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A colocation data center is basically a facility which can be rented for the fulfillment of the needs like servers and other computing device. The services which are generally offered by the companies in this industry are structure, cooling, power backup, bandwidth and security while the customers are responsible for the rest.
Further the data colocation is bifurcated into two categories one is the retail colocation and other is wholesale colocation. Retail colocation are opted by those companies who want to rent in smaller increments within a data center space while wholesale colocation are opted by those companies who want to lease the entire data center space.
Colocation is becoming a more crucial aspect of remaining connected, cooperating, and moving forward in a cost-effective and safe manner as a result of the Covid-19 epidemic. Data is being used in healthcare to examine patient outcomes, and artificial intelligence is being used to forecast disease transmission. Telehouse colocation centers in New York, which have strong network connections, are providing solutions to a variety of businesses.
Key Market Driver -
Scalable data centers, reduced IT expenditure, increasing reliability and safety requirements is expected to drive the market growth
Key Market Restraint -
High Startup and maintenance cost, government regulations, security may restrict the market growth
The major companies in the data center colocation market are Equinix, Digital Realty Trust, China Telecom, NTT GDC, China Unicom, China Mobile, Cyrusone, KDDI Telehouse, GDS, Global Switch, 21Vianet, CoreSite, Cyxtera, Lumen, Flexential and others.
North America is going to dominate to the global market and the major reason behind this is the IT infrastructure which North America have and also the number of data centers are quite large in this region.
In the recent times Asia Pacific has been a go to market for various big IT firms, this region has shown a steady growth in the IT sector. Hence this region is going to show a remarkable growth in the data colocation market. Japan has already shown great signs, the density of the colocation is very high in Japan due to high number of data generated there.
The growth in the European market has been moderate. The drivers of the growth in this region are the new entrants in this industry and various data centers which has been set up in the last few years.
The growth of the data colocation market in Latin America is at its initial stage. Company has started to understand the positive side of this technology. The number of the cloud providers in this region has also shown a remarkable growth which is simultaneously boosting the growth of the data colocation market.
Middle East and Africa has seen growth in the data colocation market after the outbreak of the Covid-19 Pandemic. The major reason behind this is that the companies in the remote locations in this region has started to adopt cloud based services. And the increase in demand of cloud based services is driving the growth of the data colocation market.
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