As digital transformation sweeps across industries, data centre colocation has emerged as a linchpin in how companies scale, safeguard and futureproof their digital operations. In 2025, demand for colocation is fuelled by the rise of AI, IoT and hybrid cloud strategies.
It all began as a straightforward proposition – rent rack space, share power and cooling. But colocation has evolved into something far more complex in recent years.
Vacancy rates in North America declined to a new all-time low of 2.3 % in 2025, according to JLL. But it is not only a case of more demand by volume, the requirements of the demands themselves are also rising. As generative-AI training clusters routinely draw 40 – 80 kW per rack, data centre operators must evolve accordingly. The numbers tell a compelling story. The global data centre colocation and interconnection market is projected to grow from around US $ 83bn in 2025 to over US $ 180bn by 2032 at an estimated 11.7 % CAGR.
168 December 2025