Colocation Edge Data Center Market Analysis

Colocation Edge Data Center Market Analysis

Germany colocation edge data center market is expected to witness 20% growth rate through 2028 led by the rising number of data centers. To strengthen their market positionings, colocation providers are increasing their presence in different locations in the country. For instance, in October 2021, Equinix Inc. opened its FR8 International Business Exchange data center in the country. The company invested around USD 103 million for approximately 4,800 m² in colocation space. It will deliver network edge solutions and operate on 100% renewable energy. This factor will support them in catering to a large set of customers in the market, increasing service availability for various end users, increasing market competition in the sector, and improving the affordability & quality of services in the region.

In U.S., colocation edge data center market is estimated to attain a CAGR of 20% till 2028 impelled by the expanding healthcare sector. Market players through investments in infrastructural expansion are catering to the changes in the pharmaceutical sector. In May 2021, AMPAC Fine Chemicals invested around USD 25 million in its current location in Virginia, U.S. This investment will enable AMPAC Fine Chemicals to build an analytical division and improve its R&D department abilities with regard to pharma ingredients. For this project, the company will collaborate with Civica, Phlow and Virginia’s Commonwealth University’s Medicines to manufacture necessary medicines for the U.S. healthcare providers. The initiatives from the companies for extensive testing services & developments for the validation, analysis, and release of APIs & intermediates will boost the requirement of high-speed servers and computing software, thereby fueling the industry growth.
 

The adoption of advanced technologies, such as cloud computing and data analytics, has propelled the demand for data center colocation services over the past few years. Market players are using edge solutions to improve data handling and customer services. For instance, in October 2021, ABN AMRO signed an agreement with IBM Corporation & Kyndryl for managing its hybrid cloud infrastructure. Through this pact, they are focusing on supporting their international & domestic operations. The deal will include the deployment of single services delivery models, SaaS, and Azure & on-premises private cloud services. The rising integration of cloud-based solutions in the BFSI sector will augment the demand for colocation edge data centers that ensure fast & real-time data transfers.
 

Asia Pacific colocation edge data center market captured 30% of revenue share in 2021. The governing authorities in the region are promoting & focusing on implementing advanced technologies in existing systems to influence efficiency and sustainability. In June 2021, the Singapore National Research Agency established a new lab with a local manufacturing software firm to support manufacturers to develop Industry 4.0 capabilities. It will help market participants in merging industrial IoT and AI to optimize their production processes and build a robust supply chain.