The United States Data Center Market is segmented by Hotspot (Atlanta, Austin, Boston, Chicago, Dallas, Houston, Los Angeles, New Jersey, New York, Northern California, Northern Virginia, Northwest, Phoenix, Salt Lake City), by Data Center Size (Large, Massive, Medium, Mega, Small), by Tier Type (Tier 1 and 2, Tier 3, Tier 4) and by Absorption (Non-Utilized, Utilized). Market Volume in Megawatt (MW) is presented. Key Data Points observed include IT load capacity for existing and upcoming data centers, current and upcoming hotspots, average mobile data consumption, volume of fiber cable connectivity in KM, existing and upcoming submarine cables, rack space utilization, and number of data centers by tier.

This statistic provides a forecast of the actual amount of data stored by data centers worldwide, from 2015 to 2020. In 2018, data centers will store an estimated 547 exabytes of actual data.

The Germany Data Center Market is segmented by Hotspot (Frankfurt), by Data Center Size (Large, Massive, Medium, Mega, Small), by Tier Type (Tier 1 and 2, Tier 3, Tier 4) and by Absorption (Non-Utilized, Utilized). Market Volume in Megawatt (MW) is presented. Key Data Points observed include IT load capacity for existing and upcoming data centers, current and upcoming hotspots, average mobile data consumption, volume of fiber cable connectivity in KM, existing and upcoming submarine cables, rack space utilization, and number of data centers by tier.

As of March 2025, there were a reported 5,426 data centers in the United States, the most of any country worldwide. A further 529 were located in Germany, while 523 were located in the United Kingdom. What is a data center? A data center is a network of computing and storage resources that enables the delivery of shared software applications and data. These facilities can house large amounts of critical and important data, and therefore are vital to the daily functions of companies and consumers alike. As a result, whether it is a cloud, colocation, or managed service, data center real estate will have increasing importance worldwide. Hyperscale data centers In the past, data centers were highly controlled physical infrastructures, but the cloud has since changed that model. A cloud data service is a remote version of a data center – located somewhere away from a company's physical premises. Cloud IT infrastructure spending has grown and is forecast to rise further in the coming years. The evolution of technology, along with the rapid growth in demand for data across the globe, is largely driven by the leading hyperscale data center providers.

The North America Data Center Market is segmented by Data Center Size (Large, Massive, Medium, Mega, Small), by Tier Type (Tier 1 and 2, Tier 3, Tier 4), by Absorption (Non-Utilized, Utilized) and by Country (Canada, Mexico, United States). Market Volume in Megawatt (MW) is presented. Key Data Points observed include IT load capacity for existing and upcoming data centers, current and upcoming hotspots, average mobile data consumption, volume of fiber cable connectivity in KM, existing and upcoming submarine cables, rack space utilization, and number of data centers by tier.

Responding to a 2024 survey, data center owners and operators reported an average annual power usage effectiveness (PUE) ratio of 1.56 at their largest data center. PUE is calculated by dividing the total power supplied to a facility by the power used to run IT equipment within the facility. A lower figure therefore indicates greater efficiency, as a smaller share of total power is being used to run secondary functions such as cooling.

According to Cognitive Market Research, the global Hyper-scale Data Center market size will be USD 141542.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 6.20% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 56616.8 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 42462.6 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 32544.7 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 7077.1 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 2830.8 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.9% from 2024 to 2031.
The Solution component held the highest Hyper-scale Data Center market revenue share in 2024.

Market Dynamics of Hyper-scale Data Center Market

Key Drivers for Hyper-scale Data Center Market

Growing Number of Data Centers to Increase the Demand Globally

Hyperscale data centers have evolved significantly to meet the increasing demands for computing and storage capacity, especially to support high-end applications. As of 2022, the United States accounted for more than half of the world's hyperscale data center capacity, with U.S. hyperscale revenue reaching nearly $88 billion for the year. Across the country, there are over 2,600 data centers. Northern California is renowned as a hub for many data-intensive firms like Google, Facebook, Uber, Twitter, and Yelp. Currently, Dallas hosts the highest number of data centers at 149, followed closely by the Bay Area with 147 and Los Angeles with 139. The growing number of critical business applications has heightened the complexity of data centers. Hyperscale data centers play a crucial role in efficiently managing this complexity and are poised to drive further market growth.

Radically Increasing Volume of Data to Propel Market Growth

The exponential growth in data volume, driven by advancements in data-driven technologies such as artificial intelligence (AI), machine learning (ML), IoT, blockchain, and the metaverse, is expected to fuel the expansion of the global hyperscale data center market. Approximately 402.74 million terabytes of data are generated daily, with projections indicating the creation of around 147 zettabytes of data this year and an anticipated rise to 181 zettabytes by 2025. Videos alone account for more than half of internet data traffic. In the United States, over 2,700 data centers are catering to this escalating demand for data storage and processing capabilities..

