Dublin, August 27, 2024 (GLOBE NEWSWIRE) — The report “Data Center Colocation – Global Strategic Business Report” has been added to The Offer.
The global Data Center Colocation market was valued at USD 61.6 billion in 2023 and is expected to reach USD 143.9 billion by 2030, growing at a CAGR of 12.9% between 2023 and 2030. This comprehensive report offers in-depth analysis of market trends, drivers, and forecasts to help you make informed business decisions.
Data center colocation is a service that allows companies to rent space for their servers and network equipment in a third-party facility rather than housing them in-house. Colocation provides the physical environment needed to maintain and protect these IT resources, including space, power, cooling, and physical security. By choosing colocation, companies can benefit from economies of scale and advanced infrastructure that would be too expensive to replicate on their own.
These facilities offer high-bandwidth access, excellent connectivity, and redundancy systems that ensure business continuity even in the event of power outages or other disruptions. This configuration not only helps companies manage their capital expenditures more efficiently by eliminating the need to build, maintain, and upgrade their own data centers, but also allows them to focus more on their core business without having to deal with the logistical issues of managing IT infrastructure.
How does colocation promote business growth and flexibility?
Colocation services provide businesses with the flexibility to scale their operations quickly without the typical capital investment and time required to expand physical IT infrastructure. As businesses grow and their data needs increase, colocation facilities make it easier to quickly scale IT resources. Adding more servers or increasing bandwidth capacity is often possible without the extensive planning and execution associated with expanding a private data center.
Additionally, colocation facilities often host multiple carriers and service providers on their premises, allowing companies to switch between services or expand their capacity without major disruptions or logistical challenges. This aspect is particularly beneficial for companies that require high levels of network reliability and speed, as they can leverage the competitive environment within the colocation facility to negotiate better service agreements and ensure optimal network performance.
What key considerations and trends are influencing data center colocation?
One of the most important considerations for companies looking into data center colocation is compliance with regulatory standards and data security requirements. Colocation providers must adhere to strict standards to ensure they can support companies in highly regulated industries such as finance and healthcare. As a result, many colocation facilities are equipped with advanced security measures, both physical and digital, and are certified under various compliance rules such as HIPAA, SOC 2 or PCI DSS.
In addition, with sustainability becoming increasingly important, many colocation providers are now investing in environmentally friendly technologies and practices, such as using renewable energy sources and implementing energy-efficient cooling mechanisms. This shift not only helps reduce the environmental impact of these data-intensive operations, but also aligns with their clients’ corporate responsibility goals.
What is driving growth in the data center colocation market?
The growth in the data center colocation market is driven by several factors, including the increasing demand for scalable data storage and processing capacities amid the increasing data generation by enterprises. As enterprises continue to drive digital transformation, the need for reliable, secure, and compliant IT infrastructure becomes paramount, fueling the demand for colocation services. The transition to hybrid cloud environments is also a key driver, as colocation represents a critical physical infrastructure component for hybrid strategies and offers a way to manage sensitive data on-premises while leveraging cloud computing for less critical resources.
In addition, the global nature of modern businesses requires a presence in multiple markets. Colocation facilities offer a way to establish a local IT presence without the high costs and complexity of building private data centers in different geographic regions. Together, these trends contribute to the robust growth of the colocation market and underscore its essential role in the future of global IT strategies.
Key findings:
- Market Growth: Understand the significant growth curve of IT and Telecom Application segment which is expected to reach $57.4 billion by 2030 at a CAGR of 15.7%. BFSI Application segment is also expected to grow at a CAGR of 13.5% during the analysis period.
- Regional Analysis: Gain insights into the US market, valued at $16.4 billion in 2023, and China, which is forecast to grow at an impressive 11.9% CAGR to reach $21.8 billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and Asia Pacific.
Reporting features:
- Comprehensive market data: Independent analysis of annual sales and market forecasts in millions of US dollars from 2023 to 2030.
- Detailed Regional Analysis: Detailed insights into key markets including the US, China, Japan, Canada, Europe, Asia Pacific, Latin America, Middle East and Africa.
- Company Profiles: Coverage of major players such as AT&T, Inc., China Telecom Corporation Ltd., CoreSite Realty Corporation and more.
- Free Updates: Get free report updates for one year to stay informed of the latest market developments.
Main features:
| Report Attribute | Details |
| Number of pages | 193 |
| Forecast period | 2023 – 2030 |
| Estimated market value (USD) in 2023 | 61.6 billion US dollars |
| Projected market value (USD) until 2030 | 143.9 billion US dollars |
| Average annual growth rate | 12.9% |
| Regions covered | Generally |
MARKET OVERVIEW
- Insights into the influencer market
- Data Center Colocation – Percentage market share of the most important competitors worldwide in 2024 (D)
- Global economic update
- Competitive Market Presence – Strong/Active/Niche/Trivial for Players Worldwide in 2024 (E)
MARKET TRENDS & DRIVERS
- Rising real estate costs promote the introduction of colocation data centers
- Increasing demand for scalable IT infrastructure drives growth in colocation services
- The shift towards green computing is a good sign for sustainable data center colocation
- Integration of advanced network functions improves colocation offerings
- Increase in the number of cloud service providers expands opportunities for colocation markets
- Introduction of high-density servers promotes innovation in the design of colocation spaces
- Technological advances in cooling and power systems increase colocation efficiency
- Increasing focus on disaster recovery and business continuity increases colocation demand
- Demand for 5G infrastructure support bodes well for colocation centers
Focus on selected players(Total 44 presented)
- AT&T, Inc.
- China Telecom Corporation Ltd.
- CoreSite Realty Corporation
- Cyrusone LLC
- Cyxtera Technologies, Inc.
- Digital Realty Trust, Inc.
- Dupont Fabros Technology, Inc.
- Equinix, Inc.
- Global Switch Holdings Ltd.
- Internap Corporation
- Interxion Holding NV
- KDDI Corporation
- Level 3 Communications, Inc.
- NTT Communications Corporation
- Verizon Enterprise Solutions
For more information about this report visit https://www.researchandmarkets.com/r/tzv3rq
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Data center colocation market
