Compute instances are expected to have the highest share of global data center storage capacity by 2021, with the capacity forecast to reach around *** exabytes by then. Other enterprise workloads, such as business application and collaboration workloads, will also make up big portions of overall data center storage capacity in 2021. Consumer workloads such as social networking and video streaming are projected to witness rapid growth during the forecast period. Data center storage Data center storage refers to the tools, technologies, hardware, software and processes used to manage storage resources within data centers and infrastructure. It is forecast that by 2021, there will be *** million date centers in the world. The advancement of our digital society has generated an ever-greater amount of data and it is projected that by 2021, around ***** EB data would be stored in data centers – almost an 8-fold increase from 2015. Big data is an important driver of growth in stored data and is projected to make up a bulk of overall data stored in data centers.

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 *** exabytes of actual data.

This statistic provides a forecast of the amount of data center storage consumed by big data worldwide, from 2015 to 2021. In 2018, big data was forecast to require *** exabytes of data center storage space globally, growing to *** exabytes by 2021.

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...

Data Center Energy Storage Market size was valued at USD 1.63 Billion in 2024 and is projected to reach USD 2.65 Billion by 2032, growing at a CAGR of 6.91% from 2026 to 2032.

Global Data Center Energy Storage Market Drivers

The market drivers for the Data Center Energy Storage Market can be influenced by various factors. These may include:

Growing Need for Data Processing and Storage: As a result of the exponential increase in data produced by consumers, enterprises, and Internet of Things (IoT) devices, data centre infrastructure must be expanded. This has resulted in a growing need for energy storage solutions to guarantee a steady supply of power and dependability.

Energy Cost Optimisation: Energy costs account for a sizable amount of operating costs for data centres, which are among the biggest electricity users. Growth in the energy storage market is fueled by systems that optimise energy use, lower electricity prices, and minimise peak demand fees.

Backup Power and Uninterrupted Operations: To avoid data loss, downtime, and income loss, data centres must maintain a continuous power supply. Energy storage systems guarantee continuous operations and data availability by supplying backup power during grid disruptions or fluctuations.

Integration with Renewable Energy: In order to support sustainability goals and lessen reliance on fossil fuels, the integration of renewable energy sources, such as solar and wind power, into data centre operations necessitates the use of energy storage systems to store excess energy generated during times of low demand or availability.

Grid Stability and Demand Response: By offering grid services like frequency regulation, peak shaving, and demand response, energy storage devices help maintain grid stability and make it possible for data centres to take part in energy markets and make money from their energy assets.

Scalability and Modular Design: Data centre operators may grow their storage capacity as needed and adjust to shifting workload requirements using modular energy storage systems, which promotes market adoption.

Decreased Environmental Impact: By optimising energy use, incorporating renewable energy sources, and lowering dependency on fossil fuels, energy storage systems enable data centres lower their carbon footprint and comply with regulations. This helps them meet environmental sustainability targets.

Government Policies and Incentives: Investment in energy storage solutions for data centres is fueled by government policies, subsidies, and regulations that support energy efficiency, the use of renewable energy sources, and grid modernization. These measures also accelerate market growth.

Emergence of Edge Computing: To support decentralised computing infrastructure, there is an increasing need for distributed data centres and energy storage solutions due to the growing trend towards edge computing, which entails processing data closer to the source or end user.

Technological Advancements: Energy storage systems are becoming more appealing for data centre applications due to improvements in energy density, dependability, and cost-effectiveness brought about by advances in energy storage technologies such as solid-state, flow, and lithium-ion batteries.

According to the Cognitive Market Research Report, the Data Center Interconnect Market size in 2023 was XX Million and is projected to have a compounded annual growth rate of XX% from 2024 to 2031. Furthermore, the rising number of data centers and increased use of cloud storage is driving the market expansion. The Datacenter Interconnect market is further segmented by type and end-use. The hardware type and Communications Service Providers dominate their particular segment. Europe accounted for the highest revenue share in the year 2023. The expanding number of data centres, increased investment in cloud technologies, and the development of end-user markets are among the primary reasons driving European data centres' investment in the interconnect industry. Leading market companies are investing extensively in R&D to extend their product lines, which will fuel further growth in the data centre interconnect market. Market participants are also engaged in a variety of strategic initiatives to broaden their worldwide presence, including new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations.

