(MENAFN- GlobeNewsWire - Nasdaq) The Retail Colocation Market is expanding rapidly as enterprises shift from on-premise data centers to third-party facilities, seeking efficiency, flexibility, and high-performance connectivity amid growing cloud and edge computing adoption.

Austin, Nov. 10, 2025 (GLOBE NEWSWIRE) -- The Retail Colocation Market Size was valued at USD 11.72 billion in 2024 and is expected to reach USD 36.95 billion by 2032 and grow at a CAGR of 15.4% over the forecast period 2025-2032.

Retail colocation is an essential component of the global digital infrastructure ecosystem, which is being driven by the ongoing growth of cloud, edge deployments, and connectivity services. Large corporations and SMEs may deploy swiftly, configure power flexibly, and lease physically smaller spaces using retail colocation services. The growing need for cloud services and artificial intelligence (AI) capabilities among businesses is a major factor propelling the market. The demand for reliable, scalable, and secure data center infrastructure is on the rise as enterprises drive digital transformation. With instant access to power, connection, and cooling infrastructure, retail colocation facilities offer a more affordable option than building customers' data centers.

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The U.S. retail colocation market size was worth USD 2.80 billion in 2024 and is expected to reach USD 7.90 billion by 2032, growing at a CAGR of 13.86% over 2025-2032.

It has the greatest demand for cloud and artificial intelligence services, a greater concentration of IT giants, and an excellent digital infrastructure. Silicon Valley, Dallas, and Northern Virginia are the largest data center hubs, with dependable power and connection.

Segmentation Analysis:

By End-User, Large Enterprises Segment Held the Largest Market Share in 2024; Small and Medium-Sized Enterprises (SMEs) to Grow with the Fastest CAGR

In 2024, large enterprises accounted for 61% of the retail colocation market share due to their massive IT workloads, data needs, and global presence. This increase is driven by digital acceleration, economic scaling of resources, and other rising demands for safety against cyberattacks. Small and medium-sized enterprises (SMEs) are witnessing the fastest growth in the retail colocation market, with a CAGR of 16.10%.

By Industry Application, Market is Dominated by the IT and Telecom Segment in 2024; Healthcare Segment to Grow with the Fastest CAGR Globally

In 2024, the IT and telecom sector led retail colocation usage with a 37% market share, fueled by explosive data growth and demand for low-latency services. The healthcare segment is growing fastest, with a CAGR of 16.5%, as hospitals and medical providers digitize operations and adopt telehealth.

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Regional Insights:

North America was the leading region in the global retail colocation market in 2024, with a projected 39% market share. North America is a dominant location in this cloud marketplace due to a number of variables, including a high demand for cloud services, a dense internet infrastructure, and the massive digital transformation of retail enterprises.

With a projected CAGR of 17.1% in 2024, the Asia Pacific region grew at the quickest rate in the retail colocation market. Demand for colocation is driven by Asia-Pacific economies because of increased cloud use, e-commerce expansion, government smart city efforts, and rapid digitization.

Key Players:

• AT&T Inc.
• China Telecom
• Cogent Communications
• Contegix
• CoreSite Realty Corporation
• Cyxtera Technologies, Inc.
• Digital Realty Trust, Inc.
• Global Switch
• NTT Communications Corporation
• Verizon

Retail Colocation Market Report Scope:

Report Attributes	Details
Market Size in 2024	USD 11.72 Billion
Market Size by 2032	USD 36.95 Billion
CAGR	CAGR of 15.4% 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 End-user (SMEs, and Large Enterprises) . By Industry Application (IT and Telecom, Healthcare, Retail and E-commerce, Energy and Utility, and Others)
Customization Scope	Available upon request
Pricing	Available upon request

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Recent Developments:

• In March 2025, Cogent repurposed 55 former Sprint sites into edge data centers, each supporting approximately 40 racks and 350kW of power. This expansion enhances Cogent's colocation footprint, catering to the growing demand for edge computing solutions.
• In October 2023, Seceon partnered with CoreSite to leverage its Boston data center for hosting its AI/ML-driven cybersecurity platform. CoreSite's scalable infrastructure supports Seceon's need for high-density compute environments, ensuring real-time threat detection and mitigation.

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