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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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Wistron Celebrates Grand Opening of First U.S. Smart Factory Marking Milestone in Global Smart Manufacturing Strategy

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FORT WORTH, Texas, July 21, 2026 /PRNewswire/ — Wistron Corporation (“Wistron”) celebrated the grand opening of its D1 AI smart facility in Fort Worth, Texas, the site where the first NVIDIA GB300 Grace Blackwell Ultra Superchip was built and mass-produced in the United States. The US$ 700 million facility, spanning approximately 324,000 square foot, was officially unveiled during a ceremony led by Wistron Chairman Simon Lin and NVIDIA Founder and CEO Jensen Huang. Jessica Rogers, Director of the Economic Development Department for the City of Fort Worth, and Alexander Tah-ray Yui, Taiwan’s Representative to the United States, were among the government officials and business leaders who attended, marking a milestone in the expansion of Wistron’s global footprint and advanced manufacturing capabilities.

This is a key hub in Wistron’s global AI infrastructure manufacturing network. The facility runs on NVIDIA accelerated computing and integrates NVIDIA’s Nemotron and Cosmos open frontier models and Omniverse and Metropolis libraries, using digital twin technology to optimize factory design, production workflows, and operational efficiency. It is Wistron’s first U.S.-based manufacturing facility, established to serve customers locally and produce NVIDIA’s most advanced and cutting-edge products. Wistron Chairman Simon Lin said “The operation here is not typical manufacturing. It is new, very comprehensive, and high-tech. Right now we produce the NVIDIA GB300 Grace Blackwell Ultra Superchip, and beyond, we are also going to produce the NVIDIA Vera Rubin Superchip here. In the next couple of years, this location will be one of the most important, as we build AI infrastructure here in the United States. I think this is the reason we say that there will be the next chapter, and we are going to empower AI from Texas.”

Responding to Customer Needs: Texas, the Newest Global Manufacturing Hub
At this pivotal moment for global AI infrastructure, Wistron is drawing on decades of global manufacturing experience to expand its footprint in Texas, a state with a well-established ecosystem for logistics, talent recruitment, and advanced manufacturing. The new D1 facility produces the NVIDIA GB300 Grace Blackwell Ultra Superchip and soon, the NVIDIA Vera Rubin Superchip — critical to powering the next generation of AI computing. The new Fort Worth facility strengthens a critical upstream layer of the AI infrastructure supply chain by expanding domestic capacity to assemble and test NVIDIA AI systems. These servers can be integrated into NVIDIA DSX infrastructure, with DSX providing the common architecture and technologies needed to deploy and operate energy-efficient AI factories at scale.

One-Stop Operational Ecosystem Strengthens U.S. AI Supply Chain Resilience
Behind every breakthrough in AI computing lies the manufacturing capability to scale it. Wistron is expanding its AI server production capabilities from Taiwan to the United States, guided by a vision of precision, efficiency, and sustainability. This reflects a broader industry shift: AI leadership is determined not only by technological breakthroughs, but also by the operational capability to transform innovation into high-volume production with consistent quality, supply chain resilience, and predictable delivery. By establishing AI infrastructure manufacturing capacity in the United States, Wistron is building a one-stop operational ecosystem spanning manufacturing and after-sales service — shortening delivery timelines and customer support cycles, strengthening supply chain resilience, and laying the foundation for long-term competitive advantage as AI infrastructure continues to scale.

Partnering with NVIDIA to Pioneer a New Model for Smart Manufacturing and Energy Optimization
As the era of physical AI begins, Wistron is extending its smart manufacturing capabilities to the United States, creating a new model for AI infrastructure production built on digital manufacturing, energy optimization, and local operations. Jensen Huang said: “The largest infrastructure buildout in history is underway. Demand for AI factories—the engine of this next industrial revolution—is incredible, and they must be produced everywhere. Together, NVIDIA and Wistron are restoring US advanced manufacturing capacity in Texas, creating skilled jobs and strengthening America’s AI supply chain.” As demand for advanced manufacturing grows in Texas, smarter planning of production loads and energy use will give the plant greater control and flexibility over its electricity needs.

