Data Center Market Statistics, 2030
The global data center market Size was valued at $187.35 billion in 2020, and is projected to reach $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 rise in data center complexities due to scalability. Furthermore, 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, increase in the investment in data center application globally is expected to propel the data center market growth.
Datacenter physical facility in an enterprise designed to share IT operations and equipment’s to store, process, and disseminating 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 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.
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 solution and 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 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.
The report analyses top data center companies operating in the 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 market penetration and strengthen their position in the data center industry.
By Industry Vertical
Large Enterprises is projected as one of the most significant segments.
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 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.
Key Industry Trends
The data center market is experiencing several key trends that are shaping its evolution and driving its expansion globally. One significant trend is the increase in demand for cloud services, as companies increasingly shift their operations to the cloud to obtain better flexibility, scalability, and cost-effectiveness. In addition, edge computing is another pivotal trend, bringing data processing closer to the source of data generation to reduce latency and improve real-time analytics, essential for applications like IoT and autonomous vehicles. Sustainability is also a priority, with data centers implementing better methods such as employing renewable energy sources and maximizing energy efficiency to lessen their environmental effect. There are several development strategies adopted by public and private companies further expected to contribute the global market growth.
For instance, 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.
For instance, 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.
Impact of Covid-19
The emergence of COVID-19 has significantly affected the growth of market in 2020. However, surge in demand from cloud computing network solutions is acting as a prime factor hampering the market growth. Further, the data center market was primarily hit by several obstacles, including lack of availability of a professional workforce due to practical and complete lockdown. Moreover, surge in data center adoption across healthcare, government, and BFSI sectors is assumed to drive the data center industry during the post-pandemic period.
Key Benefits for Stakeholders
- This study comprises analytical depiction of the data center market size along with the current 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 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 |
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 By Region |
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 Key Market Players | SAP SE, NTT Communication Corporation, Oracle, IBM Corporation, Equinix Inc., Microsoft, Hewlett Packard Enterprise, Digital Realty, Amazon.com Inc., Alphabet Inc. |
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.
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