Colocation Data Centers (or multi-tenant data centers) are a type of data center where equipment, space, and bandwidth are available for rental to retail customers. Multiple companies can rent space at a single Data Center Colocation center instead of setting up their own enterprise data center. The Data Center Colocation vendor provides space, power, cooling systems, and physical security for equipment. Companies can set up their servers, storage, and networking equipment and connect them to a variety of telecommunications and network service providers. Wholesale Colocation Data Centers, or Multi-Tenant Data Centers, host only a few large businesses, whereas Retail Colocation is for a greater number of tenants. You can find Data Center Colocation Market Size, Data Center Colocation Trends, and other info below.
The chart shows the Data Center Colocation Market Size from 2017 to 2022. In 2019, the size of the Data Center Colocation Industry was $52B and is projected to grow 16% in 2020. From 2017 to 2022 the Data Center Colocation Industry growth is projected to average 15.8% per year.
The chart shows Data Center Colocation Market Share in 2018. It is a highly fragmented market. The leading vendor in the Data Center Colocation Market was Equinix with 13% market share in 2018, followed by Digital Realty with 7% market share, NTT with 6%, Telehouse with 3%, China Telecom with 2%, CyrusOne with 2%, and others with 67%. View the source for this Data Center Colocation Market Share chart and other Market Share estimates here.
Data Center Colocation is one of the biggest markets among Data Center types. The growth is driven by the gradual shift away from traditional data centers, increase in demand for IT services, low operational costs, and more flexibility. Rather than designing and maintaining a traditional, on-premise data center, businesses are choosing to host their IT infrastructure in a Multi-Tenant or Colocation Data Center. Services are available with a quick response around the clock, which cuts the need for a dedicated IT team. Additionally, as carbon emission becomes an increasingly public issue, Data Center Colocation presents itself as a more efficient form of a computing powerhouse.
Market research sources moderately disagree on the Data Center Colocation Market Size, mostly agree on the Data Center Colocation Market Share, and disagree intensely on the Data Center Colocation Growth. The cause of disagreement is due to a wide variety of factors affecting the market growth, including fluctuating hardware prices and capacity fluctuations caused by a difficulty to forecast growing demand. It is unclear which factors will have the biggest effect, and which Data Center Colocation Trends will stay or diminish. For a complete evaluation of the Data Center Colocation market, T4 recommends exploring all available sources. T4 aggregated and organized the data from these sources on the T4 Industry Research Platform. See Each source's view of the Data Center Colocation Market, Data Center Colocation Market Size, and Data Center Colocation Market Share on the T4 Platform.
T4 comprehensively aggregated more than 50 reports from more than 25 publishers covering statistics and trends in the Data Center Colocation, or Multi-Tenant Data Center, Industry. This includes Revenue by Vendor, Price by Region, M&A Transactions, Capacity by Region, and more than 20 additional statistics. The Industry falls under T4's Data Center industry coverage. Industries related to Multi-Tenant Data Center in the T4 taxonomy include Cloud Data Center, Modular Data Center, and Software Defined Data Center. Related subcategories of the Industry include Cloud Colocation and Hyperscaler Colocation. You can find reports covering these industries on T4’s Platform.
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