center colocation market?
5. Who are the prominent vendors in the data center colocation market?
6. What is the number of new entrants entering the data center colocation market at the global scale?
7. What is the impact of the COVID-19 pandemic on the data center colocation market shares?

Key Topics Covered:

1 Research Methodology

2 Research Objectives

3 Research Process

4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope Of The Study
4.4 Market Segments

5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation

6 Market at a Glance

7 Introduction
7.1 Impact Of Covid-19 On Data Center Market
7.2 Internet & Data Growth
7.3 Data Center Site Selection Criteria
7.4 Electricity Pricing Across Major Data Center Locations

8 Market Opportunities & Trends
8.1 Introduction Of District Heating Concept By Data Centers
8.2 Increased Renewable Energy Adoption Among Colocation Providers
8.3 M&As To Improve Colocation Market Share
8.4 Growing Rack Power Density
8.5 Increasing Demand For Edge Data Centers
8.6 Increased Adoption Of Ocp & Hyperscale-Specific Infrastructure
8.7 Growing Adoption Of Li-Ion Batteries & Fuel Cells

9 Market Growth Enablers
9.1 Rising Hyperscale Deployments By Colocation Providers
9.2 Cloud Computing, Cloud Connectivity, & Hybrid Infrastructure Services Drive Colocation Demand
9.3 Snowballing Demand For Colocation Services
9.4 Tax Incentives Save Colocation Opex & Customer Costs
9.5 Construction Of Green Data Center Facilities
9.6 Data Regulation To Increase Data Center Investment

10 Market Restraints
10.1 Location Constraints For Data Center Construction
10.2 Rising Carbon Emissions From Data Centers
10.3 Data Center Power Consumption Increases Opex
10.4 Dearth Of Skilled Workforce
10.5 Increasing Water Consumption By Data Centers

11 Market Landscape
11.1 Market Overview
11.2 Investment: Market Size & Forecast
11.3 Colocation Investment By Area
11.4 Colocation Investment By Power Capacity
11.5 Colocation Revenue: Market Size & Forecast
11.6 Five Forces Analysis

12 Colocation Services
12.1 Market Snapshot & Growth Engine
12.2 Market Overview
12.3 Retail Colocation
12.4 Wholesale Colocation

13 Infrastructure
13.1 Market Snapshot & Growth Engine
13.2 Market Overview
13.3 Electrical Infrastructure
13.4 Mechanical Infrastructure
13.5 General Construction

14 Electrical Infrastructure
14.1 Market Snapshot & Growth Engine
14.2 Ups Systems
14.3 Generators
14.4 Transfer Switches & Switchgear
14.5 Power Distribution Units
14.6 Other Electrical Infrastructure

15 Mechanical Infrastructure
15.1 Market Snapshot & Growth Engine
15.2 Cooling Systems
15.3 Racks
15.4 Other Mechanical Infrastructure

16 Cooling Systems
16.1 Market Snapshot & Growth Engine
16.2 Crac & Crah Units
16.3 Chiller Units
16.4 Cooling Towers & Dry Coolers
16.5 Economizers & Evaporative Coolers
16.6 Other Cooling Units

17 Cooling Technique
17.1 Market Snapshot & Growth Engine
17.2 Air-Based Cooling Techniques
17.3 Liquid-Based Cooling Techniques

18 General Construction
18.1 Market Snapshot & Growth Engine
18.2 Building Development
18.3 Installation & Commissioning Services
18.4 Building Design
18.5 Physical Security

19 Tier Standards
19.1 Market Snapshot & Growth Engine
19.2 Overview Of Tier Standards
19.3 Tier I & II
19.4 Tier III
19.5 Tier IV

20 Geography
20.1 Market Snapshot & Growth Engine

Competitive Landscape

Prominent Colocation Data Center Vendors

  • 21Vianet

  • Eaton

  • China Telecom Global

  • CoreSite Realty

  • CyrusOne

  • Digital Realty

  • Equinix

  • Flexential

  • GDS Holdings

  • Global Switch

  • Interxion

  • Quality Technology Services (QTS)

  • ST Telemedia Global Data Centres (STT GDC)

  • NTT Communications

Prominent Data Center Investors

  • AirTrunk Operating

  • Aligned Data Center

  • Aruba SpA

  • Ascenty

  • Bahnhof

  • Batelco (Bahrain Telecommunications Company)

  • Bridge Data Centers

  • Bulk Infrastructure

  • Canberra

  • Colt Data Center Services

  • Compass Data Centers

  • COPT Data Center Solutions

  • Digiplex

  • EdgeConnex

  • Etisalat Group

  • Fifteenfortyseven Critical Systems Realty

  • Iron Mountain

  • Khanza



  • PT Telekomunikasi Group

  • Sabey Data Center

  • Sify Technology

  • Scaleway Data Center

  • ST Telemedia Global Data Centres (STT GDC)

  • SUNeVison

  • Switch

  • Tenglong Holdings Group (Tamron)

  • Teraco Data Environments

  • Turkcell

  • Vantage Data Center

New Entrants

  • EdgeCore Internet Real Estate

  • Prime data centers

  • GIGA Data Centers

  • PointOne

  • Stack Infrastructure

  • Chayora

  • Raxio Data Center

  • NDC Data Center

  • Kepstar Data Center Management

  • Space DC

  • Yotta Infrastructure

  • Regal Orion

  • Princeton Digital Group (PDG)

  • Novva

  • Echelon Data Centers

  • Scala Data Centers

  • BDx (Big Data Exchange)

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