Global Data Center Colocation Market Report 2023: Increasing M&As and JVs Across the Industry - Market to Grow from $29.59 Billion in 2021 to $43.18 Billion in 2027
Data Center Colocation Market
Dublin, Feb. 02, 2023 (GLOBE NEWSWIRE) -- The "Data Center Colocation Market - Global Outlook & Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.
The global data center colocation market is expected to grow at a CAGR of 6.5% from 2021 to 2027.
The data center colocation market growth was aided by previously announced projects and expansions of facilities in a few locations. Cloud-based service providers contribute to the most demand for data center services. Growth continues to spur across infrastructure categories, leading to a sustainable facilities environment.
The APAC region dominates the data center colocation market in terms of investment, followed by North America and Western Europe. Other regions, such as the Middle East, Africa, and Latin America, are among the emerging colocation markets expected to grow during the forecast period.
The US, China, Canada, Japan, the UK, France, Germany, and the Netherlands lead the market in terms of the generation of colocation revenue. Other countries in Latin America, the Middle East & Africa will grow due to more investments by global and local operators.
The major data center colocation market operators are Equinix, Digital Realty, CyrusOne, STACK Infrastructure, QTS Realty Trust, ST Telemedia Global Data Centres, and others that are adopting renewable energy and taking significant steps toward sustainability.
The companies are engaged in a signed Power Purchase Agreement (PPA) with several energy companies to procure renewable energy, such as wind and solar energy, to power their facilities. The procurement of renewable energy is expected to continue during the forecast period.
The global data center colocation market in terms of investments in 2021 was led by Digital Realty, holding the largest industry share. Digital Realty invested in over 79 projects across several locations worldwide, including investments along with its subsidiaries, such as Interxion, icolo.io, MC Digital Realty, Ascenty, and others. Vendors focus on continuous development to sustain the colocation industry.
MARKET TRENDS & DRIVERS
Increasing Penetration Towards The Demand For Cloud, Big Data, And IoT
Over the past few years, the rising internet penetration, government data protection laws, and higher demand for services are pushing cloud providers to operate centers worldwide.
The data center colocation market also witnessed growth in cloud adoption after the wake of COVID-19. Due to the COVID-19 outbreak, about 90% of employees across sectors went into remote working.
The demand for colocation, managed, and cloud connectivity services will gain momentum as enterprises seek to adopt cloud services such as PaaS and IaaS.
The increasing adoption of big data and IoT technologies across the sectors such as BFSI, healthcare, government, entertainment & media, education, and others will boost the demand for facilities.
Innovations In Creating Sustainable Power Technologies
Lithium-ion batteries, Nickle-Zinc, and Prussian Blue sodium-ion batteries are the major new innovative batteries. A significant increase in the adoption of lithium-ion batteries will be witnessed during the forecast period.
The evolution of microgrids as a power backup for grids will benefit regions with a higher power cost and uncertain power supply.
Due to high carbon emissions, natural gas generators will likely replace diesel generators.
The emergence of fuel cells as prime or backup power, such as natural gas-powered and hydrogen fuel cells, will be adopted during the forecast period.
The emergence of HVO (Hydrotreated Vegetable Oil), which is 100% biodegradable, sustainable and non-toxic, offers the same convenience as conventional fossil fuels. Kao Data was the first operator to replace diesel generators with HVO fuel generators.
5G Deployment To Boost Edge Data Center Development
Most countries and regions worldwide are witnessing the commercial deployment of 5G services, leading to more local data generation and the development of edge center facilities.
Several edge facilities companies such as Edge Centres, AtlasEdge Data Centres, American Tower, HostDime, EdgeConneX, VueNow, and Open Access Data Centres (OADC) are actively present in the industry. They are expanding their presence across several countries and regions.
The development of edge centers will increase the demand for sensors, routers, cables, and PDUs. As more and more data are generated, the rack density will also increase, leading to the requirement for power systems to support the IT infrastructure.
Increase In Data Center Activities Such As M&A and JVs
The data center colocation market is witnessing an increase in services such as Mergers & Acquisitions, and Joint ventures, which are helping companies gain control over the market, thus reducing the competition and gaining a footprint in the markets.
The companies are either acquiring the data center firm or facilities or acquiring the company's stakes to gain traction in the data center colocation market. For instance, NorthC acquired Netrics to enter the Switzerland data center market in April 2022.
In March 2022, one of the largest M&A deals between KKR, Global Infrastructure Partners (GIP), and CyrusOne was closed. The former two companies acquired the data center firm for around USD 15 billion.
Government Backing Investment Through Incentives:
Several governments across the countries and regions provide tax incentives and support to investors looking to invest in the data center colocation market; such measures attract more operators to invest in the industry.
In the North American region, especially in the US, several state governments offer various kinds of incentives to data center operators. For instance, Virginia provides tax incentives for the facility's equipment that meets the capital investment and employment requirements.
Over the past decade, Amazon Web Services received over USD 4.7 billion in subsidies from the federal and state governments to build offices, data centers, call centers, and other facilities.
