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(MoneyNewsWire.Net, June 01, 2018 ) The data center colocation market is expected to grow from USD 31.52 Billion in 2017 to USD 62.30 Billion by 2022, at a high Compound Annual Growth Rate (CAGR) of 14.60% during the forecast period. Data center operators face an increasing need for scalable data center infrastructure, which enables the scaling of critical data center components as and when the demand increases. The data center colocation provides data center space, along with the power and cooling infrastructure, which address the customer’s capacity needs with a quick deployment time. It also helps in cutting down the cost of IT infrastructure. Data center colocation services, including retail colocation as well as wholesale colocation, enables a massively scalable and secure data center architecture. These services are expected to fuel the growth of the data center colocation market, as organizations are increasingly adopting them to cater to the increasing data center traffic.
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The report provides detailed insights into the global data center colocation market, which is segmented according to the types, end-users, industries, and regions. In the type segment, wholesale colocation is expected to grow at the highest CAGR during the forecast period. The end-users segment includes Small and Medium-Sized Enterprises and large enterprises, where the large enterprises segment is estimated to have a higher market size, as it has a high demand for scalable infrastructure to support high-end applications. The growing investments in data center technologies across the world and the increasing number of data centers are expected to create a demand for data center colocation solutions and fuel the growth of the data center colocation market.
The report covers all the major aspects of the data center colocation market and provides an in-depth analysis across the regions of North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America. The market in North America is expected to hold the largest market share. Due to the presence of various developing countries, the growing number of data centers, and an increasing adoption associated services, the APAC region is projected to have great opportunities in this market and expected to grow at the highest CAGR by 2022.
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However, high startup and maintenance costs may act as the restraining factor for the market. Various vendors provide data center colocation solutions to help enterprises in reducing their Capital Expenditure (CAPEX). Equinix is one of the major vendors that offers data center colocation services. The company has extensively focused on providing data center services in a cost-effective and secure way. Other vendors include as AT&T Inc. (US), China Telecom (China), Cogent Communications (US), Contegix (US), CoreSite Realty Corporation (US), CyrusOne (US), Cyxtera Technologies, Inc. (US), Digital Realty Trust, Inc. (US), DuPont Fabros Technology, Inc. (US), Fibernet Inc. (US), Global Switch (UK), Internap (US), Interxion (Netherland), Keppel Data Center Pte Ltd. (Singapore), Level 3 Communications Inc., NTT Communications Corporation (Japan), PhoenixNAP (US), Rahi Systems Inc (US), Singtel (Singapore), STT GDC Pte Ltd. (Singapore), Telehouse-KDDI (UK), Telstra (Australia), TeraGo Networks Inc. (Canada), and Verizon (US). These players have adopted various strategies, such as partnerships, collaborations, and expansions, to stay competitive in the market.
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