The data centre colocation market is estimated to be valued at US$ 69.7 billion in 2024. The data centre colocation market is expected to reach US$ 279.1 billion by 2034, developing at a CAGR of 14.9%.
Data centre colocation providers offer high levels of reliability and redundancy through robust infrastructure, backup power systems, and security measures. This attracts businesses looking for uninterrupted operations and data protection.
The rise of edge computing, which involves processing data closer to the point of generation or consumption, is boosting the demand for smaller, distributed data centres. Colocation providers are strategically expanding their facilities to cater to this trend.
The proliferation of IoT devices and the increasing volume of data generated require efficient and high-capacity storage solution are expected to drive the demand for data centre colocation market.
Environmental concerns are prompting colocation providers to focus on sustainability. Efforts include using renewable energy sources, implementing energy-efficient technologies, and adopting green data centre practices to reduce their carbon footprint.
Data Centre Colocation Market Trend Analysis
| Attributes | Key Insights |
|---|---|
| Data Centre Colocation Market Estimated Size in 2024 | US$ 69.7 billion |
| Projected Market Value in 2034 | US$ 279.1 billion |
| Value-based CAGR from 2024 to 2034 | 14.9% |
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Between 2019 and 2023, global data centre colocation market registered a CAGR of 12.6%. The increasing adoption of data centre colocation in small and large enterprises are expected to drive the market growth during the forecast period.
The growing need for scalable and efficient IT infrastructure are driving the need for data centre colocation. Increasing advancements in technology, such as virtualization, cloud computing, and high-speed connectivity, influenced colocation services.
Adherence to specific regulations regarding data sovereignty and compliance will remain a priority. Colocation providers will offer solutions tailored to meet diverse regulatory requirements across regions. The demand for data centre colocation is projected to rise at a CAGR of 14.9% from 2024 to 2034.
| Market Value 2023 | US$ 61.5 billion |
|---|---|
| Market Value in 2034 | US$ 69.7 billion |
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The following table shows the top five countries by revenue, led by Australia and Japan. Colocation facilities complement cloud strategies by providing hosting options, connectivity, and hybrid solutions for businesses leveraging cloud services in Australia. These two countries are predicted to boost their data centre colocation efforts through 2034.
Forecast CAGRs from 2024 to 2034
| Japan | 16.1% |
|---|---|
| The United States | 12.7% |
| China | 15.4% |
| Australia | 18.4% |
| Germany | 14.4% |
The data centre colocation market in United States is expected to witness a CAGR of 12.7% by 2034.The market size has been growing steadily due to increased digitization across industries, the adoption of cloud services, and the demand for scalable and reliable data infrastructure.
The demand for data centre colocation services in the United States is fueled by factors such as cloud adoption, IoT proliferation, edge computing requirements, content delivery networks (CDNs), and the need for robust connectivity.
The data centre colocation market in United states is continues to evolve, driven by technological advancements, changing business needs, and the growing importance of reliable, scalable, and secure data infrastructure.
Data centre colocation market in Germany is expected to grow with a CAGR of 14.4% from 2024 to 2034. The rising proliferation of IoT devices, along with the growth of big data and analytics, generates vast amounts of data driving the need for colocation facilities that provide the necessary infrastructure to manage and process this data efficiently.
Germany places emphasis on sustainability and green initiatives. Colocation providers focusing on energy-efficient data centres and renewable energy sources align with the country's environmental goals.
Increasing adoption of cloud services in China necessitates reliable data centres to support cloud infrastructure. Colocation facilities complement cloud strategies, providing connectivity and hosting options for businesses leveraging cloud solutions. The data centre colocation market in China is projected to rise at a CAGR of 15.4% from 2024 to 2034.
China has specific data localization laws requiring certain types of data to be stored within the country's borders driving the demand for colocation services that comply with these regulations attract businesses seeking to adhere to local data sovereignty requirements.
China has a thriving e-commerce ecosystem and a vast digital market are expected to boost the demand for data centre colocation services. Increasing government initiatives supporting technology development and digital innovation drives the demand for advanced data infrastructure.
The data centre colocation market in Japan is projected to rise at a CAGR of 16.1% from 2024 to 2034. Japan is embracing IoT and Industry 4.0 technologies across manufacturing and other industries.
Colocation services provide the necessary infrastructure to support IoT deployments and data processing requirements. Colocation centres leverage infrastructure to provide high-speed connectivity and low-latency networks, attracting businesses that require efficient data transmission.
