Procurement Market Intelligence Report
Data Center Services
Sourcing Guide & Market Intelligence
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Data Center Services Global Overview
Definition
Summary
Data center services are used to process, store, network, manage, and distribute data. Data center services can also be referred to as colocation center services, and suppliers can be referred to as carriers. This report focuses exclusively on outsourced data center services for businesses, rather than consulting companies that advise businesses on how to create their own data storage and processing centers.
This Report Includes:
- Processing Data
- Storing Data
- Managing Data
- Distributing Data
Not in this Report:
- Data Recovery Services
- IT Hosting Services
- Wed Hosting Services
Global Data Center Services Procurement Trends
Discover the top international trends affecting procurement in the global Data Center Services market.
Warning Trends
The European Union’s Artificial Intelligence (AI) Act enters into force
- In August 2024, the European Union (EU) began enforcing its new regulation on artificial intelligence. Although EU legislation, the act will have a major effect on global technological companies operating in the AI space, similar to the General Data Protection regulation.
- The legislation aims to apply a risk-based framework to AI regulation, meaning different AI applications will be treated differently. The law applies a general ban for “unacceptable” uses, such as social scoring and predictive policing.
- For general-purpose AI models, companies will be required to comply with EU copyright law and intellectual property provisions, carry out regular testing, issue transparency disclosures, and implement adequate cybersecurity protections. For “high-risk” AI applications, such as autonomous vehicles, medical devices, financial services, and biometric identification systems, companies must meet stricter requirements in terms of risk-mitigation systems, documentation, human oversight, and cybersecurity.
- Companies that breach the AI Act may face fines ranging from 7.5 million euros or 1.5% of global annual revenues to 35.0 million euros or 7.0% of global annual revenues, whichever amount is higher.
- While the blanket ban on unacceptable systems entered into force in February 2025, most of the obligations do not take effect for a full year. In August 2025, requirements for general-purpose AI will come into effect, and in August 2026, obligations for high-risk AI systems will be enforced.
China bans exports of rare minerals to the United States
- On December 4, China announced a ban on all exports of gallium, germanium, graphite, and antimony to the United States, escalating existing trade restrictions on these materials.
- China is the leading global producer of each of these metals, producing 98.3%, 67.9%, 62.0%, and 48.2%, respectively, of the world’s gallium, germanium, graphite, and antimony supplies, respectively.
- The United States can still access these resources from other trade partners who make up most of the remaining global supply of the impacted commodities, such as Canada, Japan, and Brazil.
- However, the loss of supply from China, the leading producer of these materials, will increase prices and supply chain risk in a range of markets that rely on the affected metals, such as the semiconductor, batteries, and solar cell markets.
- China’s export ban on these materials is in retaliation to expanded US export bans on advanced semiconductor manufacturing equipment and technologies to China announced two days prior. This ongoing trade dispute adds further uncertainty to technology markets, which are often reliant on components and materials exported from China.
Global Data Center Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 3,380 |
| #2 Europe | 3,125 |
| #3 United States | 2,400 |
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Geography Drilldown - US & Europe
Average Cost of Data Center Services
United States
2026 Market Pricing$50.00 to $XXX.XX
per rack spaceEurope
Average Price
Prices in the Data Center Services market range from $50.00 to $XXX.XX, depending on Features, Location and Rack Space. For example, lower prices are associated with Server management, whereas higher prices are associated with Cloud backup.
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Data Center Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Data Center Services market, prices in the US have grown 1.9% from 2022 to 2025. and +2.9% in Europe.
United States (2022-2025)
Canada (2017-2020)
Compound Annual Growth Rate
Europe (2022-2025)
Compound Annual Growth Rate
Wondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Data Center Services
Total cost of ownership is High in the Data Center Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Emergencies may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Set Up Fees
Billed During
Support
Hardware
Storage
Unforeseen
Emergencies
Downtime
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -1.9 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Europe
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Computer Manufacturers
- Electrical Equipment Wholesalers
- Commercial Real Estate
- Electric Power Transmission Wholesalers
2nd
Tier Suppliers
- Semiconductor & Circuit Manufacturers
- Wire & Cable Manufacturers
- Law Firms
- Hydroelectric Power Providers
Biggest Data Center Services Suppliers in the US by Revenue
The largest Data Center Services vendors by revenue in the US are CyrusOne Inc., American Tower Corporation and At&T Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Equinix, Inc. | Global | REDWOOD CITY, CA | >10,000 | 10-15 | ||||
| Digital Realty Trust, L.P. | Global | AUSTIN, TX | 1,001-10,000 | 5-10 | ||||
| Rackspace Technology Inc. | Global | SAN ANTONIO, US | 1,001-10,000 | 5-10 | ||||
| Verizon Communications Inc. | Global | NEW YORK, NY | >10,000 | < 5 | ||||
| At&T Inc. | Global | DALLAS, TX | >10,000 | < 5 | ||||
| American Tower Corporation | Global | BOSTON, MA | 1,001-10,000 | < 5 | ||||
| Iron Mountain Inc. | Global | PORTSMOUTH | >10,000 | < 5 | ||||
| Zayo Group Holdings, Inc. | Global | BOULDER, CO | 1,001-10,000 | < 5 | ||||
| CyrusOne Inc. | Global | DALLAS, TX | 251-500 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Data Center Services market is 13.0% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is stagnating, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
The top four vendors in the market have under 40.0% of the total market share. Additionally, there is a high availability of small suppliers in the market, meaning market share concentration is low overall.
