Global Data Center Colocation Market Size
The data center colocation market, valued at US$45.5 billion in 2020, is projected to grow at a compound annual growth rate of 14.4% to reach US$172.23 billion by 2030.
A company can position its own data center by renting physical office space, internet bandwidth, network access, and other resources from an existing data center through a process known as data center colocation. Renting space at a third-party provider's data center for your servers and other computing gear is known as colocation. It is a natural building that provides enough power, cooling, and security to house servers and computer hardware for commercial use. The leading companies that offer data center colocation are data center or IT service providers. Data centers have an IP system, a cooling unit, and a power backup capability. When a company or organization cannot collaborate in its own data center, it occasionally purchases the space of cabinets or racks from different colocation data centers. The use of IT infrastructure has increased since virtualization and cloud computing emerged. This capacity can accommodate individual apartments, cabinets, or cages. Colocation facilities have more dependable data centers. Because they have many data backups in situ, they give increased security against power outages and low-latency networking alternatives.