The size of the US Data Center Industry market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 6.00% during the forecast period.A data center is a facility that keeps computer systems and networking equipment housed, processing, and transmitting data. It represents the infrastructure on which organizations carry out their IT operations and host websites, email servers, and database servers. Data centers, therefore, are imperative to any size business: small start-ups or large enterprise since they enable digital transformation, thus making business applications available.The US data center industry is one of the largest and most developed in the world. The country boasts robust digital infrastructure, abundant energy resources, and a highly skilled workforce, making it an attractive destination for data center operators. Some of the drivers of the US data center market are the growing trend of cloud computing, internet of things (IoT), and high-performance computing requirements.Top-of-the-line technology companies along with cloud service providers set up major data center footprints in the US, mostly in key regions such as Silicon Valley and Northern Virginia, Dallas, for example. These data centers support applications such as e-commerce-a manner of accessing streaming services-whose development depends on its artificial intelligence financial service type. As demand increases concerning data center capacity, therefore, the US data centre industry will continue to prosper as the world's hub for reliable and scalable solutions. Recent developments include: February 2023: The expansion of Souther Telecom to its data center in Atlanta, Georgia, at 345 Courtland Street, was announced by H5 Data Centers, a colocation and wholesale data center operator. One of the top communication service providers in the southeast is Southern Telecom. Customers in Alabama, Georgia, Florida, and Mississippi will receive better service due to the expansion of this low-latency fiber optic network.December 2022: DigitalBridge Group, Inc. and IFM Investors announced completing their previously announced transaction in which funds affiliated with the investment management platform of DigitalBridge and an affiliate of IFM Investors acquired all outstanding common shares of Switch, Inc. for USD approximately USD 11 billion, including the repayment of outstanding debt.October 2022: Three additional data centers in Charlotte, Nashville, and Louisville have been made available to Flexential's cloud customers, according to the supplier of data center colocation, cloud computing, and connectivity. By the end of the year, clients will have access to more than 220MW of hybrid IT capacity spread across 40 data centers in 19 markets, which is well aligned with Flexential's 2022 ambition to add 33MW of new, sustainable data center development projects.. Key drivers for this market are: , High Mobile penetration, Low Tariff, and Mature Regulatory Authority; Successful Privatization and Liberalization Initiatives. Potential restraints include: , Difficulties in Customization According to Business Needs. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

Colocation Centers Market size was valued at USD 57.98 Billion in 2024 and is projected to reach USD 148.7 Billion by 2031, growing at a CAGR of 12.50% from 2024 to 2031.

Global Colocation Centres Market Drivers

Growing Need for Data Processing and Storage: As digital data produced by companies, individuals, and Internet of Things (IoT) devices proliferates, there is an increasing demand for dependable and secure data processing and storage facilities. For businesses looking to manage their growing data needs without having to make the initial capital commitment in creating and operating their own data centers, colocation centers provide scalable alternatives.

Cost Savings and Efficiency: By splitting the costs of infrastructure, upkeep, and security with other tenants, colocation centers enable enterprises to take advantage of economies of scale. Organizations can access cutting-edge facilities and technologies at a lower cost thanks to this shared approach, which boosts productivity and lowers expenses.

Concentrate on Core capabilities: Businesses can concentrate on their core capabilities without being distracted by managing data center operations by outsourcing their IT infrastructure to colocation centers. This enables businesses to depend on colocation providers to provide dependable and secure infrastructure services while optimizing resource allocation, increasing productivity, and spurring innovation.

