World Data Center Colocation Market Outlook and Investment Prospects Report 2024: Cloud and Technology Companies Continue to Dominate the Global Demand for Data Center Capacity Uptake
DUBLIN, March 21, 2024 /PRNewswire/ -- The "Worldwide Data Center Colocation Market - Investment Prospects in 9 Regions and 51 Countries" report has been added to ResearchAndMarkets.com's offering.
https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg
The worldwide data center colocation market by investment is expected to grow at a CAGR of 7.25% from 2022-2028, from USD 30.42 Billion in 2022 to reach USD 46.3 Billion in 2028.
Cloud and technology companies continued to dominate the global demand for data center capacity uptake - digitalization initiatives by public and private sector organizations and data localization laws further fuel colocation across Industry verticals.
Major data center hubs, namely North Virginia, Texas, California, Beijing, Shanghai, London, Frankfurt, Brazil, Paris, and Mumbai, continue witnessing sizable investments, cementing their dominance.
Power availability and supply chain constraints still daunt the data center market, causing the construction timelines to grow from an average of 18 months to around 30 months. Construction costs have also increased to around 20%-30% across key locations worldwide, increasing colocation rental pricing.
KEY TRENDS
-- Initiatives for sustainable operations involve transitioning to
renewable energy sources. For example, major data center operators like
Equinix and Vantage Data Centers actively invest in green bonds, tax
credits, and partnerships with energy providers to support the shift to
renewable energy.
-- The increase in rack power density prompts the adoption of innovative
designs. For instance, large data centers implement liquid and precision
air cooling to handle densities up to 50 kW efficiently. Data center
operators are actively involved in this transition to support AI/ML
workloads using liquid cooling.
-- The trend of connected devices exemplifies the adoption of IoT and big
data technologies. Major players like Microsoft, Amazon Web Services,
and Oracle are actively adopting ARM-based technology for efficient data
processing. Additionally, companies like Meta are heavily investing in
AR/VR technologies for the emerging Metaverse.
-- The Canadian government's tax credits for renewable energy projects,
Europe's Climate Neutral Data Center Pact, and initiatives in regions
like Latin America and APAC showcase the impact of government
regulations on data center practices. Operators in the data center
colocation market, like Equinix and Digital Realty, have ambitious plans
for carbon neutrality. These operators are actively working towards
significant reductions in carbon emissions by 2030 or 2040, aligning
with global sustainability goals.
-- The Uptime Institute forecasts demand for approximately 326,700
full-time employees in data centers worldwide by 2025, highlighting the
need for skilled professionals. Collaborations between industry and
educational institutions, such as training programs, are essential.
Collaboration with educational institutions addresses the shortage of
skilled personnel in data centers.
-- The Russia-Ukraine conflict and the COVID-19 pandemic have led to supply
chain disruptions impacting data center construction. To address this,
operators are adopting measures like increasing the number of suppliers
and using prefabrication to mitigate lead times. Government initiatives
also play a role in boosting local supply.
GEOGRAPHICAL ANALYSIS
-- The U.S. and China markets continued to dominate the worldwide data
center colocation market in terms of colocation revenue and investments
across the globe. Colocation revenue generated in the U.S. stands at
around USD 18 billion, followed by China at around USD 12 billion. These
countries will continue to add GW of power capacity YOY with around 300+
upcoming data center projects.
-- Latin American countries like Brazil, Chile, Colombia, and Mexico are
making strides in green data center development. Brazil takes the lead
as the dominant data center colocation market in Latin America,
commanding over 45% of the region's investments.
-- The data center colocation market is thriving in Europe, particularly in
Western Europe. The FLAP market continues to dominate in data center
capacity additions. Secondary markets, namely Spain, Italy, Portugal,
and Belgium, are witnessing strong growth through recent announcements.
The Nordics stand out as a hub for sustainable investments, with Norway
leading the race in 2022. Meanwhile, Central and Eastern Europe are
witnessing increased interest, with over USD 450 million invested in the
region in 2022.
