Tax Incentives Motivate Operators in the Global Data Center Colocation Market


Arizton’s recent market research report on the global data center colocation market provides comprehensive industry analysis, trend forecasts, and competitive analysis. The research study segments the market by investment (electrical infrastructure, mechanical infrastructure, and general construction), by service type (retail and wholesale), by geography (APAC, Americas, and EMEA), and offers detailed competitive analysis.

The global data center colocation market is estimated to witness investments of approximately $31 billion by 2023, growing at a CAGR of around 8% during the forecast period.

The market research report offers market size analysis in terms of colocation services during 2017-2023. The increasing investments in the US, Western Europe, China & Hong Kong, Southeast Asia, Australia, and New Zealand will boost the revenues in the global market. The US is dominating in the Americas data center colocation market on account of increased investments from colocation service providers.  The construction of new facilities with several innovations that aim to enhance the operational efficiency of the facilities, reduce power consumption, and decrease carbon emissions will transform the global data center colocation market.

Request for your free sample today!

The top 3 drivers and trends contributing to the development of the global data center colocation market are discussed below:

Increasing Demand for Colocation Services

The growing demand for a wide range of service offerings is propelling the growth of the global data center colocation market. The leading facility operators are providing colocation services and other services such asmanaged colocation services, cloud connectivity, interconnection, and cloud-based managed hosting services in the global market. The rapid technological advancements across industries arepromoting the demand for interconnected facilities in the global market. Various enterprises are using big data analytics and IoT to sustain the competition in the global data center colocation market. Colocating data centers will reduce CAPEX and OPEX, operating through green facilities, ability to operate high density IT infrastructure, hybrid infrastructure services, opportunity to operate in edge locations, and high bandwidth lead to reduced latency in the market. The increasing partnerships among leading service providers will lead to the construction of redundant facilities across the global market. Equinix, Digital Realty, Switch, CyrusOne, NTT, TierPoint, Interxion, ST Telemedia, T-Systems, GDS Services, NextDC, and Global Switch are some of the leading colocation investors in the market. The increasing demand for edge computing will encourage to invest in secondary datacenter markets. Furthermore, the investments in the construction of wholesale colocation spaces will create lucrative opportunities for leading vendors in the global data center colocation market.

Read: Hyperscale Data Center Market in APAC- Industry Outlook and Forecast 2020-2025

Green Colocation attracts Customers

With the increasing focus on reducing energy consumption and carbon emissions will boost the adoption of green practices in the global data center colocation market. Several colocation operators are adopting innovative facility designs and installing advanced power and cooling technologies to reduce PUE less than 1.5 in the global market. Regions such as the US, Canada, and Europe are adopting free cooling solutions that consume less energy compared to traditional cooling systems in the global data center colocation market. The use of free cooling solutions in datacenters will reduce energy consumption by up to 70% and help operators reach their sustainability goals in the global market. Modern facilities are designed to reduce complexity and add more flexibility through the dynamic allocation of resources according to the operator’s requirement. The implementation of effective DCIM solutions will improve the functioning of facilities across the global market. These systems are designed to record regular maintenance of infrastructure and offer real-time monitoring of power consumption that will result in significant cost savings in the market. The use of artificial intelligence in the management of facilities will increase the reliability, scalability, and efficiency of datacenter operations and contribute to the revenues in the global data center colocation market.

Request for your free sample today!

Increasing Demand for Edge Data Centers

The exponential growth of connected devices across the business and consumer segments led to the popularity of the concept of edge computing in the global data center colocation market.Majorlocations such as Texas, New York, Virginia, London, Stockholm, Frankfurt, Paris, Dubai, Mumbai, Osaka, Sydney, Melbourn, and Auckland are attracting high investments from colocation providers in the global market. The development of smart cities will boost the demand for datacenters close to consumer locations in the global market. Some of the leading edge datacenter providers operating in the global data center colocation market are vXchnge, EdgeConneX, and 365 Data Centers. With the development of edge centers areincreasing the need for rapid deployment of datacenterswith modular, containerized, and POD facilities in the market. The adoption of flexible architectural and engineering facility designs will augment the evolution of the global data center colocation market.

The leading vendors in the global data center colocation marketare CyrusOne, China Telecom Global, Digital Realty, Equinix, Interxion, NTT Communications, and Switch.

The complete overview of the latest market research report on global data center colocation market by Arizton is now available.

The report also offers a detailed study of major trends, drivers, challenges, and also provides the market size and forecast for major geographical regions and key countries.

About Arizton

Arizton – Advisory and Intelligence is an innovation and quality-driven firm, which offers cutting-edge research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.

We offer comprehensive market research reports on industries such as consumer goods & retail technology, automotive and mobility, smart tech, healthcare, and life sciences, industrial machinery, chemicals and materials, IT and media, logistics and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.

Arizton comprises a team of exuberant and well-experienced analysts who have mastered in generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.


Call: +1-312-465-7864

Recent Press