Data Center Colocation Market 2019 Opportunities, Size, Cost, Segmentation and Analysis Report

According to a new market research report” Data Center Colocation Market by Type (Retail and Wholesale), End-user (SMES and Large Enterprise, Industry (BFSI, IT & Telecom, Government & Defense, Healthcare, Research & Academic, Retail, Energy and Manufacturing), and Region – ****** Forecast to 2022“, published by MarketsandMarkets™, The data center colocation market is expected to grow from USD 31.52 Billion in 2017 to USD 62.30 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 14.60%.

The major forces driving the data center colocation market are the requirement for reliability, security and scalability of infrastructure, growing data center complexities, and the need for reduction of overall IT costs. The data center colocation market is expected to be growing rapidly because of the increasing number of users opting for cost-effective and energy-efficient data center solutions.

Browse and in-depth TOC on “Data Center Colocation Market

52 – Tables

69 – Figures

137 – Pages   

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Wholesale colocation type is expected to grow at the highest CAGR

The market, by type, has been segmented into retail colocation and wholesale colocation. Wholesale colocation is expected to witness the highest CAGR during the forecast period of 2017–2022. The wholesale colocation provides a large IT space, along with cooling and power infrastructure. Additionally, it provides the users with benefits, such as economics of scale by reduced power and cooling cost, high bandwidth, and reduced total cost of ownership. These benefits provided by the wholesale colocation are anticipated to further drive the data center colocation market during the forecast period.

Small and Medium-Sized Enterprises (SMEs) are expected to grow at the highest rate during the forecast period

The market, by end-user, has been segmented into SMEs and large enterprises. SMEs have lesser infrastructure autonomy requirements, thus they are increasingly adopting retail colocation services. Data center colocation provides SMEs with security and flexibility, which is expected to fuel their demand.

North America is expected to dominate the data center colocation market during the forecast period

The ****** data center colocation market is segmented on the basis of regions into North America, Asia Pacific (APAC), Europe, Middle East and Africa (MEA), and Latin America. North America is expected to hold the largest share of the data center colocation market in 2017, owing to the presence of a large number of data centers across various industries in this region. The market in APAC is expected to grow at the highest CAGR between 2017 and 2022. The primary driving forces for this growth are the increasing data center traffic and the surge in usage of mobile devices in this region.

The report also encompasses different strategies, such as mergers and acquisitions, partnerships and collaborations, and developments, adopted by the major players to increase their shares in the market. Some of the major technology vendors include AT&T Inc. (US), China Telecom (China), Cogent Communications (US), Contegix (US), CoreSite Realty Corporation (US), CyrusOne (US), Cyxtera Technologies, Inc. (US), Digital Realty Trust, Inc. (US), DuPont Fabros Technology, Inc. (US), Equinix, Inc. (US), Fibernet Inc. (US), ****** Switch (UK), Internap (US), Interxion (Netherland), Keppel Data Center Pte Ltd. (Singapore), Level 3 Communications Inc. , NTT Communications Corporation (Japan), PhoenixNAP (US), Rahi Systems Inc (US), Singtel (Singapore), STT GDC Pte Ltd. (Singapore), Telehouse-KDDI (UK), Telstra (Australia), TeraGo Networks Inc. (Canada), and Verizon (US).

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Major Market Developments

  • In June 2017, DuPont Fabros Technology and Digital Reality entered into a definitive agreement wherein DuPont Fabros Technology merged with Digital Realty. This merger is aimed to provide customer and geographical diversification for DuPont Fabros Technology.
  • In May 2017, BC Partners and Medina Capital acquired CenturyLink, Inc.’s portfolio of data centers and associated colocation business. The combined assets formed a new venture, Cyxtera Technologies
  • In May 2017, CyrusOne announced an alliance with CSRA, which is a provider of IT solutions for government agencies and programs. The alliance is aimed to provide next-generation data center space and power for government customers

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