Frost Radar: Data Center Colocation Services in North America, 2023

A Benchmarking System to Spark Companies to Action - Innovation That Fuels New Deal Flow and Growth Pipelines

Digital transformation has become a priority for enterprises. Data centers are the backbone of a digital economy and an integral part of a digital business's strategy.

The data center colocation services industry is witnessing higher competitive intensity, compelling service providers to build scalable facilities with best-in-class design and to focus on industry best practices, third-party certifications, and sustainability initiatives to create competitive differentiation. Carrier-neutral colocation service providers have an advantage because they operate independently, giving customers flexibility and choice in terms of network providers. This also creates the potential to offer customers greater redundancy and choice through a diverse network infrastructure provider ecosystem.

North America is the largest data center colocation market in the world, with revenue exceeding $20 billion in 2022. Demand is being driven by hyperscale public cloud services, content and digital media, and financial services. Service providers are aligning data center designs and services to build their value propositions around environmental sustainability and the use of renewable energy. They are developing energy-efficient, green facilities to lower their carbon footprint and optimize operational costs.

The Frost Radar™ reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar™ methodology. The document presents competitive profiles on each of the companies in the Frost Radar™ based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes numerous companies in an industry and benchmarks them across 10 criteria on the Frost Radar™, where the leading companies in the industry are then positioned.