Data Center Colocation Market Global Strategies, Development Challenges by 2022


An exponential growth in the data traffic, coupled with the requirement of rapid commissioning, is expected to have postively impacted the growing demand of data centers all over the globe. The data center colocation market is expected to witness a significant growth owing to the growing requirements of data center colocation services in both Small and Medium-Sized Enterprises (SMEs) and large enterprises. The global colocation market is expected to reach USD 62.30 Billion by 2022 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 14.60% during the forecast period.

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The colocation market includes various vendors, such as AT&T Inc. (US), China Telecom (China), Cogent Communications (US), Contegix (US), CoreSite Realty Corporation (US), CyrusOne (US), Cyxtera Technologies, Inc. (US), Digital Realty Trust, Inc. (US), DuPont Fabros Technology, Inc. (US), Equinix, Inc. (US), Fibernet Inc. (US), Global Switch (UK), Internap (US), Interxion (Netherland), Keppel Data Center Pte Ltd. (Singapore), Level 3 Communications Inc., NTT Communications Corporation (Japan), PhoenixNAP (US), Rahi Systems Inc (US), Singtel (Singapore), STT GDC Pte Ltd. (Singapore), Telehouse-KDDI (UK), Telstra (Australia), TeraGo Networks Inc. (Canada), and Verizon (US). Players in this market have embraced different strategies to expand their worldwide presence and increase their market shares. Expansions and partnerships/collaborations are some of the significant strategies embraced by the market players to accomplish development in the data center colocation market. Companies, such as DuPont Fabros Technology, Inc., Equinix, Inc., Global Switch, and NTT Communication Corporation have adopted these strategies to expand their product portfolios.

Equinix is one of the major providers of data center colocation services. The company has a global clientele and provides technology solutions to businesses and public sector enterprises. The company’s long-term strategy for the data center colocation market is focused on organic and inorganic growth strategies. Equinix is focused on collaborations and acquisitions to attract a large customer base worldwide. In May 2017, Equinix acquired 29 data centers from Verizon. Moreover, in February 2017, Equinix acquired IO, UK’s data center, operating a business to expand its presence in the UK. These strategic initiatives further support the fact that Equinix is focused on organic and inorganic growth strategies to reinforce its market leader position in the data center colocation market.

Digital Realty Trust is another leading provider of data center colocation solutions. The company caters to over 2,200 customers from industries, such as cloud, information technology services, financial services, manufacturing, energy, gaming, life sciences, and consumer products. The company’s long-term strategy is focused on the organic and inorganic growth. Digital Realty Trust expanded its data center facilities and entered into strategic collaborations to attract customers from across the world. The launch of intelligent data center colocation facilities in Japan, the UK, and Singapore has further added to the fact that Digital Realty Trust focuses on the organic growth strategy for cementing its market position as a leader in the data center colocation market. As a part of the inorganic growth strategy, Digital Realty Trust entered into a partnership with AT&T to enhance its existing offerings of network and managed services.

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