The global data center outsourcing market was evaluated at US$180.144 billion for the year 2020 and is projected to grow at a CAGR of 4.53%, reaching the market size of US$245.596 billion by the year 2027.
Data center outsourcing is described as a set of services supplied by specialized IT businesses for the deployment, maintenance, monitoring, and optimal operation of data center infrastructure and associated components. Because of their management experience, the consumer organization outsources these activities to specialized IT providers.
The rise in demand for shared infrastructure services, as well as the growth of numerous industries, resulted in increased demand for virtual storage services, a boost in the levels of expenditure incurred on various IT and business technology services, and an increase in market research and development activities, are all major factors boosting the data center outsourcing market. Furthermore, during the projection period, technical improvements and modernization in manufacturing practices, as well as increased demand from emerging economies, will generate new opportunities for the data center outsourcing market in the forecast period mentioned above.

However, a lack of expertise and skilled professionals in data center outsourcing services, as well as an increase in the complications in the infrastructure of various data centers, resulting in complicated integration of various consumer data, are among the major factors limiting market growth and will continue to challenge the data center outsourcing market during the forecast period.
Over the projected period, the technology and communications sector are expected to maintain a considerable market share and grow at a significant rate. This is owing to the belief that the Information, Communication, and Technology (ICT) industry is expanding to effectively and efficiently handle the growing amount of data and resources being generated, which is driving up data center operations and maintenance costs and complexity. As a result, data center outsourcing is becoming more popular among large and mid-sized businesses, driving up demand for these services.

During the projected period, the small enterprise’s segment is expected to hold the highest market share. Smaller businesses are more likely to use data center outsourcing services to help them grow and access new market areas. Furthermore, outsourcing services assist small corporations in reducing data center infrastructure costs. Because of their disaster recovery capabilities, these services also help with business continuity. During the forecast period, this is projected to propel the data center outsourcing market.
Because of the well-developed Information, Communication, and Technology sector in countries like the United States, the North American region is predicted to hold a major market share and increase at a significant rate throughout the forecast. Furthermore, its dominance in this region is due to rising investments in data center outsourcing and new data center openings, which are raising demand for data center outsourcing and driving market growth. For example, Google recently unveiled its 2020 expansion plans in February 2020. This development strategy will allow Google to expand its footprint in 11 US states. Google has planned to contribute roughly US $10 billion to help states like California create offices and data centers.

Recent Development
DEAC, one of Northern Europe’s prominent independent data center operators, is expanding a large new data center in May 2022 that will be one of the region’s most sustainable data centers. The new data center has a capacity of up to 1000 server racks, assuring a minimum of 99.98 percent service availability. The new data center will have a capacity of 10 megawatts and will be certified as an international Tier III.
In June 2021, QTS Realty Trust, a leading provider of hybrid colocation & mega-scale data center solutions, introduced its new Smart Family of data center remote management solutions in response to growing client demand for remote control of their data center settings.
COVID-19 Impact
COVID-19 had a slightly positive effect on the global data center outsourcing market. Data centers are expected to grow in popularity as businesses increasingly outsource data services to third-party suppliers to save money. Due to rapid digital transformation, businesses have been compelled to turn to third-party providers rather than deal with the difficulties of on-premise and owned data centers.
Segmentation

  • By Enterprise Size
    • Small
    • Medium
    • Large
  • By Data Center Location
    • Customer Premises
    • Vendor Premises
  • By Industry Vertical
    • Banking & Financial Services
    • Manufacturing
    • Communication & Technology
    • Healthcare
    • Government
    • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • United Kingdom
      • Germany
      • France
      • Italy
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • Israel
      • Others
    • Asia Pacific
      • China
      • Japan
      • India
      • South Korea
      • Indonesia
      • Thailand
      • Taiwan
      • Others