Market overview
The global data center colocation market is worth USD 69.4 bn in 2026 and is forecast to reach USD 188 bn by 2036, growing at a 10.5% CAGR. United States is the largest country market and Wholesale colocation is the largest by type segment.
| Scope | Revenue from retail and wholesale colocation: leased rack, cage and powered data hall space with power and cooling in third-party data centers, excluding hyperscaler self-build. |
|---|---|
| Industry | Services and Utilities |
| Value 2025 | USD 62.0 bn |
| Value 2026 | USD 69.4 bn |
| Value 2036 | USD 188 bn |
| CAGR 2026-2036 | 10.5% |
| Volume 2026 | 26,880 MW |
| Volume 2036 | 72,954 MW |
| Average price 2026 | USD 2,583,000 per MW |
| Report price | Starts from USD 1,999 |
| Published | November 2026 |
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Data Center Colocation market size and forecast, 2026-2036
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Year | Market value |
|---|---|
| 2026 | USD 69.4 bn |
| 2027 | USD 76.7 bn |
| 2028 | USD 84.8 bn |
| 2029 | USD 93.7 bn |
| 2030 | USD 104 bn |
| 2031 | USD 114 bn |
| 2032 | USD 126 bn |
| 2033 | USD 140 bn |
| 2034 | USD 154 bn |
| 2035 | USD 171 bn |
| 2036 | USD 188 bn |
Data Center Colocation market segmentation
By type
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Wholesale colocation | 52.0% | 56.4% | USD 36.1 bn | 11.4% |
| Retail colocation | 38.0% | 32.8% | USD 26.4 bn | 8.9% |
| Interconnection and managed services | 10.0% | 10.8% | USD 6.9 bn | 11.4% |
By end user
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Cloud and hyperscale providers | 42.0% | 49.7% | USD 29.2 bn | 12.4% |
| IT and telecom enterprises | 24.0% | 20.7% | USD 16.7 bn | 8.9% |
| Banking and financial services | 12.0% | 9.9% | USD 8.3 bn | 8.4% |
| Media and content | 10.0% | 9.9% | USD 6.9 bn | 10.4% |
| Government and other | 12.0% | 9.9% | USD 8.3 bn | 8.4% |
By tier level
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Tier II and below | 19.0% | 12.0% | USD 13.2 bn | 5.5% |
| Tier III | 61.0% | 62.0% | USD 42.4 bn | 10.7% |
| Tier IV | 20.0% | 26.0% | USD 13.9 bn | 13.4% |
By space unit
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Rack and cabinet | 34.0% | 27.0% | USD 23.6 bn | 8.0% |
| Cage and suite | 29.0% | 28.0% | USD 20.1 bn | 10.1% |
| Private hall and build-to-suit | 37.0% | 45.0% | USD 25.7 bn | 12.7% |
By facility location
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Primary metro hubs | 58.0% | 52.0% | USD 40.3 bn | 9.3% |
| Secondary cities | 26.0% | 28.0% | USD 18.1 bn | 11.3% |
| Edge sites | 16.0% | 20.0% | USD 11.1 bn | 13.0% |
Top 25 countries for data center colocation by revenue
Countries are ranked by revenue earned from sales in the country, not by where the product is made. The ten largest hold 82.9% of 2026 revenue and the 25 countries below together hold 94.5%.
