PUBLISHER: Grand View Research | PRODUCT CODE: 1679587
PUBLISHER: Grand View Research | PRODUCT CODE: 1679587
The global data center colocation market size is anticipated to reach USD 165.45 billion in 2030 and is anticipated to grow at a CAGR of 16.0% from 2025 to 2030, according to a recent study by Grand View Research, Inc. Various CSPs and businesses are opting for multi-tenant or colocation data centers, which has been a significant factor driving the growth of the market. Colocation is among the most preferred choices among businesses, owing to cost benefits compared to building and managing a private data center facility. Moreover, a colocation data center offers better operational flexibility when scaling up infrastructure to accommodate large data volumes. Considering the increasing cost of property, land, and IT infrastructure, colocation data centers are the best options for SMEs owing to limited capital expenditure capability.
The increasing use of e-commerce shopping has been anticipated to drive market growth in the coming years. The data centers offer various benefits in the e-commerce industry, including better scalability, data reliability, enhanced security, improved customer experience, and reduced cost. The benefits offered by the data centers in the e-commerce industry have increased the IT expenditure of e-commerce companies. Moreover, opting for data center colocation would help in reducing costs when compared to setting up and maintaining a private data center, which smaller e-commerce companies are highly adopting. Thus, the growth of data center colocation in the e-commerce industry is expected to rise, thereby driving industry growth.
Several countries, such as the U.S., China, and India, have strict data location laws, preventing cross-border data transfer. The EU also implemented the GDPR in 2018, laying the foundation norms for personal data transfer and usage. Implementing such laws has resulted in the increased setting up of data centers within those countries and localized data storage. Furthermore, the colocation data centers offer businesses leasing spaces within data centers at reasonable costs, proximity to the business, and, the best part, the opportunity to scale up to accommodate larger data volumes. These aspects have contributed to the growth of the market and are expected to continue supporting this growth in the years to come.