Data Center Market Research, 2030
The global data center market Size was valued at USD 187.35 billion in 2020, and is projected to reach USD 517.17 billion by 2030, registering a CAGR of 10.5% from 2021 to 2030.
The data center market is expected to witness notable growth during the forecast period, owing to demand for data center capacity, driven by rise in data center complexities due to scalability. Furthermore, the rise in penetration of high-end cloud computing in enterprises, globally in developing economies, drives the growth of the market during the forecast period. Moreover, the increase in the investment in data center applications globally is expected to propel the global data center market growth.
Datacenter physical facility in an enterprise designed to share IT operations and equipment’s to store, process, and disseminate data and applications. Further, the data center in an enterprise based on a network of computer applications and storage solutions intended to share information and data. The shift in traditional on-premises physical servers to the virtual network-based data center, owing to the advancement in multi-cloud computing, is driving the growth of computational power data centers globally. The modern data center in an enterprise can communicate with multiple sites, both cloud computing and on-premises.
Furthermore, modern data centers might extend outside of a physical infrastructure using public or a private cloud computing solution to enhance their storage and operations. In addition, virtualized data centers are designed to use the server in a remote location where large workload operations are performed.
However, rise in concerns related to data privacy paired with growing demand for managed services is expected to restrain the market growth. Further, increase in penetration of Internet of Things and hybrid & multi cloud architecture solutions is expected to provide lucrative opportunity for the growth of the data center market during the forecast period.
Conversely, the data center market is expected to offer numerous opportunities for new players especially due to the demand for data center capacity for data center industry growth. Rise in reliance on digital data has led businesses to increase in need for reliable backup and disaster recovery solutions, making secure, high-availability storage solutions in data centers particularly in demand for mission-critical industries. Building disaster-resilient data centers that can withstand natural and human-made disruptions presents a key opportunity, especially in areas prone to power outages or natural disasters. In addition, the surge in telecommunications and Internet Service Providers (ISPs) has led to upsurge in the demand for data center infrastructure that support high-bandwidth connectivity, low-latency requirements, and seamless interconnection services, which is expected to offer remunerative opportunities for the growth of the data center industry growth.
For instance, in On October 22, 2024, Nokia partnered with Lenovo to create data center networking and automation solutions for AI and ML workloads. They combined Lenovo's AI-ready servers and storage with Nokia's network solutions, including the Event-Driven Automation platform. This integration aimed to meet modern processing and network performance needs, enhance security, and promote energy efficiency.
Furthermore, the increase in third-party data centers has resulted in many businesses to opt for rent data center space instead of building their own. Colocation providers facilitate this by allowing multiple customers to share a data center infrastructure. This trend is expected to persist, particularly among SMEs and organizations aiming to avoid upfront capital expenses, thus offering numerous data center market opportunity. In addition, the surge in the adoption of sustainable practices has led to the drive of companies focusing on green solutions using renewable energy sources like solar or wind. The focus on reducing carbon emissions and adopting circular economy principles, such as reusing equipment and efficient cooling for environmentally friendly data centers, presents lucrative opportunity for the growth of the market.
For instance, in Feb 11, 2025, Accelsius partnered with Nordik Data Centers to build an AI data center near Montreal, featuring a co-innovation lab for testing Accelsius' cooling technology. The lab, operational by Q2 2025, aimed to support advanced compute workloads and provide data-backed proof of performance and sustainability. Nordik chose two-phase, direct-to-chip liquid cooling to protect high-value IT infrastructure, eliminating water-based cooling risks and enhancing thermal performance. This partnership marked Accelsius' entry into the Canadian market, aligning with Nordik's commitment to sustainable, forward-looking technologies.
