Global Data Center Colocation Market to Garner $136,647.9 Million by 2028, Says The Insight Partners

November 16 00:13 2021
Global Data Center Colocation Market to Garner $136,647.9 Million by 2028, Says The Insight Partners
The Insight Partners
Data Center Colocation Market to Surge with Demand for Advanced Data Center Infrastructure due to Advent of 5G Services by 2028

A colocation facility, often called a colo, is a data center where an enterprise can rent space for servers and other equipment; however, a data center colocation provider manages these servers and equipment.

According to The Insight Partners’ latest market study on “Data Center Colocation Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type, Enterprise Size, and Industry,” the market was valued at US$ 50,579.1 million in 2021 and is projected to reach US$ 136,647.9 million by 2028; it is expected to grow at a CAGR of 15.3% from 2021 to 2028.

Strategic Insights:

Players operating in the data center colocation market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:

  • In July 2021, PEI-Genesis, a leading provider of the custom-engineered connector and cable connection solutions, expanded its European and African cooperation with global connector maker Positronic. The growth is the result of high demand from clients in these areas.
  • In June 2020, Global Switch—a leading owner, operator, and developer of large-scale, carrier and cloud neutral, multi-customer data centres in Europe and Asia Pacific—announced that building the first stage of a new data center in Amsterdam has begun in response to the increased demand.

Get Exclusive Sample Pages of Data Center Colocation Market at

Edge computing has emerged as an ideal solution for companies involved in streamlining their data gathering processes and a large number of customers demanding low-latency streaming content. Companies can deliver faster services and free up valuable bandwidth for several other activities that are performed closer to the network’s core by relocating their considerable processing workloads to devices and edge data centers on the outer edges of the network. Moreover, the growth of edge computing significantly depends on the rapid adoption of devices enabled with the internet of things (IoT). The IoT edge devices have developed incredible applications across diverse industries with their capabilities to collect data beyond the reach of conventional networks and extend services using cellular and Wi-Fi connections. However, these functionalities still require a backbone of infrastructure for operating effectively and efficiently. As a result, companies have begun to re-architect their corporate IT infrastructures with respect to colocation and interconnection points of presence. By combining colocation services with regional edge computing data centers, companies can extend their edge network reach quickly and cost-effectively. E-commerce and retail sectors are also embracing the edge data center.

The data center colocation market has been segmented based on type, enterprise size, industry, and geography. Based on type, the market is segmented into wholesale data centers and retail data centers. In 2020, the retail segment led the data center colocation market and accounted for a larger market share. In terms of enterprise size, the market is segmented into SMEs and large enterprises. In 2020, the large enterprises segment accounted for a larger share in the market. Based on industry, the market is segmented into IT and telecom, BFSI, healthcare, retail, and others. In 2020, the IT & telecom segment held the largest share in the market. Geographically, the data center colocation market is broadly segmented into North America, Europe, APAC (Asia Pacific), MEA (the Middle East & Africa), and SAM (South America). In 2020, North America accounted for the highest market share.

Impact of COVID-19 Pandemic on Data Center Colocation Market

The COVID-19 pandemic has significantly impacted global economies with extensive lockdowns, which forced people to stay at home. As a result, the sustainability of data centers has become a growing concern for operators as they are widely known to consume a lot of resources. The COVID-19 outbreak has altered the data center construction in many regions. The opening of several new facilities was halted for three months, owing to the limited labor and disruptions in the supply of parts. This is hampering the growth of the data center colocation market in the present scenario. However, the strong presence of some leading providers delivering data centers colocation facilities such as Equinix; CenturyLink; and AT&T, Inc.; is significantly contributing to the market growth through the adoption of strategic collaborations, new product launches, and funding to the technological advancements.

Download the Latest COVID-19 Analysis on Data Center Colocation Market Growth Research Report at  

Data Center Colocation Market Insights Advent of 5G Services to Surge Demand for Advanced Data Center Infrastructure A modern colocation data center is a connectivity hub, facilitating customers to switch directly to the services they require over a single cross-connect or even with a quick and secure direct connection such as Microsoft’s Azure ExpressRoute. As the telecom operators are currently involved in rolling out the first wave of 5G services, data centers can support network service providers to extend their reach more rapidly through colocation services. Providing reliable 5G services is expected to require more data center infrastructure than several network service providers presently have at their disposal. With the continuous rise in internet usage, leading to greater data demands, data center colocation would emerge as a highly attractive and cost-effective solution for the telecommunications sector. Moreover, a significant number of companies cannot afford to expand their existing on-premises solutions or increase capacity by constructing a private data center. Through strategic collaborations with experienced data center colocation providers, they can gain all the benefits of a state-of-the-art facility without the need for substantial capital investments to build one. Thus, the emergence of 5G technology and its services is anticipated to propel the growth of the data center colocation market in the near future. On May 5, 2020, IBM announced new services and solutions to help enterprises and telecommunications companies speed up their transition to edge computing in the 5G era. The solution will help organizations across the globe to deal with the blazing speed and extremely low latency and transmission delays brought about by the rollout of wireless 5G telecommunications networks. The solutions also enable enterprises to reduce the complexity of managing workloads across various devices and help them quickly deliver edge-enabled services to customers. Clients across industries can leverage the benefits of edge computing, AI, and analytics to achieve organizational insights.

Order a Copy of Data Center Colocation Market Shares, Strategies and Forecasts 2021-2028 Research Report at

 About Us:


The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.

Contact Us:

If you have any queries about this report or if you would like further information, please contact us:

Contact Person: Sameer Joshi

E-mail: [email protected]

Phone: +1-646-491-9876

Press Release:

More Research:

Media Contact
Company Name: The Insight Partners
Contact Person: Sameer Joshi
Email: Send Email
Phone: +1-646-491-9876
City: Pune
State: Maharashtra
Country: India