Dublin, July 29, 2025 (GLOBE NEWSWIRE) -- The "Data Center Colocation Market by Service Type (Traditional and Managed), Service Scale (Retail and Wholesale), Workload Type (General Purpose IT and HPC & AI), End User (Enterprises and Hyperscalers) with Impact of AI/GenAI - Global Forecast to 2030" report has been added to ResearchAndMarkets.com's offering.
The data center colocation market is expanding rapidly, with a projected market size rising from USD 104.2 billion in 2025 to USD 204.4 billion by 2030, at a CAGR of 14.4%
The report would provide the market leaders/new entrants with information on the closest approximations of the revenue numbers for the overall data center colocation market and its subsegments. It would help stakeholders understand the competitive landscape and gain more insights to better position their business and plan suitable go-to-market strategies. It will also help stakeholders understand the market's pulse and provide them with information on key market drivers, restraints, challenges, and opportunities.
The data center colocation market is witnessing strong momentum due to several key drivers. These include the growing need to support AI and high-density GPU workloads, the rise of hybrid-multicloud interconnection ecosystems for seamless data flow, and increasing data-sovereignty regulations that require local hosting and compliance.
These trends are creating new growth opportunities for colocation providers. However, some restraints could limit adoption. The complex interdependency between enterprises and service providers raises concerns about reduced operational control. Additionally, the need for customized infrastructure often conflicts with the standardized models offered by colocation services, creating a barrier for businesses with specific deployment needs.
North America leads the data center colocation market, while Asia Pacific is the fastest-growing region
North America maintains its leadership in the data center colocation market due to its well-established infrastructure, extensive interconnection networks, and strong enterprise demand from finance, healthcare, and cloud providers. Meanwhile, Asia Pacific is rapidly accelerating as the fastest-growing region in colocation, driven by surging investments in cloud and AI infrastructure.
For instance, a recent USD 411 million rupiah-denominated loan is being deployed to build a 72-MW data center campus in Indonesia's Nongsa Digital Park, highlighting regional appetite for advanced, edge-ready facilities. This growth underscores Asia Pacific's strategic momentum in hybrid, localized colocation solutions.
Managed colocation segment to account for the fastest growth rate during the forecast period
Managed colocation is the fastest-growing service type in the data center colocation market during the forecast period, driven by companies' need to simplify IT operations and improve uptime. Traditional colocation provides secure rack space, power, cooling, and basic network access, but managed colocation adds remote-hand support, system monitoring, data backup, disaster recovery, and managed network services.
This model appeals to small and mid-sized businesses, digital companies, and organizations moving to hybrid IT that lack large in-house teams but still need reliable, scalable, and compliant infrastructure. Companies can focus on their core products and services by handing routine tasks to the colocation provider. Traditional colocation remains popular among firms with strong internal IT capabilities and tight budgets, but its growth is slower. As more organizations seek predictable costs and higher service levels, demand for managed colocation is set to outpace other service types.
Retail colocation to hold the largest market share during the forecast period
Retail colocation will hold the largest share of the service scale segment during the forecast period, driven by its low entry barriers, flexible contract terms, and rapid provisioning capabilities. This model - where multiple tenants share configurable rack, cage, and cabinet space - appeals to small and mid-sized enterprises, regional service providers, and branch operations of larger organizations that require quick access to reliable infrastructure without heavy upfront commitments.
The pay-as-you-grow billing structure and smaller minimum power requirements further cement retail colocation's dominance, enabling businesses to scale seamlessly in response to changing workloads. Wholesale colocation, while the second-largest segment, caters primarily to hyperscalers and large enterprises seeking dedicated space, power, and cooling at scale; it continues to grow steadily but trails retail colocation's broader addressable market and faster deployment cycles.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 278 |
| Forecast Period | 2025 - 2030 |
| Estimated Market Value in 2025 | 104.2 Billion |
| Forecasted Market Value by 2030 | 204.4 Billion |
| Compound Annual Growth Rate | 14.4% |
| Regions Covered | Global |
Market Overview and Industry Trends
Market Dynamics
Drivers
- Rising Demand for Ai & High-Density Gpu Workloads
- Surge in Use of Hybrid-Multicloud Interconnected Ecosystems
- Implementation of Data-Sovereignty Regulations (Hosting, Residency, Ai Privacy)
Restraints
- Long Lead Times for Critical Electrical & Mechanical Gear
- High Up-Front Capital Costs
Opportunities
- Integrating Sustainability in Data Colocation
- Managed Ai-Infrastructure-As-A-Service
Challenges
- Skilled Labor Shortage
- Transforming Legacy Halls for Cutting-Edge Liquid Cooling Solutions
Case Study Analysis
- Case Study 1: Sap Scales Global Cloud Infrastructure 6X Faster With Digital Realty's Platformdigital Colocation Services
- Case Study 2: BMW Group Enhances Network Stability and Automation Using Ntt Data'S Managed Colocation Infrastructure
- Case Study 3: CBS Interactive Achieves High-Density, Energy-Efficient Colocation With Iron Mountain's Phoenix Data Center
- Case Study 4: Nestle Japan Modernizes Edi and Cloud Monitoring With Equinix's Siterock and IBX Colocation Solutions
- Case Study 5: Exabeam Streamlines Qa Lab Migration With Evocative's Seamless Colocation and Remote Access Solution
Technology Analysis
Key Technology
- Power & Cooling Infrastructure
- Remote Monitoring and Data Center Infrastructure Management
- Physical Security & Access Control Systems
- Interconnection & Carrier-Neutral Connectivity
Complimentary Technology
- Ai & Machine Learning for Predictive Maintenance
- Liquid & Immersion Cooling
- Software-Defined Wide Area Network
- Data Center as a Service
Adjacent Technology
- Public & Hybrid Cloud Platforms
- Edge Computing
- Content Delivery Networks
- Enterprise Storage & Backup Solutions
Impact of Ai/Gen Ai in Data Center Colocation Market
- Top Use Cases and Market Potential
- Case Study
- Use Case 1: Coreweave Partners With Digital Realty to Deploy Ai-Ready High-Density Gpu Colocation
- Vendor Initiative
- Cyrusone
- Digital Realty
Company Profiles
Major Players
- Equinix
- Business Overview
- Products/Solutions/Services Offered
- Recent Developments
- Product Launches
- Deals
- Expansions
- The Analyst's View
- Right to Win
- Strategic Choices
- Weaknesses and Competitive Threats
- Digital Realty
- NTT Data
- Qts Data Centers
- Kddi Corporation
- Iron Mountain
- China Telecom Corporation Ltd
- Cyrusone
- Centersquare
- Vantage Data Centers
Other Players
- Databank
- Edgeconnex
- Switch
- Coresite
- Aligned Data Centers
- Flexential
- Tierpoint
- Cologix
- Trg Datacenters
- Scalematrix
- At&T
- Global Data Systems
- Verne Global
- Data Group
- Bdx Data Centers
For more information about this report visit https://www.researchandmarkets.com/r/hgqidx
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Attachment
