How big is the Data Centre Colocation Market | Growth Drivers & Innovation 2025

Q: What is the data centre colocation market size and forecast from 2025 to 2031?

The data centre colocation market is estimated at USD 62 billion in 2025 and is projected to reach USD 126 billion by 2031.

Q: What is the CAGR of the data centre colocation market for the forecast period?

The market is expected to grow at a CAGR of 10.5% from 2025 to 2031.

Q: What are the key drivers of the data centre colocation market?

Key drivers of data centre colocation market include rising demand for scalable storage, cost savings, data security needs, and growth in cloud and IoT adoption.

Q: What are the major trends in the data centre colocation market?

Key trends of data centre colocation market include green energy integration, AI-powered monitoring, expansion to edge locations, and hybrid IT deployments.

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.

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Code: MTA5709

Publication Date: Jul 2025

What is the Data centre colocation Market Size?

According to 6Wresearch internal database and industry insights, the Global Data Center Colocation Market was valued at USD 53.1 Billion in 2024 and is expected to reach USD 130.2 Billion by 2031, growing at a compound annual growth rate of 14.20% during the forecast period (2025-2031).

This market expanding as businesses increasingly seek scalable, cost-effective, and secure data storage and management solutions. Enterprises prefer colocation facilities to avoid the high costs of building and maintaining their own data centers. The surge in cloud computing, edge computing, and data-intensive applications has driven demand for reliable colocation services.

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Major Growth Factors of the Data centre colocation Market

Rising adoption of hybrid cloud architecture
Growing demand for data storage scalability
Cost efficiency compared to on-premise infrastructure
Expansion of digital services and applications
Increased focus on data security and compliance
Surge in IoT and edge computing usage
Rise in data center outsourcing by SMEs
Demand for high-speed connectivity and uptime

Data centre colocation Market Trends

The data centre colocation market is witnessing robust momentum toward sustainability, with providers investing in green energy and efficient cooling solutions. Enterprises are increasingly preferring multi-tenant facilities with advanced security and interconnectivity options. Additionally, colocation providers are enhancing their service portfolios by integrating AI-powered monitoring tools.

Emerging Developments in the Data centre colocation Market

The data centre colocation market is evolving with developments such as the adoption of liquid cooling, modular data center designs, and renewable energy integration. Strategic partnerships between hyperscalers and colocation providers are also becoming more prevalent, facilitating infrastructure expansion and regional reach.