Global Data Center Colocation Market is Fragmented, Equinix, Inc. Holds a share of 10.69% in 2024

Global Data Center Colocation Market Overview

According to Global Market Monitor, the global data center colocation market size will be $102.67 billion in 2024 with a CAGR of 17.25% from 2024 to 2029.

The decision to move, expand, or integrate a data center must be weighed against the background of cost, operational reliability, and security. Considering these factors, more and more companies are finding that hosting provides the solutions they need without having to manage their data centers.

Data center hosting is also referred to as "Colo" for short. Data center hosting refers to the service provided by the company that provides a shared and secure space for corporate business to store hardware related to data storage and other equipment.

Corporate customers cooperate with Colo in a manner similar to a lease relationship with a property manager, where the customer rents space in the facility to store equipment. Customers usually provide equipment: servers and other hardware required for daily operations. Colo stores it securely in a cool, monitored environment suitable for servers while ensuring that bandwidth requirements are met.

Market Drivers

One of the main advantages of data center colocation is that it can significantly save costs, especially when measuring internal data center management. This means that for many companies, renting the space they need from the data center provides a practical solution to shrinking IT budgets. With colocation, customers do not need to worry about capital expenditures such as planning for UPS (uninterruptible power supply), multiple backup generators, power grids, and HVAC installations. In addition to these capital expenditures, there are ongoing maintenance costs associated with maintaining and managing internal servers.

The Market is Fragmented

Equinix, Inc. is one of the major players operating in the Data Center Colocation market, holding a share of 10.69% in 2024.Equinix is a global digital infrastructure company. It connects industry-leading organizations in the fields of finance, manufacturing, mobility, transportation, government, healthcare, and education to a cloud-first world.

Company News and Dynamics

With strong underlying demand for digital infrastructure, Equinix continues to invest broadly across its global footprint. The company currently has 50 major projects underway in 34 markets, across 21 countries. This includes 14 xScale builds, representing more than 16,000 cabinets of retail capacity and more than 50 megawatts of xScale capacity through the end of 2024. More than 90% of current retail expansion capital expenditures are related to owned land or owned buildings with long-term ground leases.

In March 2024: Equinix expands into the Middle East by announcing the opening of its first data center in Dubai, aiming to meet the growing demand for colocation and cloud services in the region. The expansion is in line with the UAE's growing cloud adoption and smart city initiatives.

In mid-April 2024, Equinix announced its first U.S. xScale joint venture with PGIM Real Estate for the SV12x asset in Silicon Valley. When combined with its existing joint ventures in Asia-Pacific, Europe and Latin America, this new joint venture will bring the expected global xScale portfolio to more than $8 billion of investment across more than 35 facilities and greater than 725 megawatts of power capacity when completed.

Company Name	Equinix, Inc.
Website	www.equinix.com
Established Time	1998
Sales Region	Worldwide

For more industry information, please refer to our latest released "2023 Global Data Center Colocation Market Analysis Report, Key Competitors, Market Effect Factors, Growth, And Forecast".