Global Data Center Colocation Services Growth Opportunities
Future Growth Potential with Hyperscale Data Centers and Emerging Economies

The global colocation services market continues to maintain its growth streak through the pandemic and is expected to continue on a high growth trajectory over the next 5 to 7 years. Key factors that will drive growth during this period are increasing demand from hyperscale data centers, high levels of investment pouring in, significant increase in data creation and consumption, high volumes of data traffic fuelled by emerging technologies, such as 5G, edge, IoT, along with AI/ML developments, ever-increasing enterprise outsourcing, increasing adoption of hybrid-cloud, and the high degree of data center activity in emerging economies.

Colocation services are driven significantly by the increasing need for hyperscale capacity from the enterprises primarily from public cloud services provider segments. The contribution to demand is expected to continue throughout the forecast period. Hyperscale data centers are expected to increase from 509 data centers in 2019 to 890 in 2025 at a CAGR of 9.76%. Most development is expected to happen in Asia and North America. Asia-Pacific is expected to have a majority share in hyper-scale data centers globally, with more than 40% of the market share by 2030. North America’s market share is expected to decline gradually during this period. Europe is expected to see its hyper-scale market share maintained between 19% to 20% as development in secondary markets and key locations of the Nordics and Eastern Europe drive growth in the continent.

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