Cloud Service Providers are Boosting Demand in the Colocation Data Center Market - Arizton

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Arizton Advisory & Intelligence

30 Nov, 2021, 16:00 GMT

CHICAGO, Nov. 30, 2021 /PRNewswire/ -- Colocation and hyperscale data center are the ongoing trend in the data center market. The impact of COVID-19 penetrated the high colocation market share in the global market. Moreover, cloud providers were one of the major factors positively impacting the growth. Many developing countries are witnessing strong internet penetration over the past few years due to the increasing number of mobile and handheld devices that need high-speed broadband connectivity. Observing these rapid and drastic changes in demand and supply patterns encouraged the industry analysts at Arizton to publish exhaustive and data-driven insights on these recent trends in the data center knowledge base. If you want to grow and gain profit in your business, check out our wide range of automotive related report today and get customised reports as per business requirement!  

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1.  Data Center Colocation Market - Global Outlook & Forecast 2021-2026

Data center colocation market size by investment to reach USD 33.41 billion by 2026, growing at a CAGR of 4.40% during the forecast period. 21Vianet Group, China Telecom, Colt Data Centre Services (COLT DCS), Compass Datacenters, CoreSite Realty, CyrusOne, Digital Realty, Equinix, GDS Services, and Global Switch are some of the key vendors in the data center colocation market. The deployment of technology such as IoT, big data, 5G and edge, and increased investment by cloud service providers across various geographies is driving the colocation growth globally.

As majority of the demand for colocation data center services is contributed by cloud-based service providers, thereby, cloud providers are creating buzz in the market. New entrants are looking to enter the data center colocation market and grow their revenue. Several expansion projects were undertaken by colocation data center operators in existing hyperscale facilities. The US, China & Hong Kong, India, Western Europe, and the Nordic region were the major revenue contributors to the global colocation data center market.

Key Highlights:

  • Incorporation of automation through AI and machine learning software to manage power is likely to grow in the colocation data center market.
  • Rising interest in colocation providers towards the development of modular data center space will tap the market opportunities in developing countries.
  • Submarine cable investments will improve in-land connectivity and reduce latency, thereby boosting market growth worldwide. 
  • Telecommunication providers will continue to dominate the market in developing countries, where the involvement of pure-play colocation providers will be based on partnerships.

To get more info click: https://www.arizton.com/market-reports/data-center-colocation-market

2.  Data Center Colocation Market in Americas - Industry Outlook & Forecast 2021-2026

Americas data center colocation market investment is expected to reach USD 11.78 billion by 2026, growing at a CAGR of 2.67% during the period 2021-2026. The demand for data centers grew significantly due to the pandemic, with most of the region's workforce shifting to remote working. The demand for colocation services led to strong utilization of existing data center space and drove revenues of service providers in 2020. The Americas data center colocation market is also witnessing increasing investments from operators through mergers & acquisitions and joint ventures. Countries such as Mexico, Argentina, Honduras, and El Salvador are likely to make sizable contributions to the market during the forecast period.

Vendors are focusing on creating innovations to minimize the water consumption of cooling systems, as many data center operators procuring waterless cooling systems in their data centers across the region. Major player such as Equinix, invested in the development and expansion of around 10 data center facilities in the Americas across locations such as Sao Paulo, Los Angeles, Dallas, Chicago, Toronto, Washington, and Silicon Valley.

Key Highlights:

  • Greenfield development, especially with a data center space of over 50,000 square feet will be very high among colocation providers in Americas.
  • Mega data center projects with over 15 MW capacity are likely to add millions in revenue to vendors during the forecast period.
  • Mergers & acquisitions will continue through the acquisition of local data center providers by colocation data center operators to grow their portfolio and service revenue in the region.
  • Over the last few years, data center growth in the Americas has been focused on countries that offer tax incentives.

To get more info click: https://www.arizton.com/market-reports/americas-data-center-colocation-market-analysis-2024

3.  US Hyperscale Data Center Market - Industry Outlook & Forecast 2021-2026

US hyperscale data center market size to witness investment of USD 56.09 billion by 2026, growing at a CAGR of 3.30% during the period 2021-2026. The US is witnessing massive growth in internet usage by people and businesses. The country is the largest market in terms of data center operations, and it is continuing to grow due to the higher consumption of data by end-users. Apple, Amazon Web Services (AWS), Aligned, Compass Datacenters, CyrusOne, COPT Data Center Solutions, CoreSite Realty, DataBank, Digital Realty, and EdgeCore Internet Real Estate are some of the major key investors in the US hyperscale data center market. The COVID -19 pandemic positively impacted the growth of hyperscale data centers in the US, thereby increasing the demand. Amazon Web Services (AWS) plans to invest over USD 200 million to develop a data facility in Virginia to expand its footprint in the region.

To get more info click: https://www.arizton.com/market-reports/united-states-hyper-scale-data-center-market

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