North America Data Center Colocation Market Size, Share & Trends Analysis Report By Type (Retail Colocation and Wholesale Colocation), By Enterprise Size, By Tier Level (Tier 3, Tier 4, Tier 1, and Tier 2), By End Use, By Country and Growth Forecast, 2024 - 2031

The North America Data Center Colocation Market is expected to witness market growth of 15.0% CAGR during the forecast period (2024-2031).

The US market dominated the North America Data Center Colocation Market by country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of $44.51 billion by 2031. The Canada market is experiencing a CAGR of 17.4% during 2024-2031. Additionally, the Mexico market is expected to exhibit a CAGR of 16.5% during 2024-2031.



The market has emerged as a crucial pillar in modern IT infrastructure, driven by the rapid digital transformation of businesses, the rise of cloud computing, and the increasing demand for scalable and cost-efficient data management solutions. Organizations across industries, from banking and finance to healthcare, e-commerce, media, and telecommunications, are increasingly adopting colocation services to enhance data security, efficiency, and network connectivity. As enterprises shift from traditional on-premises data centers to third-party colocation facilities, the market is witnessing unprecedented growth.

Colocation services provide businesses with the physical infrastructure to house their servers, storage systems, and networking equipment in professionally managed facilities. By doing so, enterprises benefit from redundant power supply, advanced cooling technologies, high-speed connectivity, and robust security measures without incurring the massive capital expenditure of building and maintaining private data centers. Furthermore, the market has evolved to accommodate modern business needs, including hybrid cloud solutions, edge computing, and artificial intelligence-driven optimizations.

In Mexico, the data center industry is expanding rapidly, with data centers now accounting for nearly a third (32%) of total construction spending in 2024, compared to just 5% in 2014. According to the Centre for Exhibition and Research, this trend is expected to continue, with data center construction approaching 40% of total office construction by 2028. This shift highlights the increasing reliance on cloud services, AI, and big data analytics across industries. As businesses move toward digital-first operations, colocation services provide a cost-efficient alternative to building and maintaining private data centers. Companies in Mexico are leveraging colocation facilities to support high-performance computing, enhance connectivity, and optimize IT infrastructure costs, making colocation a key enabler of digital growth in the region. Therefore, the combined impact of Canada’s healthcare-driven digital transformation and Mexico’s expanding data center infrastructure is creating significant opportunities for the market.

List of Key Companies Profiled

• Rackspace Technology, Inc.
• Equinix, Inc.
• NTT Data Corporation
• Cyxtera Technologies, Inc. (BC Partners and Medina Capital)
• Iron Mountain, Inc.
• QTS Realty Trust, Inc.
• Cologix, Inc.
• China Telecom Corporation Limited
• CyrusOne LLC
• Zayo Group Holdings, Inc.

Market Report Segmentation

By Type

• Retail Colocation
• Wholesale Colocation

By Enterprise Size

• Large Enterprises
• SMEs

By Tier Level

• Tier 3
• Tier 4
• Tier 1
• Tier 2

By End Use

• IT & Telecom
• Healthcare
• Media & Entertainment
• BFSI
• Retail
• Other End Use

By Country

• US
• Canada
• Mexico
• Rest of North America