Global Data Center Colocation Market Size Study & Forecast, by Colocation Type (Retail and Wholesale), Enterprise Size, Tier Level (Tier 1 and Tier 2), End Use (BFSI and Retail), and Regional Forecasts 2025-2035

Description

Market Definition and Overview

The Global Data Center Colocation Market is valued at approximately USD 69.41 billion in 2024 and is anticipated to grow at a CAGR of 16.00% over the forecast period 2025-2035, reaching nearly USD 355.19 billion by 2035. Data center colocation, at its core, is the practice through which businesses lease physical space, power, cooling, and security for their IT infrastructure in third-party data centers rather than investing in building their own. This strategy enables companies to enhance scalability, optimize costs, and deploy mission-critical workloads faster while ensuring robust network connectivity. The market expansion is being fueled by the exponential growth in data traffic, increasing demand for cloud-based services, rising digital transformation initiatives across industries, and the global surge in e-commerce platforms. Furthermore, as enterprises look to strengthen business continuity planning and reduce latency for users, colocation facilities have become a central pillar of IT strategies.

The demand for colocation is being further propelled by the growing need for hybrid IT models, which combine on-premises, cloud, and colocation deployments. Enterprises worldwide are realizing that leasing infrastructure helps them redirect capital towards innovation rather than construction. According to various industry sources, over 60% of global enterprises are expected to rely on colocation for at least part of their IT workloads by the end of this decade. Additionally, increasing cybersecurity concerns, stringent data localization regulations, and the rise of AI and IoT applications have intensified the demand for highly reliable and secure colocation facilities. Nevertheless, high initial costs and significant energy requirements remain challenges for the industry, although advances in green data centers and renewable energy integration are beginning to address these concerns.

The detailed segments and sub-segments included in the report are:

By Colocation Type:

Retail
Wholesale

By Enterprise Size:

Small and Medium Enterprises (SMEs)
Large Enterprises

By Tier Level:

Tier 1
Tier 2

By End Use:

BFSI
Retail

By Region:

North America
U.S.
Canada
Europe
UK
Germany
France
Spain
Italy
ROE
Asia Pacific
China
India
Japan
Australia
South Korea
RoAPAC
Latin America
Brazil
Mexico
Middle East & Africa
UAE
Saudi Arabia
South Africa
Rest of Middle East & Africa
Retail colocation is expected to dominate the market, capturing the largest market share during the forecast period. This dominance is attributed to the increasing preference of small and medium enterprises for renting smaller racks and cages rather than wholesale facilities, as it provides them with flexibility, reduced upfront investment, and enhanced scalability. The segment's growth is also supported by the ongoing digitization of SMEs and their reliance on outsourcing IT infrastructure management, which allows them to focus resources on customer acquisition and product innovation. Meanwhile, wholesale colocation, although smaller today, is projected to grow rapidly as hyperscale cloud providers and multinational corporations demand larger spaces to handle extensive computing workloads.
Currently, large enterprises lead the market's revenue contribution due to their massive data generation and growing reliance on colocation services to achieve operational agility. Large-scale organizations, particularly in sectors like BFSI and e-commerce, are increasingly leasing space in wholesale colocation centers to manage surging volumes of customer transactions and ensure uninterrupted uptime. However, SMEs are emerging as the fastest-growing segment, driven by the widespread adoption of cloud-native applications and the push for cost-efficient IT strategies that avoid building proprietary data centers. This dual scenario highlights a balanced landscape-large enterprises dominating revenues, while SMEs accelerate growth with rising digital-first adoption.
The key regions considered for the Global Data Center Colocation Market study include North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America currently dominates the global market due to the presence of leading colocation providers, robust digital infrastructure, heavy penetration of cloud services, and the proliferation of hyperscale data centers across the United States and Canada. Meanwhile, Asia Pacific is anticipated to witness the fastest growth throughout the forecast horizon. Rapid industrialization, surging demand for digital services from markets like China and India, supportive government policies encouraging data localization, and growing investments in smart city projects are expected to drive regional growth. Europe is also emerging as a crucial market, particularly with the enforcement of stringent data protection laws like GDPR, which encourages enterprises to rely on secure colocation facilities.

