U.S. Colocation Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025

Description

The U.S. colocation market was valued at USD 22.2 billion in 2024 and is projected to grow to USD 58.8 billion by 2032, registering a robust CAGR of 13.1% from 2025 through 2032. This surge is driven by explosive data generation, widespread cloud adoption, and increasing enterprise reliance on secure, scalable third-party infrastructure. The growing demand for high-performance computing, AI processing, and decentralized storage is further accelerating the shift toward professionally managed colocation environments.

Key Insights

Retail colocation leads the market by revenue share, offering small and medium-sized enterprises flexible infrastructure with lower upfront costs.

Wholesale colocation is witnessing the fastest growth, driven by large-scale requirements from hyperscalers and cloud service providers.

Enterprises across BFSI, telecom, media, and healthcare are increasingly migrating workloads to colocation facilities to boost reliability and reduce operational complexity.

The Northeast U.S. holds the largest regional market share due to the presence of key technology hubs and hyperscale campuses.

The South region is expected to experience strong growth, fueled by rising enterprise IT demand and expanding data infrastructure projects.

Key players in the market are differentiating through high uptime SLAs, managed services, connectivity options, and energy-efficient operations.

Colocation is being viewed as a strategic extension of enterprise IT, supporting hybrid cloud deployments, edge computing, and latency-sensitive applications.

Power capacity limitations and low vacancy rates in major hubs are pushing providers to expand into emerging data center locations.

Sustainability initiatives-such as renewable energy sourcing, advanced cooling systems, and carbon tracking-are becoming central to provider selection.

Growth opportunities lie in AI-optimized colocation services, secure government workloads, private 5G infrastructure, and modular edge deployments tailored for real-time applications.

Product Code: 13542

Chapter 1. Research Scope

1.1. Research Objectives
1.2. Market Definition
1.3. Analysis Period
1.4. Market Size Breakdown by Segments
- 1.4.1. Market Size Breakdown, by Type
- 1.4.2. Market Size Breakdown, by Organization
- 1.4.3. Market Size Breakdown, by Vertical
1.5. Market Data Reporting Unit
- 1.5.1. Revenue
1.6. Key Stakeholders

Chapter 2. Research Methodology

2.1. Secondary Research
- 2.1.1. Paid
- 2.1.2. Unpaid
- 2.1.3. P&S Intelligence Database
2.2. Primary Research
2.3. Market Size Estimation
2.4. Data Triangulation
2.5. Currency Conversion Rates
2.6. Assumptions for the Study
2.7. Notes and Caveats

Chapter 3. Executive Summary

Chapter 4. Market Indicators

Chapter 5. Industry Outlook

5.1. Industry Background
5.2. Market Dynamics
- 5.2.1. Trends
- 5.2.2. Drivers
- 5.2.3. Restraints/Challenges
- 5.2.4. Emerging Economies and Key Opportunities
- 5.2.5. Impact Analysis of Drivers/Restraints
5.3. Impact of COVID-19
5.4. Sociopolitical Impact
5.5. Porter's Five Forces Analysis
- 5.5.1. Bargaining Power of Buyers
- 5.5.2. Bargaining Power of Suppliers
- 5.5.3. Threat of New Entrants
- 5.5.4. Intensity of Rivalry
- 5.5.5. Threat of Substitutes
5.6. Innovation and Technology Trends
5.7. Economic and Regulatory Impact
5.8. Market Entry Strategies

Chapter 6. Competitive Landscape

6.1. List of Market Players and their Offerings
6.2. Market Share of Key Players (2024)
6.3. Competitive Benchmarking of Key Players
6.4. Product Benchmarking of Key Players
6.5. Recent Strategic Developments by Key Players
6.6. Company Leadership Matrix

Chapter 7. U.S. Market

7.1. Overview
7.2. Market Revenue, by Type (2019-2032)
7.3. Market Revenue, by Organization (2019-2032)
7.4. Market Revenue, by Vertical (2019-2032)
7.5. Market Revenue, by Country (2019-2032)

Chapter 8. Northeast Market

8.1. Overview
8.2. Economic Indicators
8.3. Demographics and Population Insights
8.4. Regional Hotspots
8.5. Growth Drivers
8.6. Challenges and Barriers
8.7. Competitive Strategies
8.8. Emerging Players
8.9. Import/Export Policies
8.10. Compliance Requirements
8.11. Emerging Investment Areas
8.12. Major Ongoing Projects
8.13. Market Size and Forecast
- 8.13.1. Market Revenue, by Type (2019-2032)
- 8.13.2. Market Revenue, by Organization (2019-2032)
- 8.13.3. Market Revenue, by Vertical (2019-2032)

Chapter 9. Midwest Market

9.1. Overview
9.2. Economic Indicators
9.3. Demographics and Population Insights
9.4. Regional Hotspots
9.5. Growth Drivers
9.6. Challenges and Barriers
9.7. Competitive Strategies
9.8. Emerging Players
9.9. Import/Export Policies
9.10. Compliance Requirements
9.11. Emerging Investment Areas
9.12. Major Ongoing Projects
9.13. Market Size and Forecast
- 9.13.1. Market Revenue, by Type (2019-2032)
- 9.13.2. Market Revenue, by Organization (2019-2032)
- 9.13.3. Market Revenue, by Vertical (2019-2032)

Chapter 10. West Market

10.1. Overview
10.2. Economic Indicators
10.3. Demographics and Population Insights
10.4. Regional Hotspots
10.5. Growth Drivers
10.6. Challenges and Barriers
10.7. Competitive Strategies
10.8. Emerging Players
10.9. Import/Export Policies
10.10. Compliance Requirements
10.11. Emerging Investment Areas
10.12. Major Ongoing Projects
10.13. Market Size and Forecast
- 10.13.1. Market Revenue, by Type (2019-2032)
- 10.13.2. Market Revenue, by Organization (2019-2032)
- 10.13.3. Market Revenue, by Vertical (2019-2032)

Chapter 11. South Market

11.1. Overview
11.2. Economic Indicators
11.3. Demographics and Population Insights
11.4. Regional Hotspots
11.5. Growth Drivers
11.6. Challenges and Barriers
11.7. Competitive Strategies
11.8. Emerging Players
11.9. Import/Export Policies
11.10. Compliance Requirements
11.11. Emerging Investment Areas
11.12. Major Ongoing Projects
11.13. Market Size and Forecast
- 11.13.1. Market Revenue, by Type (2019-2032)
- 11.13.2. Market Revenue, by Organization (2019-2032)
- 11.13.3. Market Revenue, by Vertical (2019-2032)

Chapter 12. Company Profiles

Chapter 13. Appendix

13.1. Sources and References
13.2. Related Reports

U.S. Colocation Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)