Market Trends Insights:
One of the significant data center industry trends is the increase in the adoption of cloud solutions. As many enterprises migrate their workloads to the cloud, there is an increasing demand for both public and hybrid cloud services. Providers like AWS, Microsoft Azure, and Google Cloud are continually expanding their global data center footprints to meet this growing demand. In addition, the cloud service providers are investing in more advanced infrastructure to enhance performance and scalability, allowing businesses to scale operations, manage large data volumes, and meet demands for faster processing and storage. Furthermore, private cloud growth is another significant trend, as many businesses are adopting private clouds to maintain enhanced security and control over their sensitive data. This shift has led to increased investments in data centers that are dedicated specifically to supporting private cloud services. For instance, on Feb 5, 2025, NetSuite announced the opening of data centers in the Oracle Cloud Mumbai and Hyderabad Regions to meet the growing demand in India. This marked the first time NetSuite operated data centers in India. New customers in India would be provisioned in these regions, and existing customers would be migrated in the coming months, with no change in functionality. NetSuite data centers maintained the same security, reliability, and performance globally.
The surge in edge computing is another notable trend in the data center industry trends. Edge computing processes data near its source to meet low-latency needs in applications like autonomous vehicles, IoT devices, and real-time analytics. The growth of these applications drives demand for smaller, distributed data centers close to users, ensuring minimal delay and efficient real-time processing. Moreover, there is a growing trend towards mergers and acquisitions. The rise in demand for data centers has led to numerous mergers and acquisitions, with larger companies expanding their services and reach. This consolidation allows for more integrated solutions. In addition, Data Center Real Estate Investment Trusts (REITs) are gaining popularity, offering stable returns due to the ongoing need for data storage and processing.
For instance, in January 17, 2025, KKR and Gulf Data Hub (GDH) formed a strategic partnership to scale GDH's data center platform in the Middle East. They committed over $5 billion to expand data center capacity, supporting hyperscale demand, AI, and digital priorities in the Gulf. This marked KKR's first data center investment in the Middle East, adding to its global portfolio of hyperscale platforms.
The integration of AI and advanced automation is another prominent trend. AI enhances predictive maintenance by forecasting and preventing system failures, improving uptime and reducing costs. Full automation in data centers, with self-healing systems and automated hardware management, ensures more efficient operations. The integration of quantum computing into data centers is another trend gaining momentum. Quantum computing advancements requires data centers to support specialized hardware for complex tasks like cryptography and optimization. Hybrid quantum-classical systems enable businesses to use both types of computing resources, unlocking new possibilities.
For instance, in January 2025, Microsoft CEO Satya Nadella announced strategic partnerships with key Indian organizations and a $3 billion investment in cloud and AI infrastructure. Partnerships included RailTel, Apollo Hospitals, Bajaj Finserv, Mahindra Group, upGrad, and India AI. Microsoft planned to establish new data centers in India over the next two years. AI usage in India had risen from 63% in 2023 to 72% in 2024. The RailTel partnership aimed to transform Indian railways with AI, while Apollo Hospitals collaborated with Microsoft to develop healthcare solutions.
Segment Review:
By Component
Service is projected as one of the most lucrative segments.
The data center market is segmented on the basis of component, type, enterprise size, end user and region. On the basis of component, the market is bifurcated into data center solutions and data center services. Based on type, the market is fragmented into colocation, hyperscale, edge, and others. By enterprise size, it is divided into large enterprises and small & medium enterprises (SMEs). On the basis of end user, the data center market is segregated into BFSI, IT & telecom, government, energy & utilities, and others. Region wise, the market is analysed across North America, Europe, Asia-Pacific, and LAMEA.
By Region
Asia-Pacific region is projected as one of the most significant segments.
Competitive Analysis:
The data center market report includes top data center companies operating in the data center market such as Alphabet Inc., Amazon.com Inc., Digital Realty, Equinix Inc., Hewlett Packard Enterprise, IBM Corporation, Microsoft , NTT Communication Corporation, Oracle, and SAP SE. These players have adopted various strategies to increase their data center market share by company and strengthen their position in the data center industry.
By Industry Vertical
Large Enterprises is projected as one of the most significant segments.
- On October 22, 2024, Nokia partnered with Lenovo to create data center networking and automation solutions for AI and ML workloads. They combined Lenovo's AI-ready servers and storage with Nokia's network solutions, including the Event-Driven Automation platform. This integration aimed to meet modern processing and network performance needs, enhance security, and promote energy efficiency.
