Popular market research firm Research and Markets recently compiled a report on North America Data Center Colocation Market for period 2016-2022. The countries selected for research and formulation of report mainly included U.S., Canada, Mexico and Rest of North America.

What is colocation?



A ‘colocation’, sometimes known as ‘colo’ is referred to data center facility in which businesses rent space for computing hardware, servers, in general. While at one end colo provides facilities like infrastructure, building, power, cooling, security and bandwidth; at the other end customer provides storage and servers.

Another easy definition of colocation facilities goes like- data centers that rents space, bandwidth, equipment to businesses that are in search of service provider at reasonable costs.

As per the report, the North America data center colocation market is predicted to grow at 10% CAGR rate in between 2016 and 2022. During the forecast period, the same market is expected to achieve an astonishing market value of $18,028 million growing at a rate of 9.3% CAGR. The forecast also details that in 2015 U.S. market dominated North America data center colocation market.

Businesses opt for colocation providers as they offer expertise to companies and allow them a window to focus their shift from operational to innovational level. While enterprises availing such services do not have to worry about daily operations of data centers, it gives them productive time which is spent on core business areas. Another great advantage that results out of colocation services, as mentioned in the report is that these facilities provide a great opportunity in front of businesses to outreach their data center capacity as per needs and requirements that too in a cost-effective manner.


Research and Markets also highlighted the increased adoption of colocation market in North America. Two major types of data center colocation market are as listed below:

  • Retail Data Center Colocation Market
  • Wholesale Data Center Colocation Market

Again on the basis of End-User the same market is segmented into three categories, which are:

  • Small Enterprises
  • Medium Enterprises
  • Large Enterprises

Data center colocation finds its use and applications across various sectors which include:

  • Banking, Financial services and Insurance (BFSI)
  • Government organizations
  • Public sector organizations
  • Telecom
  • Information Technology
  • Lifesciences
  • Energy
  • Healthcare
  • Other verticals


Major companies that contributed in forming of this report included Adept technology Inc., Yamaha Corporation, Intuitive Surgical Inc., and Honda Motor Co.