The data center market is estimated to stand at US$ 30.41 billion in 2024. The market is forecasted to exceed a valuation of US$ 117.24 billion by 2034, recording a CAGR of 14.40%. Data center demand is primarily driven by the exponential upsurge in data consumption and data generation by organizations across multiple industries.

Attributes	Details
Estimated Data Center Market Size (2024)	US$ 30.41 billion
Forecasted Market Size (2034)	US$ 117.24 billion
Projected Value CAGR (2024 to 2034)	14.40%

Historical Study on Data Center Market Alongside Future Projections

Attributes	Quantitative Outlook
Data Center Market Size (2023)	US$ 26.83 billion
Historical CAGR (2019 to 2023)	12.70%

Demand Analysis of Data Centers by Region

Countries	Data Center Industry Forecasted CAGR (2024 to 2034)
United States	11.30%
Germany	9.90%
China	15.00%

Data Center Industry Analysis by Segment

Segment	Estimated Market Share in 2024
Hardware	51.80%
Tier 3 Data Center	38.10%

The Europe Data Center Market report segments the industry into Data Center Size (Large, Massive, Medium, Mega, Small), Tier Type (Tier 1 and 2, Tier 3, Tier 4), Absorption (Non-Utilized, Utilized), and Country (France, Germany, Ireland, Netherlands, Norway, Spain, Switzerland, United Kingdom, Rest of Europe). Get five years of historical data alongside five-year market forecasts.

The revenue is forecast to experience significant growth in all segments in 2029. As part of the positive trend, the indicator reaches the maximum value for all three different segments at the end of the comparison period. Particularly noteworthy is the segment Network Infrastructure, which has the highest value of ****** billion U.S. dollars. Find further statistics on other topics such as a comparison of the revenue in the United Kingdom and a comparison of countries or regions regarding the revenue. The Statista Market Insights cover a broad range of additional markets.

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Data Center Market Size 2025-2029

The data center market size is valued to increase USD 535.6 billion, at a CAGR of 15.6% from 2024 to 2029. Rise in adoption of multi-cloud and network upgrades will drive the data center market.

Major Market Trends & Insights

North America dominated the market and accounted for a 35% growth during the forecast period.
By Component - IT infrastructure segment was valued at USD 109.40 billion in 2023
By End-user - BFSI segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 248.77 billion
Market Future Opportunities: USD 535.60 billion
CAGR : 15.6%
North America: Largest market in 2023

Market Summary

The market represents a dynamic and continually evolving landscape, driven by the increasing demand for digital transformation and the adoption of advanced technologies. Core technologies, such as artificial intelligence (AI) and multi-cloud solutions, are revolutionizing data center operations, with AI implementation projected to increase by 40% by 2025. Meanwhile, applications in sectors like finance, healthcare, and retail are fueling the growth of data centers. Service types, including colocation, managed services, and cloud services, are adapting to meet the demands of these evolving applications.
Regulatory compliance, particularly around data security and privacy, remains a significant challenge. Despite these hurdles, opportunities abound, with the market expected to grow at a steady pace, particularly in regions like Asia Pacific and Europe, where digital transformation is accelerating.

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

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How is the Data Center Market Segmented and what are the key trends of market segmentation?

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


Data Center Size

  Small and Medium Data Centers
  Large Data Centers


Tier Type

  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


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Component Insights

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

Data centers are essential IT infrastructure components that house the hardware and systems required to support the increasing demand for computing power and data storage. The market encompasses various technologies, including server hardware, storage infrastructure, software-defined data centers (SDDC), network infrastructure, converged infrastructure, backup and recovery software, automation software, and data center infrastructure management (DCIM) solutions. Enterprises worldwide are adopting cloud technologies, leading to a shift from on-premises data centers to cloud-based alternatives. This trend is fueled by the need for scalability, flexibility, and cost savings. According to recent reports, the adoption of cloud services has grown by 25%, with an estimated 30% of all workloads expected to be run in the cloud by 2022.

Moreover, the rise of edge computing and the Internet of Things (IoT) is driving the demand for bandwidth utilization and low latency, leading to the deployment of edge data centers. The uninterruptible power supply (UPS) systems market is projected to expand at a steady pace due to the increasing importance of ensuring data center uptime and minimizing downtime. Structured cabling systems and fiber optic cabling are essential for efficient data transfer and communication within data centers. The market for these systems is expected to grow by 12% due to the need for high-speed connectivity and the increasing adoption of advanced technologies like software-defined networking (SDN) and hyperconverged infrastructure (HCI).

Data center automation and virtual machine management are crucial for managing the complexity of modern data centers. These technologies are expected to experience a growth rate of 15%, driven by the need for efficient resource utilization and the increasing adoption of DevOps practices. The market for high-availability clusters and disaster recovery planning solutions is expecte

The global data center market size reached USD 213.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 494.5 Billion by 2033, exhibiting a growth rate (CAGR) of 9.29% during 2025-2033. The market demand for cloud services, data storage solutions, and edge computing is the primary driver of growth. Moreover, the market forecast indicates constant growth, supported by amplifying digital transformation, IoT adoption, and the expansion of energy-efficient and sustainable data center infrastructure globally.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 213.6 Billion
Market Forecast in 2033	USD 494.5 Billion
Market Growth Rate (2025-2033)	9.29%

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on component, type, enterprise size, and end user.