Restraint Factor for the Hyper-scale Data Center Market

Requirement of Huge Capital Investment to Limit the Sales

Hyperscale data centers support thousands of servers and are significantly larger than typical data center facilities. They require specialized high-density server racks to accommodate numerous components such as power suppliers and hard drives, while also providing ample space for engineers to replace and customize them as needed. Given the extensive equipment involved, hyperscale facilities demand substantial power resources. Moreover, the ability to customize and swap out components is crucial for their flexibility, necessitating a dedicated approach to personalized configuration. However, these requirements for building hyperscale data centers are costly, time-consuming, and pose challenges that hinder market growth.

Impact of Covid-19 on the Hyper-scale Data Center Market

The COVID-19 pandemic sparked a surge in demand for digital services like remote work tools, online collaboration platforms, e-commerce, streaming services, and telemedicine. This heightened digital activity increased the need for cloud computing and storage services, prompting hyperscale data centers to expand their capacity to handle the amplified workload. However, global supply chains were disrupted during the pandemic, impacting the availability of crucial components and equipment essential for construct...

The Canada Data Center Market report segments the industry into Hotspot (Ontario, Quebec, Rest of Canada), Data Center Size (Large, Massive, Medium, Mega, Small), Tier Type (Tier 1 and 2, Tier 3, Tier 4), and Absorption (Non-Utilized, Utilized). Get five years of historical data alongside five-year market forecasts.

The mini data center market is set for strong growth with an average of USD 6.1 billion in the industry expected by 2025 and expected to go up to USD 23.7 billion in 2035 that is an annual increase of 13.9% CAGR.

Country-wise Analysis (2025 to 2035)

Competitive Outlook

In 2024, Tokyo was ranked as the most expensive market worldwide for data center construction. The cost per watt in the Japanese capital was reported at **** U.S. dollars, ahead of Singapore at **** U.S. dollars. A range of local factors such as land prices, labor availability, and power costs can heavily impact data center construction pricing.

Snapshot img

Mini Data Center Market Size 2024-2028

The mini data center market size is forecast to increase by USD 8.68 billion at a CAGR of 21.68% between 2023 and 2028.

Increase in demand among SMEs is the key driver of the market. Growing need for edge computing is the upcoming trend in the market. Lack of awareness is a key challenge affecting the market growth. The mini data center market is expanding as small and medium-sized enterprises (SMEs) seek cost-effective, flexible alternatives to traditional data centers. Mini data centers, with lower power consumption and smaller carbon footprints, are an attractive option for SMEs. As IoT technologies proliferate, the need for processing large volumes of data has led to the rise of mini data centers. Edge computing, processing data closer to the source, is further driving this trend. However, a lack of awareness about mini data center solutions poses a barrier to broader adoption.

What will be the Size of the Market During the Forecast Period?

Request Free Sample

The market is experiencing exponential growth as enterprises increasingly adopt advanced technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and 5G in disaster-prone regions. To support these high-performing, energy-efficient technologies, standardized infrastructure is essential. Mini data centers, with their compact nature, offer cost-effective solutions for organizations worldwide.
Furthermore, these data centers incorporate networking modules, edge computing, and contain servers, racks, cooling systems, power supply, and security systems. Instant data centers, a type of mini data center, provide organizations with portable and scalable solutions for data storage and computational hubs. The capital investment required for traditional approaches to data center architecture is significantly reduced with the implementation of mini data centers.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Containerized data centers
  Micro data centers


Business Segment

  SMEs
  Large enterprises


Geography

  North America

    US


  APAC

    China
    Japan


  Europe

    Germany
    UK


  South America



  Middle East and Africa

By Type Insights

The containerized data centers segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth as IoT devices, RFID sensors, and connected devices generate vast amounts of data, necessitating high-performing, energy-efficient data centers for storage and processing. With the increasing number of work-from-home jobs and the digital transformation of centralized businesses, data center modernization has become a critical need. According to the Uptime Institute survey, project delays and company lock-ins are the single biggest risks in data center deployment. Major IT companies offer various buying options, including capital investment in traditional data centers or instant data centers, to cater to organizations worldwide. Customization and computing power are essential factors for data center owners, leading to the adoption of high-performing, external cooling setups and edge computing applications.

