Data Center Colocation Market Top Countries Analysis and Investment Trends 

Webersnits12 Jan, 2026News

The data center colocation market is expected to grow at a compound annual growth rate (CAGR) of 14.4% from its anticipated USD 104.2 billion in 2025 to USD 204.4 billion by 2030. Higher-density AI and high-performance computing workloads are becoming more and more demanding, and power and cooling capacity—rather than just rack space—is becoming a crucial differentiator. Businesses today need liquid-cooled settings that can handle 40–60 kW per rack. Furthermore, because they offer low-latency Layer-2 connectivity across on-premises facilities, colocation centers, and several cloud regions, hybrid multicloud interconnection ecosystems have become indispensable. AI applications can move data with high performance and efficiency thanks to this configuration. The development of data sovereignty laws in Europe, India, and Australia is driving up investment in jurisdiction-secure, compliant hosting facilities that fetch high prices and long-term agreements.