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Data Center Colocation Market to Grow by USD 78.56 Billion (2025-2029), Rising Demand for Colocation Facilities Boosting the Market, Report on AI’s Impact – Technavio

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NEW YORK, Jan. 31, 2025 /PRNewswire/ — Report with market evolution powered by AI – The global data center colocation market size is estimated to grow by USD 78.56 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of about 15.2% during the forecast period. Rising demand for data center colocation facilities is driving market growth, with a trend towards innovative approaches for cooling colocation services. However, emergence of containerized data centers poses a challenge. Key market players include American Tower Corp., AT and T Inc., BT Group Plc, China Telecom Corp. Ltd., Cologix Inc., Colt Technology Services Group Ltd., Corporate Technologies LLC, CtrlS, Custodian Data Centres, CyrusOne LLC, Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Flexential Corp., Fujitsu Ltd., Internap Holding LLC, Iron Mountain Inc., Lumen Technologies Inc., Microsoft Corp., NEXTDC LTD., Nippon Telegraph and Telephone Corp., Retelit, Switch Inc., and Telstra Corp. Ltd..

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Data Center Colocation Market Scope

Report Coverage

Details

Base year

2024

Historic period

2019 – 2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 15.2%

Market growth 2025-2029

USD 78562.9 million

Market structure

Fragmented

YoY growth 2022-2023 (%)

14.4

Regional analysis

North America, APAC, Europe, South America, and Middle East and Africa

Performing market contribution

North America at 32%

Key countries

US, China, Canada, UK, Germany, Japan, Brazil, France, India, and Italy

Key companies profiled

American Tower Corp., AT and T Inc., BT Group Plc, China Telecom Corp. Ltd., Cologix Inc., Colt Technology Services Group Ltd., Corporate Technologies LLC, CtrlS, Custodian Data Centres, CyrusOne LLC, Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Flexential Corp., Fujitsu Ltd., Internap Holding LLC, Iron Mountain Inc., Lumen Technologies Inc., Microsoft Corp., NEXTDC LTD., Nippon Telegraph and Telephone Corp., Retelit, Switch Inc., and Telstra Corp. Ltd.

Market Driver

The Data Center Colocation Market is experiencing significant growth due to the increasing demand for advanced technologies such as 5G technology and 6G, as well as the integration of AI tools, AR, and autonomous vehicles. Colocation providers offer enterprises flexible, scalable, and energy-efficient solutions to meet their IT requirements. Advantages include proximity to cloud service providers, improved connectivity options, and reduced latency. Cloud computing and cloud migration are driving the market, with enterprises adopting hybrid & multi-cloud strategies for resource allocation and utilization. Colocation data centers provide dedicated space and redundant power supply, ensuring uptime and data security. Advancements in cooling systems, intelligent management solutions, and renewable energy sources address environmental concerns and reduce carbon footprints. The market is also witnessing commercialization efforts in edge data centers and distributed cooling architecture for low-latency connections. Innovative products and integrating multiple cloud platforms cater to specific requirements, including high-capacity networks, IoT platforms, and AI tools. The market is expected to grow further with the increasing adoption of on-demand resources, seamless cloud integration, and the proliferation of smart devices and services. 

Data centers generate significant heat, leading to high energy consumption, particularly for cooling systems, which account for 30-40% of power usage. To address this issue, some service providers are relocating data centers to cooler regions, such as Iceland and Norway. Innovative cooling techniques like free cooling and liquid immersion are implemented to reduce power consumption. Microsoft is a pioneer in this field, operating a submarine data center off the coast of Scotland, several feet below sea level, to take advantage of the cool ocean water and minimize energy expenditure on cooling. 

