Colocation Edge Data Center Market Seeking Growth from Emerging Markets Restraints and Forecast by 2028

Globally, colocation edge data center market size has recorded consistent expansion over the past decade, with significant application across both large organizations as well as SMEs.


Abhishek Bajpai

a year ago | 4 min read

Globally, colocation edge data center market size has recorded consistent expansion over the past decade, with significant application across both large organizations as well as SMEs. Although numerous facilities exist that offer great storage capacity and low latency for business operations, data centers are hard to find in areas that have a poor IT infrastructure.

Colocation edge data center market are important as it is possible to rent out a server space in a highly connected data center across tier 2 markets or areas that have been neglected by major data centers for years. The hardware used in edge data centers can be fit in any location and do not require huge infrastructure or immense resources to maintain.

Get a sample copy of this research report @

In fact, colocation providers offer the required data center infrastructure, such as cooling, power, building, physical security, and many other facilities needed to maintain the servers. This feature can greatly help organizations in focusing only on designing their edge hardware configuration and keeping a track of their applications and data, which significantly reduces their data center maintenance and operation costs.

Global colocation edge data center market size is set to surpass USD 25 billion during the forecast period of 2022–2028.

Service digitization gains momentum:

Many organizations are turning to advanced technologies, such as AI, IoT, and machine learning to digitize their services and boost their revenue margins. However, while digital platforms enhance customer satisfaction, the volume of datasets grows every day. This can make it increasingly difficult for companies to store all the data on their local servers.

As a result, edge data centers are gaining popularity among end-users because they are located closer to data generation points than a public cloud. These data centers possess advantages like high security, low latency, and great control on data. Due to the availability of colocation services, edge data center users do not have to block their finance and resources to maintain a traditional data center infrastructure, thereby increasing their demand.

Demand for retail colocation grows:

Retail colocation will capture a notable share of global colocation edge data center market by 2028 due to its rising adoption by SMEs. Since retail colocation providers offer space to accommodate less than 10 racks and cabinets, SMEs can leverage the benefits of renting a limited number of racks and enclosures.

Moreover, small-scale businesses have several budgetary constraints that make it almost impossible for them to use wholesale colocation services. Retail colocation facilities can help the companies overcome this challenge by providing spaces at affordable prices.

Retail colocation even supports SMEs in scaling up their business by helping them rent out broader spaces to accommodate their growing IT hardware. Also, retail colocation facilities have a limit on their power supply, which can be ideal for small businesses as they do not consume as much energy while operating as large ones.

Increased use of colocation edge data centers in retail sector:

The retail sector is embracing the digital era and all the innovative technologies it has to offer like virtual platforms for shopping and payment modes. AI in retail has taken centerstage in recent years due to the ability to deliver cutting-edge services and increase customer satisfaction.

Request for customization @

For instance, visual search is becoming one of the most important trends in retail AI as customers don’t have to go through the long and cumbersome process of searching for a specific product. Retail giants, such as Amazon and Myntra are widely using this search tool to help customers buy products like clothes and household appliances by uploading the item’s photograph on their website. However, the growing use of many such tools has increased the digital data generation by many folds.

Colocation of edge data centers can help these companies safely store their customer data and reduce their costs of maintaining and operating huge data storage facilities. By renting out hardware, networking equipment, and rack spaces offered by colocation service providers, companies can expand their operations without worrying about latency issues or storage problems while serving their customers.

Global colocation edge data center market value will increase tremendously in the future as several companies are boosting their investments in edge data centers. Colocation of these data storage facilities will also rise as both small and large enterprises can leverage the benefits offered by them.

Organizations, such as Rackspace Inc., Equinix, Inc., Digital Realty Trust, Inc., Emtel, Eaton Corporation PLC, and NTT Communications Corporation, Ltd., among others, are among the top players in this colocation edge data center market. The companies are declaring partnerships with other firms to build their portfolios and cater to a wider customer pool. For instance, in June 2021, DataCenters.Com announced its collaboration with EdgePresence, which would allow the former to provide EdgePresence’s EdgePod data centers and edge colocation services to its consultants, independent sales agents, and MSPs.

Table of Contents (ToC) of the report:

Chapter 1 Methodology & Scope

1.1 Scope & definitions

1.2 Methodology & forecast parameters

1.3 COVID-19 impact

1.3.1 North America

1.3.2 Europe

1.3.3 Asia Pacific

1.3.4 Latin America

1.3.5 MEA

1.4 Data sources

1.4.1 Secondary

1.4.2 Primary

Chapter 2 Executive Summary

2.1 Colocation edge data center market 360º synopsis, 2018–2028

2.1.1 Business trends

2.1.2 Regional trends

2.1.3 Type trends

2.1.4 End-use trends

2.1.5 Application trends

About Global Market Insights:

Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.

Contact Us:

Aashit Tiwari

Corporate Sales, USA

Global Market Insights Inc.

Toll Free: 1–888–689–0688

USA: +1–302–846–7766

Europe: +44–742–759–8484

APAC: +65–3129–7718



Created by

Abhishek Bajpai







Related Articles