Market Dynamics of Data Center Interconnect

Key Drivers for Data Center Interconnect Market

Increasing Number of Data Centers to Drive Market Growth for Data Centre Interconnect: Data centres, with house computers for data storage and processing, have expanded fast in response to increasing demand. The United States has more data centres than any other market, as it is home to major data producers and consumers such as Facebook, Amazon, Microsoft, and Google. Data servers and data centres are in high demand due to increased data output and utilization across sectors. According to CloudScene data6 from 110 countries, there were almost 8,000 data centres worldwide. Six nations account for the bulk of data centres which are the United States (33%), the United Kingdom (5.7%), Germany (5.5%), China (5.2%), Canada (3.3%), and the Netherlands (3.4%). OECD member nations account for 77%, while NATO members account for around 64%. Furthermore, data centre service providers are increasing their colocation and cloud offerings. End-user firms (such as telecom and financial organizations) that choose to establish their data centres are primarily responsible for the interconnected data centre sector becoming a worldwide investment hotspot. Due to data centre expansion and spread, enhanced fibre utilization, and low-cost pluggable modules, industries, namely OTT, ISPs, the financial industry, and the public sector, are creating use cases for DCI networks. The proliferation of data centres is also fueling a surge in DCI, which helps businesses to link their data centres, cloud providers, and other data center operators for easier data and resource sharing. Hence with such rise of data centers and the benefits provided drive the market growth.

Increased use of cloud storage and adoption of cloud-based solutions: Cloud-based storage solutions are today's most practical and effective way to keep data online. There are various cloud computing solution vendors. Because this industry is so large, every major technology business now has its own data centre, which dramatically boosts user income. The migration to cloud-based solutions, as well as the increase in organizational data traffic and big data analytics, are expected to drive development in the data centre interconnect market. Backup and storage are becoming increasingly important as the quantity of data created grows.
Data centre interconnect tools to enable communication and information exchange between its linked components, as well as the data centres' internal and external networks. Companies employ these solutions to establish solid connections between data centres and their linked devices, allowing for faster and more secure data transfers. Furthermore, the usability and accessibility of cloud-based apps have contributed to the expansion of the data centre interconnect industry. For instance, Equinix is a leading global provider of digital infrastructure. They link industry-leading organizations in banking, manufacturing, retail, transportation, government, healthcare, and education in a digital-first world. Business leaders use their trusted worldwide platform to safely and sustainably link the core infrastructur...

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.

Mega Data Center Market Outlook

According to our latest research, the global Mega Data Center market size reached USD 27.8 billion in 2024, reflecting robust expansion driven by the surging demand for high-capacity data processing. The market is projected to grow at a CAGR of 11.2% from 2025 to 2033, with the value expected to reach approximately USD 72.3 billion by 2033. This exceptional growth is primarily attributed to the exponential rise in data generation, the proliferation of cloud computing, and the widespread adoption of digital transformation initiatives across industries. As enterprises and service providers strive to meet the ever-increasing need for scalable, resilient, and energy-efficient infrastructure, mega data centers have emerged as the backbone of the digital economy, underpinning critical applications and services worldwide.

The primary growth driver for the Mega Data Center market is the unprecedented surge in global data traffic, fueled by the rapid adoption of technologies such as the Internet of Things (IoT), artificial intelligence (AI), and big data analytics. Organizations across sectors are generating and processing vast volumes of data, necessitating robust, scalable, and high-performance data center infrastructure. Mega data centers, characterized by their massive capacity and operational efficiency, have become the preferred choice for hyperscale cloud providers, large enterprises, and colocation service providers. These facilities are designed to deliver seamless scalability, cost efficiency, and superior reliability, enabling businesses to support mission-critical workloads and ensure uninterrupted digital services. The increasing integration of advanced technologies and automation within data centers further enhances operational agility, reduces downtime, and optimizes resource utilization, thereby fueling market growth.

Another significant factor propelling the Mega Data Center market is the accelerated shift towards cloud computing and digital transformation. Enterprises across industries are migrating their workloads to cloud environments to capitalize on benefits such as flexibility, scalability, and reduced capital expenditure. Mega data centers serve as the backbone of cloud infrastructure, offering the computational power and storage capacity required to support complex cloud-based applications and services. The proliferation of hybrid and multi-cloud strategies has further amplified the demand for large-scale data centers capable of seamlessly integrating private and public cloud resources. Additionally, the growing emphasis on data sovereignty, security, and compliance is prompting organizations to invest in mega data centers equipped with state-of-the-art security protocols and disaster recovery capabilities, ensuring data integrity and regulatory compliance.

Sustainability and energy efficiency are emerging as key growth factors in the Mega Data Center market. With data centers accounting for a significant portion of global energy consumption, operators are increasingly adopting green technologies, renewable energy sources, and advanced cooling solutions to minimize their environmental footprint. The implementation of energy-efficient hardware, software-defined infrastructure, and AI-driven resource management not only reduces operational costs but also aligns with evolving regulatory requirements and corporate sustainability goals. As governments and industry bodies intensify their focus on environmental stewardship, the adoption of eco-friendly mega data centers is expected to accelerate, driving market growth while addressing the challenges of energy consumption and carbon emissions.