The global multi-tenant and wholesale data center market is experiencing robust growth, driven by the increasing adoption of cloud computing, big data analytics, and the Internet of Things (IoT). The market's expansion is fueled by the demand for scalable, reliable, and cost-effective infrastructure solutions among enterprises and hyperscale providers. Businesses are increasingly migrating their IT operations to the cloud and colocation facilities, leading to a surge in demand for multi-tenant and wholesale data center services. Furthermore, the rising adoption of edge computing is creating new opportunities for data center providers to deploy facilities closer to end-users, reducing latency and improving performance. This trend is particularly pronounced in regions with high population density and robust digital infrastructure. We estimate the market size in 2025 to be around $150 billion, based on industry reports and considering the significant growth factors at play. A conservative CAGR of 12% is projected for the forecast period (2025-2033), reflecting a healthy market outlook. Key restraints include high initial investment costs for data center construction and ongoing operational expenses, along with the challenges of ensuring data security and regulatory compliance. Market segmentation reveals a strong demand across various industry verticals, including finance, healthcare, and technology, with substantial growth anticipated in application areas such as cloud hosting and content delivery networks. The competitive landscape is characterized by a mix of established players and emerging entrants. Leading providers like Equinix, Digital Realty, and NTT Communications are consolidating their market share through strategic acquisitions and expansion of their data center footprints. However, the market also presents opportunities for smaller, specialized providers to cater to niche segments and geographic areas. North America and Europe currently dominate the market, driven by mature IT infrastructure and strong regulatory frameworks. However, regions like Asia Pacific are experiencing rapid growth due to increasing digitalization and economic expansion, offering significant potential for future expansion. The market will continue to evolve with the emergence of new technologies, such as AI and 5G, further driving demand for advanced data center infrastructure and innovative service offerings. This competitive yet expanding landscape promises a dynamic future for the multi-tenant and wholesale data center industry.

Taiwan MWH: Services: Wholesale and Retail Trade data was reported at 162.700 Hour in Mar 2019. This records an increase from the previous number of 126.800 Hour for Feb 2019. Taiwan MWH: Services: Wholesale and Retail Trade data is updated monthly, averaging 185.400 Hour from Jan 1977 (Median) to Mar 2019, with 507 observations. The data reached an all-time high of 228.900 Hour in Aug 1978 and a record low of 126.800 Hour in Feb 2019. Taiwan MWH: Services: Wholesale and Retail Trade data remains active status in CEIC and is reported by Directorate-General of Budget, Accounting and Statistics, Executive Yuan. The data is categorized under Global Database’s Taiwan – Table TW.G054: Hours Worked: Monthly.

Graph and download economic data for Producer Price Index by Commodity: Wholesale Trade Services: Metals, Minerals, and Ores Wholesaling (WPU5741) from Mar 2009 to Feb 2025 about ore, minerals, wholesale, trade, metals, services, commodities, PPI, inflation, price index, indexes, price, and USA.

This statistic shows the size of the global wholesale and retail datacenter colocation market in terms of operational square feet in 2014 and 2018. By 2018, the datacenter colocation market is expected to grow to a size of 176.5 million square feet (16.4 million square meters) in operational space.

This table contains 106 series, with data for years 2006 - 2009 (not all combinations necessarily have data for all years). This table contains data described by the following dimensions (Not all combinations are available): Geography (1 item: Canada) North American Industry Classification System (NAICS) (106 items: Wholesale trade; Farm product wholesaler-distributors; Farm product wholesaler-distributors; Live animal wholesaler-distributors; ...).

Graph and download economic data for Producer Price Index by Commodity: Wholesale Trade Services: Apparel Wholesaling (WPU57710101) from Mar 2009 to Feb 2025 about wholesale, apparel, trade, services, commodities, PPI, inflation, price index, indexes, price, and USA.

Wholesale services price index (WSPI) by North American Industry Classification System (NAICS). Monthly data are available from January 2008. The table presents data for the most recent reference period and the last four periods. The base period for the index is (2013=100).

Global data center colocation market was valued at US$ 56291.70 million in 2021 and is set to reach around US$ 1350315.73 million by 2028 at a CAGR of about 15.7% from 2022 to 2028.

