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Data Center Colocation & Managed Hosting Market to Grow by USD 306.2 Billion (2025-2029) with Rising Demand for Colocation Facilities, Report on How AI is Redefining Market Landscape – Technavio

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NEW YORK, Feb. 6, 2025 /PRNewswire/ — Report with market evolution powered by AI – The global data center colocation and managed hosting services market size is estimated to grow by USD 306.2 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  18.5%  during the forecast period. Rising demand for data center colocation facilities is driving market growth, with a trend towards growing investments in hyper-scale data centers by colocation providers. However, high power consumption in data centers  poses a challenge. Key market players include BT Group Plc, Chunghwa Telecom Co. Ltd., Cogent Communications Holdings Inc., CoreSite Realty Corp., Cyfuture, CyrusOne LLC, Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Fidelity National Information Services Inc., Flexential Corp., Internap Holding LLC, KDDI Corp., Lumen Technologies Inc., Navisite LLC, NTT DATA Corp., phoenixNAP LLC, Rackspace Technology Inc., Sabey Corp., and Verizon Communications Inc..

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Data Center Colocation And Managed Hosting Services Market Scope

Report Coverage

Details

Base year

2024

Historic period

2019 – 2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 18.5%

Market growth 2025-2029

USD 306.2 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

15.2

Regional analysis

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

Performing market contribution

North America at 45%

Key countries

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

Key companies profiled

BT Group Plc, Chunghwa Telecom Co. Ltd., Cogent Communications Holdings Inc., CoreSite Realty Corp., Cyfuture, CyrusOne LLC, Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Fidelity National Information Services Inc., Flexential Corp., Internap Holding LLC, KDDI Corp., Lumen Technologies Inc., Navisite LLC, NTT DATA Corp., phoenixNAP LLC, Rackspace Technology Inc., Sabey Corp., and Verizon Communications Inc.

Market Driver

In today’s digital age, businesses are increasingly relying on data center colocation and managed hosting services to manage their IT infrastructure. Trends such as cloud computing, cybersecurity, remote work solutions, artificial intelligence, and the Internet of Things (IoT) are driving the expansion of this market. With the rise of hybrid work models and distributed teams, data security and endpoint security have become top priorities. IT executives are seeking operational efficiency, HIPAA compliance, and business continuity through DCaaS providers like Rackspace Technology and Google Cloud. Pricing pressures and differentiation are key factors in the competitive market ecosystem, with customer experiences and client relationships offering a competitive edge. Verticals such as IT & telecom, manufacturing, retail & consumer goods, healthcare & life sciences, energy & utilities, media & entertainment, and others are leveraging these services for overhead cost savings and digital services. The industry is also facing cyber threats, data leakage, and cyber hardening, making network monitoring and availability essential. The metaverse concept and online customer experiences are also driving growth in the e-commerce sector, with retailers like eBay and Amazon leading the way. Mobile shopping apps and transaction history are becoming the new cashier, making data center security a must-have for businesses. 

The data center colocation and managed hosting services market are experiencing significant growth due to increasing investments in hyper-scale data centers. With the advent of the smart revolution, the creation of vast amounts of data necessitates efficient processing. Hyper-scale data centers are becoming a priority to manage this data influx. Equinix Inc., among other service providers, has announced the construction of such data centers in May 2022. This trend is expected to continue, fueled by the development of smart cities, smart grids, and smart homes. The demand for managing the information processing needs of our connected world is driving the expansion of hyper-scale data centers. 

