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Subject: MRR

Data Center Colocation Market to Reach $46.30 Billion by 2028, More than 5,175.6 MW Power Capacity to be Added in the Next 6 Years - Arizton


CHICAGO, Feb. 28, 2024 /PRNewswire/ -- According to Arizton's latest research report, the data center colocation market is growing at a CAGR of 7.25% from 2022 to 2028.

Data Center Colocation Market Research Report by Arizton

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Browse In-Depth TOC on the Data Center Colocation Market

932? Pages??????????
238 - Tables?????????? 
546 - Figures? 

The Global Data Center Colocation Market Report Scope

Report Attributes

Details

Market Size (2028)

USD 46.30 Billion

Market Size (2023)

USD 30.42 Billion

CAGR by Investment (2022-2028)

7.25 %

Market Size - Area (2028)

25.97 million Square Feet

Power Capacity (2028)

5,175.6 MW

Colocation Market by Revenue (2028)

USD 84.61 Billion

Base Year

2022

Forecast Year

2023-2028

Market Segmentation

Colocation Service, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, and Geography

Geographical Analysis

North America, Latin America, Western Europe, Nordics, Central & Eastern Europe, Middle East, Africa, APAC, and Southeast Asia

 

The global data center colocation market is experiencing significant growth owing to the expanding use of IoT, cloud computing, and AI/ML technologies. Governments in various countries have launched digitalization initiatives to promote economic development, thereby boosting the operator confidence in managing data centers in the whole region. For example, the UK government implemented a cloud strategy to enhance the country's adoption of cloud services. This has created a favorable environment for adopting cloud services among the Small and Medium-Sized Enterprises (SMEs) in Europe as businesses increasingly recognize the benefits of digital transformation. The considerable growth in demand for colocation data centers can be attributed to regional organizations continuing to migrate their workloads to the cloud. This has attracted investments from both local and global data center providers.

Growing M&A and Joint Ventures in the Data Center Colocation Market

In the global market, joint ventures and mergers and acquisitions are commonly used strategies for businesses to expand, collaborate, or restructure their operations. The data center industry has witnessed significant joint ventures, mergers, and acquisitions. Additionally, there is an influx of companies from the real estate industry acquiring data center companies to enter the market. These acquisitions and JVs provide opportunities for new players to enter the market, attract customers, and gain a larger market share. Private equity firms are rapidly expanding their investment, considering the increasing demand for data centers and better returns in the short term. New players are entering the market by acquiring existing data center operators or forming joint ventures. Several colocation vendors in the Latin America data center colocation market are actively participating in mergers and acquisitions. For instance, in March 2022, Equinix acquired four data centers of Entel, located in Chile and Peru. In December 2022, Aligned Data Centers agreed to acquire ODATA, marking the company's entry into the Latin American market.

In Europe, colocation prices vary from country to country. Markets such as the UK, Germany, and France account for the highest colocation pricing in Europe compared to the other markets. The data center colocation market will continue to witness several mergers and acquisitions as large providers or investment trusts continue to propel their market share and presence in the region, thereby driving the colocation market growth. Retail colocation spaces will register a higher demand than wholesale colocation spaces in the region. Conversely, other European markets may offer more competitive pricing due to various factors, including lower operating costs, access to renewable energy sources, and emerging data center hubs. The colocation market in Western Europe is expected to witness several mergers and acquisitions as large providers or investment trusts aim to increase their market share and presence. This consolidation is anticipated to contribute to the continued growth and competitiveness of the European colocation market.

Geographical Overview

Many data center investments are witnessed in the US, driven by the deployment of 5G, technological advances, the adoption of Big data and IoT, digitalization, and the development of smart cities. The Southeastern region, particularly North Virginia, is considered the global data center capital, hosting a high concentration of facilities. Virginia, Texas, California, and Georgia are the top states attracting investments from global operators. In Arizona, businesses in FTZs can receive significant tax reductions. The Northeastern region faces space constraints for data center development, leading to expansions in large-scale colocation facilities. Salt Lake City experiences significant demand from the IT, cloud, entertainment, media, and retail sectors, while Chicago experiences rapid growth and is expected to continue expanding. The US data center colocation market is expected to see the entry of new players. In 2022, notable newcomers, such as AUBix, Edge Centres, Corscale Data Centers, Yondr, and Quantum Loophole, entered the market. However, these newcomers will face competition from both local and established global players in the market. The US data center colocation market is set to continue its revenue growth. This growth will be fueled by providers who construct new facilities and expand their existing capacities. In 2022, the US market experienced notable M&As due to increased industry demand. This led to data center suppliers entering M&A contracts to expand their portfolios. This trend is expected to persist throughout the forecast period. New entrants aiming to expand their revenue will also contribute to the growth of the colocation market in the US.

What's Included

The Global Data Center Colocation Market Report Encompasses Crucial Data, including:?????? 

CAGR (Compound Annual Growth Rate) during the forecast period: This metric provides insights into the annual growth rate of the data center colocation market over the specified time frame.?????? 

Detailed information on growth drivers: The report offers in-depth information on the factors that will propel the data center colocation market growth from 2022 to 2028. This includes an analysis of various market influences.?????? 

Precise estimation of market size: Accurate assessments of the data center colocation market size and its contribution and focus on key market segments.?????? 

Predictions about upcoming trends and changes in consumer behavior: The report offers insights into anticipated trends and shifts in consumer behavior that are likely to impact the data center colocation market, helping businesses prepare for future market dynamics.?????? 

Geographical market growth: The report covers the development of the data center colocation market across different regions, including North America, Latin America, Western Europe, Nordics, Central & Eastern Europe, Middle East, Africa, APAC, and Southeast Asia. This provides a comprehensive understanding of the market's global landscape.?????? 

Competitive landscape analysis: A thorough examination of the market's competitive landscape is presented, including detailed information about companies operating in the data center colocation market. This includes an overview of key players, their market share, strategies, and key developments.?????? 

Analysis of growth challenges: The report includes a comprehensive analysis of factors that may pose challenges to the growth of companies in the data center colocation market, providing a well-rounded view of the market dynamics.

Buy this Research @ https://www.arizton.com/market-reports/data-center-colocation-market

Post-Purchase Benefit??????????????????????? 

Prominent Data Center Investor

Other Prominent Vendors

New Entrants

Market Segmentation

Colocation Services

Infrastructure

Electrical Infrastructure

Mechanical Infrastructure

Cooling Systems

Cooling Techniques

General Construction

Geography

Check Out Detailed TOC @ https://www.arizton.com/market-reports/data-center-colocation-market?details=tableOfContents

Key Questions Answered in the Report

How big is the data center colocation market?

What is the growth rate of the global data center colocation market?

What is the estimated market size in terms of area in the global data center colocation market by 2028?

What are the key trends in the data center colocation market?

How many MW of power capacity is expected to reach the global data center colocation market by 2028?

About Our Data Center Capabilities

Arizton's team of principal consultants and analysts work towards publishing extensive secondary and primary research that is credible, resourceful, and data-driven. With over 5 years of experience, Arizton has helped several Fortune 500 companies with data-driven insights that enabled them to expand their businesses to niche regions, added over a billion dollars in revenues, and effective go-to-market strategies. We offer various product portfolios to meet the client's requirements, which align with their key business strategies and identify high-value growth avenues.? 

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