The demand for data centre colocation is expected to rise in Australia. By 2034, the market is expected to expand at a CAGR of 18.4%. Australia has a competitive market with several major colocation providers offering a range of services and solutions, leading to innovation, competitive pricing, and diverse offerings for businesses.
With a growing focus on sustainability, colocation providers in Australia are increasingly adopting renewable energy sources and energy-efficient technologies to reduce their environmental impact.
Government support for technology innovation and digital transformation initiatives further drives the demand for advanced data infrastructure, creating opportunities for colocation providers to support these initiatives.
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According to market forecasts, the large enterprises segment will dominate until 2034, with a market share of 63.0%. For large enterprises with extensive IT needs, colocation offers economies of scale, reducing operational costs related to infrastructure maintenance, cooling, power, and staffing. The 3-tier segment is expected to have a share of 45.0%. The 3-tier architecture facilitates easier integration with different technologies or systems.
| Category | Market share |
|---|---|
| Large Enterprises | 63.0% |
| 3-tier | 45.0% |
The large enterprise segment accounted for the maximum share of 63.0% of the overall revenue in 2024. Increasing demand in large business for managing and maintaining data efficiently.
Increasing extensive IT needs, colocation offers economies of scale, reducing operational costs related to infrastructure maintenance, cooling, power, and staffing in large enterprises.
The tier 3 segment accounted for the largest share of around 45% of the overall revenue in 2024 and is projected to continue growing over the forecast period.
The 3-tier architecture facilitates easier integration with different technologies or systems. The modular nature of this architecture often allows for smoother integration of new components or technologies into specific layers. The 3-tier colocation data centres provide some significant benefits such as high availability, scalability, redundant infrastructure and enhanced security.
The data centre colocation market is fragmented. Competitive landscape featuring various global and regional players. The market players are using strategies, such as product launches, collaborations, and partnerships, to survive the highly competitive environment and expand their business footprints. Some of the leading players operating in the global data centre colocation market are as follows
Some of the developments in the market are as follows
| Attributes | Details |
|---|---|
| Estimated Market Size in 2024 | US$ 69.7 billion |
| Projected Market Valuation in 2034 | US$ 279.1 billion |
| Value-based CAGR 2024 to 2034 | 14.9% |
| Forecast Period | 2024 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Market Analysis | Value in US$ billion |
| Key Regions Covered |
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| Key Market Segments Covered |
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| Key Countries Profiled |
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| Key Companies Profiled |
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As of 2024, the market for data centre colocation is expected to be valued at US$ 69.7 billion, as per FMI.
By 2034, the market value of data centre colocation is expected to reach US$ 279.1 billion.
From 2024 to 2034, data centre colocation are expected to flourish at a CAGR of 14.9%
The large enterprises segment is expected to account for a market share of 63.0% in 2024.
The Australia is likely the top-performing market with a CAGR of 18.4%.
