CHICAGO, Nov. 29, 2022 /PRNewswire/ --According to Arizton's latest research report, the data center colocation market in Americas is to grow at a CAGR of 5.34% during 2022-2027. Virginia is considered the data center capital of the world. It is the largest contributor to data center floor space in the Americas and added more than 3 million square feet in more than 15 data center facilities. Virginia is followed by Georgia and California. Colocation service provider Switch is the major contributor to the area, with around two million square feet, followed by Cologix and STACK Infrastructure.
The region has a presence of technical parks, special economic zones, and free trade zones that provide investment support or tax incentives in the development of data centers across the region. Some industrial parks include Tahoe Reno Industrial Center (TRI) and Elk Grove, Industrial Park. The Americas data center colocation market by area is expected to reach 8,495 thousand square feet by 2027, growing at a CAGR of 5.17%.
Data Center Colocation Market in Americas Report Scope
Report Attributes
Details
Market Size (2027)
USD 10.6 Billion
Market Size (2021)
USD 7.75 Billion
CAGR (2021-2027)
5.34%
Market Size - Area (2027)
8 Million Sq. Ft
Market Size Power Capacity (2027)
1,317.5 MW
Base Year
2021
Forecast Year
2022-2027
Market Segmentation
Colocation Service, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Technique, General Construction, Tier Standard, and Region
Geographic Analysis
North America and Latin America
Countries Covered
US, Canada, Latin America, Brazil, Mexico, Chile, Columbia, and Other Latin American Countries
Market Dynamics
Tax incentives, increase in colocation investment, renewable energy drives data center growth, adoption of IoT & big data and smart city developments, and rising deployment of submarine and inland cables
Competitive Landscape
The business overview, service offerings, and key news
CompaniesProfiled in the Report
Prominent Colocation Investors: CyrusOne, Digital Realty, Equinix, GTD Per, HostDime, IPXON Networks, Lumen Technologies, NTT Global Data Centers, OData, QTS Reality Trust, Scala Data Centers, Switch, and Vantage Data Centers
Other Prominent Vendors: 365 Data Centers, Aligned, American Tower, Ava Telecom, CloudHQ, Cologix, Compass Datacenters, COPT Data Center Solutions, CoreSite, Cyxtera Technologies, DartPoints, DC BLOX, EdgeCore Internet Real Estate, EdgePresence, Element Critical, eStruxture Data Centers, fifteenfortyseven Critical Systems Realty (1547), Flexential, GIGA Data Centers, InterNexa, Iron Mountain, Millicom, Prime Data Centers, Quntico Data Center, Sabey Data Centers, Skybox Datacenters, STACK Infrastructure, Stream Data Centers, T5 Data Centers, Telmex, Urbacon Data Centre Solutions, and Vapor IO
NewEntrants: AUBix, Cirrus Data Services, DSTOR, Eastlink, EdgeX Data Centers, Enovum Data Centers, Gatineau Data Hub, Intermarket Properties, Novva, PointOne, QScale, Quantum Loophole, and Yondr
Page number
401
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In the Americas, investments in submarine cables have increased considerably over the years, with the government and enterprises continuously strengthening fiber infrastructure for better connectivity with other countries. Several telecommunication providers and hyperscale data center operators invest in cables to improve network connectivity within the country. The adoption of cloud, big data, and IoT technologies has strengthened the need for strong fixed broadband connectivity in the last five years. Along with submarine cables, the market is also witnessing a growth in data storage and connectivity demand due to the growing inland connectivity options.
The North American data center market leads growth in the overall industry, with early availability and adoption of innovative technology and investments from colocation service providers, hyperscale operators, enterprises, and government agencies. Investments in North America are driven by the availability of land, governmental support, data protection laws, and tax incentives by the state governments. In North America, the U.S. dominates the Americas data center colocation market, followed by Canada, with increased investments from colocation providers, hyperscale data center operators, enterprises, and government agencies in data center facilities, adopting redundant power backup infrastructure. Northern Virginia, Georgia, California, Texas, Arizona, Ontario, Montreal, Toronto, and Richmond are favorable destinations for investors in North America.
In Latin America, countries like Brazil are witnessing the rapid adoption of renewable energy, which leads to the growth of the facilities; in Mexico and other Latin American countries, the demand for centers was driven by the growth of the gaming industry and the special economic zones.
The rapid investment in 5G technology and its deployment will increase the number of connected devices, leading to the generation of a substantial amount of data, further increasing investments in edge data centers across regions for low latency and ease of accessibility to data device-to-device communications. American Countries have deployed 5G network services, and some are on a 5G trial basis. AT&T, T-Mobile, CenturyLink, TELUS, Rogers Communications, Bell, SaskTel, Nokia, SubTel, Alvis, Claro, Antel, Entel, and Ericsson are some of the companies which are involved in the deployment of the 5G network services across the region.
In the Americas, countries such as the U.S., Canada, Chile, and Uruguay have commercially deployed 5G network services. Additionally, Brazil, Colombia, Argentina, Mexico, Peru, and other Latin American countries are in the stage of 5G planning, trials, and yet-to-deploy commercial services during the forecast period.
Prominent Colocation Investors
Other Prominent Vendors
NewEntrants
Learn more about the additionaltrends impacting the future of the market and the positive and negative consequences on the businesses,Download the free Sample Report.
Market Segmentation
Colocation Service
Infrastructure
Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems
Cooling Technique
General Construction
Tier Standard
Region
Check Out Some of the Top Selling Related Reports:
Europe Data Center Colocation Market - The Europe data center colocation market is estimated to reach USD 11.75 billion by 2027 from USD 8.20 billion in 2021. The key factors driving the Europe data center colocation market are the growing adoption of artificial intelligence, growing adoption of district heating systems, growing adoption of district heating systems, increase in sustainable initiatives, growing innovative technologies, and rising adoption of advanced IT infrastructure.
APAC Data Center Colocation Market - The APAC data center colocation market size by investment was valued at USD 12.06 billion in 2021 and is expected to reach USD 18.23 billion by 2027. With the construction of additional data centers, local colocation providers in each country also increase their presence, thus boosting the market growth.
Latin America Data Center Colocation Market - The Latin America data center colocation market is expected to grow at a CAGR of over 6% from 2022 to 2027 and is expected to cross USD 1 billion in 2027 from USD 850 million in 2021.The Latin America data center colocation market is witnessing significant growth in procuring lithium-ion UPS systems. Most edge facility deployment will include single-phase lithium-ion UPS and monitored and switched PDUs. Therefore, the emergence of edge facilities will significantly boost market growth.
Data Center Colocation Market - The global data center colocation market size is expected to reach USD 43.18 billion by 2027 from USD 29.59 in 2021, growing at a CAGR of 6.5% from 2021 to 2027.The market witnessed supply chain-related challenges, impacting the timely deliverable of infrastructure in 2021 across IT infrastructure and support infrastructure providers. Vendors have taken several measures to ensure the timely supply of their products, reducing the impact to a greater extent. In addition, the invasion of Russia over Ukraine also created uncertainty across the European region, which created supply chain issues and oil shortages that led to delays in the operation of facilities. Also, most economies worldwide are facing high inflation rates and unemployment which is likely to impact the construction and growth of the data center colocation market.
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