target audience: TECH SUPPLIER  Publication date: Feb 2024 - Document type: IDC Survey - Doc  Document number: # US51830924

The State of the Worldwide Third-Party Colocation Services Market


  • Courtney Munroe Loading
  • Avinash Naga Loading


  • 20 slides

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  • Organizations are optimistic about the continued adoption of third-party hosting and colocation services, driven by rapid digitalization efforts and growing demand for datacenter services across verticals.
  • Organizations are migrating to third-party colocation services due to reduced costs and accessibility to multiple cloud network and IT infrastructure providers.
  • The monthly average spending on hosting/colocation service providers is $1,000–9,999. Organizations are purchasing cloud connections directly via a virtual circuit or via cloud exchange from a colocation/interconnection datacenter.
  • Adoption of renewable energy sources and commitment to sustainability goals have become key criteria for organizations while selecting a colocation provider.
  • ESG issues hold a major portion in organizations' RFQs while considering third-party colocation services.
  • The majority of enterprises are using Microsoft 365 to connect to enterprise cloud connect services.


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