Data centers are the backbone of the digital economy. In today’s connected world, enterprises and governments rely heavily on best-in-class data centers and digital infrastructure. However, enterprises are increasingly outsourcing their data operations to third-party data center colocation service providers.

With hyperscale demand driving growth for data center colocation services from public cloud providers, over-the-top (OTT) content media service providers, and media and gaming customers, the industry is witnessing a significant shift and must build a value proposition that aligns with each customer segment’s specific requirements.

In 2023, Frost & Sullivan expects colocation service providers focused on scaling their space and power capacity to address the hyperscale demand as well as invest in tools and technologies to create strategic differentiation. Further, defining sustainability initiatives and edge strategies will be among the top priorities for colocation service providers.

In this study, Frost & Sullivan offers its top 10 predictions for the data center colocation services industry in 2023.

Author: Nishchal Khorana