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Market Challenges

The Data Center Colocation Market is experiencing significant growth due to the increasing demand for advanced technologies such as 5G, 6G, AI, AR, and autonomous vehicles. Colocation data centers offer enterprises flexible and scalable solutions to meet their IT requirements, including high-capacity networks, low-latency connections, and resource utilization. However, challenges such as location restraints, energy efficiency, and data security remain. Colocation providers offer dedicated space, cooling systems, and redundant power supply to ensure uptime and control. With the rise of cloud computing and cloud services, hybrid & multi-cloud strategies are becoming popular, requiring seamless cloud integration and scalability. Additionally, the market is driven by commercialization efforts in IT & telecom, digitalization applications, and the increasing number of Internet users and digital transactions. Colocation facilities must offer connectivity options, network security, and innovative products to meet the specific requirements of enterprises and support the growth of IoT, online shopping, and streaming services. The market also faces risks from natural disasters and the need for sustainable energy solutions, such as renewable energy sources.Containerized data centers, also referred to as modular data centers, offer businesses a flexible and cost-effective solution for data center expansion or replacement. These data centers, housed in shipping containers, consist of essential components such as servers, storage, and networking equipment. Schneider Electric SE recently introduced an Edge container data center, adding to the growing market trend. Companies like International Business Machines Corp. Also invest in this modular approach, providing businesses with the ability to place these data centers at desired locations, reducing the need for large, traditional data centers.

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Segment Overview 

This data center colocation market report extensively covers market segmentation by

TypeRetail ColocationWholesale ColocationEnd-userSmall And Medium Sized EnterprisesLarge EnterprisesGeographyNorth AmericaAPACEuropeSouth AmericaMiddle East And Africa

1.1 Retail colocation- Retail colocation is a popular option for enterprises looking to rent space for their IT equipment in large data centers. This includes renting racks, rack cages, and private suites for one to three years. SMEs are increasingly adopting retail colocation due to cost savings on both capital expenditure (CAPEX) and operating expenditure (OPEX) compared to maintaining in-house data centers. The global retail colocation market is growing due to this trend, with the cost for a single rack starting at around USD1,500. Cloud adoption among SMEs is also driving revenue growth in this segment, as they require power infrastructure, cooling solutions, network bandwidth, and security up to the rack level. Retail colocation vendors provide these offerings, making it an attractive option for SMEs with rapidly growing businesses. The networking capability of colocation facilities is another benefit, allowing for seamless connectivity and scalability. Overall, the retail colocation segment is expected to contribute significantly to the global data center colocation market’s growth during the forecast period.

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Research Analysis

The Data Center Colocation Market is witnessing significant growth due to the increasing adoption of hybrid cloud infrastructure. Businesses are leveraging both on-premises IT infrastructure and cloud-based resources to optimize server utilization and reduce costs. Virtualization technologies play a crucial role in this trend, enabling the efficient use of IT resources and improving uptime. Colocation providers offer businesses the benefits of Data centers, including advanced environmental controls, high-speed connectivity, and superior security. Hybrid cloud infrastructure is particularly important for industries with high IT requirements, such as those involving autonomous vehicles, IoT, advanced robotics, and AI startup development. Colocation data centers must provide low latency, high IT load capacity, and reliable uptime to meet the needs of these industries. Submarine cables and renewable energy are also becoming essential considerations for colocation facilities, as they help ensure uninterrupted connectivity and reduce carbon footprint. SMEs are also increasingly turning to colocation services to access advanced IT infrastructure and cloud computing capabilities without the need for significant capital investment. Downtime is a critical concern for all businesses, and colocation providers must offer disaster recovery and business continuity solutions to minimize the risk of downtime and maximize uptime.

Market Research Overview

The Data Center Colocation Market is experiencing significant growth due to the increasing adoption of advanced technologies such as 5G technology, 6G, and AI. Colocation data centers offer enterprises the benefits of connectivity options, control, and scalability, making them an attractive choice for businesses with specific requirements. Colocation providers offer flexible and energy-efficient solutions, integrating innovative products like distributed cooling architecture and modular data centers. Advantages of colocation include proximity to cloud service providers, reduced latency, and resource utilization. The market is also driven by the commercialization efforts of IT & telecom companies, hybrid & multi-cloud strategies, and the increasing demand for cloud-based resources. Environmental concerns, such as carbon footprints and renewable energy sources, are becoming important considerations. Colocation facilities offer redundant power supply and cooling systems, ensuring uptime and reliability. The market is also influenced by the proliferation of digital transactions, online shopping, and streaming services, which require high-capacity networks and low-latency connections. The integration of AI tools, AR, VR, and IoT platforms further enhances the customer experience. However, location restraints and natural disasters pose risks, making network security and disaster recovery plans essential. The market is expected to continue growing as more enterprises adopt hybrid cloud infrastructure and on-premises data centers seek colocation services for seamless cloud integration.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

