Data Colocation Market Outlook and Future Scope Analysis Forecast To 2027
                     Data Colocation Market Business Revenue, Future Scope, Market Trends, Key Players 
and Forecast To 2027 
Global Data Colocation Market Information, By Service Type (Small Scale, Large 
Scale), by Components (Network Hardware, Server & Storage, Cooling Units), by End 
Users (Banking, IT, Healthcare, Government) - Forecast 2027 
Market Insights 
Data colocation primarily refers to data center services which are rented out to business to 
power services, storage, networking, cooling of services and various other computing 
services. Data colocation leases a variety of equipment required to support the physical 
infrastructure for computing. Market Research Future has studied the global data colocation 
market with great care to arrive at educated conclusions regarding the growth of the market 
over the forecast period from 2020 to 2027. Valued at USD 26 Bn in 2016, the market is 
expected to nearly double in value to reach USD 51 Bn by the end of 2022. MRFR has 
calculated the growth of the market at a CAGR of 12% during the assessment period. 
Colocation data centers often serve as a connection point between on-premise and on-cloud 
data centers. Various advantages of adopting data colocation are that it helps an organization 
save time, money and reduces the problems associated with on-premise data centers which 
often demand constant maintenance. Another vital growth-promoting factor for the market is 
the capability of data colocation to enable enterprises to increase business potential by 
allowing them to focus on core activities. Moreover, data colocation provides access to central 
data storage, backups, environmental controls, firewalls, and security or hosting serves to 
name a few. The reduced need for constant maintenance is a strong driving factor of growth. 
Notably, the market is challenged by the lack of availability of large locations close to 
organizations for the establishment of data centers. Moreover, companies often do not 
maintain complete control over servers which can be discouraging of adoption of data 
colocation. 
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Market Segmentation 
The global data colocation market has been segmented on the basis of service type, 
components, end-users, and region. Service type available in the data colocation market has 
been segmented into small scale and large scale. Large scale businesses are more likely to 
avail of data colocation services. 
Components have bee segmented into network hardware, cooling units, server & storage, and 
others. 
End-users of data colocation have been segmented to include banking & insurance, IT & 
telecom, healthcare, government, energy, and others. 
Regions covered in the report include Europe, North America, Asia Pacific and the Rest of the 
World. 
Regional Analysis 
North America is likely to dominate the market due to the regions possession of the largest 
share of the global data colocation market. The region has an increasing number of data 
center requirements in IT capacity. The presence of market leaders in the region who are 
using advanced infrastructural architecture to promote market growth will likely impact the data 
colocation market positively. Meanwhile, the Asia Pacific is expected to grow rapidly over the 
next few years due to the substantial increase in data production. Additionally, the European 
market carries great promise for the forecast period as there is a high growth opportunity in 
the region. Market leading players are increasing investments in Europe for the set up of data 
colocation centers. Market players like Facebook and Apple are investing in the set up of data 
colocation centers in countries like Denmark, Ireland, and Sweden. 
Key Players 
MRFR has analysed leading players such as SunGard availability services (U.S.), DuPont 
Fabros Technology, Inc.(U.S.), Equinix, Inc. (U.S.), American Telephone & Telegraph, Inc. 
(U.S.), Interxion Holding NV (Netherlands), Verizon Communication, Inc. (U.S.), CenturyLink, 
Inc. (U.S.), CoreSite Realty Corporation (U.S.), KDDI Telehouse Corporation (Japan), and 
Global Switch Corporation (UK) among others in its report on the global data colocation 
market. The report also contains an understanding of the market strategies employed by these 
market players. 
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colocation-market-2023 
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