Turning Global Experience into Scalable AI Infrastructure
Simon Lin stressed that the speed the AI era demands comes with its own responsibility. “In the AI era, the pressure of speed is also a form of responsibility,” Lin said. “We don’t just need to build fast; we need to build right.”

The Fort Worth plant will serve as the core engine of Wistron’s U.S. manufacturing operations, the company said, connecting its global production network with ecosystem partners as it scales advanced AI manufacturing. Wistron said that the investment reflects efforts to deepen its technical capabilities, strengthen the resilience and efficiency of global supply chains, and support the next phase of AI infrastructure development.

About Wistron:
Wistron Corporation is a leading global technology service provider delivering advanced ICT products, AI infrastructure, and manufacturing solutions to technology brands worldwide. With more than 63,000 employees across North America, Europe, and Asia, Wistron continues to expand its AI, cloud, and advanced manufacturing capabilities to support the next generation of intelligent computing. For more information about Wistron, please visit the official website at www.wistron.com. Additional information about the event is available on the event website.

Media Contact:
Joyce WL Chou
joyce_wl_chou@wistron.com

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SOURCE Wistron Corporation

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NSG Bio Accelerates Breakthrough Biotech Innovation in Singapore

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New initiative under NSG Bio Tomorrow will support promising startups developing next-generation approaches in respiratory and neonatal care

SINGAPORE, July 22, 2026 /PRNewswire/ — The NSG Bio Tomorrow initiative aims at supporting emerging life sciences startups working on complex challenges in respiratory and neonatal care.

Launched through the support of Chiesi Group, The Impulse initiative will provide a selected startup with one year of NSG Bio membership and access to a dedicated laboratory bench at NSG Bio Singapore. The initiative is designed to help early-stage biotech companies move from promising science toward stronger proof-of-concept work in a fully equipped research environment.

The initiative comes at a time when the biotech industry is increasingly looking for faster, more connected ways to move high-potential science from the lab toward real-world patient impact. For startups, access to infrastructure is only one part of the challenge. Equally important are the right networks, industry visibility, technical environment, and opportunities to engage with partners who understand the path from early discovery to clinical relevance.

The programme will focus on startups developing innovative biotechnological solutions with potential relevance to chronic respiratory diseases and neonatal conditions. Areas of interest include cell therapies, gene therapies, gene-editing technologies, regenerative tissue engineering, engineered or programmable living systems, lung-targeted delivery platforms, preventive approaches, and small-molecule-based approaches.

The selected startup will gain access to NSG Bio’s laboratory infrastructure, shared workspaces, meeting facilities, and wider community of biotech entrepreneurs, researchers, scientific leaders, and industry partners. The support is intended to help the company advance key research milestones while becoming part of Singapore’s growing life-science innovation ecosystem.

For NSG Bio, the initiative is part of NSG Bio Tomorrow, its ecosystem-building arm created to expand the company’s role beyond facilities and real estate. While NSG Bio is known for providing high-quality laboratory and office infrastructure for biotech companies, NSG Bio Tomorrow focuses on building the programmes, partnerships, and opportunities that help startups grow.

“Biotech companies need more than lab space. They need access, momentum, and the right ecosystem around them,” said Hasyim Sim, Co-Founder and Chief Operating Officer, NSG Bio. “Through NSG Bio Tomorrow, we are building initiatives that help promising startups connect with partners, unlock opportunities, and move their science forward. This initiative reflects exactly the kind of role we want to play in the biotech ecosystem.”