Tamil Nadu, the Indian State government, launched its data center policy. It will offer land, power, and connectivity incentives to support the new facilities investment across the state.
Key Metrics
Report Attribute | Details |
No. of Pages | 1001 |
Forecast Period | 2021 - 2027 |
Estimated Market Value (USD) in 2021 | $29.59 Billion |
Forecasted Market Value (USD) by 2027 | $43.18 Billion |
Compound Annual Growth Rate | 6.5% |
Regions Covered | Global |
Market Opportunities & Trends
Sustainability Initiatives by Colocation Operators
5G Deployments Fueling Edge Data Center Investments
Surge in Rack Power Density
Sustainable Innovations in Data Center Power Technology
Ecodiesel Generators
Natural Gas Generators
Fuel Cells
Hydrotreated Vegetable Oil (Hvo) Fuel
Nuclear Energy Generation
Other Innovations
Adoption of Advanced It Infrastructure
Converged & Hyperconverged Infrastructure
Arm-Based Servers
Server Virtualization
Innovative Data Center Power Technologies
Adoption of Advanced Ups Batteries
Software-Defined Data Centers & Ai in Power Monitoring
Microgrids
Automation & Intelligent Monitoring Solutions
Market Growth Enablers
Growing Submarine & Inland Connectivity
Increasing M&As and Jvs Across the Industry
Impact of Covid-19
Big Data & IoT Fueling Data Center Investments
Government Support for Data Center Investments
Increasing Demand for Cloud-Based Services
Market Restraints
Rising Carbon Emissions from Data Centers
Location Constraints on Data Center Development
Lack of Skilled Data Center Professionals
Security Challenges in Data Centers
High Maintenance Costs & Inefficiencies
Supply Chain Disruptions
Prominent Colocation Investors
21Vianet Group
China Telecom
Colt Data Centre Services (Colt DCS)
Compass Datacenters
CoreSite
CyrusOne
Digital Realty
EdgeConneX
Equinix
GDS Services
Global Switch
Iron Mountain
NTT Global Data Centers
QTS Realty Trust
STACK Infrastructure
ST Telemedia Global Data Centres (STT GDC)
Vantage Data Centers
Other Prominent Vendors
3data
365 Data Centers
Africa Data Centres
AirTrunk
Aligned
American Tower
AQ Compute
Aruba
Atman
atNorth
AT TOKYO
BDx (Big Data Exchange)
Bulk Infrastructure
Bridge Data Centres
CDC Data Centres
Chayora
China Mobile
Chindata
CloudHQ
Cologix
COPT Data Center Solutions
CtrlS Datacenters
Cyxtera Technologies
DATA4
DataBank
DC BLOX
Element Critical
ePLDT
eStruxture Data Centers
fifteenfortyseven Critical Systems Realty (1547)
Flexential
Green Mountain
H5 Data Centers
HostDime
KDDI
Keppel Data Centres
LG Uplus
maincubes one
MainOne (Equinix)
Millicom
NEXTDC
ODATA
Orange Business Services
Prime Data Centers
Princeton Digital Group (PDG)
Proximity Data Centres
Raxio Group
Rostelecom Data Centers
Sabey Data Centers
Scala Data Centers
Sify Technologies
Skybox Datacenters
Stream Data Centers
SUNeVision
Switch
T5 Data Centers
Tenglong Holdings Group
Teraco (Digital Realty)
TierPoint
Turkcell
Urbacon Data Centre Solutions
Wingu
Yondr
Yotta Infrastructure (Hiranandani Group)
New Entrants
Adani Group
AtlasEdge
AUBix
Cirrus Data Services
ClusterPower
DaSTOR
Data Center First
EDGNEX
EdgeX Data Centers
Enovum Data Centers
ESR Cayman
Global Technical Realty
Hickory
Infinity
Mantra Data Centers
Novva Data Centers
Open Access Data Centres (OADC)
PointOne
Quantum Loophole
Quantum Switch
Stratus DC Management
YCO Cloud
YTL Data Center
ZeroPoint DC (NEOM)
SEGMENTS ANALYSIS
Segmentation by Colocation Service
Retail Colocation
Wholesale Colocation
Segmentation by Infrastructure
Electrical Infrastructure
Mechanical Infrastructure
General Construction
Segmentation by Electrical Infrastructure
UPS Systems
Generators
Transfer Switches & Switchgear
Power Distribution Units
Other Electrical Infrastructure
Segmentation by Mechanical Infrastructure
Cooling Systems
Racks
Other Mechanical Infrastructure
Segmentation by Cooling Systems
CRAC & CRAH Units
Chiller Units
Cooling Towers, Condensers & Dry Coolers
Economizers & Evaporative Coolers
Other Cooling Units
Segmentation by Cooling Technique
Air-based Cooling Technique
Liquid-Based Cooling Technique
Segmentation by General Construction
Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Fire Detection & Suppression
Physical Security
DCIM/BMS
Segmentation by Tier Standard
Tier I & Tier II
Tier III
Tier IV
For more information about this report visit https://www.researchandmarkets.com/r/fo8efc-center?w=12
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