The Americas Data Center Colocation market will grow at a CAGR of 15.59% from USD 23.683 billion in 2025 to USD 48.868 billion in 2030.
Information and communications technology are at the heart of the digital economy. It is estimated that increasing investments in information and communications technology will positively impact the colocation market during the forecasted period. The major growth drivers of America's data center colocation market are the presence of a large number of small and big players, increasing adoption of cloud computing solutions, and rising demand from service providers. The other major factor augmenting the colocation market growth is the increasing focus on data privacy and regulation in the country. Enterprises operating in the entertainment and media, healthcare, communication, and government sectors are increasingly outsourcing their IT infrastructure needs and opting for colocation space to focus on their core business operations and reduce operating costs.
5G technology is expected to be launched during the forecast period, which is further anticipated to increase the volume of internet traffic and the requirement for the storage of digital data. This is expected to supplement the data center colocation market growth with an increasing amount of data that will be required to be stored in the cloud, and firms with a limited capacity will demand colocation services to meet the growing demand effectively.
By industry vertical, data security compliance and the requirement for huge data storage are the key aspects of technology deployment in the banking and financial services industry. The industry requires analyzing huge volumes of customer data from different sources to provide efficient and customer-centric services. The BFSI sector is witnessing growth worldwide, and enterprises are constantly upgrading their existing IT infrastructure while moving on to the latest solutions. In developing economies such as Brazil and Mexico, there is a renewed focus on social integration
By the colocation model, the market is segmented into retail and wholesale colocation models, which are offered by different colocation service providers. Retail colocation accounts for the major market, while wholesale colocation providers have started focusing on short-term deals to remain competitive. Retail colocation service providers have modified their existing strategy to meet the challenges arising from wholesale colocation solution providers. These providers are purchasing a lot of space from wholesale colocation providers and then selling it to small and medium enterprises catering to another segment of small customers. Additionally, the retail colocation service providers are catering to big companies’ additional requirements
In the United States, technology and innovation have been advancing rapidly. The introduction of advanced networking technologies accompanying the upcoming sixth-generation (6G) networks is expected to make the implementation of the Industrial Internet of Things (IIoT) easier. Operators have a strong interest in Virginia and the Southeast in general. They invest much money to increase their market share and presence in this region. Oregon, Idaho, Utah, and California are part of the fully developed colocation market in the Western U.S. region. Numerous data center locations in these states provide colocation services to nearby businesses and organizations.
Americas Data Center Key Market Segmentation:
Americas data centre colocation Market is segmented and analyzed as below: