According to a new report, published by KBV research, The Global Data Center Colocation Market size is expected to reach $168.68 billion by 2031, rising at a market growth of 15.6% CAGR during the forecast period.
The IT & Telecom segment is generating the maximum revenue in the Global Data Center Colocation Market by End Use in 2023; thereby, achieving a market value of $40.77 billion by 2031. The increasing demand for high-speed connectivity, cloud computing, and data storage solutions drove this. With the rapid expansion of 5G networks, IoT applications, and artificial intelligence, IT and telecom companies increasingly relied on colocation services to enhance scalability, ensure data security, and optimize operational efficiency.
The Wholesale Colocation segment would capture a CAGR of 16.2% during (2024 - 2031). Large enterprises and cloud service providers fueled this demand, seeking dedicated space with greater hardware and network infrastructure control. Wholesale colocation is preferred by organizations that require large-scale data center solutions, cost efficiency in bulk leasing, and enhanced security measures for critical business operations.
The Large Enterprises segment is leading the Global Data Center Colocation Market by Enterprise Size in 2023; thereby, achieving a market value of $88.17 billion by 2031. The increasing need for extensive IT infrastructure, high-performance computing, and data storage solutions drove this dominance. Large enterprises, including multinational corporations and cloud service providers, rely on colocation services to ensure scalability, security, and operational efficiency while reducing capital expenditures on in-house data centers.
The Tier 4 segment registers a CAGR of 15.3% during (2024 - 2031). These data centers provide the highest redundancy and fault tolerance, ensuring 99.995% uptime. Large enterprises, financial institutions, and critical infrastructure providers favour tier 4 facilities due to their advanced security, fully redundant infrastructure, and ability to withstand unexpected failures without service disruption.
Full Report: https://www.kbvresearch.com/data-center-colocation-market/
The North America region dominated the Global Data Center Colocation Market by Region in 2023; thereby, achieving a market value of $62 billion by 2031. The Europe region is expected to witness a CAGR of 15.2% during (2024 - 2031). Additionally, The Asia Pacific region would register a CAGR of 16.2% during (2024 - 2031).
By Type
By Enterprise Size
By Tier Level
By End Use
Unique Offerings 