From a regional perspective, North America continues to dominate the Mega Data Center market, accounting for the largest share in 2024, followed closely by Asia Pacific and Europe. The presence of leading cloud service providers, technological advancements, and substantial investments in digital infrastructure underpin North America's leadership. Meanwhile, Asia Pacific is witnessing the fastest growth, driven by rapid digitalization, expanding internet penetration, and government initiatives to bolster digital economies. Europe is also experiencing steady growth, supported by stringent data protection regulations and the rise of smart cities. The Middle East & Africa and Latin America are emerging as promising markets, fueled by increasing investments in digital infrastructure and the adoption of cloud-based services, although their market

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Data Center Storage Market Size 2025-2029

The data center storage market size is forecast to increase by USD 157 billion, at a CAGR of 20.7% between 2024 and 2029.

The market is experiencing significant growth driven by the increasing volume, velocity, veracity, and variety (4Vs) of data. The proliferation of IoT-enabled devices is leading to an exponential increase in data generation, necessitating robust and scalable data center storage solutions. Furthermore, the trend towards data center consolidation is intensifying, as organizations seek to optimize their IT infrastructure and reduce costs. Additionally, advancements in technology, such as edge computing and the Internet of Things (IoT), are creating new opportunities for data center providers. However, this market landscape is not without challenges. Power consumption and cooling requirements for data centers continue to pose significant operational challenges, necessitating energy-efficient storage solutions. Additionally, data security and privacy concerns are becoming increasingly critical, with the risk of data breaches and cyber attacks growing in frequency and sophistication.
Companies seeking to capitalize on the opportunities presented by the market must prioritize energy efficiency, data security, and scalability to meet the evolving demands of the digital economy. Navigating these challenges effectively will require strategic investments in innovative technologies and operational best practices. Data center storage solutions are increasingly being integrated with lawful interception to ensure secure and compliant data handling in response to regulatory requirements.

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

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market is experiencing significant evolution, driven by the adoption of cloud native architectures and the integration of machine learning technologies. Performance monitoring and data lifecycle management have become essential for optimizing storage resources in this dynamic environment. Edge computing and edge storage are gaining traction, enabling real-time data processing and reducing latency. Data governance and security are paramount, with capacity monitoring, storage availability, and data privacy becoming increasingly important. AI and serverless computing are revolutionizing data analytics, while hybrid cloud solutions offer flexibility and cost savings.
Data center optimization, storage consolidation, and migration are key strategies for managing the complexities of big data. Data sovereignty, data center virtualization, and storage maintenance are also critical aspects of the market, ensuring regulatory compliance, efficient resource utilization, and system reliability. Data loss prevention and storage automation are essential for mitigating risks and streamlining operations.

How is this Data Center Storage Industry segmented?

The data center storage 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.

Deployment

  SAN system
  NAS system
  DAS system


Component

  Hardware
  Software


End-user

  IT and telecommunications
  BFSI
  Healthcare
  Retail
  Others


Geography

  North America

    US
    Canada


  Europe

    Germany
    Italy
    The Netherlands
    UK


  APAC

    Australia
    China
    India
    Thailand


  Rest of World (ROW)

By Deployment Insights

The SAN system segment is estimated to witness significant growth during the forecast period. In today's data-driven business landscape, data center storage solutions have become a critical investment for organizations. The need for data retention, security, and efficient management of large volumes of data has led to the adoption of advanced storage technologies. One such technology is Storage Area Networks (SAN), which offers centralized control and flexibility to share capacity between multiple hosts. SAN systems have gained popularity due to their cost-effective upgrades and independence from additional hardware storage. This trend has spurred technological advancements in SAN systems, resulting in the development of new storage solutions tailored to support the SAN protocol. Moreover, energy efficiency is a significant concern for data center operations, leading to the integration of cooling systems and power consumption optimization.

Data security remains a top priority, driving the adoption of data encryption and deduplication techniques. File storage, data archiving, and disaster recovery are essential components of a robust data center infrastructure. Tiered storage, ob

Data Centre (Data Centers) Market Outlook

The global data centre market size was valued at approximately $215 billion in 2023 and is projected to reach nearly $353 billion by 2032, growing at a compound annual growth rate (CAGR) of around 5.5% over the forecast period. This robust growth is primarily driven by the increasing demand for cloud services, the surge in big data analytics, and the proliferation of the Internet of Things (IoT). As businesses continue to digitize their operations, the need for efficient data management and storage solutions has escalated, fueling the expansion of data centers worldwide. The adoption of advanced technologies such as artificial intelligence and machine learning further contributes to the rising demand for data center infrastructure, as these technologies require substantial computing power and storage capacity.

