Data Center Colocation Market Summary

The global data center colocation market was valued at USD 69.41 billion in 2024 and is projected to reach USD 165.45 billion by 2030, growing at a CAGR of 16.0% from 2025 to 2030. Data centers have become essential for modern enterprises, supporting critical IT infrastructure and managing business applications that underpin corporate operations.

As organizations increasingly rely on data to drive decision-making, the demand for robust IT solutions has surged, leading to greater adoption of cloud-based services. Colocation data centers offer companies the flexibility to scale their IT resources efficiently without bearing the high costs of constructing and maintaining proprietary facilities. This is particularly advantageous for businesses with variable data demands, making colocation an economically viable and scalable solution.

The rapid rise of emerging technologies—such as cloud computing, autonomous vehicles, the Internet of Things (IoT), and advanced robotics—has significantly increased the need for faster data processing, high bandwidth, and low latency. To meet these requirements, colocation data centers strategically position their facilities closer to end users, optimizing storage, connectivity, and network performance. The ongoing expansion of 5G networks is also expected to accelerate colocation deployments, particularly in remote and underserved regions.

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Moreover, the adoption of cloud data centers continues to grow due to their cost efficiency and operational flexibility. Small and medium-sized enterprises (SMEs) are increasingly embracing colocation and cloud solutions to minimize IT expenses, reduce dependence on in-house IT teams, and access scalable infrastructure at lower costs.

To strengthen their competitive positions, key industry players are pursuing strategic initiatives such as mergers, acquisitions, and partnerships. These efforts aim to enhance their market presence, expand capacity, and improve service portfolios to meet evolving enterprise needs.

Key Market Trends & Insights

• North America dominated the global market, accounting for 39.0% of total revenue in 2024.
• The U.S. data center colocation market is projected to grow at a CAGR of 14.9% from 2025 to 2030.
• By colocation type, the retail colocation segment led the market with nearly 70.0% revenue share in 2024.
• By tier level, the tier 3 segment accounted for the largest share, exceeding 58.0% in 2024.
• By enterprise size, large enterprises held the dominant share of over 49.0% in 2024.

Market Size & Forecast

• 2024 Market Size: USD 69.41 Billion
• 2030 Projected Market Size: USD 165.45 Billion
• CAGR (2025–2030): 16.0%
• Largest Market (2024): North America

Key Data Center Colocation Company Insights

The data center colocation market is characterized by intense competition and rapid expansion, with leading players focusing on innovation, infrastructure development, and strategic collaborations to strengthen their market positions. Prominent companies include Equinix, Inc., Digital Realty Trust, China Telecom Corporation Limited, NTT Ltd., CyrusOne, and Telehouse.

• In September 2024, the U.S. Department of Homeland Security (DHS) awarded Equinix, Inc. a contract to provide colocation services for its Homeland Security Enterprise Network (HSEN). The agreement covers the provision of power, connectivity, and maintenance across HSEN’s East and West Enterprise cloud access points.
• In July 2024, Digital Realty Trust acquired a colocation data center in Slough Trading Estate for USD 200 million, expanding its footprint in West London and strengthening its colocation capabilities in the City and Docklands markets.

These strategic developments underscore the growing focus on expanding data infrastructure, enhancing service reliability, and supporting cloud and hybrid IT environments to meet the evolving needs of global enterprises.

Key Data Center Colocation Companies

• China Telecom Corporation Limited
• Cologix
• Colt Technology Services Group Limited
• CoreSite
• CyrusOne
• Centersquare
• Digital Realty Trust
• Equinix, Inc.
• Flexential
• Iron Mountain, Inc.
• NTT Ltd. (NTT DATA)
• QTS Realty Trust, LLC
• Rackspace Technology
• Telehouse (KDDI Corporation)
• Zayo Group, LLC

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Conclusion

The global data center colocation market is poised for robust expansion through 2030, driven by rising data volumes, growing cloud adoption, and increasing reliance on emerging technologies such as IoT and AI. Colocation centers provide a cost-effective, scalable, and efficient alternative to in-house data facilities, enabling enterprises to optimize performance and reduce operational risks.

As 5G networks expand and digital transformation accelerates, the demand for low-latency, high-capacity data centers will continue to rise. North America will maintain its leadership position, while Asia Pacific is expected to witness rapid growth due to increasing digitalization and cloud adoption.

Overall, ongoing infrastructure investments, strategic collaborations, and technological advancements will play a pivotal role in shaping the next phase of the data center colocation industry, positioning it as a cornerstone of the global digital economy.