According to the latest market research report by Technavio (www.technavio.com), the global data center colocation market is expected to grow at a compound annual growth rate (CAGR) of over 12% until 2020. To calculate the market size, Technavio researchers have considered revenues garnered from sales of new units in leading geographies.

“Accessing information stored in a data center involves the use of many devices. A robust networking solution is required to offer high-availability services. During the forecast period, a growing need for digitalization will enable processing of application workloads on servers with cross-platform support,” said Rakesh Panda, one of Technavio’s lead industry analysts for data center research.

He adds: “The use of cloud-based services and big data analytics is growing rapidly. Also, increasing digitalization has resulted in a significant rise in the amount of enterprise data generated and processed. To leverage the market demand, processor manufacturers such as Intel will look to increase the efficiency of servers in a distributed computing environment. Growing business demands will also likely result in the increased use of retail and wholesale colocation space by enterprises to host additional infrastructure for business continuity.”'

In 2015, the Americas contributed a revenue share of 46.7% to the global data center colocation market. The US has the largest number of data centers. Also, most of the relevant enterprises have their businesses in the country.

Due to increased business development and the rising demand for advanced data center services, adoption of colocation services has risen in the US. During the forecast period, adoption is likely to increase across Canada and Latin America as well, according to Technavio. Also, these regions are expected to witness many mergers and acquisitions by colocation vendors.