Selbyville, Delaware, Dec. 09, 2020 (GLOBE NEWSWIRE) —
According to latest report “Data Center Colocation Market by Type (Retail Colocation, Wholesale Colocation), End-use (SMEs, Large Enterprises), Application (BFSI, Energy, Government & Defense, Healthcare, Manufacturing, IT & Telecom, Retail), Regional Outlook, Price Trends, Competitive Market Share & Forecast 2026”, by Global Market Insights, Inc., the market valuation of data center colocation will cross $130 billion by 2026. The roll-out of 5G technology in several countries along with the trend of smart cities will drive the demand for efficient colocation data centers.
Global expansion of organizations has led to the generation of massive data that requires large-scale facilities and modern technologies for effective management and security of the information. Global companies establishing new data center facilities or transforming their traditional infrastructure facilities to large-scale data centers along with the integration of modern technologies will witness increasing IT investments & expenses. This will fuel the demand for colocation service providers to effectively store massive data and reduce complexity.
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The rising amount of organizational data, such as consumer records, financial information, and operational data, is expected to propel the demand for efficient data center colocation solutions. The need for IT infrastructure is increasing from government & defense agencies due to the adoption of advanced technologies, such as big data analytics and hosting, for business operational needs. The upgrading to colocation data centers helps government agencies to reduce cost & energy, increase operational efficiency, and deliver enhanced services. Many data center colocation providers offer data center services to federal governments to manage their data.
Latin America data center colocation market growth will be fueled by rise in the number of data centers coupled with increasing investments by various business entities. International companies, such as IBM Corporation, Google, and Microsoft Corporation, are increasingly focusing on the market expansion in the region owing to significant growth opportunities. There are over 100 colocation data centers spread across Argentina, Chile, Colombia, Peru, Uruguay, Peru, and Brazil. Brazil is a major market for colocation data centers. Investments by colocation service providers are driving the regional market share.
Key participants operating in the data center colocation market are China Telecommunications Corporation, China Unicom, CyrusOne, Equinix, Inc., Digital Realty, Global Switch Corporation, Interxion N.V., KDDI Corporation, NTT Communications, and Singapore Telecommunications Limited.
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Some major findings of the data center colocation market report are:
- The rising data traffic and the need for efficient systems to manage massive data are encouraging companies to rent out IT space for their servers and storage devices.
- Several issues faced by data center facilities, such as aging & low-efficiency power, insufficient cooling capacity, low crisis response & disaster recovery rate, and lack of flexibility & scalability, can be managed with the help of a colocation provider.
- Several SMEs prefer cloud-based systems for their data centers due to lower CAPEX and faster deployment will positively impact the data center colocation market value.
- The growing demand for efficient data centers from compute-intensive applications, such as AI and IoT, will spur the industry growth. Telecom operators will shift to edge colocation to improve network latency and coverage.
- With the emergence of various new digital service types, such as autonomous vehicles, AR/VR, machine learning, and big data analytics, the traditional network structure is gradually becoming overburdened. Multi-access Edge Computing (MEC) is emerging as a tool that enables network services to remain closer to the users.
Table of Contents (ToC) of the report:
Chapter 3 Data Center Colocation Market Insights
3.1 Industry segmentation
3.2 Industry landscape, 2016 – 2026
3.3 Impact of coronavirus (COVID-19) pandemic
3.3.1 Global outlook
3.3.2 Regional impact
3.3.3 Industry value chain
3.3.4 Competitive landscape
3.4 Industry ecosystem analysis
3.5 Technology & innovation landscape
3.5.1 Cloud computing and virtualization
3.5.2 Edge computing
3.5.3 Green data center
3.5.4 Converged and hyper-converged infrastructure
3.6 Regulatory landscape
3.7 Industry impact forces
3.7.1 Growth drivers
3.7.2 Industry pitfalls & challenges
3.8 Growth potential analysis
3.9 Porter’s analysis
3.10 PESTEL analysis
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