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| # | Country | Value 2026 | Share 2026 | Value 2036 | CAGR 2026-36 |
|---|---|---|---|---|---|
| 1 | United States | USD 27.8 bn | 40.0% | USD 79.2 bn | 11.0% |
| 2 | China | USD 8.3 bn | 12.0% | USD 20.7 bn | 9.5% |
| 3 | United Kingdom | USD 3.8 bn | 5.5% | USD 9.0 bn | 9.0% |
| 4 | Germany | USD 3.8 bn | 5.5% | USD 9.4 bn | 9.4% |
| 5 | Japan | USD 3.5 bn | 5.0% | USD 8.3 bn | 9.1% |
| 6 | Singapore | USD 2.2 bn | 3.2% | USD 4.9 bn | 8.2% |
| 7 | India | USD 2.2 bn | 3.2% | USD 9.0 bn | 15.1% |
| 8 | Australia | USD 2.1 bn | 3.0% | USD 6.0 bn | 11.2% |
| 9 | France | USD 2.1 bn | 3.0% | USD 5.5 bn | 10.1% |
| 10 | Netherlands | USD 1.7 bn | 2.5% | USD 4.1 bn | 9.1% |
| 11 | Canada | USD 1.7 bn | 2.4% | USD 4.4 bn | 10.4% |
| 12 | Ireland | USD 1.3 bn | 1.9% | USD 3.6 bn | 10.4% |
| 13 | South Korea | USD 1.1 bn | 1.5% | USD 2.9 bn | 10.4% |
| 14 | Italy | USD 854 mn | 1.2% | USD 2.3 bn | 10.4% |
| 15 | Spain | USD 687 mn | 1.0% | USD 1.8 bn | 10.4% |
| 16 | Sweden | USD 549 mn | 0.8% | USD 1.3 bn | 8.7% |
| 17 | Brazil | USD 444 mn | 0.6% | USD 1.5 bn | 12.6% |
| 18 | Hong Kong | USD 354 mn | 0.5% | USD 961 mn | 10.5% |
| 19 | United Arab Emirates | USD 285 mn | 0.4% | USD 942 mn | 12.7% |
| 20 | Switzerland | USD 229 mn | 0.3% | USD 622 mn | 10.5% |
| 21 | Malaysia | USD 187 mn | 0.3% | USD 697 mn | 14.0% |
| 22 | Indonesia | USD 146 mn | 0.2% | USD 565 mn | 14.5% |
| 23 | Mexico | USD 118 mn | 0.2% | USD 396 mn | 12.9% |
| 24 | South Africa | USD 97 mn | 0.1% | USD 320 mn | 12.7% |
| 25 | Poland | USD 76 mn | 0.1% | USD 207 mn | 10.5% |
| Rest of world | USD 3.8 bn | 5.5% | USD 9.8 bn | 9.9% |
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
Competitive landscape
Group 1: Global leaders
- Equinix
- Digital Realty
- NTT Global Data Centers
- CyrusOne
- Iron Mountain Data Centers
- Global Switch
- QTS
- CoreSite
Group 2: Regional and specialist players
- Vantage Data Centers
- STACK Infrastructure
- Princeton Digital Group
- AirTrunk
- Switch
- CtrlS Datacenters
- GDS Holdings
- Chindata Group
- NEXTDC
- Colt Data Centre Services
Group 3: Emerging and niche players
- Yondr
- DataBank
- Sify Infinit Spaces
- Aligned Data Centers
- Flexential
- TierPoint
- Cologix
- EdgeConneX
Research methodology
Every figure on this page comes from the research framework that we apply to all of the markets we cover. The 2025 base for the data center colocation market is built from the volume sold and the price that buyers pay, and is cross-checked against the size of the wider industry the market belongs to. Where a market can be sized in more than one way, the routes are compared before a figure is set.
The forecast runs year by year from the 2025 base to 2036. Growth in each year reflects demand from the industries that buy the product, adoption of new technology, pricing, regulation and replacement cycles. Volume and price are modelled together, so revenue in each year equals volume multiplied by average price. The 2026 to 2036 compound annual growth rate of 10.5% is calculated from the resulting values.
The market is divided by type, by end user, by tier level, by space unit, by facility location. The 25 largest countries are ranked by revenue earned from sales to buyers in each country, not by where the product is made. Segment values and country values add up to the market total in every year, and every report is checked for consistency before it is published.
Companies are placed in three groups: global leaders, regional and specialist players, and emerging and niche players. The groups describe how companies compete in the market. They are not a ranking and they are not market shares.
Our analysts also carry out primary research. Customized reports add interviews with key opinion leaders, such as senior executives, technical specialists and buyers, to test the assumptions behind the numbers for the question being asked.
Frequently asked questions
How big is the data center colocation market?
The global data center colocation market is estimated at USD 62.0 bn in 2025 and USD 69.4 bn in 2026.
How fast will the data center colocation market grow?
It is forecast to reach USD 188 bn by 2036, a compound annual growth rate of 10.5% from 2026, an increase of USD 119 bn.
Which country is the largest market for data center colocation?
United States is the largest market by revenue at USD 27.8 bn in 2026, 40.0% of the global total. The three largest countries together hold 57.5%.
Which country is growing fastest?
Among the ten largest markets, India is growing fastest at 15.1% a year from 2026 to 2036.
Which data center colocation segment is largest?
In the by type split, Wholesale colocation is the largest segment with 52.0% of 2026 revenue.
Who are the leading data center colocation companies?
Global leaders include Equinix, Digital Realty, NTT Global Data Centers, CyrusOne.
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