# Retail Colocation Market

> Retail colocation: USD 28.38 billion in 2026, USD 57.98 billion by 2035, 8.40% CAGR from 2025, as enterprises add AI inference racks and cross-connects.

Publisher: DC Market Insights  
Author: Amit Jain, DC Market Insights  
Published: 2026-10-30  
Last updated: 2026-10-30  
Next review: Apr 2027  
Page: https://www.dcmarketinsights.com/report/retail-colocation-market

## Key takeaways

- DORA Puts Colocation Providers Under Financial Supervision
- Liquid-Cooled Inference Rooms Inside Retail Sites
- Wholesale Campuses Take the Grid Connections
- Private Suites for Inference Clusters: USD 18.51 Billion by 2035

**Frequently Asked Questions**

**What is the size of the Retail Colocation Market in 2026?**

USD 28.38 billion in 2026, up 9.70% from USD 25.87 billion in 2025, according to DC Market Insights estimates. The market is projected to reach USD 57.98 billion by 2035, a CAGR of 8.40% from 2025.

**How fast is the Retail Colocation Market growing?**

8.40% a year from 2025 to 2035, after 9.08% a year from 2020 to 2025, as retail IT load in billing rises from 6,300 MW to 11,600 MW and average rent from USD 290 to USD 350 per kW-month.

**What is retail colocation?**

USD 25.87 billion was paid in 2025 for racks, cages and private suites under 1 MW in third-party data centers, plus cross-connects. Wholesale leases of 1 MW or more, power pass-through and managed hosting are excluded.

**How much does retail colocation cost per kW?**

About USD 290 per kW per month on average in 2025, power included, DC Market Insights estimates, rising to USD 350 by 2035. A 5 kW rack costs about USD 1,450 a month before cross-connects.

**What is the difference between retail and wholesale colocation?**

Retail colocation rents racks, cages and suites under 1 MW with interconnection, worth USD 25.87 billion in 2025; wholesale leases 1 MW or more on 10- to 25-year terms, worth USD 38.88 billion.

**How big is the interconnection part of retail colocation?**

USD 3.95 billion in 2025, 15.25% of retail colocation value, growing 8.90% a year to USD 9.26 billion by 2035. Equinix earned USD 1.66 billion of interconnection revenue in 2025.

**Which segment of the Retail Colocation Market grows fastest?**

Racks above 30 kW grow fastest at 21.43% a year to USD 16.23 billion by 2035. By offering, private suites lead at 12.08%, and by end user, AI inference tenants at 16.89%.

**Which region leads the Retail Colocation Market?**

North America, with USD 10.35 billion or 40.00% of 2025 value. The Middle East and Africa grows fastest at 15.33% a year, and India is the fastest large country at 15.80%.

**Who are the leading retail colocation providers?**

Equinix leads with about 31% of 2025 value, and the top five hold about 52% (DC Market Insights estimate). Digital Realty, NTT DATA, American Tower (CoreSite), KDDI (Telehouse), Iron Mountain and DataBank also compete.

**Why do Retail Colocation Market estimates differ?**

USD 28.38 billion in 2026 counts only rent and interconnection on contracts under 1 MW. Estimates that add wholesale leases, power pass-through, managed hosting or cloud come out much larger.

## Dataset

| Series | Value | Unit |
| --- | --- | --- |
| Market size 2025 | 25,870 | USD million |
| Revenue CAGR | 8.4 | % |
| Market size 2035 | 57,980 | USD million |

## Frequently asked questions

### What is the size of the Retail Colocation Market in 2026?

USD 28.38 billion in 2026, up 9.70% from USD 25.87 billion in 2025, according to DC Market Insights estimates. The market is projected to reach USD 57.98 billion by 2035, a CAGR of 8.40% from 2025.

### How fast is the Retail Colocation Market growing?

8.40% a year from 2025 to 2035, after 9.08% a year from 2020 to 2025, as retail IT load in billing rises from 6,300 MW to 11,600 MW and average rent from USD 290 to USD 350 per kW-month.

### What is retail colocation?

USD 25.87 billion was paid in 2025 for racks, cages and private suites under 1 MW in third-party data centers, plus cross-connects. Wholesale leases of 1 MW or more, power pass-through and managed hosting are excluded.

### How much does retail colocation cost per kW?

About USD 290 per kW per month on average in 2025, power included, DC Market Insights estimates, rising to USD 350 by 2035. A 5 kW rack costs about USD 1,450 a month before cross-connects.

### What is the difference between retail and wholesale colocation?

Retail colocation rents racks, cages and suites under 1 MW with interconnection, worth USD 25.87 billion in 2025; wholesale leases 1 MW or more on 10- to 25-year terms, worth USD 38.88 billion.

### How big is the interconnection part of retail colocation?

USD 3.95 billion in 2025, 15.25% of retail colocation value, growing 8.90% a year to USD 9.26 billion by 2035. Equinix earned USD 1.66 billion of interconnection revenue in 2025.

### Which segment of the Retail Colocation Market grows fastest?

Racks above 30 kW grow fastest at 21.43% a year to USD 16.23 billion by 2035. By offering, private suites lead at 12.08%, and by end user, AI inference tenants at 16.89%.

### Which region leads the Retail Colocation Market?

North America, with USD 10.35 billion or 40.00% of 2025 value. The Middle East and Africa grows fastest at 15.33% a year, and India is the fastest large country at 15.80%.

### Who are the leading retail colocation providers?

Equinix leads with about 31% of 2025 value, and the top five hold about 52% (DC Market Insights estimate). Digital Realty, NTT DATA, American Tower (CoreSite), KDDI (Telehouse), Iron Mountain and DataBank also compete.

### Why do Retail Colocation Market estimates differ?

USD 28.38 billion in 2026 counts only rent and interconnection on contracts under 1 MW. Estimates that add wholesale leases, power pass-through, managed hosting or cloud come out much larger.

## How to cite

Data Center Market Research & Consulting | DC Market Insights, "Retail Colocation Market", updated 2026-10-30, https://www.dcmarketinsights.com/report/retail-colocation-market