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Market Challenges

In today’s digital age, businesses face numerous challenges in managing their data and IT infrastructure. Cloud computing has disrupted traditional on-premises infrastructure, leading to the growth of Data Center Colocation and Managed Hosting Services. However, cybersecurity remains a top concern, with cyber threats, data leakage, and attack surfaces increasing. Remote work solutions and distributed teams require endpoint security and network monitoring. IT executives must differentiate their offerings and provide excellent customer experiences to maintain client relationships and gain a competitive edge. Industries like IT & telecom, manufacturing, retail & consumer goods, healthcare & life sciences, energy & utilities, media & entertainment, and verticals, are expanding their use of Data Center Colocation and Managed Hosting Services for operational efficiency and overhead cost savings. Pricing pressures, HIPAA compliance, and the metaverse concept add to the complexity of this market ecosystem. Cybersecurity professionals are essential in addressing cyber threats, implementing cyber hardening, and ensuring business continuity and availability. DCaaS providers like Rackspace Technology and Google Cloud offer solutions to help businesses navigate these challenges and stay ahead of the curve. The retail industry, including eBay, Amazon, and mobile shopping apps, generates vast amounts of transaction history. Ensuring data security and privacy is crucial for customer trust and regulatory compliance. Data center solutions enable businesses to meet these challenges while focusing on their core competencies. In conclusion, Data Center Colocation and Managed Hosting Services offer businesses the flexibility, security, and efficiency they need to thrive in today’s digital landscape. By addressing challenges such as cybersecurity, data management, and operational efficiency, these services provide a competitive edge and enable excellent customer experiences.The global shift towards cloud computing is driving significant growth in the Data Center Colocation and Managed Hosting Services Market. Organizations, particularly SMEs and start-ups, are attracted to cloud solutions due to their cost-effective nature. Cloud services offer scalability, eliminating the need for businesses to invest heavily in their own data centers and the associated high capital expenditure (CAPEX) and operating expenditure (OPEX). Large enterprises also benefit from cloud services by being able to scale their workloads as needed, reducing their overall IT infrastructure costs. The implementation of cloud-based software is quicker than traditional on-premises solutions, making it an attractive option for businesses seeking to streamline their IT operations.

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Segment Overview 

This data center colocation and managed hosting services market report extensively covers market segmentation by  

End-userBFSIHealthcareE-commerceTelecommunicationOthersTypeWholesaleRetailGeographyNorth AmericaEuropeAPACMiddle East And AfricaSouth America

1.1 BFSI-  The banking and financial services sector (BFSI) is experiencing significant growth in m-commerce and e-commerce activities in North America, Europe, and emerging economies like India and China in APAC. Strict regulations, such as the EU’s General Data Protection Regulation (GDPR), govern the handling of sensitive financial data, including customer information and transaction details. BFSI companies, including Goldman Sachs, JPMorgan Chase and Co., and Morgan Stanley, require optimal uptime, security, connectivity, and data integrity for their IT infrastructure. Traditional data center ownership poses high operating costs, hindering business expansion. To mitigate these challenges, BFSI firms are increasingly outsourcing colocation space from vendors or leasing servers from managed hosting service providers. This shift towards outsourcing is anticipated to fuel the growth of the BFSI segment in the data center colocation and managed hosting services market during the forecast period.

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Research Analysis

The Data Center Colocation and Managed Hosting Services market is experiencing significant growth due to the increasing demand for secure and efficient data management solutions. With the rise of remote work and hybrid work models, the need for reliable and secure data center services has become essential for businesses of all sizes. Cybersecurity is a top priority, with data security, endpoint security, and network monitoring becoming crucial components of any data center solution. Artificial intelligence and automation are also driving innovation in the market, enabling businesses to optimize their operations and improve customer experiences. IoT devices are generating vast amounts of data, requiring and scalable data center solutions. Differentiation through superior customer experiences and strong client relationships is key to gaining a competitive edge in the market. Deployment models, such as public, private, and hybrid, cater to various industry needs, including HIPAA compliance for healthcare and pharmaceuticals. Operational efficiency and IT security professionals are also critical factors in the success of data center colocation and managed hosting services. The industry’s expansion is expected to continue as more enterprises seek to optimize their data management and improve their competitive position.

