Tuesday, 02 January 2024 12:17 GMT

Multi-Tenant Data Center Market To Reach USD 112.38 Billion By 2032 Owing To AI, Cloud, And Edge Computing Proliferation Research By SNS Insider


(MENAFN- GlobeNewsWire - Nasdaq) The surge in cloud-based enterprise applications, edge computing, and AI workloads is accelerating investments in multi-tenant data centers globally.

Austin, Aug. 13, 2025 (GLOBE NEWSWIRE) -- The SNS Insider report indicates the Multi-Tenant Data Center Market was valued at USD 39.86 billion in 2023 and is projected to reach USD 112.38 billion by 2032, growing at a CAGR of 12.32% during the forecast period of 2025–2032.

The U.S. Multi-Tenant Data Center Market is witnessing robust growth Driven by the growth of adoption of artificial intelligence, cloud computing, and edge infrastructure modernization. The market size is projected to grow from USD 12.30 billion in 2024 to USD 30.40 billion by 2032, expanding at a CAGR of 11.97% during the forecast period.


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Key Players:

  • Equinix Inc.
  • Digital Realty
  • NTT Communications Corporation
  • IBM Corporation
  • Global Switch Ltd.
  • CenturyLink Inc.
  • Rackspace Inc.
  • Iron Mountain
  • Telstra International
  • Eaton Corporation
  • AT&T
  • China Telecom
  • Cisco
  • DuPont Fabros
  • Level 3 Communications

Multi-Tenant Data Center Market Report Scope:

Report Attributes Details
Market Size in 202 4 USD 39.86 Billion
Market Size by 2032 USD 112.38 Billion
CAGR CAGR of 12.32% From 2025 to 2032
Base Year 2024
Forecast Period 2025-2032
Historical Data 2021-2023
Report Scope & Coverage Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments . By Component (Solutions, Services)
. By Type (Retail Colocation, Wholesale Colocation)
. By Enterprise Size (SME, Large Enterprises)
. By Application (Public Cloud, Private Cloud)
. By Industry Vertical (BFSI, Healthcare, Government & Defense, IT & Telecom, Retail, Manufacturing, Others)

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By Component: Solutions Dominated, Services Fastest Growing

The Solutions segment dominated the Multi-Tenant Data Center Market and accounted for a significant revenue share in 2024. This is largely driven by demand for essential physical infrastructure -- racks, cooling solutions, PDU, and environmental monitoring solutions. Such components are critical to operational efficiency and uptime, making these investments important for enterprises constructing or growing their digital infrastructure. These solutions and their long-term value, reliability, and compatibility seem to be here to stay, particularly in larger departments and enterprise IT environments, which become more and more hybrid.

The Services segment is expected to register the fastest CAGR during the forecast period of 2025–2032. Increase in managed services, remote hands support, and real-time facility monitoring is pushing infrastructure management towards outsourcing. In the current world, organizations are consolidating on their competencies and utilizing expert third party services to bring down overheads and operational risks.

By Type: Retail Colocation Dominated, Wholesale Colocation Fastest Growing

The Retail Colocation segment dominated the Multi-Tenant Data Center Market and accounted for a significant revenue share in 2024. This model is widely favored due to its cost-effectiveness, flexibility, and ease of deployment. As a result, it is popular among SMEs, startups, and regional enterprises. With shared infrastructure, you can easily scale operations without the need for significant capital investment. For customers who still want to be in charge of their hardware, but need to scale only in small increments, retail colocation enables customers to lease smaller space and power increments.

The Wholesale Colocation segment is projected to grow at the highest CAGR during 2025–2032. The surge in the number of hyperscale cloud providers, AI service providers, and big data companies is intensifying demand for large-scale leasing of purpose-built infrastructure. Targeted toward enterprises running high-density or highly specialized workloads, including those that benefit from tailored environments such as generative AI, ML training, and financial modeling, wholesale colocation allows tenants to receive a space that is private, customized, and energy-efficient, with a lower cost per kilowatt.

By Application: Public Cloud Dominated, Private Cloud Fastest Growing

The Public Cloud segment dominated the Multi-Tenant Data Center Market and accounted for a significant revenue share in 2024. More industries are dependent upon public cloud platforms with an explosion of SaaS, IaaS, and PaaS offerings. These platforms rely on MTDCs, which provide the scalability, security, and redundancy for the infrastructure that enables millions of users and hundreds of thousands of business applications.

The Private Cloud segment is forecasted to grow at the fastest CAGR during 2025–2032. With an increasing demand for closely controlled, compliant data and environments tailored to the specific needs of businesses, private clouds run in MTDCs are garnering significant interest from organizations. We see this trend especially within finance, defense, and healthcare sectors, requiring strict management of data.

By Industry Vertical: IT & Telecom Dominated, Healthcare Fastest Growing

The IT & Telecom segment dominated the Multi-Tenant Data Center Market and accounted for a significant revenue share in 2024. This dominance is attributed to the sector-specific data traffic volume, latency sensitivity, and high availability. Ongoing innovation of 5G networks, OTT content delivery, and cloud-native telecom applications is stimulating considerable use of the MTDC facilities for interconnection, peering, and edge data processing.

The Healthcare segment is expected to grow at the fastest CAGR during the forecast period of 2025–2032. The accelerated digital health adoption-telemedicine, AI diagnostics, electronic health records, etc.-is driving healthcare providers to scale up secure and resilient IT infrastructure. MTDCs provide the redundant, HIPAA-compliant environments needed to efficiently but safely store and process sensitive patient data.

By Region: North America Dominated, Asia-Pacific Fastest Growing

The North America region dominated the Multi-Tenant Data Center Market and accounted for a significant revenue share in 2024. The region benefits from early cloud technology adoption, mature colocation ecosystems, and dense connectivity infrastructure. The U.S., especially, is still a hotspot area for hyperscalers and megaenterprise deployments, backed up by stable power grids and data privacy policies, and tech innovations.

The Asia-Pacific region is forecasted to grow at the fastest CAGR from 2024 to 2032. The rapid growth of the region's digital economy, increasing internet penetration, and rise of AI/data industries, drive MTDC investments. Strong Cloud Market Growth, Along With Government Measures in the Domain of Data Localisation, Continue Making the Countries of its Asia-Pacific Region, a Global Colocation Regional Hub– India, China, Japan, Singapore.

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USP's:

  • Power Usage Effectiveness (PUE) – Increasing focus on energy-efficient infrastructure drives PUE improvements across colocation facilities to meet sustainability targets.
  • Security Breaches and Data Protection Statistics – Rising cyber threats prompt enhanced physical and network security protocols in colocation centers, boosting client trust and compliance.
  • Operational Metrics – High uptime, SLA compliance, and automation adoption shape operational performance benchmarks in modern colocation environments.
  • Carbon Footprint and Sustainability Metrics – Green building certifications and renewable energy sourcing are key differentiators amid growing environmental scrutiny on data center emissions.
  • Data Center Migration Trends – Enterprises are increasingly shifting workloads to colocation facilities to reduce CapEx and improve scalability and hybrid cloud readiness.
  • Churn Rate in Colocation Services – Competitive pricing, service reliability, and connectivity options influence customer retention rates in the fragmented colocation landscape.

About Us:

SNS Insider is one of the leading market research and consulting agencies that dominates the market research industry globally. Our company's aim is to give clients the knowledge they require in order to function in changing circumstances. In order to give you current, accurate market data, consumer insights, and opinions so that you can make decisions with confidence, we employ a variety of techniques, including surveys, video talks, and focus groups around the world.

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