Global datacenter colocation revenue 2014-2023

In 2018, global revenue from the wholesale and retail datacenter colocation market amounted to around 38 billion U.S. dollars. Industry revenues are expected to increase to over 50 billion dollars per year by 2023 as an increasing share of global businesses adopt data collection and analysis into their strategy.

Datacenter colocation

Datacenter colocations are typically large datacenters that house the computing resources of client companies and provide the space, security, power, and networking connections needed. It is separate from infrastructure-as-a-service (IaaS) given the fact that the physical servers are owned by the individual companies and not rented from the provider. No single company or group of companies has truly taken control of the market, but the biggest competitors are Equinix, Digital Reality, and China Telecom, which accounted for a combined 18.5 percent of total revenues in 2016. As of 2018 datacenter colocations around the world are projected to have a total operational space of well over 150 million square feet, and as additional companies have sought to enter the market, total spending on collocation company mergers and acquisitions has increased significantly.