The data center colocation market is projected to reach USD 204.4 billion by 2030 from an estimated USD 104.2 billion in 2025, at a CAGR of 14.4%. The increasing demand for high-density artificial intelligence (AI) and high-performance computing (HPC) workloads is making power and cooling capacity, rather than just rack space, a key differentiator. Enterprises now require liquid-cooled environments that can support between 40 and 60 kW per rack. Additionally, hybrid-multicloud interconnection ecosystems have become essential, providing low-latency Layer-2 connectivity that spans on-premises facilities, colocation centers, and various cloud regions. This setup enables efficient, high-performance data movement for AI applications. Evolving data sovereignty regulations in Europe, India, and Australia are accelerating investment in compliant, jurisdiction-secure hosting facilities that command premium pricing and extended contracts.
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Top Data Center Colocation Companies Include:
Some of the major players in the cloud computing market include Equinix (US), Digital Realty (US), NTT Data (Japan), QTS Data Centers (US), and KDDI Corporation (Japan). These companies use and provide colocation services to move fast, innovate, and stay connected with customers worldwide. It helps them harness AI, manage massive data, and create smarter, more seamless experiences, such as recommending shows, processing payments, or running voice assistants. Colocation services give them the flexibility and power to keep evolving and delivering at scale.
In May 2025, NTT Data (Japan) announced plans to launch and list a data center real estate investment trust (REIT) on the Singapore Stock Exchange. This REIT will be seeded with six colocation facilities across the US, Europe, and Singapore, totaling over 41,000 sqm and approximately 80MW. The initiative aims to promote growth in NTT’s data center business and maximize corporate value.
In February 2025, Equinix (US) inaugurated the PA13x colocation data center in Meudon, France. The facility is designed to support high-density workloads, including AI applications. It emphasizes sustainability with heat recovery systems and photovoltaic panels, aiming to meet the growing demand for environmentally responsible colocation services in the region.
EQUINIX
Equinix is a global real estate investment trust specializing in interconnected colocation services, operating over 260 IBX data centers across 33 countries. The company’s strategy revolves around a software-defined interconnection fabric, such as ECX Fabric, that unifies global data centers and leverages scale through targeted mergers & acquisitions. The company’s core competencies include carrier-neutral ecosystems, access to over 3,000 cloud and network providers, AI-powered monitoring, high-density liquid cooling, and strong sustainability practices using 96 percent renewable energy. In April 2024, Equinix and PGIM Real Estate entered into a USD 600 million joint venture to develop and operate the first xScale data center in the US, located in Silicon Valley. The facility, named SV12x, is designed to provide over 28 MW of power capacity upon completion, catering to the growing demand for hyperscale data center infrastructure. Equinix combines horizontal integration by expanding its geographic footprint via acquisition with vertical integration through its Cloud Exchange, software-defined services, and managed offerings, enabling seamless hybrid and multi-cloud deployments with centralized orchestration and high operational resilience.
DIGITAL REALTY
Digital Realty is a global provider of carrier-neutral data centers and interconnection services, managing over 300 facilities across more than 25 countries. The company’s strategy centers on PlatformDIGITAL, which offers modular, AI-ready data halls, build-to-suit data centers, and renewable energy sourcing. Core strengths include scalable high-density power usage, strong interconnection frameworks, and a commitment to sustainability through green energy and carbon-neutral builds. In July 2024, Digital Realty acquired a colocation data center campus in Slough, UK, for USD 200 million. This acquisition enhances Digital Realty’s colocation capabilities in the London market, providing customers with expanded access to interconnected colocation services and supporting the growing demand for digital infrastructure in the region. Digital Realty pursues horizontal integration through acquisitions to enhance geographic coverage and vertical integration by controlling critical infrastructure layers, including power, cooling, and interconnect stack, allowing consistent delivery of compliant, reliable, and energy-efficient colocation services worldwide.