“Chiesi is committed to supporting innovation that can make a meaningful difference for patients, and we work with entrepreneurs, researchers and partners to advance meaningful ideas,” said Fabrizio Conicella, Vice President, Center of Open Innovation & Competence at Chiesi Group. “By supporting this NSG Bio Tomorrow initiative, we want to create an opportunity for early-stage innovators to access the infrastructure and ecosystem support needed to develop impactful science in respiratory and neonatal care.”

NSG Bio Tomorrow programme also reinforces Singapore’s position as a growing hub for biotech innovation in Asia, where startups, research institutions, investors, and industry partners are increasingly coming together to support the next generation of healthcare companies.

Applications open on 22 July 2026 at 09:00 a.m. SGT. Finalists will be invited to present at a virtual pitch event, after which the selected startup will be announced.

About NSG Bio

NSG Bio is Singapore’s leading provider of BSL-2 certified co-working laboratory and office spaces, supporting life-science companies from early research through growth. Through its facilities, community, and ecosystem initiatives, NSG Bio enables biotech innovators to accelerate research, access networks, and build companies that address critical healthcare challenges.

About NSG Bio Tomorrow

NSG Bio Tomorrow is NSG Bio’s ecosystem-building arm, created to support the next generation of biotech innovation through partnerships, programmes, community initiatives, and opportunities that extend beyond physical laboratory infrastructure. Its mission is to strengthen the biotech industry by connecting startups with the resources, expertise, and networks they need to thrive.

About Chiesi Group 

Chiesi is a research-oriented international biopharmaceutical group that develops and markets innovative therapeutic solutions in respiratory health, rare diseases, and specialty care. The company’s mission is to improve people’s quality of life and act responsibly towards both the community and the environment. As a certified B Corp since 2019, Chiesi is part of a global community of businesses that meet high standards of social and environmental impact. 

With 90 years of experience, Chiesi is headquartered in Parma (Italy), with 31 affiliates worldwide, and counts more than 7,900 employees. The Group’s research and development centre in Parma works alongside 6 other important R&D hubs in France, the US, Canada, China, the UK, and Sweden. For further information please visit https://www.chiesi.com/en/home 

Media Contact
Giridharan
Laboratory Manager
NSG Bio
giridharan@nsgbio.com
87797175

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SOURCE NSG Bio

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House Judiciary Committee Passes Bill that Would Prevent Future Immigration Crises: Swift Action Needed by Full House, Says FAIR

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WASHINGTON, July 21, 2026 /PRNewswire/ — Today, the House Judiciary Committee passed an updated version of H.R. 2, the landmark border security bill from last congressional session. The bill now awaits consideration by the full House of Representatives. The Federation for American Immigration Reform (FAIR) urges Speaker Mike Johnson to schedule a final floor vote as soon as possible.

The Secure Border Act systematically closes the loopholes that allowed the Biden administration to unleash the largest and most damaging wave of illegal immigration in American history. Enactment of this legislation would prevent future anti-borders administrations from shirking their responsibilities to secure our borders and enforce our immigration laws; asserting unlimited discretion to parole inadmissible aliens to enter the country; or releasing millions of illegal aliens into the country, rather than detaining them or returning them to the country from which they entered.

“We congratulate the Judiciary Committee for its swift action on this critical legislation,” said Dale Wilcox, executive director and general counsel of FAIR. “Ending border chaos and rampant illegal immigration was a key reason that Republicans regained control of the White House and both chambers of Congress in the last election. The clock is ticking on the 119th Congress, and Republicans only have a short time to deliver on the promises they made to voters in 2024, before the midterms.

“Right now, our immigration laws are being enforced in the interests of the American people. As the last administration demonstrated, enforcement of those laws is not guaranteed unless Congress acts to prevent similar abuse in the future. Now is the time for decisive action in the House, where this bill can be passed with a simple majority vote, and an opportunity for Senate Majority Leader John Thune to put every member of that body on record before voters go to the polls in the fall,” Wilcox concluded.

Hayley Hill, hhill@fairus.org 202-328-7004

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SOURCE Federation for American Immigration Reform (FAIR)

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