Data Center market size was valued at USD 456.9 Billion in 2023 and is poised to grow from USD 505.8 Billion in 2024 to USD 1,189.5 Billion by 2032, growing at a CAGR of 11.51% in the forecast period (2025-2032).

The US data center market size was valued at USD 208.38 billion in 2024 and is projected to reach USD 308.83 billion by 2030, growing at a CAGR of 6.78% from 2024 to 2030.

The global data center market is set to grow from USD 379.30 billion in 2024 to USD 627.40 billion by 2030 at a CAGR of 8.75%, driven by AI, hyperscale operators, and green energy adoption.

The global green data center market was expected to be worth ***** billion U.S. dollars in 2023, with the North American market accounting for ***** billion U.S. dollars, the most of any global region. Strong growth is forecast over the coming years, with the global market expected to surpass *** billion U.S. dollars by the end of the decade.Further information on the green data center market can be found here.

The United States Data Center Market report segments the industry into Hotspot (Atlanta, Austin, Boston, Chicago, Dallas, Houston, Los Angeles, New Jersey, New York, Northern California, Northern Virginia, Northwest, Phoenix, Salt Lake City, Rest of United States), Data Center Size (Large, Massive, Medium, Mega, Small), Tier Type (Tier 1 and 2, Tier 3, Tier 4), and Absorption (Non-Utilized, Utilized).

The Europe data center market was estimated at USD 47.23 billion in 2024 and is expected to reach USD 97.30 billion by 2030, growing at a CAGR of 12.80% from 2024 to 2030.

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China Data Center Market Size 2025-2029

The china data center market size is valued to increase USD 274.39 billion, at a CAGR of 38.3% from 2024 to 2029. Rising demand for hyper-converged data centers will drive the china data center market.

Major Market Trends & Insights

By Component - IT infrastructure segment was valued at USD 18.69 billion in 2022
By End-user - BFSI segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 1.00 billion
Market Future Opportunities: USD 274.39 billion
CAGR from 2024 to 2029 : 38.3%

Market Summary

The market is experiencing significant growth and transformation, driven by the increasing demand for hyper-converged infrastructure and server disaggregation. According to a recent report, the market share of hyper-converged systems is projected to reach 30% by 2025, up from 15% in 2020. This trend is being fueled by the need to improve data center utilization rates and reduce complexity. Additionally, there is a growing focus on consolidating data centers to reduce operational costs and enhance efficiency. Core technologies, such as artificial intelligence and machine learning, are also playing a crucial role in driving innovation and optimizing data center operations. Despite these opportunities, the market faces challenges such as regulatory compliance and cybersecurity concerns. The Chinese government has implemented strict data protection regulations, which require data centers to adhere to stringent security standards. As the market continues to evolve, it is essential for businesses to stay informed of the latest trends and developments to remain competitive.

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

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How is the Data Center in China Market Segmented and what are the key trends of market segmentation?

The data center in china 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. ComponentIT infrastructurePower managementMechanical constructionGeneral constructionOthersEnd-userBFSITelecom and ITGovernmentEnergy and utilitiesOthersGeographyAPACChina

By Component Insights

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

The market continues to evolve, with a strong focus on energy efficiency and advanced IT infrastructure management. Companies are integrating predictive maintenance, liquid cooling technology, and airflow management to optimize network infrastructure and improve power usage effectiveness. Cloud computing services, disaster recovery planning, and network security protocols are essential components, with a growing emphasis on server virtualization and server rack density. Capacity planning and thermal management systems are crucial for maintaining uptime and reducing latency, while data center automation and building management systems streamline operations. Colocation facilities offer flexibility and cost savings, with bandwidth optimization and data center security ensuring data protection. Key performance indicators include server virtualization, power usage effectiveness, and rack space utilization. Companies are investing in precision cooling systems, power distribution units, IT support services, and high-performance computing to enhance their data center design. Uninterruptible power supply and network bandwidth are essential for maintaining optimal data center cooling and ai-powered monitoring. Physical security systems and uptime monitoring are also prioritized to safeguard against potential threats and ensure business continuity.

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The IT infrastructure segment was valued at USD 18.69 billion in 2019 and showed a gradual increase during the forecast period.

