In the second half of 2024, the average monthly per kilowatt rent of data centers in the Silicon Valley in the United States was between *** U.S. dollars and *** U.S. dollars. Northern Virginia, which is the market with the largest data center inventory and the most new capacity under construction, had monthly rent between *** and *** U.S. dollars.

Renting data center space in the United States has been becoming increasingly pricier since 2021. Fueled by soaring demand due to the rise of artificial intelligence (AI), the average monthly rent per kilowatt increased from ****** U.S. dollars in 2021 to ****** U.S. dollars in 2024.

The average data center rental cost in Europe in the second half of 2023 declined slightly, after soaring in the same period a year ago. A 10 kW lease cost approximately ***** U.S. dollars per kW, up from ***** U.S. dollars per kW at the beginning of 2022.

In the first half of 2020, the rental price of retail colocation space in Tokyo, Japan, was between *** and *** U.S. dollars per month. Pricing in hyperscale cloud and wholesale colocation was less expensive, with monthly rent between *** and *** U.S. dollars for hyperscale, and *** and *** U.S. dollars for wholesale colocation. Hyperscale data centers have the largest power requirements and customers are usually a cloud or large tech company. Wholesale and retail colocation, on the other hand, have smaller power requirements.

As of the first quarter of 2024, data centers in Frankfurt had higher rental rates than in London or Paris. Meanwhile, data centers with a capacity of *** to *** kW in Amsterdam had relatively lower monthly rental rates, ranging from *** U.S. dollars per kW to *** U.S. dollars per kW.

The global load bank rental market is experiencing robust growth, projected at a Compound Annual Growth Rate (CAGR) of 5.3% from 2019 to 2033. This expansion is fueled by the increasing demand for reliable power testing and commissioning in various sectors, particularly within the rapidly expanding data center infrastructure. Data centers require rigorous testing of backup power systems (generators, UPS systems) to ensure uninterrupted operation and prevent costly downtime. The rise of cloud computing, big data analytics, and the increasing adoption of edge computing are key drivers, pushing data centers to enhance their redundancy and resilience. This translates to a higher demand for load bank rental services, offering a cost-effective solution for testing diverse power systems. Furthermore, the rental model provides flexibility and scalability, avoiding the high capital expenditure associated with purchasing load banks, which are often only needed periodically. Growth is also expected to be driven by rising government regulations mandating thorough power system testing and a preference for outsourcing specialized testing procedures. The market is segmented by application (with data centers representing a significant and growing portion), type (resistive, reactive, and combined), and geography. North America and Europe currently hold the largest market share, but Asia-Pacific is expected to witness significant growth driven by rapid data center deployments in countries like China and India. While the provided data doesn't explicitly segment by data center applications, we can reasonably infer significant growth within this segment. Considering the substantial investment in data center infrastructure globally and the crucial role of load bank testing in ensuring data center reliability, we estimate that the data center segment contributes a substantial and rapidly growing portion of the overall load bank rental market. Competitive dynamics are marked by the presence of major players such as United Rentals, Aggreko, and others offering comprehensive solutions catering to large-scale data center operations. However, smaller specialized firms are also emerging, focused on niche requirements and regional markets. Future growth will likely be influenced by technological advancements in load bank technology, including the integration of smart monitoring and remote control capabilities, further enhancing efficiency and data analysis capabilities for data center operators.