TypeRetail ColocationWholesale ColocationEnd-userSmall And Medium Sized EnterprisesLarge EnterprisesGeographyNorth AmericaAPACEuropeSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio

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Maritime Launch Services and Isar Aerospace Extend Deadline to Finalize Statement of Work and Programmatic Milestones

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HALIFAX, NS and MUNICH, Sept. 1, 2026 /CNW/ — Maritime Launch Services Inc. (CBOE: MAXQ) (OTCQB: MAXQF) and Isar Aerospace have agreed to extend the deadline to provide additional time to complete the statement of work and certain programmatic milestones contemplated under their previously-announced facilities usage agreement for Spaceport Nova Scotia. The deadline was extended from September 1, 2026, to September 15, 2026.

The parties continue to make strong progress through an intensive and productive planning process. The extension reflects the time required to complete this work.

“We are very pleased with the progress being made between both parties,” said Stephen Matier, President and CEO of Maritime Launch Services. “Our teams are working through the detailed planning required to advance this important program. The additional 14 days will allow us to complete that work and maintain the strong momentum we have established together.”

The extension does not change the other key terms of the facilities usage agreement announced on July 7, 2026. The parties remain focused on advancing the development of Isar Aerospace’s dedicated launch complex for its Spectrum launch vehicle at Spaceport Nova Scotia, with first orbital launches targeted for 2028.The agreement supports the development of sovereign orbital launch capability from Canada and expands Isar Aerospace’s launch capability into North America.

“We are making strong progress together with Maritime Launch Services as we advance the detailed planning for our launch operations at Spaceport Nova Scotia,” said Alexandre Dalloneau, Vice President Mission and Launch Operations, Isar Aerospace. “The work between our teams has been intensive and productive, and this additional time will allow us to finalize the remaining details as we move toward execution of the program.”

About Maritime Launch Services 
Maritime Launch Services Inc. (CBOE: MAXQ, OTCQB: MAXQF) is a Canadian-owned commercial space company based in Nova Scotia. Maritime Launch is developing Spaceport Nova Scotia, a dual-use commercial spaceport designed to support both civil and defence-related space missions. The spaceport will provide satellite launch services to domestic and international clients across the global commercial space market, supporting a wide range of orbital inclinations from a single location.

Spaceport Nova Scotia is Canada’s first commercial orbital launch complex, enabling small and medium launch vehicles to place satellites into low Earth orbit.

For more information, visit: www.maritimelaunch.com

About Isar Aerospace

The European space company Isar Aerospace offers launch services for transporting small and medium-sized satellites and satellite constellations into Earth orbit. The launch vehicles used to transport these satellites are developed, manufactured, and tested almost entirely in-house. Headquartered near Munich, Germany, Isar Aerospace was founded in 2018 and has grown to over 400 employees, working across 5 international locations. Private funding from international investors provides strong backing for the company’s pioneering approach to scale and industrialize launch vehicle production through vertical integration. More information: www.isaraerospace.com

https://x.com/maritimelaunch

https://www.linkedin.com/company/maritimelaunch

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking statements. The forward-looking statements included in this press release include (without limitation) statements regarding the continuing of the term of the facilities usage agreement, continuing negotiations of the parties to the facilities usage agreement and the timing of completion of such negotiations, and anticipated launch timing.

Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Although Maritime Launch has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be factors that cause results not to be as anticipated, estimated or intended. Such forward-looking statements are subject to risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Risks and uncertainties that may cause such differences include but are not limited to: risks related to Maritime Launch’s strategy going forward; capital requirements; risks related to interest rates and inflationary pressures on the cost of doing business; geopolitical events and changes, availability of third-party contractors and service providers, and other risks inherent in the industry in which Maritime Launch operates.

Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect the Company’s expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise, or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.

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SOURCE Maritime Launch Services Inc.

