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North America Data Center Colocation Market 2030 Size, Share, Technology Trends & Top Companies
Introduction
According to TechSci Research report, “North America Data Center Colocation Market – By Country, Competition Forecast & Opportunities, 2030F", The North America Data Center Colocation Market was valued at USD 27.16 Billion in 2024 and is expected to reach USD 55.47 Billion by 2030 with a CAGR of 12.47% during the forecast period.
The increasing reliance on cloud computing, the explosion of data from IoT devices, the rise of big data analytics, and the digital transformation of industries are fueling demand for colocation services. Instead of building and maintaining costly in-house data centers, enterprises across industries—from banking and healthcare to retail and government—are turning to colocation providers for scalable, secure, and cost-efficient solutions.
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Industry Key Highlights
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Market Growth – The market is set to nearly double in size between 2024 and 2030, driven by cloud adoption, 5G rollout, and digital transformation across industries.
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Cost Efficiency – Colocation enables organizations to reduce capital expenditures on infrastructure while accessing state-of-the-art facilities.
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Hybrid and Multi-Cloud Adoption – Enterprises are leveraging colocation as the backbone for hybrid IT environments.
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BFSI Sector Dominance – In 2024, the banking, financial services, and insurance (BFSI) sector emerged as the leading user of colocation services, fueled by massive data storage and compliance needs.
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Geographic Growth – The United States leads the regional market, but Canada is projected to record the fastest growth due to favorable regulations, renewable energy availability, and political stability.
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Sustainability Focus – Green colocation facilities powered by renewable energy are gaining traction, aligning with corporate sustainability goals.
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Key Players – Major companies such as Equinix, Digital Realty, CyrusOne, CoreSite, and NTT Communications dominate the competitive landscape.
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Market Drivers
1. Cost and Operational Efficiency
Running in-house data centers is capital-intensive. From construction and cooling to power and staffing, the costs add up significantly. Colocation offers a shared infrastructure model, allowing organizations to lower expenses while benefiting from premium facilities. Companies also enjoy operational efficiency as colocation providers offer managed services, maintenance, and 24/7 technical support.
2. Rising Cloud Adoption
The surge in multi-cloud and hybrid cloud strategies is a primary driver of the colocation market. Organizations want the flexibility of accessing different cloud providers while keeping some infrastructure on-premises. Colocation centers act as neutral hubs that enable seamless interconnection between private infrastructure and multiple cloud platforms.
Emerging Trends
1. Expansion of Interconnection Services
Businesses increasingly rely on interconnected ecosystems that include cloud providers, data centers, and network operators. Colocation providers are investing in advanced interconnection solutions that enable high-speed data transfer, network peering, and seamless cloud connectivity.
2. Sustainability and Green Data Centers
Environmental responsibility has become a strategic priority. Many providers are investing in renewable energy, advanced cooling technologies, and energy-efficient designs to create greener colocation facilities. Canada, in particular, benefits from abundant hydroelectric power, making it a hub for sustainable colocation.
3. AI and Automation in Data Center Operations
Automation tools, powered by artificial intelligence, are being deployed to optimize cooling, manage energy usage, and monitor systems in real-time. These innovations reduce downtime, improve efficiency, and lower operational costs for providers and customers alike.
4. Increasing Role of Retail Colocation
While wholesale colocation continues to thrive, retail colocation—where enterprises lease smaller, customizable spaces—is growing in popularity. This model provides flexibility for SMEs and startups that want enterprise-grade infrastructure without committing to large-scale contracts.
5. Integration with Cybersecurity Solutions
As cyber threats intensify, colocation facilities are offering integrated cybersecurity services, including advanced firewalls, threat monitoring, and intrusion detection systems. This trend strengthens trust among highly regulated industries.
Key market players in the North America Data Center Colocation market are:
- Equinix, Inc.
- Digital Realty Trust Inc.
- CyrusOne LLO
- CoreSite Realty Corporation
- QTS Realty Trust, LLC
- Iron Mountain, Inc.
- NTT Communications Corporation
- Alibaba Group Holding Limited
- Microsoft Corporation
- Amazon Web Services, Inc.
- Telehouse International Corporation of Europe Ltd
- STACK Infrastructure
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Competitive Strategies
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Interconnection Ecosystems: Firms like Equinix are building extensive ecosystems that connect enterprises with cloud, telecom, and IT partners.
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Green Leadership: Providers such as Iron Mountain are focusing on carbon-neutral data centers to attract sustainability-conscious enterprises.
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Mergers & Acquisitions: Consolidation is a key trend as players aim to expand capacity and geographic presence.
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Customer-Centric Offerings: Providers are tailoring solutions for specific industries such as BFSI, healthcare, and retail.
Conclusion
The North America Data Center Colocation Market is undergoing rapid transformation, powered by digital adoption, cloud expansion, and the need for cost-efficient yet secure IT infrastructure. By 2030, the market will more than double in size, offering abundant opportunities for providers, investors, and enterprises alike.
Colocation is no longer just about renting space and power—it is about creating integrated digital ecosystems that connect enterprises to the cloud, enable edge computing, support compliance, and advance sustainability goals. With strong growth drivers and evolving trends, North America will remain at the forefront of the global colocation landscape well into the next decade.
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