- On March 21, 2023, OVHcloud launched its first data center in India as part of its Asia Pacific expansion, including new sites in Singapore and Australia by next year. This Mumbai facility is part of a plan to build 15 new sites by 2024, offering sustainable cloud solutions. The announcement came as cloud adoption surged in Asia Pacific amid regulatory scrutiny and environmental concerns. In India, cloud-enabled digital transformation was driving rapid growth of the digital economy, supported by the Digital India campaign.
Top Impacting Factors
Significant factors that impact the growth of the global data center industry include surge in penetration of high-end cloud computing in enterprises coupled with rise in data center complexities due to scalability. However, rise in concerns related to data privacy and growing demand for managed services is acting as a major barrier for early adoption, which hampers the growth of the data center market. On the contrary, surge in the expenditure on data center technology and rise in adoption of multi-cloud and network upgrade to support 5G technology is anticipated to provide remunerative opportunities for the expansion of the data center market during the forecast period.
Regional Insights
The data center market is expanding rapidly worldwide due to the increasing demand for data storage, cloud services, and digital transformation across industries.
North America is the leading region in the data center market, with the U.S. and Canada being the primary contributors. This region’s dominance is driven by the widespread adoption of cloud services, artificial intelligence (AI), and big data analytics. Major tech companies like Amazon, Microsoft, and Google have significantly expanded their data center facilities to meet the growing demand for cloud storage and computing services. Additionally, the rise of edge computing and 5G networks is further boosting the need for localized data centers in this region.
Europe is another key region, with countries like Germany, the U.K., and the Netherlands playing prominent roles in the data center market. The region is seeing a surge in demand due to the increasing use of cloud services and stricter data regulations, such as the General Data Protection Regulation (GDPR). This has led to investments in local data centers to comply with data residency requirements. The focus on energy-efficient and green data centers is also driving innovation in Europe, as sustainability becomes a priority for data center operators.
Asia-Pacific is the fastest-growing region in the data center market, with China, India, Japan, and Singapore leading the charge. The rapid digitization of businesses, the rise of e-commerce, and increasing internet penetration are driving demand for data centers. China, in particular, has been expanding its data center capacity due to the growth of its tech giants, including Alibaba and Tencent. Meanwhile, India is experiencing significant investment in data centers, driven by its digital transformation initiatives and the rising demand for cloud services from businesses.
Latin America and the Middle East and Africa are emerging markets for data centers. In Latin America, Brazil and Mexico are seeing growth as enterprises adopt cloud-based solutions and digital services. In the Middle East and Africa, the UAE and South Africa are witnessing increased investment in data centers to support the growing demand for cloud computing and internet services in these regions. Governments and private companies are partnering to enhance data center infrastructure, particularly in the wake of the pandemic’s acceleration of digital services.
Key Industry Developments
January 2023: Amazon Web Services (AWS) announced the opening of its new data center region in Spain, expanding its footprint in Europe. This new facility aims to meet the growing demand for cloud services while ensuring compliance with Europe’s data privacy regulations.
April 2023: Google Cloud expanded its data center operations in India, opening a new region in Delhi. This move is part of Google’s strategy to support the growing demand for cloud services from Indian businesses and government sectors.
June 2023: Equinix, a global data center provider, launched a new data center in Mexico, marking its first facility in the country. This expansion is aimed at meeting the rising demand for digital infrastructure and cloud services in Latin America.
September 2023: Microsoft announced plans to build a large-scale data center in Saudi Arabia as part of its investment in the Middle East cloud market. This data center will provide cloud services to businesses in the region and support the country’s Vision 2030 digital transformation goals.
Recent Product Launches in Market:
key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the data center market.
- In March 2024, Eaton launched a new modular data center solution namely, Eaton’s SmartRack, to reduce the time and cost of deployment for critical infrastructure. Eaton’s SmartRack modular data centers combine IT rack, cooling, and service enclosures to create a performance-optimized data center solution for critical IT equipment with up to 150 kW of equipment load.
