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Cost Advantages to Drive the Global Data Center Colocation Market Growth

According to the projections put forth by Inkwood Research, the Global Data Center Colocation Market is anticipated to register a CAGR of 15.87% in terms of revenue during the forecasting years of 2021-2028.

“Browse 48 Market Data Tables and 42 Figures spread over 185 Pages, along with an in-depth TOC on the Global Data Center Colocation Market Forecast 2021-2028.”



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Data center colocation is a service offered by organizations providing enterprise businesses with a shared, secure space for storing data and other equipment. The enterprise customer interacts with the colocation firm in a manner similar to a rental relationship with a property manager, through which customers rent storage space within the facility. Often, the equipment, including servers as well as other hardware, is provided by the customer.

Cost Advantages to Propel Market Growth

Increased competition among industry verticals restricts the annual expenditure of the organization. The shrinking information technology (IT) budgets compel companies to consider leasing services for their data center necessities, compared to installing in-house data center facilities. As a result, setting up an in-house data center cost proves to be expensive for companies, predominantly during the installation’s initial phase. This challenge is successfully addressed by colocation service providers responsible for supplying rack space, cooling, power, networking, firewalls, bandwidth availability, and other facilities in exchange for monthly rent, thereby eliminating capital costs for companies.

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Large Enterprises is the Dominating Organization

Large enterprises entail organizations with an annual revenue of over $1 billion, in addition to a workforce of more than 1,000 employees. These businesses seek new ways of efficiently transforming their processes, and thus, increasingly rely on business analytics to respond quickly to customers and offer a broad range of services. Furthermore, business analytics software enables large enterprises to drive efficiency and productivity, securely make decisions based on real-time data, and increase profitability. However, large enterprises generate a significant amount of data that cannot be physically stored and processed within the premises of the organization. This further necessitates the use of a specialized data processing unit. Therefore, the increased adoption of colocation data centers is an effective solution for large data center providers in terms of monitoring resources to meet large enterprises’ increasing data storage needs and facilitating dynamic management.

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Asia-Pacific to Lead the Global Market by 2028

The market in the Asia-Pacific is propelled by the shift towards extensive cloud technology usage, the rapid surge in digitization and modernization, as well as the emergence of high-end technologies such as artificial intelligence.

Regardless of operational location, the competition in the global data center colocation market is further determined by the cost of services offered and service reliability, in addition to scalability parameters. The rivalry in infrastructure is severely reliant on cost, warranty, customer retention, product innovation, reseller base, and aftermarket services.

Key companies operating in the global market are Digital Reality, Equinix, China Telecommunications Corporation, etc.

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About Inkwood Research

Inkwood Research specializes in syndicated & customized research reports and consulting services. Market intelligence studies with relevant fact-based research are customized across industry verticals such as technology, automotive, chemicals, materials, healthcare, and energy, with an objective comprehension that acknowledges the business environments. Our geographical analysis comprises North & South America, CEE, CIS, Middle East, Europe, Asia, and Africa.

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