Get a glance at the market report of share of various segments Request Free Sample

The containerized data centers segment was valued at USD 2.25 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 44% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

For more insights on the market share of various regions Request Free Sample

The market is experiencing exponential growth as organizations worldwide adopt IoT devices, RFID sensors, and connected devices, leading to an increased demand for high performing, energy-efficient data centers. This shift towards decentralized and instant data centers is a critical need in today's technological landscape, with data center owners investing heavily in capital to meet the demands of real-time computing and work-from-home jobs. The Uptime Institute survey reveals that project delays and company lock-ins are the single biggest risks in data center modernization. Major IT companies offer various buying options, including customization and faster deployment, to mitigate these risks. company lock-ins can be a significant cost factor, making it essential for data center managers to consider external cooling setups and operational costs when making decisions.

Market Dyna

In 2023, the cumulative size of the data centers in China reached 7.6 million standard server rack units, a 1.1 million rack increase compared to the previous year. AI and cloud computing services require large amounts of computing power, which is provided in data centers. Often they are located in provinces with colder climate and access to cheap energy, such as Inner Mongolia or Guizhou

The India Data Center Market is segmented by Hotspot (Bangalore, Chennai, Hyderabad, Mumbai, NCR, Pune), by Data Center Size (Large, Massive, Medium, Mega, Small), by Tier Type (Tier 1 and 2, Tier 3, Tier 4) and by Absorption (Non-Utilized, Utilized). Market Volume in Megawatt (MW) is presented. Key Data Points observed include IT load capacity for existing and upcoming data centers, current and upcoming hotspots, average mobile data consumption, volume of fiber cable connectivity in KM, existing and upcoming submarine cables, rack space utilization, and number of data centers by tier.

The UK data center market is experiencing robust growth, driven by the increasing adoption of cloud computing, big data analytics, and the burgeoning digital economy. London, a key hotspot, accounts for a significant portion of this growth, attracting major hyperscale providers and colocation facilities due to its robust digital infrastructure, skilled workforce, and strategic geographic location. The market is segmented by data center size (mega, large, medium, small), tier type (Tier 1-4), and colocation type (hyperscale, retail, wholesale), reflecting the diverse needs of various businesses. The significant investments in Tier III and Tier IV facilities indicate a focus on high availability and resilience, crucial for mission-critical applications. While factors such as energy costs and land availability present challenges, the ongoing digital transformation across sectors like BFSI, e-commerce, and government is fueling sustained expansion. We project a healthy Compound Annual Growth Rate (CAGR) for the UK data center market, exceeding the global average, reflecting the nation's position as a leading European digital hub. The market's expansion is also being fueled by the increasing demand for edge computing solutions, designed to reduce latency and improve the performance of applications. This trend is expected to contribute significantly to the overall growth of the UK data center market in the coming years. The non-utilized absorption segment represents a considerable opportunity for new entrants and expansion by existing players. The strong presence of established players like Equinix, Digital Realty, and Global Switch highlights the market's maturity and attractiveness for international investment. However, competition is intensifying, requiring providers to offer innovative solutions, such as sustainable data center practices and advanced connectivity options, to differentiate themselves and capture market share. Future growth will likely be driven by further investment in renewable energy sources to address environmental concerns and the rising demand for 5G and IoT-related infrastructure. This will lead to an increasing focus on efficiency, sustainability, and resilience, shaping the future landscape of the UK data center industry. Recent developments include: October 2022: CyrusOne announced that they proposed a new data center in Iver Heath, Buckinghamshire, UK. The site will have 10 data halls supporting around 90MW of capacity and the project would include a new on-site substation.August 2022: Coltannounced to open a new data center in Hayes, West London, that would more than triple its existing footprint in the UK capital. It will deliver a new purpose-built of 50MW in 2.1-hectare data center campus known as 'London 4'.March 2022: Kao Data announced plans for a second building for its Harlow campus in the UK. The company says construction is now underway on its second 10 MW facility outside London.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

In the second half of 2024, the average monthly per kilowatt rent of data centers in the Silicon Valley in the United States was between 155 U.S. dollars and 250 U.S. dollars. Northern Virginia, which is the market with the largest data center inventory and the most new capacity under construction, had monthly rent between 175 and 225 U.S. dollars.

Northern Virginia Data Center Market size was valued at USD 13.9 Billion in 2024 and is expected to reach USD 36.6 Billion by 2032, growing at a CAGR of 12.8% from 2026 to 2032.

Key Market Drivers Robust Power Infrastructure: The robust power infrastructure drives the Northern Virginia data center market, that ensures cost-effective and consistent energy supply. Virginia's industrial energy prices in 2023 averaged 6.81 cents per kilowatt-hour, less than the national average of 7.51 cents, making it excellent for power-intensive enterprises. Dominion Energy's $15 billion investment in system upgrade increases the region's energy capacity.