Wholesale services price index (WSPI) measures quarterly margin price movement for Canadian merchant wholesalers, classified according to the North American Industry Classification System (NAICS). Data not seasonally adjusted. Index, 2020=100.

Data Center Colocation Services Market by Facility (Retail, Wholesale, Hybrid), Service (Space & Infrastructure (Rack, Cage & Cabinet, Suite), Disaster Recovery), Tier, Size, End User (Managed, Cloud, Enterprises), and Geography - Global Forecast to 2032

Taiwan Wholesale & Retail Trade Index: FB: Other Food and Beverage Services data was reported at 93.020 2006=100 in Feb 2014. This records a decrease from the previous number of 106.010 2006=100 for Jan 2014. Taiwan Wholesale & Retail Trade Index: FB: Other Food and Beverage Services data is updated monthly, averaging 101.545 2006=100 from Jan 1999 (Median) to Feb 2014, with 182 observations. The data reached an all-time high of 117.700 2006=100 in Jun 2012 and a record low of 75.910 2006=100 in May 2003. Taiwan Wholesale & Retail Trade Index: FB: Other Food and Beverage Services data remains active status in CEIC and is reported by Ministry of Economic Affairs. The data is categorized under Global Database’s Taiwan – Table TW.H003: Wholesale and Retail Trade Index: 2006=100.

Graph and download economic data for Producer Price Index by Commodity: Wholesale Trade Services: Other Commodities Wholesaling (WPU579) from Mar 2009 to Feb 2025 about wholesale, trade, services, commodities, PPI, inflation, price index, indexes, price, and USA.

United States - Producer Price Index by Commodity: Wholesale Trade Services: Paper and Plastics Products Wholesaling was 188.93800 Index Mar 2009=100 in March of 2022, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Wholesale Trade Services: Paper and Plastics Products Wholesaling reached a record high of 188.93800 in March of 2022 and a record low of 86.80000 in October of 2010. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Commodity: Wholesale Trade Services: Paper and Plastics Products Wholesaling - last updated from the United States Federal Reserve on February of 2025.

Forecast: Wholesale and Retail Trade, Transport, Accommodation and Food Service Activities Gross Value Added in India 2024 - 2028 Discover more data with ReportLinker!

Graph and download economic data for Producer Price Index by Commodity: Wholesale Trade Services: Alcohol Wholesaling (WPU578102) from Feb 2009 to Feb 2025 about alcohol, wholesale, trade, services, commodities, PPI, inflation, price index, indexes, price, and USA.

Brazil Wholesale Trade: CNAE 2.0: Agricultural Raw Materials & Live Animals: Expenditure: Communication Services data was reported at 128,661.000 BRL th in 2017. This records an increase from the previous number of 123,697.000 BRL th for 2016. Brazil Wholesale Trade: CNAE 2.0: Agricultural Raw Materials & Live Animals: Expenditure: Communication Services data is updated yearly, averaging 80,111.000 BRL th from Dec 2007 (Median) to 2017, with 11 observations. The data reached an all-time high of 128,661.000 BRL th in 2017 and a record low of 62,766.000 BRL th in 2008. Brazil Wholesale Trade: CNAE 2.0: Agricultural Raw Materials & Live Animals: Expenditure: Communication Services data remains active status in CEIC and is reported by Brazilian Institute of Geography and Statistics. The data is categorized under Brazil Premium Database’s Wholesale Trade, Retail Trade, Repair of Automotive and Motorcycles Sector – Table BR.RJB003: Wholesale Trade: Financial Data: CNAE 2.0: Agricultural Raw Materials and Live Animals.

