The Growth of the Data Center Colocation Market


As technology advances and is integrated into our lives, the requirement for data storage and processing power increases.

This creates a strain on many business owners who deal with digital data as they try to create or expand their on-site data centers, which is not only expensive in both time and money, but also creates some headaches as unusual new issues crop up. To avoid this, many business owners work with managed colocation centers.

The Growth of the Data Center Colocation Market

There are many benefits to utilizing managed colocation centers and every day more and more business owners are realizing this and switching over to them, which, alongside a few other factors, is contributing to the growth of the data center colocation market. With the colocation market expected to grow to $43 billion by 2027, there are plenty of reasons to get excited about this technological revolution.

The reasons for this rapid growth are varied and complex, and we’re going to highlight just a few of them here today.

Explosive Growth

The colocation market is growing rapidly and is expected to expand significantly over the upcoming years. There are a myriad of reasons why this market is growing so quickly, such as many providers having already announced some of their future projects and having already significantly expanded their facilities.

However, these factors wouldn’t have been as successful if the benefits of adopting data center colocation weren’t invaluable.

Benefits of Data Center Colocation

Colocation data centers help businesses by providing their necessary equipment with the proper cooling, power and security it needs so that it runs as efficiently as possible around the clock.

This sort of setup gives the business owners using these services a massive advantage, since while it will cost them some money to rent out the necessary space for their equipment, the utility bill is handled by the provider. This type of setup also allows for these business owners to use the space that would have otherwise been taken up by their servers and other necessary hardware for any number of other, equally important things, like office or even storage space.

Another immeasurable boon of these services is IT support. There are always many IT technicians on hand thanks to the large amount of sensitive hardware stored in data colocation centers. This means that if and when your systems are experiencing an issue, you can rest assured knowing that your infrastructure is surrounded by many well-trained and highly experienced IT techs ready to help you diagnose and solve the issue.

Growing Markets

With those benefits in mind, it’s no wonder that the market for data colocation centers is growing around the globe. Some of the current market leaders are the United States, China, Japan, France, and the United Kingdom, and it is likely the market will see even more growth in these locations.

The largest growth region was North America, and it is projected that this will remain the case for a while but that isn’t to say that other regions aren’t also experiencing growth in this market. The Asia Pacific region is expected to see rapid growth as well, with other areas such as Africa and many Latin American countries following suit, albeit a bit more slowly.

What this Growth Might Mean

The data center colocation market is growing quickly all across the world. This market is expected to have grown substantially by 2027 which means many businesses will be taking advantage of the many benefits offered by these facilities, and the industry will see not only a rise in the number of these facilities but also in their quality as more efficient business models and practices are discovered and implemented.

If you have a need for the services provided by data colocation centers, now may be a good time to start seriously considering one, as they will only continue to improve as the market grows.


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