Technavio announces global data center colocation market worth $48.57 billion by 2020

Renewable energy


Data center colocation: Key market research findings

  • Rise in construction of green data centers
  • Growing domination of wholesale data center colocation facilities

Technavio has released a new market research report on the global data center colocation market, which is expected to grow at a CAGR of more than 12% between 2016 and 2020. Colocation is the latest trend in enterprise data center management as it reduces the spending on IT infrastructure and improves the security and ownership control of the data. The demand for data center colocation services is growing significantly because of the increased need for businesses to operate using modern technologies such as cloud computing, big data, and IoT. The Americas dominate the global data center colocation market, owing to increased business development and the rising demand for advanced data center services in the region especially US.

The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.

“The enterprises adopting colocation facilities are opting for standardized operating environments in terms of power and cooling. Owing to increase in carbon emissions and high consumption of electricity by data centers, manufacrurers are developing green data centers using concepts such as free cooling, use of renewables, consolidation, and waste recycling. Several colocation vendors use renewable energy sources to power their data centers, thereby reducing electricity cost and carbon footprint,” says Rakesh Panda, Lead Analyst, ICT, Technavio Research

The wholesale data center colocation is the fastest-growing segment of the colocation market, which is expected to grow at a CAGR of around 19% by 2020. The adoption of wholesale colocation data centers is higher among CSPs, global enterprises, and other colocation providers that rent data center space through partnerships to serve customers in a particular region. The adoption rate of these data center colocation services will be high over the next four years owing to their cost-effectiveness. 

The leading vendors in the global data center colocation market are CenturyLink, Digital Realty, Equinix, Global Switch, Level 3 Communications and NTT Communications. The market has more than 1,500 colocation vendors that operate data centers across the globe. The number of colocation centers coupled with other data center facilities is expected to grow during eth forecast period, which will intensify competition among the vendors. Colocation service vendors offer outsourcing services to enterprises as they have the expertise required for efficiently managing data centers and troubleshooting the network whenever any problem occurs.

A more detailed analysis is available in the Technavio report, Global Data Center Colocation Market 2016-2020.

We can customize reports by other regions and specific segments upon request.

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