Data Centre Colocation Market Size | Explore Opportunities & Industry Share 2025

Q: What is the forecasted growth of the colocation market?

The market was estimated at USD 50 billion in 2024 and is projected to reach USD 103 billion by 2031, during the forecast period 2025-2031.

Q: Why are businesses choosing colocation over private data centres?

Colocation offers scalable, secure, and cost-effective infrastructure without the capital expense of owning and maintaining data centres.

Q: What is the role of edge computing in colocation growth?

Edge computing is driving demand for decentralized, low-latency colocation centres closer to end-users and devices.

Q: How are green data centres impacting this market?

Sustainability goals are pushing demand for colocation providers using renewable energy and energy-efficient infrastructure.

Q: Which sectors are fuelling colocation demand?

BFSI, telecom, e-commerce, cloud service providers, and government organizations are major colocation customers.

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: MTA4564

Publication Date: Jun 2025

What is the size of Data Centre Colocation Market?

According to 6Wresearch internal database and industry insights, the data centre colocation market was exhibited at around USD 50 billion in 2024 and is projected to reach USD 103 billion by 2031, expanding at a significant CAGR of 11% during the forecast period 2025–2031.

The data centre colocation market is moving forward as the enterprises and cloud providers seek scalable, secure, and cost-effective infrastructure solutions. As the volume of data is increasing with the time, increasing regulatory requirements, the push for edge computing is rising. Results, the businesses are opting for colocation services over building and maintaining private data centres. Colocation is providing high-speed connectivity, redundancy, physical security, and operational efficiency without large capital investments.

Key Growth Factors of the Data Centre Colocation Market

Maintaining the high-cost in-house data centres that pushes the demand for shared infrastructure
Surging data consumption and content delivery requirements
Growing demand from hyperscale’s and cloud service providers
Expansion of IoT, 5G, and AI applications requiring edge proximity
Emphasizing on uptime, disaster recovery, and data compliance standards
Sustainable and green data centre initiatives supporting long-term viability

Data Centre Colocation Market Trends

From 2025 to 2031, the market is continued to evolve through the growth of hybrid IT models, modular data centres, and edge colocation facilities. With the time, small to large scale enterprises are adopting carrier-neutral colocation to interconnect with cloud, telecom, and CDN providers. There is a growing preference for green data centres utilizing renewable energy and advanced cooling systems. In terms of regions, Asia-Pacific and Latin America are emerging economies who are witnessing investments in regional colocation hubs. Other trends such as service differentiation based on SLAs, scalability, security certifications, and cross-connect options will shape the competitive landscape.