The size of the US Multi-Tenant (Colocation) Data Center market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 10.89% during the forecast period.The US multi-tenant data center market in colocation is growing rapidly, and it will reach a notable valuation in the coming years. It is when third-party service providers offer a business the option to rent space, network bandwidth, and other essential data center resources within a shared facility. In this model, several advantages come into play: cost-effectiveness, enhanced scalability, and access to advanced infrastructure and security measures.Multi-tenant data centers are advantageous to businesses wanting to expand their IT operations but not willing to make the big capital investment for building and maintaining their own data centers. Multi-tenant data centers cater to various industries: SMEs to large corporations, as well as cloud service providers. The increasing requirement for cloud computing due to infrastructural changes, developing application needs for data storage and processing, and its demand to align businesses to the shifting digital landscape give momentum to the market. Recent developments include: In September 2023, A Full-Stack Cloud Service Provider, Expedient, partnered with Kyndryl, the world's largest IT infrastructure services provider. Through this collaboration, Expedient's robust data center colocation and cloud infrastructure will enhance Kyndryl's industry-leading cyber resilience offerings to customers. This partnership will enable Expedient and Kyndryl to extend the reach and effectiveness of security and cyber resilience services to a broader range of customers, helping organizations across various industries strengthen and fortify their cybersecurity posture while mitigating the risks associated with data breaches., In July 2023, Ubiquity, a digital infrastructure investor, announced the acquisition of edgepresence, a pioneer in the build-to-suit edge data center industry, delivering turnkey, localized, and scalable network compute solutions for carriers and data hyperscalers. Edgepresence's Edge Data Centers (EDCs) are modular, purpose-built data centers efficiently designed to include critical power, monitoring, physical security, and cooling. Complementing Ubiquity's existing digital infrastructure, EDCs enable far-edge functions, minimizing latency and improving performance for network tenants in a highly secure facility that can be deployed in weeks.. Key drivers for this market are: Growing Adoption of Cloud Services is expected to flourish the market, Increasing Growth in Wholesale Datacenter Multi-tenant Spaces to propel demand (albeit from a lower base); Increased Emphasis on Compliance with Data Regulations and Cost-Effective Nature of Multi-tenant Facilities to Drive Adoption among SME's. Potential restraints include: Dependence on Regulatory Landscape & Stringent Security Requirements. Notable trends are: Healthcare Sector Accounts for Significant Share.

The cost of renting data center space in the United States has soared since 2020. In 2024, the average asking per kilowatt rose by **** percent, marking the third consecutive year of double-digit increase. Escalating costs for power, labor, and equipment were some of the main reasons for the price increase.

US Multi-Tenant (Colocation) Data Center Market size was valued at USD 40 Billion in 2024 and is projected to reach USD 89 Billion by 2032, growing at a CAGR of 11.1% from 2025 to 2032.

US Multi-Tenant (Colocation) Data Center Market: Definition/Overview

In the US, A multi-tenant (colocation) data center is a facility that allows enterprises to rent space, electricity, and cooling for their IT equipment. These centers provide shared or dedicated areas for several clients in the same facility, as well as critical services such as security, connection, and dependability.

Colocation data centers are widely employed in a variety of industries, including IT and telecommunications, finance, healthcare, and government. Businesses rely on these facilities to host key applications, disaster recovery, data backup, and hybrid cloud solutions.

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Western Europe Data Center Colocation Market Size 2025-2029

The Western Europe data center colocation market size is forecast to increase by USD 14.14 billion, at a CAGR of 19.1% between 2024 and 2029.

The market is experiencing significant growth due to the increasing demand for reliable and efficient data center solutions. Key trends in the market include innovative approaches such as the development of submarine data centers, which offer enhanced connectivity and disaster recovery capabilities. Additionally, there is a focus on data center consolidation, as businesses look to reduce costs and improve operational efficiency. These trends are driving the growth of the market, making it an attractive investment opportunity for businesses in need of secure and scalable data center solutions. Furthermore, the use of advanced technologies like artificial intelligence and machine learning is expected to further boost market growth, as these technologies require large amounts of data processing power and storage capacity. Overall, the market is poised for continued growth, offering numerous opportunities for businesses seeking to optimize their IT infrastructure and improve their digital capabilities.

What will be the Size of the market During the Forecast Period?

