Growth Opportunities in North American Data Center Colocation Services, 2024 2029

Growth Opportunities in North American Data Center Colocation Services, 2024 2029

Artificial Intelligence Adoption and Public Cloud Demand Drive Future Growth Potential

RELEASE DATE
06-May-2024
REGION
North America
Deliverable Type
Market Research
Research Code: PFGB-01-00-00-00
SKU: IT_2024_700
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SKU
IT_2024_700
$2,450.00
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Description

The data center colocation industry in North America is experiencing dynamic and rapid growth, offering enterprises cost-effective and dependable solutions for their IT infrastructure requirements. With the surge in enterprise digital transformation, sustainability initiatives, and the adoption of immersive technology, data centers have become essential infrastructure for businesses of all sizes and across various industries.

This industry is primarily driven by escalating hyperscale demand, particularly from public cloud providers. The retail segment is also witnessing strong growth because of ongoing digitization efforts and the deployment of AI across industries. To meet this growing demand, colocation service providers in North America are enhancing their capabilities in terms of space, power supply, security, cooling systems, and connectivity to accommodate the advanced infrastructure requirements necessary to support AI-enabled workloads. Providers are also focusing on facility design and implementing innovative cooling solutions.

North America is home to some of the world's largest data center colocation providers, and it is anticipated to remain a pivotal location in the years ahead. Alongside established markets such as Northern Virginia, Dallas, and the Silicon Valley area of California, emerging markets such as Portland, OR, and Atlanta are gaining momentum among service providers.

This analysis examines the current landscape of the North America data center industry and its dynamics for the forecast period of 2024 to 2029. It offers a comprehensive overview of trends, drivers, and restraints, along with revenue forecasts and a competitive analysis.

Author: Kriti Yadav

Table of Contents

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top 3 Strategic Imperatives on the Data Center Colocation Services Industry

Scope of Analysis

Data Center Colocation Services Ecosystem

Growth Metrics

Growth Drivers

Growth Restraints

Forecast Considerations

Revenue Forecast

Revenue Forecast Analysis

Demand Analysis

Key Trends

Maturing AI Landscape

Increasing Enterprise AI Workloads

Increasing Enterprise AI Workloads (continued)

Increasing Enterprise AI Workloads (continued)

Increasing Enterprise AI Workloads (continued)

Service Providers Leveraging AI for Differentiation

AI Practices/Initiatives

AI Practices/Initiatives (continued)

AI Practices/Initiatives (continued)

Embracing Sustainability in Data Center Operations

Embracing Sustainability in Data Center Operations (continued)

Embracing Sustainability in Data Center Operations (continued)

Renewable Energy to Become Mainstream

Renewable Energy to Become Mainstream (continued)

Sustainability Initiatives

Sustainability Initiatives (continued)

Sustainability Initiatives (continued)

Data Center Cooling Technologies and Strategies

Data Center Cooling Technologies and Strategies (continued)

Data Center Cooling Technologies and Strategies (continued)

Data Center Cooling Initiatives

Investments for New Builds

Investments for New Builds (continued)

Investments for New Builds (continued)

Focus on Locations Beyond Northern Virginia for Colocation Services

Northern Virginia 

Dallas

Silicon Valley

Atlanta

Phoenix

Portland

Columbus

Competitive Environment

Competitive Landscape

Competitive Landscape (continued)

Competitive Landscape (continued)

Competitive Landscape (continued)

Growth Opportunity 1: Hyperscale Public Cloud Demand

Growth Opportunity 1: Hyperscale Public Cloud Demand (continued)

Growth Opportunity 2: Retail Demand in Emerging Locations

Growth Opportunity 2: Retail Demand in Emerging Locations (continued)

Best Practices Recognition

Frost Radar

Benefits and Impacts of Growth Opportunities

Next Steps

Take the Next Step

List of Exhibits

Legal Disclaimer

The data center colocation industry in North America is experiencing dynamic and rapid growth, offering enterprises cost-effective and dependable solutions for their IT infrastructure requirements. With the surge in enterprise digital transformation, sustainability initiatives, and the adoption of immersive technology, data centers have become essential infrastructure for businesses of all sizes and across various industries. This industry is primarily driven by escalating hyperscale demand, particularly from public cloud providers. The retail segment is also witnessing strong growth because of ongoing digitization efforts and the deployment of AI across industries. To meet this growing demand, colocation service providers in North America are enhancing their capabilities in terms of space, power supply, security, cooling systems, and connectivity to accommodate the advanced infrastructure requirements necessary to support AI-enabled workloads. Providers are also focusing on facility design and implementing innovative cooling solutions. North America is home to some of the world's largest data center colocation providers, and it is anticipated to remain a pivotal location in the years ahead. Alongside established markets such as Northern Virginia, Dallas, and the Silicon Valley area of California, emerging markets such as Portland, OR, and Atlanta are gaining momentum among service providers. This analysis examines the current landscape of the North America data center industry and its dynamics for the forecast period of 2024 to 2029. It offers a comprehensive overview of trends, drivers, and restraints, along with revenue forecasts and a competitive analysis. Author: Kriti Yadav
More Information
Deliverable Type Market Research
Author Kriti Yadav
Industries Information Technology
No Index No
Is Prebook No
Podcast No
Predecessor PEA9-72-00-00-00
WIP Number PFGB-01-00-00-00