Colocation Edge Data Center Market Size

Colocation Edge Data Center Market size was over USD 8.29 billion in 2024 and is projected to reach USD 84.01 billion by 2037, growing at around 19.5% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of colocation edge data center is assessed at USD 9.58 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.