Global Data Center Colocation Market Overview –
At a CAGR of 13.3 percent from 2021 to 2028, the global data centre colocation market is estimated to rise to USD 44.42 billion in 2020. Modern business processes cannot function without the use of data centres, which power many of the company’s most vital applications. It has become increasingly important for organisations to have a solid IT infrastructure if they want to be successful. A increase in demand for data centres in recent years has necessitated the use of cloud computing and colocation as a means of increasing IT capacity. Companies who needed IT upscaling but lacked the skills or financial resources to do so found that colocation data centres were a blessing.
As a result, the high costs of owning and operating a data centre, particularly for organisations with fluctuating data volumes, are likely to be a major driver in the market’s growth. Data centre colocation provides consumers with a number of additional advantages, including lower capital expenditures. Owning or developing a data centre facility can cost more than USD 300 per square foot, which includes the cost of deploying the requisite fibre cable, according to research. For small and medium-sized businesses, managing a complete data centre facility in-house is an expensive proposition, but for major corporations, this is not an issue. In order to provide SMEs with a cheap and feasible option for renting data centre space, one approach is to use data centre colocation. This solution is projected to fuel growth in the market over the next few years.
Impact of COVID-19 –
Lockdowns imposed by the COVID-19 epidemic have had a huge impact on world economies, forcing people to stay at home. As a result, operators are increasingly concerned about the long-term viability of data centres due to the fact that they use a significant amount of resources. Many regions’ data centre construction has been impacted by the COVID-19 epidemic.
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Labor shortages and parts shortages delayed the inauguration of numerous new facilities for three months. This is limiting the current expansion of the data centre colocation business. Data centre colocation providers such as Equinix, CenturyLink, and AT&T Inc. have a big impact on the expansion of the market by forming strategic alliances, launching new products, and providing money for technological advancements.
Market Dynamics –
In order to run a data centre infrastructure on-site, you’ll need a team of IT professionals with plenty of experience. Expenses for server management and infrastructure maintenance are also incurred while hosting on site. In addition, the cost of building up a new data centre facility raises the entire CAPEX of the businesses.
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As a result, businesses are taking the CAPEX spent on setting up mission-critical data centre facilities into account and searching for ways to minimise costs and enhance Return on Investment (ROI). One of the key factors driving companies to investigate new IT infrastructure solutions is the demand to reduce IT costs.
Key Players –
NTT Communication Corporation
Digital Realty Trust, Inc.
Cyxtera Technologies, Inc.
CoreSite Realty Corporation
China Telecom Corporation Limited
Verizon Enterprise Solutions, Inc.
By Type –
By Applications –
IT and Telecom
By Regions –
The Middle East and Africa