How big is the co-location market | Industry Trends, Size & Forecast

Q: What is the current size of the co-location market?

The co-location market was valued at USD 72.8 billion in 2024 and is projected to reach USD 173.5 billion by 2031.

Q: What is the growth rate of the co-location market?

The co-location market is expected to grow at a CAGR of 13.1% during the forecast period of 2025 to 2031.

Q: Which applications contribute the most in the co-location market?

Enterprise IT hosting, cloud services, content delivery, disaster recovery, and financial data operations.

Q: What is driving demand in the co-location market?

Cost savings, cloud adoption, hybrid IT strategies, security, and the need for scalable infrastructure.

Q: What challenges does the co-location market face?

High power and cooling costs, data privacy concerns, and the need for continuous infrastructure upgrades.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

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Code: MTA5255

Publication Date: Jul 2025

How big is the Co-location Market?

According to 6Wresearch internal database and industry insights, the Global co-location market was valued at USD 106.4 Billion in 2024 and is expected to reach USD 183.7 Billion by 2031, growing at a compound annual growth rate of 7.25% during the forecast period (2025-2031).

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This growth is driven by the rising demand for data storage, increased cloud service adoption, and the need for cost-effective, scalable, and secure IT infrastructure. Enterprises are outsourcing their data center operations to co-location providers to optimize performance while reducing capital expenditures.

Key Growth Drivers of the Co-location Market

Growing demand for scalable and secure IT infrastructure
Increased cloud computing, big data, and content delivery usage
Cost-saving benefits of shared data center facilities
Rising adoption of hybrid cloud and edge computing models
Growing need for low-latency connectivity and disaster recovery solutions

Co-location Market Trends

The co-location market is witnessing rising adoption among hyperscale data users, telecom companies, and fintech enterprises. Modular and green data centers are becoming popular to support sustainability goals. Providers are offering high-density power solutions, liquid cooling systems, and enhanced interconnectivity to attract enterprise clients. Demand for edge data centers is rising to serve latency-sensitive applications. Tier III and Tier IV certified facilities with redundant systems are becoming the industry standard for mission-critical operations.

Emerging Developments in the Co-location Market

New developments include integration with AI-powered monitoring tools, enabling predictive maintenance and resource optimization. Providers are enhancing physical and cyber security with biometric access, AI surveillance, and zero-trust architectures. Renewable energy adoption and carbon neutrality commitments are shaping data center design. Co-location vendors are partnering with telecom firms and cloud providers to offer seamless hybrid and multi-cloud environments. Micro data centers are being deployed closer to end-users to enhance performance.