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Data Center News > Blog > Investments > Data Center Colocation Market to Surge with CAGR of 7% by
Investments

Data Center Colocation Market to Surge with CAGR of 7% by

Last updated: March 16, 2024 3:17 am
Published March 16, 2024
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Dublin, March 15, 2024 (GLOBE NEWSWIRE) — The “Global Data Center Colocation Market – Outlook & Forecast 2023-2028” report has been added to ResearchAndMarkets.com’s providing.

The information middle colocation market was valued at USD 30.42 billion in 2022 and is forecast to develop at a CAGR of seven.25% from 2022 to 2028, reaching USD 46.3 billion in 2028

The European knowledge middle colocation market is attracting substantial investments, with Western Europe drawing the main focus of these world operators searching for to increase their presence. Moreover, favorable insurance policies make the Nordics a pretty hub for investments. The foremost contributors to inexperienced knowledge middle improvement in Latin America embrace Brazil, Chile, Argentina, and Paraguay; these international locations’ knowledge middle operators and governments are working towards adopting renewable vitality and different measures.

In Central and Japanese Europe, knowledge middle operators are securing land for brand spanking new amenities or repurposing current buildings to satisfy the rising calls for for infrastructure. Over USD 450 million was invested in Central & Japanese European international locations in 2022.

The UAE and Saudi Arabia are the main contributors to energy capability within the Center East & Africa area, accounting for a share of round 24% and 16%, respectively. The information middle colocation market in these international locations is predicted to skyrocket in 4 to 5 years because of the shift from the oil financial system to the digital financial system. As well as, South Africa is the main contributor to energy capability in Africa, accounting for a share of over 60%; Nigeria and Kenya observe this. Cloud-based providers, sensible metropolis developments, and fiber connectivity are the opposite elements driving steady colocation knowledge middle investments throughout the area.

The Center East & Africa market is repeatedly rising when it comes to connectivity by deploying new submarine cables, reminiscent of Africa-1, 2Africa, India Europe Xpress (IEX), Raman, Saudi Imaginative and prescient, Blue, Equiano, Medusa Submarine Cable System, and SeaMeWe – 6, which might be prepared for providers through the forecast interval.

Information facilities within the Center East & Africa area put money into cooling infrastructure because of the prevalence of excessive temperatures in some international locations. In 2022 cooling methods accounted for over 65% of the whole mechanical infrastructure.

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KEY MARKET TRENDS

Rising Concentrate on Sustainability

  • Firms within the world knowledge middle colocation market concentrate on utilizing renewable vitality as their major energy supply. Operators are planning to scale back environmental hurt by utilizing clear vitality options. This variation is a component of a bigger development within the trade to undertake renewable sources, reminiscent of photo voltaic and wind energy, to run knowledge facilities and different infrastructure.

5G Deployments Fueling Edge Information Middle Demand

  • 5G community deployments have fueled digital transformation, the expansion of IoT and sensible cities, and the fourth industrial revolution. All of the areas are working towards adopting digital transformation to draw international investments.
  • Fast investments in 5G know-how have elevated the demand for high-bandwidth web in Tier II and Tier III cities and contributed to substantial knowledge quantity. These elements have accelerated knowledge middle developments to course of the knowledge at par with the main international locations and supported the information middle colocation market progress.
  • The deployment of 5G providers has impacted the ICT, authorities, manufacturing, providers, agriculture, and retail industries. 5G community providers play a key position in supporting enterprise digitalization, thereby driving the adoption of IoT functions.

Adoption of Superior IT Infrastructure in Information Facilities

  • Information facilities are geared up with servers and community and storage options. Conventional IT infrastructure consistently influences the information middle trade because it requires extra bodily area and is costlier, leading to a drop in demand.
  • Converged infrastructure is a {hardware} platform the place servers with inner or exterior storage choices and community switches are provided as built-in rack-scale methods.
  • ARM is a chip know-how agency that creates mental property, which different companies license to type their processor chips. An ARM server is an enterprise-class pc server that employs many ARM processors somewhat than a standard processor.
  • Server virtualization divides the bodily server into a number of and remoted servers utilizing varied software program functions. Server virtualization is broadly adopted within the knowledge middle colocation market since a single bodily server can host dozens of functions as digital machines as an alternative of internet hosting every software in its designated server, decreasing recurring know-how bills by 50%.
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Surge in Rack Energy Density

  • Rack energy density is likely one of the essential elements in knowledge middle design, capability planning, cooling, and energy provisioning.
  • Over the previous few years, an unprecedented rise within the rack energy density of IT gear has been noticed. The adoption of compute-intensive workloads, reminiscent of AI, IoT, Augmented and Digital Actuality (AR/VR), and the favored cryptocurrency mining development have elevated the information storage and processing necessities, necessitating high-density racks.
  • The surge in demand for Excessive-Efficiency Computing (HPC), led by the adoption of converged and hyper-converged options and virtualization strategies, will contribute to the rise in rack energy density to a median of 10 to 12 kW through the forecast interval.
  • The expansion in rack energy density has propelled the usage of modern and versatile facility designs together with augmenting the adoption of rack-level UPS options and numerous electrical energy feeds for racks.

