Data Center Colocation Market Trends, Size, and Forecast 2025-2033
Market Overview The global Data Center Colocation Market is undergoing rapid expansion, driven by the accelerating pace of digital transformation and a growing need for reliable, scalable, and secure IT infrastructure. Valued at USD 62.0 billion in 2023 , the market is projected to grow to USD 70.3 billion in 2024 , and surge further to an estimated USD 220.9 billion by 2033 , at a compelling CAGR of 13.5% during the forecast period. Colocation, at its core, allows organizations to rent space within third-party data centers to house their servers and networking hardware. This model eliminates the need to build and maintain an in-house facility, allowing companies to benefit from enterprise-grade infrastructure including power redundancy, robust cooling, physical security, and connectivity. With the rise in data-intensive applications, remote work, and cloud-first strategies, colocation services offer an optimal blend of flexibility, effic...