Growing Data Generation: The growing generation of data is propelling the Northern Virginia data center market, by increasing the need for storage and processing capacity. data volume is expected to reach 181 zettabytes by 2025, up from 64.2 zettabytes in 2020, according to Statista.

The Atlanta data center market is experiencing robust growth, driven by a confluence of factors. The city's strategic location as a major southeastern transportation hub, coupled with a burgeoning tech sector and a relatively low cost of living compared to other major tech centers like San Francisco or New York, makes it an attractive location for data center deployments. Strong demand from cloud providers, telecommunications companies, and financial institutions (BFSI) fuels this expansion. The market is segmented by data center size (small to mega), tier level, absorption rates (utilized vs. non-utilized), colocation type (retail, wholesale, hyperscale), and end-user industry. While precise figures for Atlanta's market size are not provided, a reasonable estimation based on a national CAGR of 21.83% and considering Atlanta's significant role in the southeastern US tech landscape suggests a substantial and rapidly growing market. The presence of major players like Equinix, Cyxtera, and others further validates the market's significance. Future growth will likely be driven by increasing cloud adoption, the expansion of 5G networks, and the rising need for edge computing capabilities to support low-latency applications. However, challenges remain, including potential power constraints, land availability, and the competition for skilled labor. Nonetheless, the overall outlook for the Atlanta data center market remains positive, indicating substantial growth opportunities over the forecast period (2025-2033). The competitive landscape includes a mix of established giants and smaller regional players. This blend fosters innovation and drives down costs for businesses seeking colocation services. Growth in specific segments, particularly hyperscale colocation and large data center deployments, will likely outpace the overall market average. Furthermore, the Atlanta market's attractiveness is enhanced by supportive government policies and incentives designed to encourage technology investment and infrastructure development. This overall environment creates a fertile ground for sustained and significant market expansion over the coming years. This makes Atlanta a key player in the broader southern US data center ecosystem, and it is likely to attract further investment in the years to come. Recent developments include: December 2022: Equinix, Inc., the world's digital infrastructure firm, announced the first pledge by a colocation data center operator to reduce overall power consumption by increasing operating temperature ranges within its data centers. Equinix will begin defining a multi-year global roadmap for thermal operations within its data centers immediately, aiming for much more efficient cooling and lower carbon footprints while maintaining the premium operating environment for which Equinix is recognized. This program is expected to help thousands of Equinix customers to reduce the Scope 3 carbon emissions connected with their data center operations over time as supply chain sustainability becomes an increasingly essential aspect of today's enterprises' total environmental activities., June 2022: CoreSite, a hybrid IT solutions provider and part of American Tower Corporation, announced its entry into the Atlanta and Orlando markets with the integration of three American Tower assets into CoreSite's data center ecosystem: Atlanta AT1, Atlanta AT2, and Orlando OR1. All three data centers, which total more than 250,000 square feet, now have access to the Open Cloud Exchange, CoreSite's software-defined networking platform that delivers fully managed, direct, and secure connectivity to all major cloud service providers.. Key drivers for this market are: Surging Consumer Demand for Vehicle Safety, Security, and Comfort, Growing Inclination of Consumers Toward Alternative Fuel Vehicles to Reduce GHG Emissions. Potential restraints include: Underdeveloped Aftermarket for Automotive Sensors in Emerging Economies. Notable trends are: Mega Size Data Center are Expected to Hold Significant Share.

Snapshot img

Data Center Market Size 2025-2029

The data center market size is forecast to increase by USD 535.6 billion at a CAGR of 15.6% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing adoption of multi-cloud architectures and network upgrades. Businesses are recognizing the benefits of utilizing multiple cloud providers to ensure business continuity, scalability, and flexibility. This shift towards multi-cloud is fueling the demand for advanced data center infrastructure. Additionally, the implementation of Artificial Intelligence (AI) in data centers is another key trend, as organizations seek to optimize operations, improve efficiency, and gain insights from their data. However, this market is not without challenges. Cybersecurity remains a major concern, as data centers house vast amounts of sensitive information. With the increasing number of cyber threats, data center providers must invest in robust security measures to protect their clients' data and maintain trust.
Companies seeking to capitalize on these opportunities and navigate challenges effectively should focus on offering secure, scalable, and efficient data center solutions. By staying abreast of the latest trends and addressing the evolving needs of their clients, they can differentiate themselves in this competitive landscape.

What will be the Size of the Data Center Market during the forecast period?

