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Data Center Colocation: Decision-Makers’ Insights and Strategic Priorities, 2026–2027
Highlights from the Annual Frost & Sullivan Global IT and Business Decision-Makers Survey
26-Feb-2026
Global
Customer Research
KC74-01-00-00-00
IT_2026_34414
Frost & Sullivan’s annual survey of IT and business decision-makers, now in its 16th year, examines evolving perceptions, investment priorities, and purchasing behaviors related to digital infrastructure. The study explores how organizations align technology adoption with business objectives amid rapid technological change.
This research presents comprehensive insights into the data center colocation market, including infrastructure choices for application deployment; key drivers for adopting colocation services; criteria for selecting service providers; current IT load capacity (end of 2025); projected capacity requirements (2026–2027); the status of AI solution deployment; and workloads requiring edge data centers and low-latency performance. Findings are segmented by region, industry, and company size to reveal distinct market dynamics.
Survey results indicate that artificial intelligence has surpassed cloud computing as the primary driver of digital transformation. Consequently, organizations are accelerating infrastructure investments to support AI initiatives aligned with strategic objectives, including revenue growth, enhanced customer experience, and operational efficiency.
Overall, this study provides actionable insights for data center colocation providers, IT vendors, cloud service providers, and enterprise leaders on emerging trends and future opportunities in the colocation market.
Author: Carina Goncalves
Research Objectives and Methodology
Respondent Profile
Revenue Growth and CX Improvement are the Top Priorities
Type of Infrastructure to Run Applications
Key Reasons for Choosing Colocation Facility Deployment
Key Reasons for Choosing On-Premises Deployment
Key Reasons for Choosing Public Cloud Deployment
Key Reasons for Choosing Edge Location Deployment
Criteria When Choosing a Colocation Service Provider
Current IT Load Capacity
Current State of AI Solutions Deployment
Workloads that Require Edge Data Center and Latency Requirements
Type of Infrastructure to Run Applications Used Today by Sector
Key Reasons for Choosing Colocation Facility Deployment by Sector
Key Criteria When Choosing a Colocation Service Provider by Sector
Current IT Load Capacity by Sector
Expected Increase in IT Load Capacity by Sector
Current State of AI Solutions Deployment by Sector
Main AI Deployment Model by Sector
Workloads that Require Edge Data Center by Sector
Latency Requirements by Sector
Type of Infrastructure to Run Applications Used Today by Region
Key Reasons for Choosing Colocation Facility Deployment by Region
Top 3 Criteria When Choosing a Colocation Service Provider by Region
Current IT Load Capacity by Region
Expected Increase in IT Load Capacity by Region
Current State of AI Solutions Deployment by Region
Main AI Deployment Model by Region
Workloads that Require Edge Data Center by Region
Latency Requirements by Region
Type of Infrastructure to Run Applications Used Today by Company Size
Key Reasons for Choosing Colocation Facility Deployment by Company Size
Key Criteria When Choosing a Colocation Service Provider by Company Size
Current IT Load Capacity by Company Size
Expected Increase in IT Load Capacity by Company Size
Current State of AI Solutions Deployment by Company Size
Main AI Deployment Model by Company Size
Workloads that Require Edge Data Center by Company Size
Latency Requirements by Company Size
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