Meticulous Research®—a leading global market research company, published a research report titled, ‘Data Center Colocation Services Market by Facility (Retail, Wholesale, Hybrid), Service (Space & Infrastructure (Rack, Cage & Cabinet, Suite), Disaster Recovery), Tier, Size, End User (Managed, Cloud, Enterprises), and Geography - Global Forecasts to 2031.’
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In a recent report by Meticulous Research®, the global data center colocation services market is forecasted to reach $97.9 billion by 2031, with a compound annual growth rate (CAGR) of 10.7% from 2024 to 2031. This significant growth is driven by the increasing demand for efficient and secure data storage solutions, greater reliance on outsourced IT infrastructure, and the widespread adoption of cloud computing across various industries. Additionally, the expansion of edge data centers is expected to present new growth opportunities. However, substantial upfront capital investments and concerns about data security and privacy may pose challenges to market expansion.
Market Dynamics
The data center colocation services market is categorized by facility type, service offerings, tier standards, organizational size, and end-user segments. Among facility types, retail colocation is leading, driven by the growing demand for cost-effective colocation services among small and medium-sized enterprises (SMEs). Hybrid cloud-based colocation is projected to experience the highest growth due to its seamless integration capabilities and robust disaster recovery strategies.
Service Offerings
Space and infrastructure services are anticipated to dominate the market, reflecting the increased need for space rental within data centers and the demand for enhanced security measures. Meanwhile, network connectivity and security services are expected to register the highest growth rate, driven by the emphasis on low-latency connections and stringent security protocols.
Geographic Overview
North America is predicted to hold a significant share of the global data center colocation services market, supported by robust network infrastructure, strict data security regulations, and the adoption of hybrid IT models. The Asia-Pacific region is forecasted to witness the highest CAGR during the forecast period, driven by digital transformation initiatives, growing cloud adoption, and the increasing need for scalable infrastructure solutions among SMEs.
Key Players
Leading companies in the data center colocation services market include Equinix, Digital Realty Trust, NTT Ltd., CoreSite, and Global Data Solutions. These key players are at the forefront of driving innovation and shaping the competitive landscape through strategic partnerships, technological advancements, and geographic expansions.

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