Colocation Edge Data Center Market Size

Colocation Edge Data Center Market size is poised to reach USD 63 Billion by the end of 2036, growing at a CAGR of 20% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of the colocation edge data center was USD 7 Billion. The market growth is due to the increasing investments in consideration of edge data center consolidation initiatives mainly for cost savings. According to a report, there are about 11,000 data centers worldwide as of Decemeber 2023. Furthermore, the increasing utilization of novel approaches such as server and storage virtualization and high-density storage solutions contributes to the expansion of market.

In addition, the spread of the healthcare sector is also propelling the growth of the colocation edge data center market. High investments in infrastructural expansion are catering to the changes in the pharmaceutical sector, as the healthcare sector generates about 30% of the world's data volume, and by 2025 it is expected that the compound annual growth rate of healthcare data will cross 36%. This is 11% faster than media & entertainment, 10% more than financial services, and 6% higher than manufacturing industries.