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IoT and Cloud Computing is the Next Big Thing in the Data Center Colocation Market - Arizton

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News provided by

Arizton Advisory & Intelligence

20 Sep, 2021, 18:42 GMT

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CHICAGO, Sept. 20, 2021 /PRNewswire/ -- The ongoing trend of innovation is playing major role in transforming data centers across all regions. Colocation is creating a buzz in the data center market. Colocation data centers are also witnessing strong growth in hyperscale facilities that consume over 15 MW of power. The growing number of internet users, increased use of social media, elevated smartphone penetration, rising adoption of cloud services, and the need for enterprises to migrate from server room environments to data centers are the major drivers in the colocation data center market. These reports cover a detailed overview of several growth enablers, new technologies, and trends in the market. Arizton's approach includes the key highlights of the market such as trends and driver analysis, market share analysis, growth opportunities, and the impact of government initiatives in the data center knowledge base industry.

Here's a sneak peek at these reports:

1. Data Center Colocation Market - Global Outlook and Forecast 2020-2025

The global data center colocation market by investment was valued at USD 24.08 billion in 2019 and is expected to reach USD 28.25 billion in 2025. The implementation of 5G has commenced in multiple countries across the globe, which will have a major impact on the market as telecommunication providers are partnering colocation data center service providers to establish edge data centers. The retail colocation market is likely to be driven by the high demand for colocation services from organizations in developing countries. Enterprises with the need for geographically distributed capacity and have limited budgets are opting for retail colocation.

There is high interest among both global and local data center colocation providers such as Equinix and Digital Realty to adopt renewable energy sources. Colocation service providers Switch and Equinix received the 2019 Green Power Leadership Award from the US Environmental Protection Agency (EPA). Switch, a colocation operator recently purchased more than 550 million kilowatt-hours (kWh) of green power annually to meets the entire electricity required to power its data centers. The greenfield development, especially with data center space of over 50,000 square feet, will be very high among colocation providers. Rise is digitalization will always support the growth of the data center colocation market across the globe.

Get trendy insights now! https://www.arizton.com/market-reports/data-center-colocation-market

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

The Europe data center colocation market by investment is expected to reach USD 8.21 billion by 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 Europe colocation market is witnessing increasing investments from operators through mergers and acquisitions and via joint ventures. The adoption of cloud-based services, big data analytics, and IoT services has grown significantly by local enterprises across countries in the region, boosting local colocation demand in the market. Hyperscale providers continue to dominate through the adoption of ODM solutions through their self-built facilities and collocated cloud regions across Europe. The rising trend of Greenfield modular data center investments will contribute growth to the Europe data center colocation market.

In 2020, in terms of investment in the European data center colocation market, Digital Realty led the market and was among the major investors with a market share of around 23% in several projects across Europe. The colocation market in Europe is highly competitive, with many providers investing in new facilities and expanding their existing ones to accommodate the demand from customers. The new entrants are also investing millions of dollars in the construction of core and shell properties across the region.

Get trendy insights now! https://www.arizton.com/market-reports/europe-data-center-colocation-market

3. Data Center Colocation Market in APAC - Industry Outlook and Forecast 2021-2026

The APAC data center colocation market by investment will grow at a CAGR of 5.11% during the forecast period. The data center market in APAC is mainly dominated by colocation providers, followed by internet and cloud service providers. China, India, Australia, Japan, Singapore, and Hong Kong are the leading markets for data center development in APAC. With the construction of additional data centers, local colocation providers in each country are also increasing their presence, thus boosting the market growth. The rising demand for on-demand video, mobile gaming, and online content will be a stronger force for colocation data centers procurement in the region.

The emergence of COVID-19 has positively impacted the demand for data centers due to the increased access to internet-related services aided by nationwide lockdown imposed by governments across APAC. Colocation service providers witnessed a strong uptake for their data center spaces by existing customers owing to the growth of COVID-19-induced demand. The major demand for colocation data center capacity during the COVID-19 pandemic came from cloud-service providers that chose to host their data in colocation data centers instead of building their own data centers in the region. COVID-19 will have a higher impact on the market, with many on-premises data center operators migrating their infrastructure to colocation and cloud platforms. New entrants to the market such as Stratus DC Management (APAC), Digital Edge Ventures (APAC), and Mantra Data Centers (India) will make a sizable contribution to the market in the upcoming years.

Get trendy insights now! https://www.arizton.com/market-reports/apac-data-center-colocation-market-report-2024

4. Data Center Colocation Market in Americas - Industry Outlook and Forecast 2020-2025

The data center colocation market in the Americas and is expected to reach USD 12.23 billion in 2025. The growth of cloud computing will also play a vital role for colocation providers adding connectivity to cloud platforms such as AWS, Microsoft, Google, Oracle, and IBM. The adoption of IoT brings wide opportunities for smart city development in the Americas. The data center market in the Americas is dominated by the US followed by Canada and Brazil with investments in billions by colocation providers. Incorporation of automation through AI and machine learning software to manage power and will gain high momentum in the market over the next few years. Tax incentives will increase colocation investments across Americas. It will also lead to significant savings for customers operating a tax exempted facility. The demand for data center services such as colocation, managed services, and cloud connectivity services will gain momentum as several SMEs are looking to adopt cloud services such as PaaS and SaaS.

Get trendy insights now! https://www.arizton.com/market-reports/americas-data-center-colocation-market-analysis-2024

Subscribe to our data center knowledge base portfolio to gain access to a vast range of market research reports at competitive prices.

Read some of the top-selling reports:

  • Data Center Market - Global Outlook and Forecast 2021-2026
  • Data Center Physical Security Market - Global Outlook & Forecast 2021-2026
  • Hyperscale Data Center Market - Global Outlook and Forecast 2021-2026
  • Saudi Arabia Data Center Market - Investment Analysis & Growth Opportunities 2021-2026

About Arizton:

Arizton Advisory and Intelligence is an innovation and quality-driven firm, which offers cutting-edge research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.

We offer comprehensive market research reports on industries such as consumer goods & retail technology, automotive and mobility, smart tech, healthcare, and life sciences, industrial machinery, chemicals and materials, IT and media, logistics and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.

Arizton comprises a team of exuberant and well-experienced analysts who have mastered in generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.

Mail: enquiry@arizton.com

Call: +1-312-235-2040
+1 302 469 0707

Logo: https://mma.prnewswire.com/media/818553/Arizton_Logo.jpg

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