Supply chain disruptions have been driving up the costs for upstream materials, increasing the level of supply chain risk to moderate.
The average vendor risk in this market is moderate as the market remains highly competitive.
The United States is a net importer of computer storage units, indicating heavy competition from foreign manufacturers in the market. While this provides access to high-quality products, it also implies a degree of vulnerability to supply chain upheavals, particularly while sourcing specialized parts.
Supplier Information
Equinix, Inc.
Equinix, Inc. is a public company operating globally in the information sector. The company's offerings include data center services. Founded in 1998, the company is currently headquartered in REDWOOD CITY, California, United States of America with an estimated 12097 employees. Subscribe to learn more
Digital Realty Trust, L.P.
Digital Realty Trust, L.P. is a public company operating globally in the information sector. The company's offerings include data center services. Founded in 2004, the company is currently headquartered in AUSTIN, Texas, United States of America with an estimated 3412 employees. Subscribe to learn more
Rackspace Technology Inc.
Rackspace Technology Inc. is a public company operating globally in the information and professional, scientific and technical services sectors. The company's offerings include load balancing software, data center services, disaster recovery services, it hosting services and web hosting services. Founded Subscribe to learn more
American Tower Corporation
American Tower Corp. /MA/ is a global real estate investment trust and an independent owner, operator, and developer of multi-tenant communications real estate. It primarily leases space on communication sites to wireless service providers, radio and television broadcast companies, wireless data providers,... Subscribe to learn more
At&T Inc.
At&T Inc. is a public company operating globally in the manufacturing, information and professional, scientific and technical services sectors. The company's offerings include electronic logging devices, smartphones, office phones, air cards, mobile enterprise application platforms. Founded in 1885, the company... Subscribe to learn more
CyrusOne Inc.
CyrusOne Inc. is a private company operating globally in the information sector. The company's offerings include data center services. Founded in 2001, the company is currently headquartered in DALLAS, Texas, United States of America with an estimated 456 employees. Subscribe to learn more
Cyxtera Technologies, Inc.
Cyxtera Technologies, Inc. is a private company operating globally in the information sector. The company's offerings include data center services. Founded in 2017, the company is currently headquartered in Coral Gables, Florida, United States of America with an estimated 5500 employees. Subscribe to learn more
Internap Corp
Internap Corporation is a global Internet infrastructure services provider to enterprises. It offers comprehensive data center infrastructure, cloud solutions, and network services across healthcare, advertising, technology, finance, technology infrastructure, gaming, and software industries. Its primary Subscribe to learn more
Iron Mountain Inc.
Iron Mountain Inc. is a storage and information management services company. It organizes its business into three segments: the Global Records and Information Management segment, which offers records and data management, global digital solutions, secure shredding, and entertainment and media services; the... Subscribe to learn more
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Procurement Management KPIs for the Data Center Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Mean Time to Failure (MTTF). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Availability and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time |
|
Total resolution time Number of resolved tickets |
The average resolution time represents the average amount of time it takes to resolve a support ticket. Buyers should ask their vendors how they track support tickets and what processes are in place to improve efficiency and reduce the frequency of recurring issues. |
| Mean Time to Failure (MTTF) |
|
Number of operational hours Number of assets in use |
The mean time to failure represents the average time it takes for an operational asset to become inoperative, signaling how well a vendor takes care of their hardware. A mean time to failure below expected or industry average time frames will increase costs for vendors and buyers. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Workforce
What are the technical capabilities of your staff at the data center?
What certifications do your employees maintain?
Business Continuity
What percentage of your revenue do you generate from data center services?
How old is your infrastructure? What upgrades have you made to the data center in question?
Value-Added Services
What services are included in your quoted price?
What additional services can you offer our organization that are not included in your proposal?
The ultimate prep for procurement negotations
View all 28 negotiation questions for this category when you subscribe.
Data Center Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should provide a general overview of their business, including the data and IT requirements they have.
Buyers should state the features of data center services that they desire.
Statement Of Need
Buyers should specify the exact data tier required.
Buyers should specify the amount of rack space needed.
Project Budget
Buyers should specify the total budget for their purchase.
Buyers should include details about per-user spending expectations and limitations.
The RFP process made easy
Find out how you can access RFP templates for 800+ procurement categories to start writing better, more consistent RFPs.
We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
