Global Colocation, European Colocation Markets on the Rise

As more businesses turn to colocation data centers to outsource their server management and data center support system needs, the global colocation and European colocation markets will continue to see significant growth. Demand for high-grade utilities and scalable data center space has fueled increases in primary as well as secondary markets, as businesses cut down on IT expenses while positioning themselves for greater agility and flexibility in the future.

Globally, the colocation data center market is expected to increase at a compound annual growth rate of 12.26 percent between 2014 and 2019, rising from a $25.07 billion market this year to $44.69 billion over the next five years, according to a report from Mordor Intelligence. North America continues to remain the biggest player in the colocation market, with nearly 1,300 colocation facilities in the U.S. alone.

The European market is also projected to increase over the next few years. The United Kingdom remains the top location for colocation data centers in Europe, with 224 total and 69 London data centers alone. Paris and Amsterdam are second and third, with 48 and 38 colocation facilities, respectively. 

According to the first survey, the Asia-Pacific market also is growing at a rapid clip. Currently, India is pacing the region with 100 colocation facilities, but China, Japan and other countries continue to see heavy investment.

The industries most aggressively adopting colocation data center solutions include healthcare, energy and power, government and information technology. Regulatory compliance, increasingly diverse customer bases, growing data support needs and disaster recovery concerns are some of the main factors driving adoption. 

In the coming years, there will be increasingly diverse solutions offered by many colocation providers, which are rolling out "turnkey cloud" services that combine elements of colocation and cloud, giving tenants the ability to add the flexibility, scalability and diverse device support that clouds can offer. 

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