One of the primary growth factors of the data center market is the rapid advancement of cloud computing technologies. Organizations across various sectors are shifting their workloads to the cloud to capitalize on its scalability, flexibility, and cost-effectiveness. This shift has led to an increased need for data centers that can support cloud environments, thereby driving market growth. Additionally, the growing trend of digital transformation across industries is prompting businesses to seek data centers that can accommodate their expanding data storage and processing requirements. This trend is further exacerbated by the surge in remote work and online activities, which have heightened the demand for reliable and efficient data center services.

The backbone of modern data centers lies in their robust Data Center Infrastructure, which encompasses the physical and virtual resources that support the storage, processing, and management of data. This infrastructure includes critical components such as servers, storage systems, networking equipment, and power and cooling systems, all designed to ensure optimal performance and reliability. As data centers evolve to meet the demands of digital transformation, there is a growing emphasis on developing infrastructure that is not only high-performing but also energy-efficient and scalable. This focus on infrastructure is crucial as it directly impacts the ability of data centers to deliver seamless services and support the burgeoning needs of cloud computing, big data analytics, and IoT applications.

The exponential growth of data generated from connected devices and digital platforms is another significant driver for the data center market. The proliferation of IoT devices, which are expected to reach over 27 billion by 2025, is generating massive amounts of data that need to be processed and stored efficiently. Consequently, there is an increasing need for data centers that can handle this unprecedented volume of data. Moreover, with the advent of technologies like 5G, which promises faster data speeds and reduced latency, the demand for edge data centers is expected to rise. These edge data centers allow for quicker data processing by bringing computational power closer to the data source, thereby enhancing overall efficiency and user experience.

Data security and compliance requirements are also pivotal in shaping the data center market. With the increasing frequency of cyber-attacks and data breaches, organizations are prioritizing the security of their data storage and management systems. This has led to the development of data centers with enhanced security features, such as advanced encryption protocols and robust access controls. Additionally, regulatory frameworks like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) are compelling businesses to adopt data centers that comply with stringent data protection standards. These factors are collectively contributing to the growth of the data center market, as organizations seek to safeguard their sensitive information while ensuring compliance with relevant regulations.

Component Analysis

The data center market is segmented by component into hardware, software, and services, each playing a critical role in the overall functionality and efficiency of data centers. The hardware component comprises the physical devices and infrastructure necessary for setting up a data center, such as servers, storage systems, networking equipment, and power and cooling solutions. As data centers expand to accommodate growing data volumes and workloads, the demand for high-performance and energy-efficient hardwar

This statistic provides a forecast of the utilized storage space within data centers worldwide, based on the amount utilized overall and the amount utilized by big data, from 2015 to 2020. In 2015, around ** percent of the storage capacity of data centers worldwide was utilized, including *** percent of the overall storage space which was consumed by big data storage.

According to Cognitive Market Research, the global Hyperscale Data Center market size will be USD XX million in 2025. It will expand at a compound annual growth rate (CAGR) of XX% from 2025 to 2031.

North America held the major market share for more than XX% of the global revenue with a market size of USD XX million in 2025 and will grow at a CAGR of XX% from 2025 to 2031. Europe accounted for a market share of over XX% of the global revenue with a market size of USD XX million in 2025 and will grow at a CAGR of XX% from 2025 to 2031. Asia Pacific held a market share of around XX% of the global revenue with a market size of USD XX million in 2025 and will grow at a CAGR of XX% from 2025 to 2031. Latin America had a market share of more than XX% of the global revenue with a market size of USD XX million in 2025 and will grow at a CAGR of XX% from 2025 to 2031. Middle East and Africa had a market share of around XX% of the global revenue and was estimated at a market size of USD XX million in 2025 and will grow at a CAGR of XX% from 2025 to 2031. KEY DRIVERS

