- Data colocation services, which provide shared data center facilities for enterprises to house their servers and IT infrastructure, are becoming increasingly essential due to their ability to offer high reliability, robust connectivity, and reduced operational costs
- The surge in demand is fueled by the growing reliance on data-intensive technologies such as artificial intelligence, big data analytics, and IoT, alongside the need for businesses to ensure uptime and data accessibility
- North America dominated the data colocation market with the largest revenue share of 42.5% in 2024, driven by advanced IT infrastructure, widespread cloud adoption, and the presence of major colocation providers
- Asia-Pacific is expected to be the fastest-growing region during the forecast period, attributed to rapid urbanization, increasing digitalization, and growing investments in IT infrastructure in countries such as China, India, and Singapore
- The large scale segment dominated the largest market revenue share of 62.5% in 2024, driven by the increasing demand from enterprises and hyperscalers for high-capacity, secure, and scalable data center solutions to support cloud computing, big data analytics, and AI workloads
