The data centre colocation market is estimated to be worth US$ 69.7 billion in 2024 and is projected to be valued at US$ 279.1 billion in 2034. Between 2024 and 2034, the industry is expected to register a growth rate of 14.9%.

The growing need for scalable and reliable IT infrastructure in industries owing to digital transformation is expected to drive the growth of the data centre colocation market during the forecast period. The rising reliance on cloud services fuels the demand for colocation facilities that provide connectivity and support for cloud deployments. Colocation complements cloud strategies, offering hybrid solutions for businesses.

Colocation facilities implement advanced security protocols, including physical security, network security, and compliance with industry standards, ensuring data protection and minimizing cybersecurity risks driving the growth of the data centre colocation in various industries. The growing unique IT infrastructure requirements due to compliance and security needs in finance and healthcare, lead to tailored colocation solutions catering to these sectors.

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Key Takeaways from the Market Study:

  • From 2019 to 2023, the data centre colocation market was valued at a CAGR of 12.6%
  • Based on end-users, the large enterprises segment is expected to account for a share of 63.0% in 2024.
  • Global data centre colocation demand in China is predicted to account for a CAGR of 15.4% in 2024.
  • In the United States, the data centre colocation industry is expected to account for a CAGR of 12.7% in 2024.
  • Germany is projected to expand by a value CAGR of 14.4% between 2024 and 2034.
  • The data centre colocation market in Japan is anticipated to record a CAGR of 16.1% in 2024.

The growing digitalization across industries and increased importance of advanced IT infrastructure is anticipated to drive the market growth during the forecast period.” – opines Sudip Saha, managing director at Future Market Insights (FMI) analyst.

Competitive Landscape

Key players focus on organic growth strategies like product launches and approval. Collaborations and partnerships with key players and acquiring niche players are critical strategies followed by leading players in data centre colocation market.

Some of the developments in the data centre colocation market are

  • CyrusOne has expanded rapidly, particularly in the United States, providing colocation solutions to numerous enterprises. The company’s emphasis on customized solutions, hyperscale facilities, and energy-efficient data centers has influenced market trends.
  • Cyxtera Technologies offers a suite of colocation, cybersecurity, and analytics services. The company’s integration of cybersecurity features within its colocation offerings has impacted the market by emphasizing security as a critical aspect of colocation services.

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Future Market Insights offers an unbiased analysis of the global data centre colocation market, providing historical data from 2019 to 2023 and forecast statistics between 2024 and 2034.

To understand opportunities in the data centre colocation industry, the industry is segmented based on By Colocation Type (Retail, Wholesale), By Enterprise Size (Large, SMEs), By Tier Level (Tier 1, Tier 2), By End-use (BFSI, Healthcare, IT & telecommunications, retail & consumer goods, media & entertainment, Transportation and Logistics, government, Manufacturing, others) By Colocation Type (Retail, Wholesale), By Enterprise Size (Large, SMEs), By Tier Level (Tier 1, Tier 2), By End-use (BFSI, Healthcare, IT & telecommunications, retail & consumer goods, media & entertainment, Transportation and Logistics, government, Manufacturing, others ) (North America, Latin America, Western Europe, Eastern Europe, South Asia and Pacific, East Asia, the Middle East, and Africa).

Data Centre Colocation Market Key Segments

By Type:

  • Retail colocation
  • Wholesale colocation

By End Use:

  • SMEs
  • Large Enterprises

By Application:

  • BFSI
  • Energy
  • Government & Defense
  • Healthcare
  • Manufacturing
  • IT & Telecom
  • Retail

By Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • South Asia and Pacific
  • East Asia
  • Middle East and Africa


Sudip Saha is the managing director and co-founder at Future Market Insights, an award-winning market research and consulting firm. Sudip is committed to shaping the market research industry with credible solutions and constantly makes a buzz in the media with his thought leadership. His vast experience in market research and project management a consumer electronics will likely remain the leading end-use sector cross verticals in APAC, EMEA, and the Americas reflects his growth-oriented approach to clients.

He is a strong believer and proponent of innovation-based solutions, emphasizing customized solutions to meet one client’s requirements at a time. His foresightedness and visionary approach recently got him recognized as the ‘Global Icon in Business Consulting’ at the ET Inspiring Leaders Awards 2022.

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 5000 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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