Increased Adoption of Cloud Computing is boosting the market growth

The growing adoption of cloud computing is one of the primary drivers fueling the expansion of the hyperscale data center market. As businesses increasingly move to cloud-based solutions for computing, storage, and application services, there is a heightened demand for data centers capable of handling massive data volumes and complex computational tasks. Hyperscale data centers provide the necessary infrastructure to support this shift, offering high scalability, robust performance, and cost efficiency. For instance, in 2023, a report by Eurostat revealed that 45.2% of enterprises in the EU utilized cloud computing services, a 4.2% increase from 2021. (Source: https://ec.europa.eu/eurostat/web/products-eurostat-news/w/ddn-20231208-1#:~:text=In%202023%2C%2045.2%25%20of%20EU%20enterprises%20purchased%20cloud,4.2%20percentage%20point%20%28pp%29%20increase%20compared%20with%202021.) Leading cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have significantly invested in hyperscale data centers to support this trend, delivering on-demand computing resources to millions of businesses worldwide. As cloud computing continues to grow in importance, its demand for more processing power and storage will only increase. In fact, by 2026, the global cloud market is expected to reach over USD1 trillion, This surge is being driven by businesses' digital transformation, the rise of remote work, and the need for scalable IT solutions. AWS, for instance, operates some of the world’s largest hyperscale data centers, supporting everything from e-commerce to artificial intelligence applications. Similarly, Microsoft Azure has expanded its data center presence globally, allowing companies to leverage flexible cloud services while meeting security and compliance requirements. Thus, the increasing reliance on cloud services remains a critical driver of the hyperscale data center industry’s rapid growth.

Surge in Internet Users is further driving the Hyperscale Data Centre Market

The surge in internet users has created a significant demand for hyperscale data centers, as increased online activity generates a massive volume of data that needs to be processed, stored, and managed. According to Statistics Canada’s 2022 Canadian Internet Use Survey, internet usage among Canadians aged 15 and older rose from 92% in 2020 to 95% in 2022, highlighting the continued digital adoption across all age groups. (Source: https://www150.statcan.gc.ca/n1/daily-quotidien/230720/dq230720b-eng.htm) This trend is also reflected globally, with the total number of internet users surpassing 5 billion in 2023, according to the International Telecommunication Union (ITU). As more people engage in digital activities—such as streaming, social media, and e-commerce—the volume of data generated increases exponentially, creating a greater need for expansive data center infrastructure to handle the load. Companies like Netflix and YouTube, which rely on large-scale content delivery networks, depend on hyperscale data centers to provide seamless streaming services to billions of users globally. For instance, YouTube serves over 2 billion logged-in users per month, with massive data storage and processing needs. Similarly, Facebook and Instagram, both...

According to Cognitive Market Research, the global Data Center Market size is USD 342514.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 6.00% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 137005.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 102754.26 million.
 Asia Pacific held the market of around 23% of the global revenue with a market size of USD 78778.27 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 17125.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 6850.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.
The BFSI held the highest Data Center Market revenue share in 2024.

Market Dynamics of Data Center Market

Key Drivers for Data Center Market

Growing Environmental concerns are Pushing Data Center Operators to Adopt Renewable Energy Sources to Power their Facilities

Growing environmental concerns are compelling data center operators to embrace renewable energy sources for powering their facilities. This shift towards sustainability not only addresses carbon footprint concerns but also aligns with corporate social responsibility initiatives. By harnessing renewable energy such as solar, wind, or hydroelectric power, data centers can reduce their environmental impact while also potentially benefiting from cost savings in the long run. This commitment to renewable energy reflects a broader trend toward greener practices in the data center industry.

Exponential Growth in Cloud Services is Propelling Demand for Data Center Infrastructure Worldwide

The exponential growth of cloud services is a major driver propelling the demand for data center infrastructure worldwide. As businesses increasingly adopt cloud-based solutions for storage, computing, and networking needs, the demand for data centers to support these services surges. This trend is fueled by the scalability, flexibility, and cost-effectiveness offered by cloud computing, driving businesses to invest in robust data center infrastructure to meet the growing demands of digital transformation and data storage requirements.

Restraint Factor for the Data Center Market

Limited Availability of Skilled Workforce and Specialized Talent in the Data Center Industry Acts as a Restraint

Limited availability of skilled workforce and specialized talent in the data center industry presents a significant challenge for companies operating in this sector. The complex nature of data center operations requires personnel with specific expertise in areas such as network engineering, systems administration, and cybersecurity. However, the demand for such professionals often outstrips the available supply, leading to difficulties in recruiting and retaining qualified staff. This scarcity of talent can hinder companies' ability to manage and optimize their data center operations effectively, impacting overall performance and competitiveness.

High Energy Consumption and Operating Costs Restraining Growth

Data centers are highly energy-intensive, utilizing substantial amounts of electricity to operate servers and cooling systems. This leads to elevated operational expenses, particularly in areas where power supply is costly or unreliable. Furthermore, the rising costs associated with real estate, equipment, and regulatory compliance contribute to the financial strain. Smaller businesses or colocation providers may find it challenging to maintain profitability in such conditions, which can hinder new deployments and market entry in regions sensitive to energy costs.

Key Trends of Data Center market

Growing Emphasis on Adoption of Hybrid and Multi-Cloud Strategies can be an opportunity.

