Data Center Finance: Colocation Market Growth By 2020

The global colocation market will be worth more than $50 billion by 2020.

The global colocation market is expected to be worth $51.8 billion by 2020. A new study by Allied Market Research indicated that the compound annual growth rate of the colocation market will be 12.4 percent from 2015 through 2020. Demand in North America is driven by the banking, telecommunications and IT sectors, but colocation in the energy sector will grow the fastest at a rate of 14.3 percent.

Retail colocation is a larger share at present than wholesale colocation, driven by high demand for computing capacity in the range of 100​ KW to 500​ KW of power.

Previous estimates indicated that the global colocation market would reach $36 billion by 2017, spurred by a footprint growth of over 40 million square feet to reach 150 million square feet.

At the end of 2014, the market was worth $25 billion, with 1,086 companies offering multitenant colocation solutions in North America, Latin America, Europe, the Middle East, Africa and Asia Pacific. Those companies had a total of 3,685 individual data centers.

Brought to you by WiredRE, the nation's leading cloud, colocation, and data center advisory firm.