6.1.2Segment

Colocation Data Centers

Colocation operators leasing data center space, power, and cooling to enterprise and wholesale customers.

4
Verticals

Overview

Colocation Data Centers covers facilities that lease space, power, and cooling to multiple tenants who deploy their own equipment — the multi-tenant infrastructure model led by colocation majors (Equinix, Digital Realty) and a base of regional providers. It serves enterprises, cloud on-ramps, and network interconnection.

Demand is driven by enterprise outsourcing, hybrid-cloud and interconnection needs, and proximity to cloud and network ecosystems, with interconnection-rich facilities commanding premium value. It is consolidating around scaled REITs and operators, capital-intensive, and a core, recurring-revenue layer of digital infrastructure.

Market snapshot

FragmentationConsolidating

Colocation sits within data-processing and hosting (NAICS 518210) and is not separately disclosed by the Census Bureau, so the segment is not separately sized here; public leaders include Equinix and Digital Realty.

Business model & economics

Revenue model
Recurring space, power, and interconnection leases
Recurring revenue
High — recurring multi-tenant leases
EBITDA margin
Strong — REIT-like recurring economics
Capex intensity
High
  • Multi-tenant model led by Equinix and Digital Realty.
  • Interconnection-rich facilities command premium value.
  • Enterprise outsourcing and hybrid cloud drive demand.

M&A deal context

High deal activity

Who’s acquiring

Colocation REITs & operatorsInfrastructure funds & PERegional-provider consolidators

What’s driving deals

  • Consolidation around scaled REITs and operators.
  • Interconnection and hybrid-cloud demand.
  • Infrastructure-capital roll-up of regionals.

Verticals in this segment

  • 6.1.2.1Enterprise Colocation Providers

    Colocation operators leasing retail space to enterprise customers.

  • 6.1.2.2Network-Neutral Colocation

    Carrier-neutral colocation facilities connecting multiple network providers.

  • 6.1.2.3Regional Colocation Operators

    Colocation operators serving specific metropolitan or regional markets.

  • 6.1.2.4Wholesale Colocation Providers

    Operators leasing large powered shell space to hyperscale customers.

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Search Acquisera’s index for companies classified under Colocation Data Centers (6.1.2) and build a targeted deal pipeline.

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