Brazil Wholesale Trade: CNAE 2.0: Agricultural Raw Materials & Live Animals: Expenditure: Outsourced Services data was reported at 2,805,804.000 BRL th in 2017. This records an increase from the previous number of 2,469,634.000 BRL th for 2016. Brazil Wholesale Trade: CNAE 2.0: Agricultural Raw Materials & Live Animals: Expenditure: Outsourced Services data is updated yearly, averaging 2,104,647.000 BRL th from Dec 2007 (Median) to 2017, with 11 observations. The data reached an all-time high of 2,923,405.000 BRL th in 2014 and a record low of 984,866.000 BRL th in 2007. Brazil Wholesale Trade: CNAE 2.0: Agricultural Raw Materials & Live Animals: Expenditure: Outsourced Services data remains active status in CEIC and is reported by Brazilian Institute of Geography and Statistics. The data is categorized under Brazil Premium Database’s Wholesale Trade, Retail Trade, Repair of Automotive and Motorcycles Sector – Table BR.RJB003: Wholesale Trade: Financial Data: CNAE 2.0: Agricultural Raw Materials and Live Animals.

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Retail Colocation Market Size 2024-2028

The retail colocation market size is forecast to increase by USD 45.86 billion at a CAGR of 18.5% between 2023 and 2028.

The market is experiencing significant growth due to increasing demand for retail colocation facilities. This trend is driven by the rising adoption of software-defined data centers and the deployment of mini data centers to support the growing digital transformation in various industries. 
Retailers are recognizing the benefits of colocating their managed IT infrastructure in third-party data centers, which provides them with cost savings, improved operational efficiency, and enhanced security. Additionally, the use of edge computing and the increasing importance of data privacy are also fueling the growth of the market. Overall, these factors are expected to continue driving market growth In the coming years.

What will be the Size of the Retail Colocation Market During the Forecast Period?

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The market refers to the provision of data center space and computing resources to businesses and IT startups, allowing them to house and manage their own servers and IT infrastructure alongside those of other organizations. This model contrasts with wholesale colocation, where an entire data center is leased out to a single tenant. 
Retail colocation enables businesses to reduce capital expenditures on building and maintaining their own data centers, while benefiting from enhanced security, reliable connectivity, and uptime service-level agreements (SLAs). Key trends In the market include the increasing adoption of cloud services, the proliferation of the Internet of Things (IoT) and advanced technologies such as autonomous vehicles and 5G technology, and the growing demand for energy-efficient, high-density processing and green data center solutions.
Retail colocation data centers offer global interconnection and advanced cooling solutions, ensuring optimal performance and reliability for business applications and IT infrastructure. With a focus on intelligent power management and 24/7 support, these facilities enable businesses to effectively manage their colocation budget while maintaining the highest levels of network connectivity and SLAs.

How is this Retail Colocation Industry segmented and which is the largest segment?

The retail colocation industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  SMEs
  Large enterprises


Industry Application

  IT and telecom
  Healthcare
  Retail and e-commerce
  Energy and utility
  Others


Geography

  North America

    Canada
    US


  APAC

    China


  Europe

    Germany
    UK


  Middle East and Africa



  South America

By End-user Insights

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

Retail colocation services in small and medium-sized data centers have gained significant traction due to their reliability and flexibility. Unlike large data centers, which rely on extensive redundant configurations, small and medium-sized data centers prioritize device reliability. This demand for dependable infrastructure necessitates continuous upgrades and advancements, driving the need for retail colocation services. These services enable small and medium-sized data centers to improve operational efficiency, enhance productivity, and ensure energy savings through redundancy and flexibility. Additionally, retail colocation provides access to advanced computing resources, cloud technologies, and IoT integration, making it an essential component of digital transformation for businesses.

Security, connectivity, and uptime service-level agreements (SLAs) are crucial considerations for retail colocation, ensuring data protection and seamless network operations. Global interconnection and edge computing applications further expand the reach and capabilities of small and medium-sized data centers. Cost-effective and energy-efficient solutions are also essential for start-ups and IT ecosystems, making retail colocation an attractive option for businesses seeking scalable and reliable IT infrastructure solutions.

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The SMEs segment was valued at USD 9.44 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 32% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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