1. Executive Summary 1.1. Global Market Outlook 1.2. Demand-side Trends 1.3. Supply-side Trends 1.4. Technology Roadmap Analysis 1.5. Analysis and Recommendations 2. Market Overview 2.1. Market Coverage / Taxonomy 2.2. Market Definition / Scope / Limitations 3. Market Background 3.1. Market Dynamics 3.1.1. Drivers 3.1.2. Restraints 3.1.3. Opportunity 3.1.4. Trends 3.2. Scenario Forecast 3.2.1. Demand in Optimistic Scenario 3.2.2. Demand in Likely Scenario 3.2.3. Demand in Conservative Scenario 3.3. Opportunity Map Analysis 3.4. Investment Feasibility Matrix 3.5. PESTLE and Porter’s Analysis 3.6. Regulatory Landscape 3.6.1. By Key Regions 3.6.2. By Key Countries 3.7. Regional Parent Market Outlook 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034 4.1. Historical Market Size Value (US$ Million) Analysis, 2019 to 2023 4.2. Current and Future Market Size Value (US$ Million) Projections, 2024 to 2034 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Type 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Million) Analysis By Type, 2019 to 2023 5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Type, 2024 to 2034 5.3.1. Retail colocation 5.3.2. Wholesale colocation 5.4. Y-o-Y Growth Trend Analysis By Type, 2019 to 2023 5.5. Absolute $ Opportunity Analysis By Type, 2024 to 2034 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use 6.1. Introduction / Key Findings 6.2. Historical Market Size Value (US$ Million) Analysis By End Use, 2019 to 2023 6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By End Use, 2024 to 2034 6.3.1. SMEs 6.3.2. Large Enterprises 6.4. Y-o-Y Growth Trend Analysis By End Use, 2019 to 2023 6.5. Absolute $ Opportunity Analysis By End Use, 2024 to 2034 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 7.1. Introduction / Key Findings 7.2. Historical Market Size Value (US$ Million) Analysis By Application, 2019 to 2023 7.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Application, 2024 to 2034 7.3.1. BFSI 7.3.2. Energy 7.3.3. Government & Defense 7.3.4. Healthcare 7.3.5. Manufacturing 7.3.6. IT & Telecom 7.3.7. Retail 7.4. Y-o-Y Growth Trend Analysis By Application, 2019 to 2023 7.5. Absolute $ Opportunity Analysis By Application, 2024 to 2034 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 8.1. Introduction 8.2. Historical Market Size Value (US$ Million) Analysis By Region, 2019 to 2023 8.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2024 to 2034 8.3.1. North America 8.3.2. Latin America 8.3.3. Western Europe 8.3.4. Eastern Europe 8.3.5. South Asia and Pacific 8.3.6. East Asia 8.3.7. Middle East and Africa 8.4. Market Attractiveness Analysis By Region 9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 9.2.1. By Country 9.2.1.1. USA 9.2.1.2. Canada 9.2.2. By Type 9.2.3. By End Use 9.2.4. By Application 9.3. Market Attractiveness Analysis 9.3.1. By Country 9.3.2. By Type 9.3.3. By End Use 9.3.4. By Application 9.4. Key Takeaways 10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 10.2.1. By Country 10.2.1.1. Brazil 10.2.1.2. Mexico 10.2.1.3. Rest of Latin America 10.2.2. By Type 10.2.3. By End Use 10.2.4. By Application 10.3. Market Attractiveness Analysis 10.3.1. By Country 10.3.2. By Type 10.3.3. By End Use 10.3.4. By Application 10.4. Key Takeaways 11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 11.2.1. By Country 11.2.1.1. Germany 11.2.1.2. UK 11.2.1.3. France 11.2.1.4. Spain 11.2.1.5. Italy 11.2.1.6. Rest of Western Europe 11.2.2. By Type 11.2.3. By End Use 11.2.4. By Application 11.3. Market Attractiveness Analysis 11.3.1. By Country 11.3.2. By Type 11.3.3. By End Use 11.3.4. By Application 11.4. Key Takeaways 12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 12.2.1. By Country 12.2.1.1. Poland 12.2.1.2. Russia 12.2.1.3. Czech Republic 12.2.1.4. Romania 12.2.1.5. Rest of Eastern Europe 12.2.2. By Type 12.2.3. By End Use 12.2.4. By Application 12.3. Market Attractiveness Analysis 12.3.1. By Country 12.3.2. By Type 12.3.3. By End Use 12.3.4. By Application 12.4. Key Takeaways 13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 13.2.1. By Country 13.2.1.1. India 13.2.1.2. Bangladesh 13.2.1.3. Australia 13.2.1.4. New Zealand 13.2.1.5. Rest of South Asia and Pacific 13.2.2. By Type 13.2.3. By End Use 13.2.4. By Application 13.3. Market Attractiveness Analysis 13.3.1. By Country 13.3.2. By Type 13.3.3. By End Use 13.3.4. By Application 13.4. Key Takeaways 14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 14.