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Visa Launches Enhanced A2A Protect Innovations to Help Financial Institutions Stop Fraud Before Money Leaves Accounts

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New unified fraud score is the company’s first combined offering in-market since Visa’s acquisition of Featurespace which delivers real-time A2A risk insightsNew graph-powered, agentic capability helps accelerate complex fraud and risk investigationsA2A Protect has been shown to reduce over 50% more fraud and help reduce over 40% in unnecessary fraud alerts

SINGAPORE, Sept. 2, 2026 /PRNewswire/ — Visa (NYSE: V), a world leader in digital payments, today announced an enhanced version of A2A Protect, delivering real-time risk insights that help banks stop account-to-account fraud before money leaves customer accounts. The expanded solution introduces a new unified fraud score—Visa’s first in-market integration of Featurespace technology—giving financial institutions faster, clearer signals to detect more fraud while reducing unnecessary alerts.

In addition, Visa is developing its complementary fraud prevention capabilities through Visa Graph IQ, a graph-powered, agentic investigation capability that provides deeper investigative insights to help financial institutions uncover fraud networks, identify money mule activity, detect emerging threats, and accelerate fraud and risk investigations.

As account-to-account (A2A) payments accelerate globally, A2A transactions are projected to surpass 5.8 trillion by 2028, a 160% increase from 2024, with Asia Pacific expected to account for more than half of global A2A consumer transactions by 2028[1]. While this growth presents significant opportunities, it also creates new fraud risks. Asia Pacific accounts for an estimated 67% of the world’s USD 1.03 trillion in annual scam losses, with Asia alone recording USD 688.42 billion in scam-related losses in 2024[2]. This growing threat is driving increased regulatory and industry focus on strengthening fraud prevention capabilities and enhancing consumer protection.

A2A Protect leverages advanced AI and sophisticated transfer learning and gives banks immediate access to critical global risk insights on A2A transactions, without waiting months for models to develop intelligence from a bank’s own transaction data, and without having to wait for other banks to join a consortium, delivering results and value from day one. Banks that opt in can incorporate additional network-level signals to enhance detection of emerging threats operating across the ecosystem.

“As account-to-account payments continue to accelerate across Asia Pacific, financial institutions are looking for ways to grow digital payments with confidence while maintaining a seamless experience for consumers and businesses,” said Serene Gay, Head of Value-Added Services, Asia Pacific at Visa. “The latest enhancements to A2A Protect combine Visa’s network intelligence with advanced AI capabilities to help our clients detect fraud earlier, respond faster to emerging threats, and strengthen trust in the digital payments ecosystem.”

For financial institutions that opt into network level intelligence sharing, A2A Protect highlights emerging scam hotspots and coordinated fraud activity – insights that may be difficult for individual financial institutions to detect alone, and that help the wider ecosystem respond faster to new threats. This gives financial institutions an earlier and more complete view of risk, helping to identify scams before authorisation. In fact, Visa A2A Protect has been shown to increase fraud detection by up to 75% in the first six months of deployment.

A2A Protect integrates with financial institutions’ current systems through a single API, reducing implementation time and complexity. Each alert includes a plain language explanation of why a transaction was flagged, helping fraud teams act quickly and confidently without disrupting genuine customers.

For more information on how Visa works to prevent fraud across the ecosystem, visit Visa.com/security.

[1]  Juniper Research, Global Instant Payments Market Report, September 2025

[2] GASA, Asia Scam Report, 2024

About Visa Inc.
Visa (NYSE: V) is a world leader in digital payments, facilitating payments transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.

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SOURCE Visa

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Chemonics Australia Expands Public Sector Advisory, Infrastructure, and Development Delivery Capabilities with Acquisitions of 35 South and JID

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The acquisitions strengthen Chemonics Australia’s ability to support governments, development partners, and institutions across Australia and the Indo-Pacific with practical delivery capability from strategy and design through implementation.

CANBERRA, Australia, Sept. 2, 2026 /PRNewswire/ — Chemonics has completed its acquisitions of 35 South Advisors and JID, strengthening its capabilities across public and social sector delivery, international development, infrastructure, and implementation support throughout Australia and the Indo-Pacific. Together, these acquisitions strengthen Chemonics Australia’s ability to help clients tackle complex challenges by combining talented professionals with deep analytical and implementation expertise, advanced technology, and data-driven decision-making tools.

As part of Chemonics, which has been delivering programs for over 50 years, Chemonics Australia launched in 2025 to better support governments, institutions, and development partners across Australia and the Indo-Pacific. The acquisitions of 35 South and JID strengthen that effort by adding complementary expertise in public sector delivery, infrastructure, and program implementation, expanding Chemonics Australia’s capabilities to support partners from planning and design through to delivery.

