North America Data Center Colocation Market Market to Grow at a CAGR of 13.5% to reach US$ 45,093.81 million from 2021 to 2028

The data center colocation market in North America is expected to grow from US$ 18,550.54 million in 2021 to US$ 45,093.81 million by 2028; it is estimated to grow at a CAGR of 13.5% from 2021 to 2028.

The US, Canada, and Mexico are economies in North America. On-site management of data center infrastructure requires highly skilled IT employees. It also incurs infrastructure maintenance and server management expenditures. Moreover, constructing a new data center facility needs high initial investments that increase the overall CAPEX of enterprises. Thus, enterprises are becoming more considerate of the CAPEX spent on constructing mission-critical data centers and seeking several methods to improve return on investment (ROI) and reduce cost. The growing focus on reducing IT costs encourages business owners to explore innovative IT infrastructure options. As a large number of enterprises are shifting their IT infrastructures to the cloud to attain zero downtime and address the need to reduce IT infrastructure expenses, high-power and physical security requirements serve as major elements driving the colocation market. Today, enterprises are switching to data center colocation providers for bandwidth, space, power, and value-added services (VAS), such as internet solutions, interconnection services, and skilled managed IT services depending upon their size and requirement. This, in turn, supports increasing business potential by reducing operational expenditure, thereby maximizing the ability to concentrate on the core business. The rising demand for cloud-based colocation services with the majority of the workforce shifting to remote working is propelling the growth of the data center colocation market.

The COVID-19 pandemic has been affecting every business globally since December 2019. The continuous growth in the number of virus-infected patients compelled governments to put a bar on the transportation of humans and goods. The manufacturing sector witnessed severe loss due to temporary factory shutdowns and low production volumes, which hindered the growth of electronics & semiconductor, automotive, and retail sectors. Additionally, the social or physical distancing measures imposed by governments have put limitations on the operations of logistics and other service providers. This disruption resulted in the decline of the data center colocation market across all regions. Despite the disruption caused by the COVID-19 pandemic, the trade is likely to surge as businesses resume after a long lockdown measure. With social distancing measures in effect, the automotive, electronics & semiconductor, and other manufacturing industries have resumed their operations with less workforce capacity. In the last quarter of 2020, companies from many industries began their operations virtually and employees started to work from home, which has bolstered the demand for data centers. The sudden rise in the demand for increased server storage has fostered the growth of the data center colocation market and is expected to continue its growth during the forecast period.

With the new features and technologies, vendors can attract new customers and expand their footprints in emerging markets. This factor is likely to drive the data center colocation market. The North America data center colocation is expected to grow at a good CAGR during the forecast period.

North America Data Center Colocation Market Segmentation

North America Data Center Colocation Market – By Type

• Retail
• Wholesale

North America Data Center Colocation Market – By Industry

• IT and Telecom
• BFSI
• Healthcare
• Retail
• Others

North America Data Center Colocation Market – By Enterprise Size

• SMEs
• Large Enterprises

North America Data Center Colocation Market- By Country

• US
• Canada
• Mexico

North America Data Center Colocation Market-Companies Mentioned

• AT&T Intellectual Property
• CoreSite Realty Corporation
• CyrusOne, Inc.
• Cyxtera Technologies, Inc.
• Digital Realty Trust LP
• Equinix Inc.
• NTT Communications Corporation
• Telehouse
• Verizon Partner Solutions.