The data center colocation market was valued at USD 31.39 billion in 2019, and is expected to reach a value of USD 58.28 billion by 2025, at a CAGR of 10.92% over the forecast period (2020 - 2025).

• Increasing generation of data has raised the demand for data centers globally. It is estimated that the global data center IP traffic will reach 20.6 Zettabytes by the end of 2021, up from 6.8 Zettabytes per year in 2016, according to the Cisco Systems. The single largest driver of such expansion in the data center capacity is the demand generated by the cloud services providers and the IT industry.
• It is estimated that there is an increase of 35% in data generated every year, globally, which has resulted in many organizations, doubling their on-premises storage over a three-year period interval.
• With the advent of colocation services, it has become an attractive solution to many small-scale and hyper-scale players equally, as it allows organizations to address their storage issues without substantial upfront costs. Globally, North America and Asia-Pacific are the largest markets for collocation industry, responsible for over 78% of the industry’s capacity.
• However, owing to the increasing demand from the hyper-scale vendors in the region, Europe is increasingly turning into a primary hotspot for the colocation industry. It is estimated that the region’s colocation footprint is expected to dominate the global market, with over 2148 facilities across the region, most of them concentrated in demand zones, such as the United Kingdom, the Netherlands, Germany, France, and Denmark. With the increasing number of investments into the region, it is expected to be one of the fastest growing markets over the forecast period.