35 South strengthens Chemonics Australia’s ability to support Commonwealth, State, and Territory agencies. With practical expertise in public policy, program and service delivery, economics, and data insights, the firm has built a reputation for exceptional client service, agility, and practical problem solving. Its experience spans finance, health, social services, central agencies, international development, defence, and other sectors. Its fit-for-purpose consulting, government delivery experience, and tailored client engagement will help agencies turn complex reforms into practical action and measurable results.

JID strengthens Chemonics Australia’s on-the-ground delivery capability. With teams already delivering key programs across the Indo-Pacific region, JID brings proven expertise in social and economic infrastructure, service delivery, disaster response and resilience, and complex program execution. JID has supported Australia’s Department of Foreign Affairs and Trade and other regional partners across Papua New Guinea, Tonga, Solomon Islands, Fiji, and Vanuatu. This includes work leading and managing major infrastructure investments across the Pacific. JID’s end-to-end model combines advisory services, program management, and operational delivery, enabling partners to implement complex programs and strengthen resilience in remote, disaster-affected, and resource-constrained settings.

Chemonics Australia was established to bring Chemonics’ global experience and delivery capability closer to partners across Australia and the Indo-Pacific. Building on that foundation, the acquisitions deepen Chemonics Australia’s expertise, while drawing on Chemonics’ more than 50 years of experience delivering programs in over 160 countries. Together, they expand Chemonics Australia’s ability to support partners including Australia’s Department of Foreign Affairs and Trade and Department of Defence, New Zealand’s Ministry of Foreign Affairs and Trade, the Asian Development Bank, and other government and development institutions across the region.

“I’m very excited to welcome 35 South and JID to the Chemonics family,” said Jamey Butcher, Chair and CEO of Chemonics. “I’ve been incredibly impressed by the work both organisations have done and by the people behind it. Bringing these teams together with Chemonics Australia strengthens what we can offer partners across Australia and the Indo-Pacific and brings expertise and experience that will make our organisation stronger around the world.”

“35 South was created to help governments and not-for-profits design better policies, deliver citizen-centred services, and operate more effectively,” said Scott Alexander, CEO of 35 South. “This next chapter gives our team access to broader capability, expertise and knowledge that Government demands while preserving the close client delivery, relationships, agility, and practical approaches that will help our clients achieve lasting, positive outcomes for Australian communities.”

“JID was established to help partners deliver complex development programs that work in practice,” said Brad Bowman, CEO of JID. “Our strength comes from teams embedded across the region and their ability to manage infrastructure and services in demanding environments. This partnership will give those teams stronger systems and resources to support larger programs, while keeping local knowledge at the centre of delivery.”

Looking ahead, the acquisitions create opportunities to strengthen public sector delivery, infrastructure implementation, and development programming across Australia and the Indo-Pacific. The combined Chemonics Australia organisation will continue to work in partnership with governments, regional institutions, development partners, and communities to support complex reform efforts, manage large investments effectively, and deliver programs that respond to local priorities and contribute to long-term outcomes.

For additional media inquiries and further information, please contact:
Natalie Wisely
Senior Director, Executive Strategy and Communications, Chemonics International
media@chemonics.com

About Chemonics Australia
With a focus on the Indo-Pacific, Chemonics Australia works with partners to offer fit-for-purpose solutions to today’s toughest challenges, combining deep regional insights with a global track record to deliver practical, sustainable impact. Through our regional offices, long-term partnerships, and network of local and international experts, we deliver tailored, results-driven solutions that strengthen systems, build local capacity, and achieve lasting impact for communities.

About 35 South
Founded in 2021, 35 South is a consulting firm recognised for its exceptional client service, data analytics, program delivery, financial and economic modelling and practical problem-solving. The firm supports Australian Government and not-for-profit partners across priority sectors including health, social services, central agencies, defence, and international development.

About JID
Established in 2016, JID specialises in project advisory, program management, and on-the-ground delivery in complex environments. With teams across the region, JID draws on deep local expertise and strong project management discipline to deliver infrastructure and service delivery programs that support sustainable, long-term impact.

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SOURCE Chemonics Australia

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