Market Research Overview

In the digital age, businesses are increasingly relying on data center colocation and managed hosting services to manage their IT infrastructure and deliver superior online customer experiences. Cloud computing, cybersecurity, data management, and remote work solutions are driving the market’s expansion, with artificial intelligence, automation, IoT devices, and hybrid work models also playing key roles. IT security professionals are in high demand to protect against cyber threats, data leakage, and malware, while pricing pressures and differentiation are key challenges. The market ecosystem includes IT & telecom, manufacturing, retail & consumer goods, healthcare & life sciences, energy & utilities, media & entertainment, and various verticals. Operational efficiency, HIPAA compliance, and regulatory requirements are important considerations for healthcare and pharmaceuticals. Enterprises are turning to Data Center as a Service (DCaaS) to reduce overhead costs and improve availability, while IT executives seek a competitive edge through client relationships and service-level agreements. The metaverse concept and industry expansion bring new opportunities, but also increased attack surfaces and cybersecurity risks. Physical infrastructure, endpoint security, network monitoring, and business continuity are essential components of any data center strategy.

Table of Contents:

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

End-userBFSIHealthcareE-commerceTelecommunicationOthersTypeWholesaleRetailGeographyNorth AmericaEuropeAPACMiddle East And AfricaSouth America

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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NUH WINS GOLD AT IHF AWARDS 2026 FOR GREEN OPERATING THEATRE PROGRAMME

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 NUH won Gold and received an Honourable Mention for its sustainability efforts at the International Hospital Federation Awards 2026, alongside presentations of its green surgical initiatives, digital health and organisational improvement initiatives at the World Hospital Congress.

SINGAPORE, Oct. 21, 2026 /PRNewswire/ — The National University Hospital (NUH) has won the Gold Award (Low Carbon Healthcare) for its Green Operating Theatre programme at the International Hospital Federation (IHF) Awards 2026. The hospital also received an Honourable Mention (Hospital Sustainability Acceleration) for its system-wide approach to embedding sustainability across healthcare delivery and hospital operations.

The awards were presented at the 49th World Hospital Congress in Seoul, where NUH is also sharing other initiatives in environmental sustainability, digital health and organisational improvement.

Professor Aymeric Lim, Chief Executive Officer of NUH, said: “Healthcare must become more sustainable without compromising patient care. Our teams have shown that simple, practical changes on the ground, from the way we run our operating theatres to how we use resources, can make a real difference. This recognition belongs to the multi-disciplinary teams and partners who turned ideas into everyday practice, and who continue to improve how we care for our patients.”

Advancing low-carbon healthcare by reducing the environmental impact of surgical care

NUH’s Green Operating Theatre (OT) programme began with efforts to reduce the use of high-carbon anaesthetic gases. What started as a targeted decarbonisation initiative has since grown into a hospital-wide programme that brings together clinicians, nurses, operations teams and facilities staff to drive sustainability across surgical practices, resource use, waste management and energy management.

The programme has achieved a 99 per cent reduction in the use of desflurane, a high-carbon anaesthetic gas, and delivered annual energy savings of about 660,000 kWh by optimising operating theatre ventilation during non-operating hours.

Surgical teams redesigned instrument sets used for high-volume knee replacement procedures to better reflect routine requirements, reducing emissions by almost 10,000 kg CO2e annually while also cutting water use and sterilisation workload. Efforts have also been made to reduce unnecessary consumables and expand medical recycling streams.

Collectively, these initiatives have generated valuable insights that NUH has actively shared through inter-cluster platforms and collaborations, helping to inform the adoption of low-carbon practices across Singapore’s public healthcare system.

Embedding sustainability into everyday healthcare delivery

NUH received an Honourable Mention for its organisation-wide approach to embedding sustainability into hospital planning and operations.

Guided by the IHF Sustainability Accelerator Tool, NUH integrated sustainability into leadership oversight, strategic planning and everyday decision-making, strengthening efforts in Appropriate Value-based Care, virtual care, procurement, workforce engagement and environmental stewardship.

This system-wide approach to advancing a sustainable healthcare system has been recognised internationally. In 2025, NUH became the first hospital worldwide to receive the Joint Commission International-Geneva Sustainability Centre’s Healthcare Sustainability Certification. This year, it was the only hospital in Singapore to be accorded the highest 5-Leaf distinction in Newsweek-Statista’s World’s Greenest Hospitals index.

A new model of rehabilitation care

Recognised as one of the top three healthcare innovations selected for the International Hospital Federation’s i-to-i Innovation Hub Awards 2026, the NUH Virtual Rehabilitation Centre (VRC) is helping to extend rehabilitation beyond hospital walls.