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Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

In the dynamic and evolving landscape of the market, energy efficiency best practices are gaining increasing importance as data center operators strive to minimize environmental impact and reduce operational costs. Cloud computing's influence on data center design is significant, driving the implementation of advanced cooling technologies to optimize power distribution and improve network performance in virtualized environments. Large-scale data center infrastructure management poses challenges, necessitating strategies for improving uptime and ensuring business continuity. AI is increasingly

London remained Europe's largest data center market in 2024, with total inventory in the British capital surpassing ***** megawatts as of the fourth quarter of the year. Frankfurt was the second-largest market, followed by Amsterdam. Major markets feel the strain Collectively referred to as the FLAPD markets, Frankfurt, London, Amsterdam, Paris, and Dublin are the data center hubs powering Europe's digital transformation. However, with data center demand surging across the world, operators are finding it increasingly difficult to secure power and land in these established markets. Local officials in Dublin, for example, have enforced a de facto moratorium on new facilities in the city, with data centers already accounting for more than a fifth of the country's total energy consumption. Striking a balance Rising demand poses a challenge for European authorities. On the one hand, the expansion of digital infrastructure is considered crucial if the region is to fully realize the economic potential of AI and next-generation technologies. On the other hand, the European Union faces increasing pressure to rein in the power and water intensive data center industry. Newly introduced regulations in the EU aim to address this by requiring major operators in the bloc to report key efficiency metrics, thereby helping to quantify the market’s drain on resources.

In 2023, the U.S. Data Center Market value reached $ 103.27 billion, and is projected to surge to $ 158.55 billion by 2030 at a CAGR of 6.3% from 2024 to 2030

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.

Metrics	Values
Industry Size (2025E)	USD 6.1 billion
Industry Value (2035F)	USD 23.7 billion
CAGR (2025 to 2035)	13.9%

Country-wise Analysis (2025 to 2035)

Country	CAGR (2025 to 2035)
USA	8.5%
UK	7.2%
France	6.8%
Germany	7.5%
Italy	6.3%
South Korea	8.1%
Japan	7.8%
China	9.2%
Australia	6.7%
New Zealand	6.1%

Competitive Outlook

Company Name	Estimated Market Share (%)
Schneider Electric	18-22%
Vertiv	15-18%
Huawei Technologies	12-16%
Eaton Corporation	10-14%
Hewlett Packard Enterprise (HPE)	8-12%
Other Companies Combined	30-40%

Data Center Market size was valued at USD 71.38 Billion in 2024 and is projected to reach USD 135.48 Billion by 2032, growing at a CAGR of 9.2% from 2026 to 2032.Rising Adoption of Cloud Computing and Virtualization: The shift from on-premise IT infrastructure to cloud computing is a primary catalyst for the data center market. Businesses are increasingly leveraging cloud services for their flexibility, scalability, and cost-effectiveness. This means they are no longer building their own physical data centers; instead, they are renting virtual resources from cloud providers like Amazon Web Services (AWS) and Microsoft Azure.Growing Demand for Data Storage and Processing: The explosion of Big Data and the Internet of Things (IoT) has created an insatiable appetite for data storage and processing power. IoT devices, from smart home gadgets to industrial sensors, generate massive, continuous streams of data that must be collected, processed, and analyzed in real time.

The United Kingdom Data Center Market report segments the industry into Hotspot (London, Rest of United Kingdom), 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 global data center market is set to reach a value of US$ 125.7 billion in 2024 and expand swiftly at a CAGR of 12% to end up at US$ 390.4 billion by the year 2034.

Report Attribute	Detail
Data Center Market Size (2024E)	US$ 125.7 Billion
Forecasted Market Value (2034F)	US$ 390.4 Billion
Global Market Growth Rate (2024 to 2034)	12% CAGR
Canada Market Growth Rate (2024 to 2034)	11.9% CAGR
China Market Value (2034F)	US$ 46.4 Billion
North America Market Share (2024E)	31%
East Asia Market Share (2034F)	25%
Key Companies Profiled	IBM Corporation; Google LLC; Equinix, Inc.; AT&T Inc.; Apple Inc.; Cisco Systems Inc.; Alphabet Inc.; Microsoft Corporation; NTT Communications Corporation; Oracle Corporation; SAP SE.

Country-wise Insights

Attribute	United States
Market Value (2024E)	US$ 17.3 Billion
Growth Rate (2024 to 2034)	11.9% CAGR
Projected Value (2034F)	US$ 53.4 Billion

Attribute	Japan
Market Value (2024E)	US$ 8.4 Billion
Growth Rate (2024 to 2034)	13.1% CAGR
Projected Value (2034F)	US$ 28.7 Billion

Category-wise Insights

Attribute	New Data Center
Segment Value (2024E)	US$ 90.5 Billion
Growth Rate (2024 to 2034)	11.4%CAGR
Projected Value (2034F)	US$ 265.5 Billion

Attribute	IT & Telecom
Segment Value (2024E)	US$ 45.2 Billion
Growth Rate (2024 to 2034)	10.7% CAGR
Projected Value (2034F)	US$ 124.9 Billion

The Latin America data center market size will witness investments of USD 14.30 billion by 2030, growing at a CAGR of 12.21% during the forecast period.

Data Center Market reached USD 290.5 billion in 2021 and is estimated to reach USD 432.5 billion in 2029 increasing at 5.1% CAGR till 2029