Major market players included in this report are:

Equinix, Inc.
Digital Realty Trust, Inc.
NTT Global Data Centers
CyrusOne, Inc.
China Telecom Corporation Limited
Global Switch Holdings Limited
Telehouse (KDDI Corporation)
CoreSite Realty Corporation
AT&T Inc.
Iron Mountain Incorporated
Rackspace Technology, Inc.
Verizon Communications Inc.
CenturyLink, Inc. (Lumen Technologies)
Compass Datacenters, LLC
Colt Data Centre Services

Global Data Center Colocation Market Report Scope:

Historical Data - 2023, 2024
Base Year for Estimation - 2024
Forecast period - 2025-2035
Report Coverage - Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
Regional Scope - North America; Europe; Asia Pacific; Latin America; Middle East & Africa
Customization Scope - Free report customization (equivalent to up to 8 analysts' working hours) with purchase. Addition or alteration to country, regional & segment scope*

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects, such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players. The detailed segments and sub-segments of the market are explained below:

Key Takeaways:

Market Estimates & Forecast for 10 years from 2025 to 2035.
Annualized revenues and regional-level analysis for each market segment.
Detailed analysis of the geographical landscape with country-level analysis of major regions.
Competitive landscape with information on major players in the market.
Analysis of key business strategies and recommendations on future market approach.
Analysis of the competitive structure of the market.
Demand side and supply side analysis of the market.

Chapter 1. Global Data Center Colocation Market Report Scope & Methodology

1.1. Research Objective
1.2. Research Methodology
- 1.2.1. Forecast Model
- 1.2.2. Desk Research
- 1.2.3. Top Down and Bottom-Up Approach
1.3. Research Attributes
1.4. Scope of the Study
- 1.4.1. Market Definition
- 1.4.2. Market Segmentation
1.5. Research Assumption
- 1.5.1. Inclusion & Exclusion
- 1.5.2. Limitations
- 1.5.3. Years Considered for the Study

Chapter 2. Executive Summary

2.1. CEO/CXO Standpoint
2.2. Strategic Insights
2.3. ESG Analysis
2.4. key Findings

Chapter 3. Global Data Center Colocation Market Forces Analysis

3.1. Market Forces Shaping The Global Data Center Colocation Market (2024-2035)
3.2. Drivers
- 3.2.1. exponential growth in data traffic
- 3.2.2. increasing demand for cloud-based services
3.3. Restraints
- 3.3.1. high initial costs and significant energy requirements
3.4. Opportunities
- 3.4.1. rising digital transformation initiatives

Chapter 4. Global Data Center Colocation Industry Analysis

4.1. Porter's 5 Forces Model
- 4.1.1. Bargaining Power of Buyer
- 4.1.2. Bargaining Power of Supplier
- 4.1.3. Threat of New Entrants
- 4.1.4. Threat of Substitutes
- 4.1.5. Competitive Rivalry
4.2. Porter's 5 Force Forecast Model (2024-2035)
4.3. PESTEL Analysis
- 4.3.1. Political
- 4.3.2. Economical
- 4.3.3. Social
- 4.3.4. Technological
- 4.3.5. Environmental
- 4.3.6. Legal
4.4. Top Investment Opportunities
4.5. Top Winning Strategies (2025)
4.6. Market Share Analysis (2024-2025)
4.7. Global Pricing Analysis And Trends 2025
4.8. Analyst Recommendation & Conclusion

Chapter 5. Global Data Center Colocation Market Size & Forecasts by Colocation Type 2025-2035

5.1. Market Overview
5.2. Global Data Center Colocation Market Performance - Potential Analysis (2025)
5.3. Retail
- 5.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.3.2. Market size analysis, by region, 2025-2035
5.4. Wholesale
- 5.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.4.2. Market size analysis, by region, 2025-2035

Chapter 6. Global Data Center Colocation Market Size & Forecasts by Enterprise Size 2025-2035

6.1. Market Overview
6.2. Global Data Center Colocation Market Performance - Potential Analysis (2025)
6.3. Small and Medium Enterprises (SMEs)
- 6.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 6.3.2. Market size analysis, by region, 2025-2035
6.4. Large Enterprises
- 6.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 6.4.2. Market size analysis, by region, 2025-2035

Chapter 7. Global Data Center Colocation Market Size & Forecasts by Tier Level 2025-2035

7.1. Market Overview
7.2. Global Data Center Colocation Market Performance - Potential Analysis (2025)
7.3. Tier 1
- 7.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.3.2. Market size analysis, by region, 2025-2035
7.4. Tier 2
- 7.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.4.2. Market size analysis, by region, 2025-2035

Chapter 8. Global Data Center Colocation Market Size & Forecasts by End Use 2025-2035

8.1. Market Overview
8.2. Global Data Center Colocation Market Performance - Potential Analysis (2025)
8.3. BFSI
- 8.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 8.3.2. Market size analysis, by region, 2025-2035
8.4. Retail
- 8.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 8.4.2. Market size analysis, by region, 2025-2035

Chapter 9. Global Data Center Colocation Market Size & Forecasts by Region 2025-2035