The market for data centers is also changing perpetually with the help of new technologies, evolving businesses, and emerging industry needs. Organizations are increasingly moving towards hybrid and multi-cloud models to take advan...

Snapshot img { margin: 10px !important; } Outlook of the global data center design marketTechnavio’s market research analyst has estimated the global data center design market to grow at an impressive CAGR of over 19% by 2020. The market will exhibit significant growth potential over the forecast period owing to the increased construction of data centers globally. Recently, it has been observed that modern data center designs focus primarily on improving the efficiency of the facilities to offer multiple services and meet the operational needs of various enterprises. Furthermore, factors like the augmented construction of green data centers will also aid in the growth of this market during the estimated period. Currently, data center operators are facing issues of increased electricity consumption, high carbon emissions, and inadequate power and cooling infrastructure to support the growing operational requirements. Consequently, many design vendors are collaborating with data center operators to construct green data center facilities to deal with such issues. An efficient data center design considers the present and future IT load, power and cooling capacity required, and space for future extension.The growing adoption of the software-defined data center (SDDC) will be the key driver for the growth of this market. An SDDC is a data center where the infrastructure is delivered as a service through virtualization of the physical infrastructure. In such a data center, the hardware infrastructure is managed through intelligent software systems. The ability of such as data center to improve efficiency, lower costs, provide applications in minutes, offer higher availability and better security, and create an opportunity for the delivery of workloads through the cloud will result in its augmented construction during the forecasted period.Segmentation by design type and analysis of the data center design marketMEP design IT infrastructure designIn this market study, analysts have estimated the IT infrastructure design segment to grow profoundly at a CAGR of over 23% until 2020. IT infrastructure is necessary for offering high availability of services to end users and consists of servers, storage, and network infrastructure. In terms of storage, IT infrastructure design considers the placement of DAS, SAN, and NAS storage systems. It also examines network infrastructure, including network switches at the core, aggregation, and access layers.Geographical segmentation of the data center design marketAmericas APAC EMEAThe Americas is leading this market in terms of data center construction. In this region, the number of operational data centers is higher when compared to any other region in the world. The market for data center construction in the Americas is still growing with new facilities being powered by renewable energy sources and colocation service providers extending existing facilities.Competitive landscape and key vendorsThe global data center design market is competitive as many infrastructure vendors are consistently making innovations in their product lines to improve efficiency. The vendors that have the capability to develop multi-mode UPS systems, renewable energy sources, and rack-embedded PDUs to improve the efficiency of data center facilities are anticipated to gain maximum market traction during the estimated period.Key vendors in this market are -Corgan Environmental Systems Design Future-tech Gensler Glumac Syska HennessyOther prominent vendors analyzed in this market study are Alfa Tech Consulting Enterprises, Black & Veatch, California Data Center Design, CSF Group, Data Specialties, DataCenterAndColocation, Edarat Group, Global Data Services Limited (GDS), Hankins & Anderson, Huawei, IBM, ISG, Leading Edge Design, Nova Corp, Panduit, Plannet, PowerCon Associates, PTS Design & Engineering, Rubicon Professional Services, Siemens, and TechXact.Key questions answered in the report includeWhat will the market size and the growth rate be in 2020? What are the key factors driving the global data center design market? What are the key market trends impacting the growth of the global data center design market? What are the challenges to market growth? Who are the key vendors in the global data center design market? What are the market opportunities and threats faced by the vendors in the global data center design market? Trending factors influencing the market shares of the Americas, APAC, and EMEA. What are the key outcomes of the five forces analysis of the global data center design market?Technavio also offers customization on reports based on specific client requirement.Related reportsGlobal Data Center Market 2015-2019 Global Data Center Power Market 2015-2019 Global Data Center Construction Market 2015-2019 Global Data Center Rack Market 2015-2019 Data Center Construction Market- Global Report Analysis and Forecast 2015-2019 Global Data Center IT Equipment Market 2015-2019

Data Center Rack Server Market Outlook

As of 2023, the global data center rack server market size is valued at approximately $15.5 billion and is projected to reach around $27.8 billion by 2032, reflecting a compound annual growth rate (CAGR) of 6.7%. This growth is primarily driven by the accelerating adoption of digital transformation initiatives across various industry verticals, increasing data generation, and the rising demand for high-performance computing capabilities. Enterprises continue to recognize the importance of efficient data management and processing, propelling the deployment of advanced data center infrastructures, including rack servers.

The burgeoning volume of data generated by IoT devices, social media platforms, and enterprise applications has necessitated robust data storage and processing solutions. The data center rack server market is experiencing substantial growth due to this surge in data generation, which has underscored the need for scalable and efficient data center infrastructures. Organizations are increasingly investing in data centers equipped with advanced rack servers to handle the growing data volumes while ensuring minimal latency and high computational efficiency. Additionally, the integration of AI and machine learning technologies within data centers is further fueling market expansion, as these technologies require significant computational power.