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 14.2.1. By Country 14.2.1.1. China 14.2.1.2. Japan 14.2.1.3. South Korea 14.2.2. By Type 14.2.3. By End Use 14.2.4. By Application 14.3. Market Attractiveness Analysis 14.3.1. By Country 14.3.2. By Type 14.3.3. By End Use 14.3.4. By Application 14.4. Key Takeaways 15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 15.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 15.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 15.2.1. By Country 15.2.1.1. GCC Countries 15.2.1.2. South Africa 15.2.1.3. Israel 15.2.1.4. Rest of MEA 15.2.2. By Type 15.2.3. By End Use 15.2.4. By Application 15.3. Market Attractiveness Analysis 15.3.1. By Country 15.3.2. By Type 15.3.3. By End Use 15.3.4. By Application 15.4. Key Takeaways 16. Key Countries Market Analysis 16.1. USA 16.1.1. Pricing Analysis 16.1.2. Market Share Analysis, 2023 16.1.2.1. By Type 16.1.2.2. By End Use 16.1.2.3. By Application 16.2. Canada 16.2.1. Pricing Analysis 16.2.2. Market Share Analysis, 2023 16.2.2.1. By Type 16.2.2.2. By End Use 16.2.2.3. By Application 16.3. Brazil 16.3.1. Pricing Analysis 16.3.2. Market Share Analysis, 2023 16.3.2.1. By Type 16.3.2.2. By End Use 16.3.2.3. By Application 16.4. Mexico 16.4.1. Pricing Analysis 16.4.2. Market Share Analysis, 2023 16.4.2.1. By Type 16.4.2.2. By End Use 16.4.2.3. By Application 16.5. Germany 16.5.1. Pricing Analysis 16.5.2. Market Share Analysis, 2023 16.5.2.1. By Type 16.5.2.2. By End Use 16.5.2.3. By Application 16.6. UK 16.6.1. Pricing Analysis 16.6.2. Market Share Analysis, 2023 16.6.2.1. By Type 16.6.2.2. By End Use 16.6.2.3. By Application 16.7. France 16.7.1. Pricing Analysis 16.7.2. Market Share Analysis, 2023 16.7.2.1. By Type 16.7.2.2. By End Use 16.7.2.3. By Application 16.8. Spain 16.8.1. Pricing Analysis 16.8.2. Market Share Analysis, 2023 16.8.2.1. By Type 16.8.2.2. By End Use 16.8.2.3. By Application 16.9. Italy 16.9.1. Pricing Analysis 16.9.2. Market Share Analysis, 2023 16.9.2.1. By Type 16.9.2.2. By End Use 16.9.2.3. By Application 16.10. Poland 16.10.1. Pricing Analysis 16.10.2. Market Share Analysis, 2023 16.10.2.1. By Type 16.10.2.2. By End Use 16.10.2.3. By Application 16.11. Russia 16.11.1. Pricing Analysis 16.11.2. Market Share Analysis, 2023 16.11.2.1. By Type 16.11.2.2. By End Use 16.11.2.3. By Application 16.12. Czech Republic 16.12.1. Pricing Analysis 16.12.2. Market Share Analysis, 2023 16.12.2.1. By Type 16.12.2.2. By End Use 16.12.2.3. By Application 16.13. Romania 16.13.1. Pricing Analysis 16.13.2. Market Share Analysis, 2023 16.13.2.1. By Type 16.13.2.2. By End Use 16.13.2.3. By Application 16.14. India 16.14.1. Pricing Analysis 16.14.2. Market Share Analysis, 2023 16.14.2.1. By Type 16.14.2.2. By End Use 16.14.2.3. By Application 16.15. Bangladesh 16.15.1. Pricing Analysis 16.15.2. Market Share Analysis, 2023 16.15.2.1. By Type 16.15.2.2. By End Use 16.15.2.3. By Application 16.16. Australia 16.16.1. Pricing Analysis 16.16.2. Market Share Analysis, 2023 16.16.2.1. By Type 16.16.2.2. By End Use 16.16.2.3. By Application 16.17. New Zealand 16.17.1. Pricing Analysis 16.17.2. Market Share Analysis, 2023 16.17.2.1. By Type 16.17.2.2. By End Use 16.17.2.3. By Application 16.18. China 16.18.1. Pricing Analysis 16.18.2. Market Share Analysis, 2023 16.18.2.1. By Type 16.18.2.2. By End Use 16.18.2.3. By Application 16.19. Japan 16.19.1. Pricing Analysis 16.19.2. Market Share Analysis, 2023 16.19.2.1. By Type 16.19.2.2. By End Use 16.19.2.3. By Application 16.20. South Korea 16.20.1. Pricing Analysis 16.20.2. Market Share Analysis, 2023 16.20.2.1. By