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The market continues to experience strong growth, driven by the increasing demand for secure and reliable infrastructure to support the expanding digital economy. With the proliferation of cloud platforms like Microsoft Azure and the growing importance of data protection regulations such as GDPR, data centers have become essential infrastructure for businesses seeking to manage their data and comply with evolving data protection requirements. This trend is particularly pronounced In the Nordic region, where economic growth and the adoption of artificial intelligence and automation technologies are driving data generation and the need for advanced colocation solutions.
The market is expected to reach significant colocation revenue figures, as businesses continue to prioritize Opex-friendly infrastructure solutions and seek to optimize their IT operations. The market is characterized by a diverse range of players, from established providers like Equinix and Interxion to emerging players in the Nordics, such as Data4 and others. The market is also witnessing the integration of advanced technologies like AI and pattern recognition into colocation offerings, as part of national AI strategies and the broader tech markets' evolution.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Retail colocation
  Wholesale colocation


End-user

  Small and medium sized enterprises
  Large enterprises


Industry Application

  Retail
  BFSI
  IT and telecom
  Healthcare
  Others


Business Segment

  Tier 1
  Tier 2
  Tier 3
  Tier 4


Geography

  Western Europe

By Type Insights

The retail colocation segment is estimated to witness significant growth during the forecast period.

Colocation is a data center solution where businesses rent space to house their IT infrastructure within a third-party facility. Retail colocation, specifically, involves enterprises leasing racks, cage spaces, or private suites within large data centers for one to three years. This trend is gaining traction among Small and Medium Enterprises (SMEs) due to the cost savings from reduced Capital Expenditure (CAPEX) and Operating Expenditure (OPEX) compared to managing in-house data centers. The growth of retail colocation is driven by the escalating costs of building and maintaining traditional data centers. European cities such as Reykjavik, Milan, Warsaw, Prague, Vienna, Madrid, and Oslo are popular destinations for colocation due to their strategic locations, economic growth, and tech markets.

Compliance with regulations like GDPR and Data Protection acts is another factor driving demand for colocation services. Furthermore, the integration of Artificial Intelligence, automation, and pattern recognition technologies in data centers is fueling innovation. The European Green Deal and the European climate pact's focus on carbon neutrality are also influencing data center infrastructure investments. Tax incentives and policies such as the Local Digital Declaration, Technology Code, and Cloud First Policy are further boosting the colocation market.

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Market Dynamics

Our Western Europe Data Center Colocation Market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will

The global load bank rental market for data centers is experiencing robust growth, projected to reach a market size of $47 million in 2025, exhibiting a compound annual growth rate (CAGR) of 5.3% from 2019 to 2033. This expansion is fueled by several key factors. The increasing reliance on data centers for critical infrastructure and cloud computing services necessitates rigorous testing and maintenance of backup power systems. Load bank rentals offer data centers a cost-effective solution for this, eliminating the need for large capital expenditures on equipment used infrequently. Furthermore, the rising adoption of renewable energy sources within data center operations is also contributing to growth, as load banks become crucial for testing the reliability and performance of these new power systems. Stringent regulatory compliance requirements related to data center uptime and disaster recovery further incentivize the rental of load banks to ensure continuous operation. Major players such as United Rentals, Sunbelt Rentals, and Aggreko are actively shaping the market landscape through strategic expansion and service innovations. The forecast period (2025-2033) anticipates sustained growth, driven by the ongoing digital transformation and the escalating demand for high-availability data center infrastructure. Geographically, North America and Europe currently dominate the market, though emerging economies in Asia-Pacific are demonstrating significant growth potential due to increasing investments in data center infrastructure. However, the market faces potential restraints, including the high initial cost of advanced load bank technology and the cyclical nature of the data center construction industry. Despite these challenges, the long-term outlook for the load bank rental market within the data center sector remains positive, driven by the inherent need for reliable and efficient power testing and the cost-effectiveness of rental solutions.

Companies in this industry provide rental services of data centers, including equipment, space and bandwidth to customers.