Market Development Enablers

  • Rising M&A and Joint Ventures within the Market
  • Rising Submarine & Inland Connectivity
  • Huge Information & IoT Fueling Information Middle Investments
  • Authorities Assist for Information Middle Developments

Market Restraints

  • Rising Carbon Emissions from Information Facilities
  • Location Constraints on Information Middle Improvement
  • Considerations of Energy Availability Challenges
  • Lack of Expert Information Middle Professionals
  • Safety Challenges in Information Facilities
  • Excessive Upkeep Prices & Inefficiencies
  • Provide Chain Disruptions

Key Attributes:

Report Attribute Particulars
No. of Pages 980
Forecast Interval 2022 – 2028
Estimated Market Worth (USD) in 2022 $30.42 Billion
Forecasted Market Worth (USD) by 2028 $46.3 Billion
Compound Annual Development Fee 7.2%
Areas Lined World

SEGMENTATION INSIGHTS

Segmentation by Colocation Companies

  • Retail Colocation
  • Wholesale Colocation

Segmentation by Infrastructure

  • Electrical Infrastructure
  • Mechanical Infrastructure
  • Common Building

Segmentation by Electrical Infrastructure

  • UPS Techniques
  • Turbines
  • Switch Switches & Switchgear
  • PDUs
  • Different Electrical Infrastructure

Segmentation by Mechanical Infrastructure

  • Cooling Techniques
  • Racks
  • Different Mechanical Infrastructure

Segmentation by Cooling Techniques

  • CRAC & CRAH Items
  • Chiller Items
  • Cooling Towers, Condensers & Dry Coolers
  • Economizers & Evaporative Coolers
  • Different Cooling Items

Segmentation by Cooling Methods

  • Air-based Cooling
  • Liquid-based Cooling

Segmentation by Common Building

  • Core & Shell Improvement
  • Set up & Commissioning Companies
  • Engineering & Constructing Design
  • Fireplace Detection & Suppression
  • Bodily Safety
  • DCIM/BMS Options

VENDOR LANDSCAPE

Wholesale and retail colocation distributors are anticipated to thrive sooner or later because of the elevated demand available in the market. Varied sectors, together with BFSI, IT/telecom, and cloud, drive the demand for colocation providers. The worldwide knowledge middle colocation market has grown considerably over the previous couple of years, with investments from world, regional, and knowledge middle operators.

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The event of hyperscale knowledge middle campuses in all areas will usher in a big income alternative for distributors that supply the fastest-growing applied sciences, reminiscent of liquid immersion cooling, direct-to-chip cooling, lithium-ion UPS, HVO turbines, microgrid applied sciences, renewable energy options, and net-zero water knowledge facilities.

Outstanding Information Middle Buyers

  • China Cellular Worldwide
  • China Telecom
  • China Unicom
  • Chindata Group
  • CoreSite
  • CyrusOne
  • Digital Realty
  • EdgeConneX
  • Equinix
  • GDS Companies
  • NTT Information
  • STACK Infrastructure
  • ST Telemedia World Information Centres
  • Vantage Information Facilities
  • VNET

Different Outstanding Distributors

  • 365 Information Facilities
  • AdaniConneX
  • Africa Information Centres
  • AirTrunk
  • Aligned Information Facilities
  • American Tower
  • Atman
  • atNorth
  • AT TOKYO
  • Aruba
  • Huge Information Alternate
  • CDC Information Centres
  • Center3
  • Chayora
  • CloudHQ
  • Cologix
  • Colt Information Centre Companies
  • Compass Datacenters
  • COPT Information Middle Options
  • CtrlS Datacenters
  • Cyxtera Applied sciences
  • DATA4
  • DataBank
  • DC BLOX
  • DCI Indonesia
  • Edge Centres
  • ePLDT
  • Flexential
  • World Change
  • Inexperienced Mountain
  • Gulf Information Hub
  • H5 Information Facilities
  • HostDime
  • Iron Mountain
  • Web Thailand
  • KDDI
  • Keppel Information Centres
  • Khazna Information Facilities
  • LG Uplus
  • MettaDC
  • NEXTDC
  • Open Entry Information Centres
  • Orange Enterprise Companies
  • Princeton Digital Group
  • QTS Realty Belief
  • Rostelecom Information Facilities
  • Sabey Information Facilities
  • Skybox Datacenters
  • Stream Information Facilities
  • Scala Information Facilities
  • Sify Applied sciences
  • SUNeVison Holdings (iAdvantage)
  • Change
  • T5 Information Facilities
  • Tenglong Holding Group
  • TierPoint
  • Turkcell
  • Urbacon Information Centre Options
  • Viettel IDC
  • Wingu
  • Yondr
  • Yotta Infrastructure

New Entrants

  • AQ Compute
  • Corscale Information Facilities
  • Gaw Capital Companions
  • EDGNEX Information Centres by DAMAC
  • ESR
  • Gatineau Information Hub (GDH)
  • iMCritical
  • IXAfrica
  • Kasi Cloud
  • PowerHouse Information Facilities
  • Quantum Loophole
  • QScale
  • YCO Cloud
  • YTL Information Middle

For extra details about this report go to https://www.researchandmarkets.com/r/6te5ek

About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s main supply for worldwide market analysis reviews and market knowledge. We give you the newest knowledge on worldwide and regional markets, key industries, the highest corporations, new merchandise and the newest tendencies.

  • Global Data Center Colocation Market

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