Another critical growth factor is the increasing trend towards cloud computing and virtualization. As more businesses migrate their operations to the cloud, the demand for data centers and, consequently, rack servers has surged. Cloud service providers are continuously expanding their data center capacities to accommodate the growing customer base and the need for flexible, scalable, and efficient infrastructure. Rack servers, with their modular design and ease of management, have become the preferred choice for data center expansion, supporting various cloud computing models, including public, private, and hybrid clouds.

The rising focus on energy efficiency and sustainability in data centers is also significantly contributing to market growth. Data center operators are increasingly adopting energy-efficient rack servers to reduce operational costs and minimize their environmental footprint. Innovations in server hardware, such as advanced cooling technologies and power management solutions, are enhancing the energy efficiency of rack servers. Governments and regulatory bodies worldwide are also enforcing stringent energy efficiency standards, compelling data center operators to invest in greener technologies, further bolstering the demand for energy-efficient rack servers.

Regionally, North America dominates the data center rack server market, driven by the presence of a large number of data centers and major technology companies. The region's advanced IT infrastructure and early adoption of innovative technologies contribute to its leading position. However, significant growth is also observed in the Asia Pacific region, propelled by rapid industrialization, digitalization, and increasing investments in data center infrastructure. Countries like China, India, and Japan are witnessing a surge in data center projects, further boosting the market for rack servers in this region.

Component Analysis

The data center rack server market is segmented by component into hardware, software, and services, each playing a pivotal role in the overall functionality and operation of data centers. Hardware components, including servers, storage devices, and networking equipment, constitute the backbone of data center infrastructures. The demand for hardware is driven by the need for high-performance computing and storage solutions capable of handling vast amounts of data. Innovations in server technology, such as the development of high-density and low-latency servers, are enhancing the performance and efficiency of data centers, driving the growth of the hardware segment.

Software components, encompassing data center management software, virtualization software, and security solutions, are integral to the efficient operation of data centers. These software solutions enable the effective management and monitoring of data center resources, ensuring optimal performance and security. The increasing adoption of virtualization and cloud computing is driving the demand for advanced data center management software, as businesses seek to enhance resource utilization and reduce operational complexities. Additionally, the growing threat of cyber-attacks has heightened the need for robust security

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.

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.

IDC Internet Data Center Market size was valued at USD 48.5 Billion in 2023 and is projected to reach USD 75.14 Billion by 2031, growing at a CAGR of 10% during the forecast period 2024-2031.

Global IDC Internet Data Center Market Drivers

The market drivers for the IDC Internet Data Center Market can be influenced by various factors. These may include:

Growing Data Consumption: The exponential rise in data consumption driven by the increased use of cloud services, social media, and video streaming platforms continues to push the demand for robust Internet Data Center (IDC) infrastructure. This trend is fueled by the ever-growing number of internet users and the proliferation of IoT devices that generate vast amounts of data needing efficient storage and processing. Cloud Computing Expansion: Companies are increasingly migrating their workloads to the cloud to leverage its scalability, flexibility, and cost-efficiency, resulting in a booming demand for data centers. Major cloud service providers like AWS, Microsoft Azure, and Google Cloud are significantly investing in expanding their data center capacities to accommodate this shift. Edge Computing Wave: To reduce latency and improve real-time data processing, there is a growing shift towards edge computing. This paradigm requires data centers to be closer to end-users, leading to a need for more localized and decentralized data center facilities. Advancements in AI and Machine Learning: The rise of artificial intelligence and machine learning applications is driving the demand for data centers as these technologies require significant computational power and storage capacities. Data centers equipped with specialized hardware for AI workloads are becoming increasingly essential. 5G Deployment: The rollout of 5G networks is expected to revolutionize industries by enabling faster data speeds and lower latency. This transformation will lead to increased data generation and the need for data centers to manage and process this influx efficiently, supporting applications like autonomous vehicles and smart cities. Data Sovereignty and Compliance: With stringent data protection regulations such as GDPR in Europe and similar laws elsewhere, organizations must ensure data is stored and processed within specific geographic boundaries. This compliance requirement is driving the demand for local IDC facilities to adhere to data sovereignty laws. Sustainability Efforts: Environmental concerns and sustainable practices are becoming a significant focus for the data center industry. Companies are investing in energy-efficient technologies and renewable energy sources to power their data centers, aiming to reduce their carbon footprint and meet regulatory and corporate social responsibility commitments. Cybersecurity Imperatives: With cyber threats on the rise, there is a heightened focus on securing data through robust cybersecurity measures. Modern data centers are increasingly integrating advanced security protocols and technologies to safeguard sensitive information, making them vital for enterprises looking to protect their digital assets. Hybrid IT Solutions: The combination of on-premises infrastructure with public and private cloud services, known as hybrid IT, is gaining traction. This approach allows organizations to retain control over certain critical applications while leveraging the benefits of the cloud, necessitating a versatile and flexible IDC infrastructure. Economic Factors and Global Investments: Economic growth, particularly in emerging markets, coupled with increased global investments in ICT infrastructure, augments the expansion of the IDC market. Developing regions are witnessing a surge in data center construction driven by the demand for digital transformation and improved telecommunications infrastructure.