NTT Data
NTT Data, a key subsidiary of Japan’s NTT Group, holds over a 20% share in Japan’s booming data center industry and ranks as one of the top global players in data-center colocation. Through its Global Data Centers division—operating 150+ facilities across 20+ countries—it offers modular, build-to-suit wholesale colocation options such as secure cabinets, private cages, dedicated vaults and custom-built campuses. Bolstered by NTT’s telecom backbone, the company is investing heavily—pledging roughly ¥1.5 trillion (~US $12 billion) over five years, including major projects like a 50 MW joint-venture campus near Tokyo and a 30 MW facility in Kansai—with a strong focus on sustainability, aiming for net-zero emissions and 100% renewable energy by 2030.
QTS Data Centers
QTS Data Centers (formerly QTS Realty Trust) is a prominent U.S.-based provider of carrier-neutral data center colocation, hybrid cloud, and managed services, operating over 5 million ft² across 28+ facilities in North America and Europe, including key hubs in Northern Virginia, Atlanta, Chicago, Dallas, New Jersey, and the Netherlands. Serving more than 1,200 customers—from hyperscalers like AWS, Microsoft, Google, to financial services, healthcare, government, and Fortune 1000 enterprises—the company delivers scalable offerings from single cabinets to megawatt-scale wholesale and hyperscale environments, backed by its software-defined Service Delivery Platform™, “remote hands,” and robust security/compliance certifications (SOC 2, HITRUST, PCI-DSS, FISMA, ISO 27001). Acquired by Blackstone in August 2021 for approximately $10 billion, QTS has been recognized for its sustainability leadership—named the most sustainable data-center company in 2019–2020 and committed to 100% renewable energy—and continues to expand strategic colocation campuses like its Piscataway, NJ facility, adding significant power and space capacity.
KDDI Corporation
KDDI Corporation, a leading Japanese telecom and Global Fortune 500 company, delivers carrier-neutral data center colocation through its Telehouse brand, operating over 45 facilities worldwide including major Japanese sites like Telehouse Otemachi, Osaka, and high-density hyperscale campuses at Tama 3 and Tama 5 that support up to ~42 kVA per rack and offer tailored private suites and built-to-suit mega-spaces. The company ensures 24/7 operations with robust redundancy and deep connectivity into KDDI’s backbone and Internet exchanges such as JPIX . Emphasizing sustainability, KDDI aims for carbon neutrality in its data centers by FY2026, pioneering immersion-cooled containerized modules with PUE as low as 1.05–1.07, reducing energy use by up to ~94% in trials.
Market Ranking
In 2025, the data center colocation market remained fiercely competitive, with Equinix, Digital Realty, NTT Data Centers, KDDI, and QTS accounting for roughly 20–25 % of the global share. In January 2024, Equinix introduced its Private AI with NVIDIA DGX offering, bringing turnkey, GPU-accelerated infrastructure and liquid cooling support to over 100 IBX facilities. In May 2024, Digital Realty expanded PlatformDIGITAL in Japan by adding a second AI-ready data hall at the NRT campus and integrating renewable energy sources such as wind and nuclear. June 2025 saw NTT acquire 2.39 acres in Mumbai for a major new data center and deploy direct-to-chip and immersion cooling across its APAC portfolio. During April 2024, KDDI’s Telehouse launched its subsidiary in Canada, enhancing colocation with private 5G backbone connectivity. QTS unveiled AI-optimized, liquid-cooled, high-density campuses powered by renewables around the same time, reinforcing its position in the hyperscaler space. These developments highlight a strategic pivot toward AI readiness, sustainable infrastructure, and scalable operations across industry leaders.
Related Reports:
Data Center Colocation Market by Service Type (Traditional and Managed), Service Scale (Retail and Wholesale), Workload Type (General Purpose IT and HPC & AI), End User (Enterprises and Hyperscalers) with Impact of AI/GenAI - Global Forecast to 2030
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