Information Communication and Technology Reports Data Center Colocation Industry

Data Center Colocation Market expected to grow from USD
31.52 Billion in 2017 to USD 62.30 Billion by 2022
According to a new market research report” Data Center Colocation Market by Type (Retail and Wholesale), End-
user (SMES and Large Enterprise, Industry (BFSI, IT & Telecom, Government & Defense, Healthcare, Research &
Academic, Retail, Energy and Manufacturing), and Region - Global Forecast to 2022", published by
MarketsandMarkets™, The data center colocation market is expected to grow from USD 31.52 Billion in 2017 to
USD 62.30 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 14.60%.
The major forces driving the data center colocation market are the requirement for reliability, security and
scalability of infrastructure, growing data center complexities, and the need for reduction of overall IT costs. The
data center colocation market is expected to be growing rapidly because of the increasing number of users opting
for cost-effective and energy-efficient data center solutions.
Browse and in-depth TOC on “Data Center Colocation Market”
52 - Tables
69 - Figures
137 - Pages
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Major Market Developments
 In June 2017, DuPont Fabros Technology and Digital Reality entered into a definitive agreement wherein
DuPont Fabros Technology merged with Digital Realty. This merger is aimed to provide customer and
geographical diversification for DuPont Fabros Technology.
 In May 2017, BC Partners and Medina Capital acquired CenturyLink, Inc.’s portfolio of data centers and
associated colocation business. The combined assets formed a new venture, Cyxtera Technologies
 In May 2017, CyrusOne announced an alliance with CSRA, which is a provider of IT solutions for
government agencies and programs. The alliance is aimed to provide next-generation data center space
and power for government customers
Wholesale colocation type is expected to grow at the highest CAGR
The market, by type, has been segmented into retail colocation and wholesale colocation. Wholesale colocation is
expected to witness the highest CAGR during the forecast period of 2017–2022. The wholesale colocation provides
a large IT space, along with cooling and power infrastructure. Additionally, it provides the users with benefits, such
as economics of scale by reduced power and cooling cost, high bandwidth, and reduced total cost of ownership.
These benefits provided by the wholesale colocation are anticipated to further drive the data center colocation
market during the forecast period.
Small and Medium-Sized Enterprises (SMEs) are expected to grow at the highest rate during the forecast period
The market, by end-user, has been segmented into SMEs and large enterprises. SMEs have lesser infrastructure
autonomy requirements, thus they are increasingly adopting retail colocation services. Data center colocation
provides SMEs with security and flexibility, which is expected to fuel their demand.