Request Free Sample

The market continues to experience robust growth, driven by the increasing demand for IT infrastructure to support artificial intelligence, machine learning, internet of things (IoT), cloud computing, and edge computing applications. According to recent studies, The market is projected to reach a size of over USD200 billion by 2025, growing at a compound annual growth rate (CAGR) of over 10%. This expansion is fueled by the need for cost savings through cloud technology, real-time data processing, and the increasing importance of personalized data in industries such as online retail. Data center systems are becoming essential for businesses to manage their on-premises infrastructure and mitigate the risk of lost data.
The market is also witnessing a shift towards edge computing, which allows for data processing closer to the source, reducing latency and increasing efficiency. Overall, the market is a dynamic and evolving landscape, presenting significant opportunities for businesses seeking to leverage advanced IT infrastructure to gain a competitive edge.

How is this Data Center Industry segmented?

The data center industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Component

  IT infrastructure
  Power management
  Mechanical construction
  General construction
  Security solutions


End-user

  BFSI
  Energy
  IT
  Others


Design

  Traditional
  Containerized
  Modular
  Traditional
  Containerized
  Modular


Data Center Size

  Small and Medium Data Centers
  Large Data Centers
  Small and Medium Data Centers
  Large Data Centers


Tier Type

  Tier 1 and 2
  Tier 3
  Tier 4
  Tier 1 and 2
  Tier 3
  Tier 4


Type

  Enterprise Data Centers
  Colocation Data Centers
  Cloud Data Centers
  Managed Data Centers
  Edge Data Centers


Geography

  North America

    US
    Canada


  APAC

    China
    India
    Japan


  Europe

    France
    Germany
    Italy
    UK


  South America

    Brazil


  Middle East and Africa

    UAE


  Rest of World

By Component Insights

The IT infrastructure segment is estimated to witness significant growth during the forecast period.

A data center IT infrastructure encompasses all IT equipment, infrastructure, and solutions necessary for establishing or expanding a data center. This segment comprises server infrastructure, storage infrastructure, software-defined data centers (SDDC), network infrastructure, converged infrastructure, backup and recovery software, automation software, and data center infrastructure management (DCIM) solutions. The increasing demand for computing power and storage to accommodate expanding data traffic drives the utilization of such IT infrastructure. Enterprise adoption of cloud technologies is accelerating, leading to the migration of data from on-premises infrastructure to cloud-based data centers. This trend is anticipated to persist throughout the forecast period, fueling the need for servers, storage infrastructure, and other IT equipment.

Data center IT infrastructure, encompassing server infrastructure, storage infrastructure, and network infrastructure, forms its core. Software-defined data centers and converged infrastructure enhance efficiency. Cloud technologies drive growth, complementing on-premises data cente

The data center power management industry in Korea is poised to undergo an average compound annual growth rate of 6.5% through 2034. The industry in Korea is standing at the threshold of significant prospects, starting with a valuation of US$ 465.0 million in 2024.

Category-wise insights

Scope of the Report

Operators of data center colocation services have benefited from the strong need for equipment, space and bandwidth to be rented to store servers. Over the past five years, operators have experienced strong revenue growth as digitalization continues to take hold, directly contributing to colocation services' demand. Companies that have digitized their operations now ask for bandwidth-intensive services, which ultimately require more data storage. COVID-19 accelerated this trend, with many businesses shifting to remote work and introducing new digital platforms. Over the past five years, revenue rose at a CAGR of 4.6% to an estimated $16.2 billion, including an expected boost of 4.5% in 2024 alone. Despite high interest rates and inflation, industry profit has remained steady during the current period, only slightly fluctuating. With significant investments allocated to data center construction during the current period, operators are expanding their presence and have captured demand for third-party IT infrastructure management. As these trends have unfolded, companies within the industry are adjusting to technological innovation, shifting demand conditions and rising operating costs. Meanwhile, cyberattacks continue to threaten the reputation of many colocation providers, leading to significant defense investment. As the capacity requirements for data storage have increased, so has competition from technology conglomerates that use in-house operations to store servers. Still, demand for outsourced colocation services has grown during the period. Revenue is expected to continue rising over the next five years, albeit at a slower pace. Stable growth in corporate profit and initiatives to enhance digital platforms will likely support revenue growth as companies can afford more data storage, increasing the need for colocation services. However, intensifying competition is expected to temper revenue growth as declines in the price of computers and peripheral equipment encourage companies to store data in-house. Additionally, improvements in 5G, AI and additional technology will shift demand conditions for colocation services, forcing many providers to adjust their offerings. Overall, revenue is anticipated to climb at a CAGR of 3.3% to an estimated $19.0 billion over the next five years.