Data Center Market Size
The global data center market size was valued at $251.01 billion in 2024 and is projected to reach $432.68 billion by 2030, growing at a CAGR of 9.5% during the forecast period.

Data Center Market Overview
A data center is a substantial facility within an organization constructed to facilitate the collective IT operations and equipment required for the storage, processing, and distribution of data and applications. Moreover, this infrastructure encompasses a network of computer applications and storage solutions strategically designed to enhance the exchange of information and data. The global explosion of data centers is propelled by the shift from traditional on-premises physical servers to virtual network-based data centers, a transformation catalyzed by the advancements in multi-cloud computing.

Data Center Market Dynamics

  • The Data Centre market is expected to witness significant growth in the future due to the y the deeper internet penetration, increase in digital data traffic, public cloud services, and higher expected growth for IoT.
  • Additionally, hyper-scalability, sustainability, and automation for modern business processes are the prominent factors driving the growth of the market.
  • However, the rise in problems related to data privacy is restraining the market growth.
  • On the contrary, high growth of the hyper-converged infrastructure market creates opportunities for market growth.

Impact of COVID-19 on the Data Center Market
During the pandemic, reduced public mobility led to a significant surge in global internet traffic, prompted by widespread adoption of remote work and limitations on on-site staffing by numerous organizations. The pivotal role played by data centres in maintaining seamless business operations became evident, resulting in a noteworthy 30-35% increase in data centre capacity in 2021. This surge is directly attributed to the prevalent trend of remote working and heightened internet usage. The escalating demand for data centre capacity emerges as a driving force behind the market’s growth in the post-pandemic landscape.

By Type, Colocation Segment to Hold Major Share in the Data Centre Market
The Colocation segment is expected to have a huge demand in the Data Centre market during the forecast period due to safeguarding data, ensuring system continuity, supporting applications, and facilitating scalability. They offer clients access to cutting-edge data center technologies, eliminating the need for the construction, maintenance, and management of internal server rooms or data centers. This allows businesses to focus on their core operations. Large-scale, business-critical data centers, designed to efficiently handle robust and scalable applications, often collaborate with major data-generating corporations such as Google, Amazon, Facebook, IBM, and Microsoft.

By Geography, North America is expected to have the highest CAGR during the forecast period
The North America is experiencing strong growth during the forecast period due to its technological innovation and commitment to digital transformation. North America serves as a focal point for advancements in the digital economy. The region’s growing digital landscape necessitates robust data center infrastructure to support various digital initiatives, including cloud computing, e-commerce, and online services. The widespread adoption of cloud services in North America, driven by factors like scalability, flexibility, and cost-effectiveness, contributes to the increasing demand for data centers. Industries such as finance, healthcare, entertainment, and e-commerce, known for generating and requiring substantial volumes of data, further underscore the imperative for data centers to store, process, and analyze this information efficiently.

Key Target Audience:

  • Data Center Operators & Providers
  • IT Professionals and Administrators
  • Technology and Equipment Suppliers
  • Government and Regulatory Bodies

List of the Key Players Profiled in the Report Includes:

  • Alphabet INC.
  • Digital Realty
  • IBM Corporation
  • Microsoft
  • Google Cloud
  • NTT Communications Corporation
  • Lumen Technologies
  • AT&T Intellectual Property
  • CyrusOne
  • Dell Inc.
  • 365 Data Centers
  • Digital Ocean, LLC.
  • Linode LLC.

Recent Developments:

  • In January 2024, Google joined forces with Danfoss to integrate sustainable cooling systems into its data centers, as well as to develop systems capable of repurposing surplus heat generated by these facilities. Utilizing Danfoss’ high-efficiency compressors, Google aims to enhance energy efficiency and reduce carbon emissions in the heating and cooling systems of its data centers. Additionally, heat reuse modules will be employed to harness renewable energy, providing heat either on-site or to neighboring commercial, residential, and industrial establishments, as outlined in the announcement. This partnership is anticipated to contribute to Google’s objective of operating its data centers and offices entirely on 24/7 carbon-free energy by the year 2030.
  • In August 2022, Oracle has renewed its cloud agreement with AT&T for an additional five years. The agreement will leverage Oracle Cloud Infrastructure to streamline operations, automate processes, and enhance data storage and accessibility capabilities, ultimately reducing manual intervention.

Market Segmentation:
The research report includes in-depth coverage of the industry analysis with size, share, and forecast for the below segments:

Market by, Component:

  • Hardware
  • Software
  • Services

Market by, Data Center Type:

  • Edge
  • Colocation
  • On-Premise
  • Hyperscale
  • HPC

Market by, Design:

  • Traditional
  • Modular
  • Containerized

Market by, End User:

  • Banking, Financial Services, and Insurance (BFSI)
  • Energy
  • Telecom
  • Healthcare
  • Retail And E-Commerce
  • Entertainment
  • Other End Users

Market by, Geography:
The Data Center market report also analyzes the major geographic regions and countries of the market. The regions and countries covered in the study include:

  • North America (The United States, Canada, Mexico), Market Estimates, Forecast & Opportunity Analysis
  • Europe (Germany, France, UK, Italy, Spain, Rest of Europe), Market Estimates, Forecast & Opportunity Analysis
  • Asia Pacific (China, Japan, India, South Korea, Australia, New Zealand, Rest of Asia Pacific), Market Estimates, Forecast & Opportunity Analysis
  • South America (Brazil, Argentina, Chile, Rest of South America), Market Estimates, Forecast & Opportunity Analysis
  • Middle East & Africa (UAE, Saudi Arabia, Qatar, Iran, South Africa, Rest of Middle East & Africa), Market Estimates, Forecast & Opportunity Analysis

What Can be Explored with this Research Report:

  • Understand the key trends that will drive the market and the challenges it faces in the current market scenario
  • Identify growth opportunities
  • Porter’s five force analysis
  • In-depth analysis of market segments, and regions/countries predicted to observe promising growth
  • Historical and forecast size of the market in terms of revenue (USD Million)
  • Company profiling with key products and solution offerings, key financial information, SWOT analysis, and business strategies adopted