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Expansions & Partnerships/ Collaborations are Some of the Significant Strategies Embraced by the Market Players to Accomplish Development in the Data Center Colocation

An exponential growth in the data traffic, coupled with the requirement of rapid commissioning, is expected to have postively impacted the growing demand of data centers all over the globe. The data center colocation market is expected to witness a significant growth owing to the growing requirements of data center colocation services in both Small and Medium-Sized Enterprises (SMEs) and large enterprises. The global data center colocation market is expected to reach USD 62.30 Billion by 2022 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 14.60% during the forecast period.

https://www.marketsandmarkets.com/Market-Reports/colocation-market-1252.html

Wholesale colocation type is expected to grow at the highest CAGR
The market, by type, has been segmented into retail colocation and wholesale colocation. 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 center colocation market during the forecast period.

Small and Medium-Sized Enterprises (SMEs) are expected to grow at the highest rate during the forecast period
The market, by end-user, has been segmented into SMEs and large enterprises. SMEs have lesser infrastructure autonomy requirements, thus they are increasingly adopting retail colocation services. Data center colocation provides SMEs with security and flexibility, which is expected to fuel their demand.

North America is expected to dominate the data center colocation market during the forecast period
The global data center colocation market is segmented on the basis of regions into North America, Asia Pacific (APAC), Europe, Middle East and Africa (MEA), and Latin America. North America is expected to hold the largest share of the data center colocation market in 2017, owing to the presence of a large number of data centers across various industries in this region. The market in APAC is expected to grow at the highest CAGR between 2017 and 2022. The primary driving forces for this growth are the increasing data center traffic and the surge in usage of mobile devices in this region.


Major vendors in Data Center Colocation Market
The data center colocation market includes various vendors, such as AT&T Inc. (US), China Telecom (China), Cogent Communications (US), Contegix (US), CoreSite Realty Corporation (US), CyrusOne (US), Cyxtera Technologies, Inc. (US), Digital Realty Trust, Inc. (US), DuPont Fabros Technology, Inc. (US), Equinix, Inc. (US), Fibernet Inc. (US), Global Switch (UK), Internap (US), Interxion (Netherland), Keppel Data Center Pte Ltd. (Singapore), Level 3 Communications Inc., NTT Communications Corporation (Japan), PhoenixNAP (US), Rahi Systems Inc (US), Singtel (Singapore), STT GDC Pte Ltd. (Singapore), Telehouse-KDDI (UK), Telstra (Australia), TeraGo Networks Inc. (Canada), and Verizon (US).

Players in this market have embraced different strategies to expand their worldwide presence and increase their market shares. Expansions and partnerships/collaborations are some of the significant strategies embraced by the market players to accomplish development in the data center colocation market. Companies, such as DuPont Fabros Technology, Inc., Equinix, Inc., Global Switch, and NTT Communication Corporation have adopted these strategies to expand their product portfolios.

Equinix is one of the major providers of data center colocation services. The company has a global clientele and provides technology solutions to businesses and public sector enterprises. The company’s long-term strategy for the data center colocation market is focused on organic and inorganic growth strategies. Equinix is focused on collaborations and acquisitions to attract a large customer base worldwide. 

Digital Realty Trust is another leading provider of data center colocation solutions. The company caters to over 2,200 customers from industries, such as cloud, information technology services, financial services, manufacturing, energy, gaming, life sciences, and consumer products. The company’s long-term strategy is focused on the organic and inorganic growth. 

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