Data Center Colocation Market to Undertaking Strapping Growth During 2021-2027

Data Center Colocation Market to Undertaking Strapping Growth During 2021-2027

According to a recent study from market research firm Global Market Insights, the data center colocation market size is poised to expand at substantial CAGR during the forecast period. Driven by the trend of smart cities and the roll-out of 5G technology in various countries, the data center colocation industry is expected to grow significantly by 2026. Expansion of business organizations worldwide have led to massive data generation, consequently sparking the need for adequate data storage capacity.

Companies that are seeking to upgrade their traditional infrastructure facilities by integrating latest technologies are required to pump huge investments for setting up large-scale data centers. Adoption of data center colocation could help such firms bypass the need for hefty investments. These centers offer equipment, space, and bandwidth on rental basis to customers. Increasing awareness of these centers could boost the demand for colocation service providers, consequently helping clients overcome the challenges associated with storing massive amounts of data.

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To cater to rising demand, data center colocation service providers are expanding their spaces. For example, in 2018, global provider of data center services, Telehouse announced the expansion of its data center in London, UK, in response to increased customer demand for high density, scalable space.

The need for advanced IT infrastructure by government & defense agencies has intensified in the recent years. Organizations are steadily inching towards the adoption of advanced technologies like big data analytics and hosting, for improving operations. Upgrading to colocation data centers helps government agencies to increase operational efficiency, decrease cost & energy, and provide improved services. Several data center colocation providers give data center services to federal governments for data management.

The surge in organizational data such as financial information, operational data, and consumer records is anticipated to drive the demand for effective data center colocation market. New digital service types like machine learning, AR/VR, autonomous vehicles and big data analytics are overburdening the traditional network structure. Issues faced by data center facilities like insufficient cooling capacity, aging & low-efficiency power, low crisis response & disaster recovery rate, lack of flexibility and scalability can be managed efficiently with the help of a colocation provider.

Geographically speaking, the Latin America data center colocation market is witnessing substantial growth owing to increasing investments and number of data centers. There are more than 100 colocation data centers across Chile, Peru, Argentina, Brazil, Colombia, and Uruguay. Among these, Brazil is a promising avenue for colocation data centers. International companies in the region, such as Google, Microsoft Corporation, and IBM Corporation are focusing on expansions owing to considerable growth opportunities.

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Globally, companies operating in the data center colocation market include Equinix, Inc., Global Switch Corporation, Singapore Telecommunications Limited, Digital Realty, KDDI Corporation, CyrusOne, NTT Communications, China Unicom, Interxion N.V., and China Telecommunications Corporation. These firms are taking part in a slew of business strategies such as new product development, geographical expansions, and collaborations.

Table of Contents (ToC) of the report:

Chapter 1   Methodology & Scope

1.1    Scope & definitions

1.2    Methodology and forecast parameters

1.3    Impact of COVID-19

1.3.1    North America

1.3.2    Europe

1.3.3    Asia Pacific

1.3.4    Latin America

1.3.5    MEA

1.4    Data sources

1.4.1    Secondary

1.4.2    Primary

Chapter 2   Executive Summary

2.1    Data center colocation market 3600 synopsis, 2017 - 2027

2.1.1    Business trends

2.1.2    Regional trends

2.1.3    Type trends

2.1.4    End-use trends

2.1.5    Application trends

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