Significant growth predicted for colocation market


The data centre 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%, according to a new market research report, published by Markets and Markets. The major forces driving the market are the requirement for reliability, security and scalability of infrastructure, growing data centre complexities, and the need for reduction of overall IT costs. The data centre colocation market is expected to be growing rapidly because of the increasing number of users opting for cost-effective and energy-efficient data centre solutions.

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 centre colocation market during the forecast period.

SMEs have lesser infrastructure autonomy requirements; thus, they are increasingly adopting retail colocation services. Data centre colocation provides SMEs with security and flexibility, which is expected to fuel their demand.



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