Type 16.20.2.2. By End Use 16.20.2.3. By Application 16.21. GCC Countries 16.21.1. Pricing Analysis 16.21.2. Market Share Analysis, 2023 16.21.2.1. By Type 16.21.2.2. By End Use 16.21.2.3. By Application 16.22. South Africa 16.22.1. Pricing Analysis 16.22.2. Market Share Analysis, 2023 16.22.2.1. By Type 16.22.2.2. By End Use 16.22.2.3. By Application 16.23. Israel 16.23.1. Pricing Analysis 16.23.2. Market Share Analysis, 2023 16.23.2.1. By Type 16.23.2.2. By End Use 16.23.2.3. By Application 17. Market Structure Analysis 17.1. Competition Dashboard 17.2. Competition Benchmarking 17.3. Market Share Analysis of Top Players 17.3.1. By Regional 17.3.2. By Type 17.3.3. By End Use 17.3.4. By Application 18. Competition Analysis 18.1. Competition Deep Dive 18.1.1. China Telecom Corporation Ltd. 18.1.1.1. Overview 18.1.1.2. Product Portfolio 18.1.1.3. Profitability by Market Segments 18.1.1.4. Sales Footprint 18.1.1.5. Strategy Overview 18.1.1.5.1. Marketing Strategy 18.1.2. Cologix 18.1.2.1. Overview 18.1.2.2. Product Portfolio 18.1.2.3. Profitability by Market Segments 18.1.2.4. Sales Footprint 18.1.2.5. Strategy Overview 18.1.2.5.1. Marketing Strategy 18.1.3. Colt Technology Services Group Ltd. 18.1.3.1. Overview 18.1.3.2. Product Portfolio 18.1.3.3. Profitability by Market Segments 18.1.3.4. Sales Footprint 18.1.3.5. Strategy Overview 18.1.3.5.1. Marketing Strategy 18.1.4. CoreSite 18.1.4.1. Overview 18.1.4.2. Product Portfolio 18.1.4.3. Profitability by Market Segments 18.1.4.4. Sales Footprint 18.1.4.5. Strategy Overview 18.1.4.5.1. Marketing Strategy 18.1.5. CyrusOne 18.1.5.1. Overview 18.1.5.2. Product Portfolio 18.1.5.3. Profitability by Market Segments 18.1.5.4. Sales Footprint 18.1.5.5. Strategy Overview 18.1.5.5.1. Marketing Strategy 18.1.6. Cyxtera Technologies, Inc. 18.1.6.1. Overview 18.1.6.2. Product Portfolio 18.1.6.3. Profitability by Market Segments 18.1.6.4. Sales Footprint 18.1.6.5. Strategy Overview 18.1.6.5.1. Marketing Strategy 18.1.7. Digital Realty Trust 18.1.7.1. Overview 18.1.7.2. Product Portfolio 18.1.7.3. Profitability by Market Segments 18.1.7.4. Sales Footprint 18.1.7.5. Strategy Overview 18.1.7.5.1. Marketing Strategy 18.1.8. Equinix, Inc. 18.1.8.1. Overview 18.1.8.2. Product Portfolio 18.1.8.3. Profitability by Market Segments 18.1.8.4. Sales Footprint 18.1.8.5. Strategy Overview 18.1.8.5.1. Marketing Strategy 18.1.9. Flexential 18.1.9.1. Overview 18.1.9.2. Product Portfolio 18.1.9.3. Profitability by Market Segments 18.1.9.4. Sales Footprint 18.1.9.5. Strategy Overview 18.1.9.5.1. Marketing Strategy 18.1.10. Iron Mountain Inc. 18.1.10.1. Overview 18.1.10.2. Product Portfolio 18.1.10.3. Profitability by Market Segments 18.1.10.4. Sales Footprint 18.1.10.5. Strategy Overview 18.1.10.5.1. Marketing Strategy 18.1.11. NTT Ltd. 18.1.11.1. Overview 18.1.11.2. Product Portfolio 18.1.11.3. Profitability by Market Segments 18.1.11.4. Sales Footprint 18.1.11.5. Strategy Overview 18.1.11.5.1. Marketing Strategy 18.1.12. QTS Realty Trust, LLC 18.1.12.1. Overview 18.1.12.2. Product Portfolio 18.1.12.3. Profitability by Market Segments 18.1.12.4. Sales Footprint 18.1.12.5. Strategy Overview 18.1.12.5.1. Marketing Strategy 18.1.13. Rackspace Technology 18.1.13.1. Overview 18.1.13.2. Product Portfolio 18.1.13.3. Profitability by Market Segments 18.1.13.4. Sales Footprint 18.1.13.5. Strategy Overview 18.1.13.5.1. Marketing Strategy 18.1.14. Telehouse 18.1.14.1. Overview 18.1.14.2. Product Portfolio 18.1.14.3. Profitability by Market Segments 18.1.14.4. Sales Footprint 18.1.14.5. Strategy Overview 18.1.14.5.1. Marketing Strategy 18.1.15. Zayo Group, LLC 18.1.15.1. Overview 18.1.15.2. Product Portfolio 18.1.15.3. Profitability by Market Segments 18.1.15.4. Sales Footprint 18.1.15.5. Strategy Overview 18.1.15.5.1. Marketing Strategy 19. Assumptions & Acronyms Used 20. Research Methodology
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Data Centre Colocation Market
