$16.2bn
$X.Xbn
84,418
2,182
$X.Xbn
Operators of data center colocation services have benefited from the strong need for equipment, space and bandwidth to be rented to store servers. Over the past five years, operators have experienced strong revenue growth as digitalization continues to take hold, directly contributing to colocation services' demand. Companies that have digitized their operations now ask for bandwidth-intensive services, which ultimately require more data storage. COVID-19 accelerated this trend, with many businesses shifting to remote work and introducing new digital platforms. Over the past five years, revenue rose at a CAGR of 4.6% to an estimated $16.2 billion, including an expected boost of 4.5% in 2024 alone. Despite high interest rates and inflation, industry profit has remained steady during the current period, only slightly fluctuating.
Industry revenue has grown at a CAGR of 4.6 % over the past five years, to reach an estimated $16.2bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
---|---|---|---|---|
Equinix, Inc. | 2,206.0 | 381.3 | 17.3 | |
Ntt Data Corp | 1,467.4 | 129.0 | 8.8 | |
Digital Realty Trust, L.P. | 1,015.0 | 202.7 | 20.0 |
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Industry revenue is measured across several distinct product and services lines, including Retail, Wholesale and Hybrid. Retail is the largest segment of the Data Center Colocation Services in the US.
Retail colocation popularity has surged during the current period
Companies in this industry provide rental services of data centers, where companies can house their IT infrastructure which includes servers, storage and networking equipment. Operators in this industry also offer physical space, power, cooling and connectivity which enables businesses to outsource their data center operations while still maintaining control over their hardware.
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NAICS 51821 - Data Center Colocation Services in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Data center demand is skyrocketing. Higher rates of mobile phone and device usage have led to businesses investing heavily in IT infrastructure, creating heightened demand fo...
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The widespread popularity of flexible data storage services leads to growth across retail customers. As more small businesses and individual consumers adopt advanced technolo...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Highly populated regions are favorable destinations for new operators. Regions with a large local population will offer new establishments a diversified client base and oppor...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Offering quality and diverse services boosts performance. Operators that can provide efficient data storage, particularly for larger clients, will gain a competitive edge ove...
Learn about the performance of the top companies in the industry.
Name recognition bolsters incumbent companies. Since clients favor quality service and will look for name recognition prior to entering a contract, operators like Equinix Inc...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Strong growth in corporate profit bolsters operator performance. As more commercial clients benefit from higher corporate profit, they can expand their digital footprint and ...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
A higher rate of competition dampens profit. Due to more in-house data centers and the continued effects of inflation, many operators have endured falling profitability in re...
Including values and annual change:
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Key data sources in the US include:
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The market size of the Data Center Colocation Services in the US industry in United States is $16.2bn in 2024.
There are 2,182 businesses in the Data Center Colocation Services in the US industry in United States, which has declined at a CAGR of 0.2 % between 2019 and 2024.
The market size of the Data Center Colocation Services in the US industry in United States has been growing at a CAGR of 4.6 % between 2019 and 2024.
Over the next five years, the Data Center Colocation Services in the US industry in United States is expected to grow.
The biggest companies operating in the Data Center Colocation Services market in United States are Equinix, Inc., Ntt Data Corp and Digital Realty Trust, L.P.
Providing retail colocation services and Providing wholesale colocation services are part of the Data Center Colocation Services in the US industry.
The company holding the most market share in United States is Equinix, Inc..
The level of competition is high and increasing in the Data Center Colocation Services in the US industry in United States.