- In January 2024, Digital Realty launched its first data center in India, on a 10-acre campus capable of supporting up to 100 megawatts of critical IT load capacity that is located in Chennai's industrial and manufacturing hub. This is a significant addition to the company's global data center platform as it expands to meet digital transformation needs in key markets around the world. For instance, in April 2024, Nucor Corporation acquired Southwest Data Products, Inc. (SWDP) for $115 million. SWDP's offices and manufacturing facility are in San Bernardino, California and the company employs approximately 147 teammates.
- In December 2, 2024, Amazon Web Services (AWS) announced new data center components to support AI innovation and evolving customer needs. These innovations in power, cooling, and hardware design aimed to create more energy-efficient data centers. The new capabilities were to be implemented globally, with many components already deployed in existing data centers.
Key Benefits for Stakeholders
- This study comprises analytical depiction of the data center market size along with the current data center market trends and future estimations to depict the imminent investment pockets.
- The overall data center market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and data center market opportunities with a detailed impact analysis.
- The current data center market forecast is quantitatively analyzed from 2021 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the smart display.
- The report includes the market share of key vendors and data center market trends.
Data Center Market Report Highlights
| Aspects | Details |
 By Component |
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 By Type |
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 By Enterprise Size |
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 By End User |
|
 By Region |
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 Key Market Players | Equinix Inc., Amazon.com Inc., Alphabet Inc., Oracle, SAP SE, Digital Realty, IBM Corporation, NTT Communication Corporation, Hewlett Packard Enterprise, Microsoft |
Analyst Review
Modern enterprises globally have been continually adopting cloud computing solutions in almost all business aspects, including information storage, accounting, business communication, and daily business functions. A data center is a centralized physical facility that makes enterprise computing possible. Further, the rise in virtual infrastructure across prime enterprises is driving the need for build-in server rooms or data centers for virtualized networks; therefore, forecast to offers lucrative growth opportunities for the market growth. Furthermore, the data center is considered central to an enterprise’s IT operations, where most business data is processed, stored, and disseminated to users. In addition, the rise in demand for digitization across enterprises in emerging economies is expected to offer profitable opportunities for the data center market.
The global data center market is highly competitive, owing to the strong presence of existing vendors. Data center vendors, who have access to extensive technical and financial resources, are anticipated to gain a competitive edge over their rivals, as they have the capacity to cater to the market requirements. The competitive environment in this market is expected to further intensify with increase in technological innovations, product extensions, and different strategies adopted by key vendors.
Rise in growth of demand for hybrid cloud infrastructure globally are driving the need for next generation to enhance data center technology. Moreover, prime economics, such as Germany and Japan, plan to developing and deploying next-generation data center across various sectors. For instance, according to new data from Synergy Research Group, the three largest public cloud vendors in the world Amazon, Microsoft, and Google collectively, accounted for more than 50 % of the world's largest data centers, which is anticipated to provide lucrative opportunities for market growth.
Among the analyzed geographical regions, North America exhibits the highest adoption of data center and has been experiencing massive expansion of the market. On the other hand, Asia-Pacific is expected to grow at a faster pace, predicting lucrative growth due to emerging countries such as China, Japan, and India investing in these technologies. Regions such as Middle East and Africa are also expected to provide new opportunities in the data center market in the future.
The global data center market Size was valued at USD 187.35 billion in 2020, and is projected to reach USD 517.17 billion by 2030
The global data center market is projected to grow at a compound annual growth rate of 10.5% from 2021-2030 to reach USD 517.17 billion by 2030
The key players profiled in the reports includes SAP SE, Equinix Inc., Alphabet Inc., Amazon.com Inc., IBM Corporation, Digital Realty, Oracle, Microsoft, NTT Communication Corporation, Hewlett Packard Enterprise
Asia-Pacific is expected to grow at a faster pace, predicting lucrative growth due to emerging countries such as China, Japan, and India investing in these technologies.
Rise in penetration of high-end cloud computing in enterprises, globally in developing economies drives the growth of the market during the forecast period
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