DATA CENTER COLOCATION MARKET ANALYSIS

Regional Analysis

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North America dominates the global data center colocation market with an estimated 36.3% market share in 2024. The U.S. accounts for the major share due to strong presence of major tech giants such as Google, AWS, IBM, Microsoft, and others who have established their data centers across various U.S. states. The growth in the region can be attributed to rapid digitization and increasing reliance on cloud-based solutions among enterprises of all sizes. Moreover, aggressive retail colocation strategies by major data center operators like Equinix, Digital Realty, and others have further boosted the demand in North America over the years.

The APAC region, led by China and India, is witnessing the fastest growth globally. Various factors such as a surge in smartphone and internet penetration, growing cloud adoption and increasing foreign investments in the technology sector have been driving unprecedented growth in online activity and data usage. This has translated to significant demand for data center infrastructure including colocation facilities and hybrid cloud services. Countries like Singapore have emerged as preferred destinations for hyperscale data center builds and major operators are investing heavily in capacity expansions to capture the burgeoning colocation opportunities. Further, the lower cost of real estate, power and skilled labor compared to developed markets lure global operators to establish their presence in high-growth APAC nations.