Data Center Services Market is anticipated to grow considerably between 2023 and 2032, owing to the increasing number of SMEs in developing countries. As per reports, SMEs generate a huge amount of data, which is anticipated to fuel the demand for the data center services during the next ten years. Besides, the data center offers cost-effective services, a robust software and hardware ecosystem, great system performance, and instant scalability, which will further propel its adoption by 2032.
In addition, certain government-backed initiatives are also adding impetus to the data center services market. For instance, the governments of several countries, such as China and India, are offering financial aid, tax incentives, and technical support to local SMEs to support products made in their countries. According to reports, in 2021-22, India received the highest FDI, valued at nearly USD 83.6 billion. This FDI came from 101 countries and was invested across 57 sectors and 31 UTs and states. In addition, India is all set to attract an FDI of USD 100 billion in 2023.
Overall, the data center services industry is segmented in terms of type, data center size, application, and region.
Considering the type, the consulting services segment is slated to grow at over 10% CAGR through 2032. Data center consulting services help fulfill the prerequisites of innovation through best-in-class data center design services, ranging from initial consultation to the modernization of existing facilities. It also helps enterprises create agile and cost-efficient data centers.
Based on data center size, the small data centers segment is expected to expand at a rapid pace through 2032. Small data centers help organizations maintain data at a low cost within a limited space. In addition, several benefits provided by small data centers, such as consuming less energy and flexibility (which can be scaled up as and when needed), will most likely fuel their adoption in the following years.
By application, the colocation industry is slated to depict over 15% CAGR by 2032 end. Advantages of colocation such as better connectivity, improved network security, redundant power supplies, burst capability, and room for growth are some of the key benefits, that are slated to increase its deployment in the future.
Regionally, the North America data center services industry was valued at over USD 6 billion in 2022 and is further anticipated to grow considerably in the next decade. The regional market growth will be accredited to the digital transformation initiatives taken by the U.S., Canada, and Mexico governments in various domains.