Data Center Storage Market size was valued at around USD60 billion in 2024 and is projected to reach USD102 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 9.2% by 2030.

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Green Data Center Market Size 2025-2029

The green data center (GDC) market size is forecast to increase by USD 90.65 billion, at a CAGR of 13.2% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing electricity consumption and rising costs associated with traditional data centers. This trend is pushing organizations to adopt energy-efficient solutions, making GDCs an attractive alternative. Another key driver is the growing adoption of Data Center Infrastructure Management (DCIM) solutions and automation technologies, which enable better energy management and resource utilization in GDCs. However, the high cost of building and maintaining these facilities remains a significant challenge.
Additionally, partnerships and collaborations between industry players can help reduce costs and share best practices, making GDCs a strategic investment for businesses seeking to reduce their carbon footprint and optimize operational efficiency. Despite this, companies can capitalize on the market's potential by focusing on innovative design and construction methods, utilizing renewable energy sources, and implementing advanced cooling technologies to minimize energy consumption and costs.

What will be the Size of the Green Data Center (GDC) Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, driven by the increasing demand for cloud computing efficiency and the need to reduce carbon footprint. Hardware optimization and server virtualization play significant roles in this evolution, enabling data centers to house more servers while consuming less energy. For instance, a leading technology company was able to increase its server capacity by 50% while reducing energy consumption by 30% through server consolidation and virtualization. Ensuring data security and privacy is a major concern for organizations, necessitating significant investments in cybersecurity measures. Moreover, the adoption of advanced technologies such as software-defined networking, energy management systems, and automation technologies contributes to the market's dynamism. These solutions optimize network performance, improve power usage effectiveness, and enhance security protocols.

In fact, industry experts anticipate a 15% compound annual growth rate (CAGR) for the GDC market over the next five years, driven by the increasing adoption of renewable energy sources, sustainable building design, and thermal management solutions. Furthermore, free cooling techniques, such as liquid cooling technology and geothermal cooling, are gaining traction in the market, as they offer significant energy savings. Additionally, the integration of AI-powered optimization and predictive maintenance systems allows for more efficient use of resources and minimizes waste heat recovery. The GDC market is characterized by continuous innovation and the integration of various technologies aimed at reducing greenhouse gas emissions and improving cloud computing efficiency.

From hardware optimization and server virtualization to software solutions and advanced thermal management techniques, the market's evolution is driven by the need for sustainability and energy efficiency. Data center infrastructure continues to evolve, with modularity and building automation systems becoming increasingly popular, enabling energy storage systems and remote monitoring systems to improve overall energy efficiency metrics.

How is this Green Data Center (GDC) Industry segmented?

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

Component

  IT infrastructure
  Power solutions
  General construction
  Cooling solutions
  Monitoring and management


End-user

  BFSI
  Energy
  IT and telecom
  Others


Type

  Hyperscale data centers
  Colocation data centers
  Enterprise data centers


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    Spain
    UK


  APAC

    China
    India
    Japan


  Rest of World (ROW)

By Component Insights

The IT infrastructure segment is estimated to witness significant growth during the forecast period. The digital transformation of businesses has led to an increasing reliance on cloud computing, with 90% of small and medium enterprises projected to adopt cloud storage by 2025. This shift necessitates the construction of data centers to accommodate the demand for higher computational power and network traffic. The growing complexity of data storage systems and the exponential increase in data necessitate adva

Mega Data Center Market size was valued at USD 22.3 Billion in 2023 and is projected to reach USD 31.45 Billion by 2031, growing at a CAGR of 4.39% from 2024 to 2031.

Key Market Drivers: • Increasing Data Consumption: As smartphones, IoT devices and digital services generate more data, there is a greater demand for mega data centers capable of handling massive volumes of data. • Cloud Computing Growth: The rise of cloud services and applications demands a strong infrastructure. Mega data centers offer the scalability and dependability necessary for cloud storage and computing.