9.1. Growth Data Center Colocation Market, Regional Market Snapshot
9.2. Top Leading & Emerging Countries
9.3. North America Data Center Colocation Market
- 9.3.1. U.S. Data Center Colocation Market
  - 9.3.1.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.3.1.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.3.1.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.3.1.4. End Use breakdown size & forecasts, 2025-2035
- 9.3.2. Canada Data Center Colocation Market
  - 9.3.2.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.3.2.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.3.2.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.3.2.4. End Use breakdown size & forecasts, 2025-2035
9.4. Europe Data Center Colocation Market
- 9.4.1. UK Data Center Colocation Market
  - 9.4.1.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.4.1.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.4.1.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.4.1.4. End Use breakdown size & forecasts, 2025-2035
- 9.4.2. Germany Data Center Colocation Market
  - 9.4.2.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.4.2.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.4.2.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.4.2.4. End Use breakdown size & forecasts, 2025-2035
- 9.4.3. France Data Center Colocation Market
  - 9.4.3.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.4.3.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.4.3.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.4.3.4. End Use breakdown size & forecasts, 2025-2035
- 9.4.4. Spain Data Center Colocation Market
  - 9.4.4.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.4.4.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.4.4.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.4.4.4. End Use breakdown size & forecasts, 2025-2035
- 9.4.5. Italy Data Center Colocation Market
  - 9.4.5.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.4.5.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.4.5.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.4.5.4. End Use breakdown size & forecasts, 2025-2035
- 9.4.6. Rest of Europe Data Center Colocation Market
  - 9.4.6.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.4.6.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.4.6.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.4.6.4. End Use breakdown size & forecasts, 2025-2035
9.5. Asia Pacific Data Center Colocation Market
- 9.5.1. China Data Center Colocation Market
  - 9.5.1.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.5.1.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.5.1.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.5.1.4. End Use breakdown size & forecasts, 2025-2035
- 9.5.2. India Data Center Colocation Market
  - 9.5.2.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.5.2.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.5.2.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.5.2.4. End Use breakdown size & forecasts, 2025-2035
- 9.5.3. Japan Data Center Colocation Market
  - 9.5.3.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.5.3.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.5.3.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.5.3.4. End Use breakdown size & forecasts, 2025-2035
- 9.5.4. Australia Data Center Colocation Market
  - 9.5.4.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.5.4.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.5.4.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.5.4.4. End Use breakdown size & forecasts, 2025-2035
- 9.5.5. South Korea Data Center Colocation Market
  - 9.5.5.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.5.5.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.5.5.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.5.5.4. End Use breakdown size & forecasts, 2025-2035
- 9.5.6. Rest of APAC Data Center Colocation Market
  - 9.5.6.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.5.6.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.5.6.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.5.6.4. End Use breakdown size & forecasts, 2025-2035
9.6. Latin America Data Center Colocation Market
- 9.6.1. Brazil Data Center Colocation Market
  - 9.6.1.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.6.1.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.6.1.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.6.1.4. End Use breakdown size & forecasts, 2025-2035
- 9.6.2. Mexico Data Center Colocation Market
  - 9.6.2.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.6.2.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.6.2.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.6.2.4. End Use breakdown size & forecasts, 2025-2035
9.7. Middle East and Africa Data Center Colocation Market
- 9.7.1. UAE Data Center Colocation Market
  - 9.7.1.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.7.1.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.7.1.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.7.1.4. End Use breakdown size & forecasts, 2025-2035
- 9.7.2. Saudi Arabia (KSA) Data Center Colocation Market
  - 9.7.2.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.7.2.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.7.2.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.7.2.4. End Use breakdown size & forecasts, 2025-2035
- 9.7.3. South Africa Data Center Colocation Market
  - 9.7.3.1. Colocation Type breakdown size & forecasts, 2025-2035
  - 9.7.3.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.7.3.3. Tier Level breakdown size & forecasts, 2025-2035
  - 9.7.3.4. End Use breakdown size & forecasts, 2025-2035

Chapter 10. Competitive Intelligence

10.1. Top Market Strategies
10.2. Equinix, Inc.
- 10.2.1. Company Overview
- 10.2.2. Key Executives
- 10.2.3. Company Snapshot
- 10.2.4. Financial Performance (Subject to Data Availability)
- 10.2.5. Product/Services Port
- 10.2.6. Recent Development
- 10.2.7. Market Strategies
- 10.2.8. SWOT Analysis
10.3. Digital Realty Trust, Inc.
10.4. NTT Global Data Centers
10.5. CyrusOne, Inc.
10.6. China Telecom Corporation Limited
10.7. Global Switch Holdings Limited
10.8. Telehouse (KDDI Corporation)
10.9. CoreSite Realty Corporation
10.10. AT&T Inc.
10.11. Iron Mountain Incorporated
10.12. Rackspace Technology, Inc.
10.13. Verizon Communications Inc.
10.14. CenturyLink, Inc. (Lumen Technologies)
10.15. Compass Datacenters, LLC
10.16. Colt Data Centre Services