-- Regarding revenue generated through colocation services, APAC takes the
lead with investments of over USD 21 billion in 2022, with China being
the major contributor in 2022.
SEGMENTATION ANALYSIS
Segmentation by Infrastructure
-- Electrical Infrastructure
-- Mechanical Infrastructure
-- General Construction
Segmentation by Colocation Type
-- Retail Colocation
-- Wholesale Colocation
Segmentation by Electrical Infrastructure
-- UPS Systems
-- Generators
-- Transfer Switches & Switchgear
-- PDUs
-- Other Electrical Infrastructure
Segmentation by Mechanical Infrastructure
-- Cooling Systems
-- Racks
-- Other Mechanical Infrastructure
Segmentation by Cooling Systems
-- CRAC & CRAH Units
-- Chiller Units
-- Cooling Towers, Condensers & Dry Coolers
-- Economizers & Evaporative Coolers
-- Other Cooling Units
Segmentation by Cooling Technique
-- Air-Based
-- Liquid-Based
Segmentation by General Construction
-- Core & Shell Development
-- Installation & Commissioning Services
-- Engineering & Building Design
-- Fire Detection & Suppression
-- Physical Security
-- DCIM
VENDORS LIST
Prominent Data Center Investor
-- China Mobile International
-- China Telecom
-- China Unicom
-- Chindata Group
-- CoreSite
-- CyrusOne
-- Digital Realty
-- EdgeConneX
-- Equinix
-- GDS Services
-- NTT Data
-- STACK Infrastructure
-- ST Telemedia Global Data Centres
-- Vantage Data Centers
-- VNET
Other Prominent Vendors
-- 365 Data Centers
-- AdaniConneX
-- Africa Data Centres
-- AirTrunk
-- Aligned Data Centers
-- American Tower
-- Atman
-- atNorth (Partners Group)
-- AT TOKYO
-- Aruba
-- Big Data Exchange (BDx)
-- CDC Data Centres
-- Center3
-- Chayora
-- CloudHQ
-- Cologix
-- Colt Data Centre Services (Colt DCS)
-- Compass Datacenters
-- COPT Data Center Solutions
-- CtrlS Datacenters
-- Cyxtera Technologies (Brookfield Infrastructure Partners)
-- DATA4
-- DataBank
-- DC BLOX
-- DCI Indonesia
-- Edge Centres
-- ePLDT
-- Flexential
-- Global Switch
-- Green Mountain
-- Gulf Data Hub
-- H5 Data Centers
-- HostDime
-- Iron Mountain
-- Internet Thailand
-- KDDI
-- Keppel Data Centres
-- Khazna Data Centers
-- LG Uplus
-- MettaDC
-- NEXTDC
-- Open Access Data Centres
-- Orange Business Services
-- Princeton Digital Group
-- QTS Realty Trust
-- Rostelecom Data Centers
-- Sabey Data Centers
-- Skybox Datacenters
-- Stream Data Centers
-- Scala Data Centers
-- Sify Technologies
-- SUNeVison Holdings (iAdvantage)
-- Switch
-- T5 Data Centers
-- Tenglong Holding Group
-- TierPoint
-- Turkcell
-- Urbacon Data Centre Solutions
-- Viettel IDC
-- Wingu
-- Yondr
-- Yotta Infrastructure
New Entrants
-- AQ Compute
-- Corscale Data Centers
-- Gaw Capital Partners
-- EDGNEX Data Centres by DAMAC
-- ESR
-- Gatineau Data Hub (GDH)
-- iMCritical
-- IXAfrica
-- Kasi Cloud
-- PowerHouse Data Centers
-- Quantum Loophole
-- QScale
-- YCO Cloud
-- YTL Data Center
For more information about this report visit https://www.researchandmarkets.com/r/30grhf
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Media Contact:
Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com
For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Logo: https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg
SOURCE Research and Markets