Developed as a virtual-first rehabilitation ecosystem, the VRC combines personalised patient education, self-management tools, AI-enabled telerehabilitation, remote monitoring and digital rehabilitation pathways to support patients throughout their recovery journey. By enabling rehabilitation to continue beyond traditional clinic visits, the VRC improves access to care, strengthens patient participation in recovery and allows therapists to focus their attention on patients with more complex rehabilitation needs. The digital home exercise programme, for instance, supports around 2,000 patients and records about 21,000 logins each month, freeing up the equivalent of 66 physiotherapist workdays annually for direct patient care.

The innovation demonstrates how technology can be used not simply to digitise existing services, but to transform how rehabilitation is delivered at scale.

Helping doctors work smarter with electronic medical records

NUH also presented results from its Great Epic Transformation (GET) programme at the 49th World Hospital Congress in Seoul. The hospital-wide programme trained specialist doctors to personalise their Epic electronic medical record (EMR) workflows, using customised note templates, order sets and shortcuts to work more efficiently.

Nine months after training, participating doctors spent 10.2 per cent less time in the EMR each day, equivalent to more than 33 hours saved per doctor annually, while time spent placing orders fell by 26.5 per cent. Twelve of 13 efficiency measures improved across both medical and surgical specialties. Based on annual estimates, the overall efficiency gains are valued at more than S$91 million a year.

The programme is being extended to allied health professionals and pharmacists across NUHS, with a target of reaching more than 2,000 healthcare professionals by the end of 2026.

About the National University Hospital (NUH)­

The National University Hospital (NUH) is Singapore’s university hospital. While the hospital at Kent Ridge first received its patients on 24 June 1985, our legacy started from 1905, the date of the founding of what is today the NUS Yong Loo Lin School of Medicine. NUH is the principal teaching hospital of the medical school.

Our unique identity as a university hospital is a key attraction for healthcare professionals who aspire to do more than practise tertiary medical care. We offer an environment where research and teaching are an integral part of medicine, and continue to shape medicine and transform care for the community we care for.

We are an academic medical centre with over 1,200 beds, serving more than one million patients a year with over 50 medical, surgical and dental specialties. NUH is the only public and not-for-profit hospital in Singapore to provide trusted care for adults, women and children under one roof, including the only paediatric kidney and liver transplant programme in the country.

The NUH is a key member of the National University Health System (NUHS), one of three public healthcare clusters in Singapore. For more information, visit www.nuh.com.sg

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SOURCE National University Hospital (NUH)

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NEXCOM NGFW platforms secure growing traffic across modern academic networks

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TAIPEI, Oct. 21, 2026 /PRNewswire/ — NEXCOM, a leading supplier of network appliances, is helping academic institutions strengthen network security as digital learning expands across cloud platforms, AI-powered tools, remote access, and connected campus services.

As educational environments become more distributed, academic networks must support growing traffic and diverse connections while protecting sensitive data and maintaining reliable access to learning resources. NEXCOM’s Next-Generation Firewall (NGFW) platforms provide a centralized security layer for inspecting and controlling traffic across campus and remote environments.

Learn more about securing digital learning environments in the joint case study.

Centralized Security for Digital Learning

On campus, NGFW platforms can inspect traffic between academic networks and external resources as students and faculty access learning platforms and web services. For remote users, secure VPN connectivity supports authorized access to internal resources while enabling centralized security policies.

“Every new digital service in education adds value for students and educators, but it also adds traffic, connections, and another layer of security responsibility,” says Allan Chiu, VP of Networking and Communication Solutions at NEXCOM. “The challenge is making sure security keeps pace without slowing down the learning experience. NEXCOM’s NGFW platforms provide the performance and scalability needed to secure modern, highly distributed academic networks.”

Scalable Platforms for Network Security

NEXCOM’s portfolio provides scalable platforms for firewall, edge security, secure remote access, and demanding network security workloads. Key platforms include:

NSA 7160R: A 2U high-performance security platform powered by dual Intel® Xeon® Scalable processors, with eight PCIe 5.0 expansion slots and throughput of up to 1.6 Tbps.FTA 5190: A compact 1U edge server powered by Intel Xeon 6 SoC technology, designed for reliable connectivity and security at the network edge.