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Data Center Colocation Market Size 2025-2029

The data center colocation market size is forecast to increase by USD 78.56 billion, at a CAGR of 15.2% between 2024 and 2029.

The market is experiencing significant growth due to the increasing demand for secure and efficient IT infrastructure solutions. Companies are seeking colocation services to house their IT equipment in specialized facilities, enabling them to focus on their core business while benefiting from advanced technology and expertise. Innovative cooling solutions are emerging to address the challenge of managing heat generation in densely packed data centers, ensuring optimal performance and energy efficiency. Furthermore, containerized data centers are gaining traction as a flexible and cost-effective alternative to traditional colocation facilities, offering rapid deployment and scalability. However, the market faces challenges such as security concerns, power consumption, and the need for interconnectivity and bandwidth to support growing data traffic. Companies must navigate these obstacles by implementing robust security measures, optimizing energy usage, and investing in high-speed connectivity solutions to capitalize on the opportunities presented by the evolving data center colocation landscape.

What will be the Size of the Data Center Colocation Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe market continues to evolve, driven by the increasing demand for advanced IT infrastructure solutions. Colocation facilities offer businesses the benefits of housing their IT equipment in secure, specialized environments, enabling them to focus on their core competencies. These facilities provide essential components such as cooling systems, green data centers, fire suppression systems, managed services, cloud connectivity, data storage, disaster recovery, object storage, security systems, and business continuity. Cooling systems ensure optimal operating temperatures, while green data centers minimize the carbon footprint. Fire suppression systems and physical security safeguard against potential threats. Managed services offer technical support and capacity planning, while cloud connectivity and network connectivity enhance access to cloud infrastructure. Data storage solutions cater to various needs, from traditional to object storage. Disaster recovery and business continuity plans ensure data availability and minimize downtime. Moreover, the integration of big data analytics, machine learning, and artificial intelligence into data center infrastructure enhances efficiency and performance. Energy efficiency is a key concern, with renewable energy and data center automation playing significant roles. Hybrid cloud solutions and network switches enable seamless integration of on-premises and cloud resources. The market dynamics continue to unfold, with edge computing gaining traction and software-defined networking, network-attached storage, and UPS systems enhancing network performance and reliability. The ongoing evolution of IT infrastructure management requires constant monitoring and adaptation to meet the ever-changing needs of businesses.

How is this Data Center Colocation Industry segmented?

The data center colocation industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeRetail colocationWholesale colocationEnd-userSmall and medium sized enterprisesLarge enterprisesGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACChinaIndiaJapanSouth AmericaBrazilRest of World (ROW)

By Type Insights

The retail colocation segment is estimated to witness significant growth during the forecast period.In the realm of IT infrastructure, retail colocation data centers have emerged as a popular solution for businesses seeking to reduce capital expenditures (CAPEX) and operational expenditures (OPEX). These facilities offer enterprises the opportunity to rent rack space, cages, and private suites in large data centers, where they can house their servers and storage devices. The market for retail colocation is thriving, driven by the growing preference among Small and Medium Enterprises (SMEs) for this cost-effective solution. Environmental monitoring, access control, and security systems are integral components of these facilities, ensuring optimal conditions for IT equipment and data protection. UPS systems, cooling systems, and fire suppression systems maintain uninterrupted power and temperature conditions, while managed services and cloud connectivity facilitate seamless data access and disaster recovery. Energy efficiency and sustainability are essential considerations in today's

