The global data center renovation market is poised to record lucrative growth through 2028 due to increased emphasis on renovating older modules of solutions like cooling & power systems and networking equipment.

Data center upgrades help improve the existing infrastructure and adapt to new standards to introduce advanced technologies with more efficiency and better performance. Moreover, the requirement for data centers has risen in recent years because of high adoption of cloud services. Companies planning to adopt cloud computing systems are relying on data centers that are equipped with the underlying infrastructure and foundation for a cloud service model, which has played a vital role in business growth.

The data center renovation market has been classified in terms of product, application, and region. Based on product, the data center renovation market has been segregated into networking equipment, power, IT racks & enclosures, cooling, and DCIM.

The power segment is anticipated to observe strong growth over the assessment timespan. The growth of this segment is attributed to government initiatives aiming to regulate and reduce energy consumption in data centers, which would drive the need for efficient power systems in existing facilities.

The networking equipment segment is slated to exhibit substantial growth owing to increasing R&D investment for technology development. This is prompting companies to focus on launching new solutions to gain a competitive edge in the industry, which is set to propel segmental growth.

From the application perspective, the data center renovation market has been divided into BFSI, colocation, energy, government, healthcare, manufacturing, IT & telecom, and others. The energy segment is speculated to accrue considerable growth over the study timeframe due to rising need for efficient cooling and power system.

The government segment is foreseen to amass substantial gains through 2028. Rising focus of government authorities on transitioning into a digital economy would surge the need of data center renovation solutions and services to increase the capacity of the current facility, which is estimated to boost product uptake in the government sector.

The healthcare segment is expected to grow at a notable pace over the review timeline supported by widespread inclusion of advanced technologies like cloud computing, AI, and IoT in the healthcare sector for efficiently monitoring and maintaining patients’ data The manufacturing segment is stipulated to witness considerable growth by 2028 owing to rising adoption of industry 4.0 practices along the manufacturing sector.

The others segment is foreseen to reach a sizable revenue by the end of 2028. Growing focus of retail industry on improving customer shopping experience, which would encourage industry players to upgrade their facilities to handle upcoming changes, which is set to foster segmental outlook.

From the regional standpoint, the South America data center renovation market is poised to record significant growth over the forecast period due to mounting availability and accessibility of affordable data center renovation solutions and services in the region, which would push more customers to modernize their facility.

Meanwhile, the Middle East & Africa data center renovation industry is primed to garner a notable share in the global market by the end of 2028. The expanding IT & telecom industry in the MEA region would provide affordable internet access to citizens, which is estimated to support market growth.