About NEXCOM

Founded in 1992 and headquartered in Taipei, Taiwan, NEXCOM is shaping the future of AI-powered networking with its software-defined solutions. Through its Network and Communication Solutions (NCS) unit, NEXCOM delivers cutting-edge platforms for Cybersecurity, OT Security, SD-WAN, SASE, Load Balancing, 5G uCPE, edge AI, and more. NCS specializes in professional design and manufacturing services, enabling reliable and scalable network infrastructures for businesses of all sizes. With a focus on innovation, NEXCOM’s solutions empower customers worldwide to build resilient, high-performance networks tailored to the demands of tomorrow’s connectivity challenges.

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SOURCE NEXCOM International Co., Ltd.

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Forrester’s 2027 B2B Go-To-Market Predictions: AI Agents Will Influence 75% Of B2B Purchase Decisions

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To remain competitive, providers must strengthen customer trust, substantiate value claims, and offer human expertise and guidance

SINGAPORE, Oct. 22, 2026 /PRNewswire/ — According to Forrester’s (Nasdaq: FORR) 2027 B2B go-to-market predictions, business buyers will increasingly deploy AI agents to handle tasks across the buying process, from supplier discovery and information gathering to contract-renewal analysis. While truly autonomous buying will remain concentrated in high-volume, low-risk, and repeatable purchases, the ubiquity of these agents will require providers to ensure that their systems and sellers can respond with speed, accuracy, and consistency.

Forrester’s B2B Predictions reports, covering topics including B2B go-to-market strategy, business buyers, and content and creative, offer forward-looking insights to help executives and their teams anticipate change, reduce uncertainty, and make confident decisions ahead of market shifts. Key highlights from the 2027 B2B go-to-market predictions include:

Buyers will double their human interactions to validate AI-generated recommendations. As AI becomes the primary interface for researching products and providers, buyers will encounter more AI-generated recommendations, synthetic content, automated outreach, and agent-mediated interactions. Since AI cannot fully judge service provider fit, feasibility, trust, or accountability, buyers will require conversations with provider teams and trusted third parties including analysts, customer references, and partners to confirm and validate buying decisions.Two-thirds of providers will lose deals because buyers cannot verify claims. Buyers already use AI-assisted search and analysis tools to gather information about products and vendors, synthesize provider claims, and fact check. As the reliance on these capabilities continue to advance, go-to-market teams will need to act fast to restructure content discovery for AI tools, including providing credible and consistent proof points that AI tools can index and validate.Most CMOs will cut programs or accept reduced capacity after overestimating AI gains. As pressure intensifies to reduce personnel costs with AI, marketing leaders will eliminate as many as 25% of roles in anticipation of productivity gains that fail to meet expectations. As a result, they will have to choose between cutting program budgets to restore capacity through rehiring, contractors, or agency support or accept reduced execution with a smaller team. In either case, lower campaign investment, weaker execution, or both will reduce marketing’s overall value contribution.

“In 2027, the defining challenge for B2B go-to-market leaders will be to make deliberate choices about what to automate and where human judgment still matters,” said Sharyn Leaver, chief research officer at Forrester. “As AI becomes ubiquitous across the buying process, B2B leaders that pair AI-driven speed and convenience with transparency, control, and trust will extract the most value from AI.”

Resources:

Download Forrester’s 2027 Predictions guide for B2B go-to-market.Register for Forrester’s webinar exploring the key trends reshaping B2B go-to-market strategies in 2027.Learn how to turn these predictions into action through Forrester’s global B2B events and research programs.

About Forrester
Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We empower leaders in technology, customer experience, digital, marketing, revenue, and product functions to make confident decisions in an AI-driven world and accelerate growth through customer obsession. Our unique research and continuous guidance model helps executives and their teams achieve their initiatives and outcomes faster and with confidence. To learn more, visit Forrester.com.

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SOURCE Forrester

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