Retail Segment to Dominate North America Data Center Colocation Market during 2021–2028

 According to a new market research study on “North America Data Center Colocation Market to 2028 – COVID-19 Impact and Regional Analysis and Forecast by Type, Enterprise Size, and Industry” is expected to reach US$ 45,093.81 million by 2028 from US$ 18,550.54 million in 2021. The market is estimated to grow at a CAGR of 13.5% from 2021 to 2028. The report provides trends prevailing in the North America data center colocation market along with the drivers and restraints pertaining to the market growth. Rising enterprise demands for cost-effective solutions to reduce overall IT cost is the major factor driving the growth of the North America data center colocation market. However, issues associated with the high initial and maintenance costs hinder the growth of North America data center colocation market.

The North America data center colocation market is segmented into type, enterprise size, industry, and country. Based on type, the market is segmented into retail and wholesale. The retail segment dominated the market in 2020 and wholesale segment is expected to be the fastest growing during the forecast period. Based on enterprise size, the data center colocation market is divided into SMEs and large enterprises. The large enterprises segment dominated the market in 2020 and SMEs segment is expected to be the fastest growing during the forecast period. Further, based on industry, the market is segmented into IT & Telecom, BFSI, healthcare, retail, and others. The IT & Telecom segment dominated the market in 2020 and BFSI segment is expected to be the fastest growing during the forecast period. Based on country, the data center colocation market is classified into US, Canada, and Mexico.

The COVID-19 pandemic has been affecting every business globally since December 2019. The continuous growth in the number of virus-infected patients compelled governments to put a bar on the transportation of humans and goods. The manufacturing sector witnessed severe loss due to temporary factory shutdowns and low production volumes, which hindered the growth of electronics & semiconductor, automotive, and retail sectors. Additionally, the social or physical distancing measures imposed by governments have put limitations on the operations of logistics and other service providers. This disruption resulted in the decline of the data center colocation market across all regions. Despite the disruption caused by the COVID-19 pandemic, the trade is likely to surge as businesses resume after a long lockdown measure. With social distancing measures in effect, the automotive, electronics & semiconductor, and other manufacturing industries have resumed their operations with less workforce capacity. In the last quarter of 2020, companies from many industries began their operations virtually and employees started to work from home, which has bolstered the demand for data centers. The sudden rise in the demand for increased server storage has fostered the growth of the data center colocation market and is expected to continue its growth during the forecast period.

 AT&T Intellectual Property; CoreSite Realty Corporation; CyrusOne, Inc.; Cyxtera Technologies, Inc. ; Digital Realty Trust LP ; Equinix Inc. ; NTT Communications Corporation ; Telehouse; and Verizon Partner Solutions. are among the leading companies in the North America data center colocation market. The companies are focused on adopting organic growth strategies such as product launches and expansions to sustain their position in the dynamic market. The companies are focused on adopting organic growth strategies such as product launches and expansions to sustain their position in the dynamic market. For instance, in 2021, TELEHOUSE NYIIX and The London Internet Exchange (LINX) have announced a new strategic relationship in the United States. NYIIX and LINX NoVA, both Internet Exchange Points (IXPs), will interconnect to allow members of one IXP to peer with members of the other IXP.

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