The global load bank rental market for data centers is experiencing robust growth, projected to reach a substantial size within the forecast period (2025-2033). The market's expansion is fueled by several key drivers. The increasing reliance on data centers for critical infrastructure and the surge in cloud computing necessitate rigorous testing and maintenance of power systems. Load bank rentals offer a cost-effective and flexible solution for performing these critical tests, reducing capital expenditure for data center operators. Furthermore, the growing adoption of renewable energy sources within data centers necessitates comprehensive power system validation, further boosting demand for load bank rental services. Stringent regulatory compliance and the need to ensure high levels of uptime and reliability are also contributing to this market's upward trajectory. Competitive pricing models offered by rental companies, coupled with specialized services such as on-site support and technical expertise, further enhance market attractiveness. While the market faces certain restraints, such as the initial investment required for load bank rental companies and potential fluctuations in data center construction activity, these are mitigated by the continuous expansion of the data center industry itself. The market is segmented geographically, with regions like North America and Europe currently holding significant market share due to established data center infrastructure and technological advancements. However, emerging economies in Asia-Pacific and other regions are demonstrating strong growth potential, driven by increasing digitalization and infrastructure development. Key players such as United Rentals, Sunbelt Rentals, and Aggreko are actively shaping the market through strategic partnerships, technological innovation, and geographic expansion, leading to increased competition and a diverse range of service offerings. The overall outlook for the load bank rental market serving data centers is highly positive, with continued expansion anticipated throughout the forecast period.

The global load bank rental market, projected at $47 million in 2025, is experiencing robust growth, driven by the increasing demand for reliable power testing and commissioning in data centers. The expanding data center infrastructure globally, coupled with stringent regulatory compliance requirements for power system reliability, fuels the need for sophisticated load bank rental services. The rising adoption of cloud computing and edge computing further intensifies this demand, as these technologies require robust power infrastructure to ensure continuous uptime and prevent costly outages. Within the data center segment, the demand for resistive and reactive load banks is particularly high, reflecting the need for comprehensive testing that simulates diverse power loads. Major players in the rental market, including United Rentals, Aggreko, and ComRent, are strategically expanding their service offerings and geographic reach to capitalize on this burgeoning opportunity. The North American market currently holds a significant share, owing to the high concentration of data centers in the region, but Asia-Pacific and Europe are witnessing rapid growth, fueled by increasing data center construction and digital transformation initiatives. A steady Compound Annual Growth Rate (CAGR) of 5.3% is anticipated over the forecast period (2025-2033), indicating a promising outlook for the load bank rental market within the data center sector. The competitive landscape is characterized by both large, multinational rental companies and specialized providers focusing on load bank rental services. Differentiation strategies often revolve around specialized expertise in data center load testing, advanced equipment offerings (including integrated monitoring and control systems), and superior customer service. The market is also witnessing a shift toward digitalization, with online platforms and streamlined booking processes becoming increasingly prevalent. Future growth will be influenced by factors such as technological advancements in load bank technology (e.g., increased efficiency and portability), the growing adoption of renewable energy sources (which necessitate thorough testing), and ongoing efforts to improve data center energy efficiency. Regulatory pressures related to data security and power reliability also play a significant role in shaping market dynamics.

In the first quarter of 2024, data centers in Singapore's monthly rental price (excluding electricity cost) ranged from *** to *** U.S. dollars per kilowatt-hour. In comparison, data centers in Sydney, Australia's monthly rental rate started at *** U.S. dollars per kilowatt-hour.

Lease Area Block Online Query

In the first half of 2020, the rental price of retail colocation space in Hong Kong was between *** and *** U.S. dollars per month. Pricing in hyperscale cloud and wholesale colocation was less expensive, with monthly rent between *** and *** U.S. dollars for hyperscale, and *** and *** U.S. dollars for wholesale colocation. Hyperscale data centers have the largest power requirements and customers are usually a cloud or large tech company. Wholesale and retail colocation, on the other hand, have smaller power requirements.

Leasing Information includes information on the status of leases along with the geographic locations, effective date, surface acreage and other data elements specific to the lease. Lease Owner details lease ownership by percentage and includes the company who is the designated lease operator.

Data Center Cabinet Rental Service comes with extensive industry analysis of development components, patterns, flows, and sizes. The report calculates present and past market values to forecast potential market management during the forecast period between 2025 - 2033.