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.

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.

Historical Study on Data Center Market Alongside Future Projections

Demand Analysis of Data Centers by Region

Data Center Industry Analysis by Segment

The 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 Region (APAC, Africa, Europe, Middle East, North America, South America). 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.

Data Center Market size was valued at USD 71.38 Billion in 2024 and is projected to reach 135.48 USD Billion by 2031 growing at a CAGR of 9.20% from 2024 to 2031.

Global Data Center Market Drivers

Rapid Growth in Data Generation: Data centre infrastructure is required to store, process, and analyse massive volumes of data due to the exponential rise in data generation from numerous sources, including social media, IoT devices, and digital transactions.

Initiatives for Digital Transformation: In order to remain competitive, organisations are transforming, which is increasing demand for data centre infrastructure to support digital technologies such as artificial intelligence, big data analytics, cloud computing, and others.

Adoption of Cloud Computing: The demand for data centres to house cloud platforms, services, and applications is fueled by the move towards cloud computing models, including public, private, and hybrid clouds.

Edge Computing and IoT: The adoption of edge computing architectures is fueled by the proliferation of IoT devices and the demand for low-latency processing. This has resulted in the deployment of data centres closer to the edge to enable real-time data processing and analytics.

Digital Collaboration and Remote Work: The COVID-19 epidemic has led to an increase in the use of online services, digital collaboration tools, and remote work, which has increased demand for data centre infrastructure to enable video conferencing, remote access, and virtual collaboration platforms.

Rollout of 5G Networks: As 5G networks are implemented, there is an increasing need for data centres to accommodate the higher network capacity, low-latency communication, and edge computing capabilities needed for next-generation services and applications.

Explore the Data Center Services Market trends! Covers key players, growth rate 15.8% CAGR, market size $151.47 Billion, and forecasts to 2034. Get insights now!

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.

Impact of Covid-19 on the Data Center Market

The COVID-19 pandemic has exerted a notable impact on the data center market. With the acceleration of remote work and digitalization initiatives, there has been a surge in demand for data center services to support increased online activities. However, supply chain disruptions and construction delays have impeded the expansion and deployment of new data center facilities. Additionally, economic uncertainty has led some organizations to reevaluate their IT spending, potentially affecting investment in data center infrastructure projects. Introduction of the Data Center Market

The data center market refers to the industry segment encompassing facilities designed to house and manage computer systems and associated components, such as telecommunications and storage systems. These centers are crucial for organizations to store, process, and distribute large volumes of data securely and efficiently. Data centers vary in size and complexity, ranging from small server rooms to mass...

The Global Data Center Construction Market Report is Segmented by Infrastructure (electrical Infrastructure (power Distribution Solution (PDU, Transfer Switches, Switchgear, Power Panels and Components, Others)), Power Backup Solution (ups, Generators), Service – Design & Consulting, Integration, Support & Maintenance)), (mechanical Infrastructure (cooling Systems (immersion Cooling, Direct-To-Chip Cooling, Rear Door Heat Exchanger, In-Row and In-Rack Cooling)), Racks, Other Mechanical Infrastructure)), General Construction)), Tier Type (Tier 1 and 2, Tier 3, and Tier 4), End User (banking, Financial Services and Insurance, It and Telecommunications, Government and Defense, Healthcare, and Other End User), and Geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa). The Market Sizes and Forecasts are Provided in USD Values for all the Above Segments.

The global data center market size was over USD 282.32 billion in 2024 and is expected to grow at a CAGR of over 9.8%, surpassing USD 938.9 billion by 2037. North America industry is poised to hold largest revenue share of 37.2% by 2037, driven by its well-established digital economy based on high demand for cloud services and advanced technological infrastructure.

According to Cognitive Market Research, the global data center market size will be USD 195245.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 11.30% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 78098.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.5% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 58573.56 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 44906.40 million in 2024 and will grow at a compound annual growth rate (CAGR) of 13.3% from 2024 to 2031.
Latin America's market will have more than 5% of the global revenue with a market size of USD 9762.26 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.7% 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 3904.90 million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.0% from 2024 to 2031.
The Government held the highest data center market revenue share in 2024.

Market Dynamics of Datacenters market

Key Drivers of Datacenters market

5G Adoption Accelerates The Demand For Data Center Infrastructure To Support Higher Data Speeds

The widespread adoption of 5G technology is accelerating the demand for data center infrastructure due to its capability to support significantly higher data speeds and lower latency. 5G networks are ushering in a new era of connectivity, enabling faster communication between devices and facilitating the seamless transmission of massive amounts of data. To support the enhanced capabilities of 5G networks, data centers need to be equipped with robust infrastructure, including high-performance servers, storage systems, and networking equipment. Additionally, the deployment of edge data centers becomes crucial to reduce latency and improve the overall user experience.

Furthermore, 5G is driving the proliferation of new applications and services such as augmented reality (AR), virtual reality (VR), autonomous vehicles, and the Internet of Things (IoT), all of which require reliable and low-latency connectivity. This increased demand for data-intensive applications necessitates data centers to expand their capacity and optimize their infrastructure to meet the evolving requirements of 5G technology.

Rapid Advancements In Technology Lead To The Risk Of Upgrades Or Replacements

The acceleration of remote work and collaboration due to factors like the COVID-19 pandemic has significantly impacted the demand for data center resources. With a sudden shift towards remote work, organizations have increasingly relied on data centers to facilitate secure and reliable remote access, communication, and collaboration tools. Datacenters play a critical role in providing the infrastructure needed to support remote work environments, ensuring that employees can access corporate applications, files, and communication platforms from any location securely. This demand surge has driven investments in data center infrastructure to accommodate the increased bandwidth requirements, ensure low latency connections, and maintain high availability of services.

Moreover, the need for seamless collaboration tools like video conferencing, messaging platforms, and file-sharing applications has further propelled the demand for robust data center resources. These platforms require significant computing power, storage, and network resources, all of which are provided by data centers to enable efficient remote collaboration.

Restraint Factors of Datacenters market

Rapid Advancements In Technology Lead To The Risk Of Upgrades Or Replacements To Limit Market Growth

Rapid advancements in technology present a significant restraint in the data center market as they increase the risk of frequent upgrades or replacements. As technology evolves swiftly, particularly in areas like hardware, software, and networking, data center infrastructure can quickly become outdated or inefficient compared to newer solutions. This constant cycle of innovation creates a challenge for data center operators who must continuously invest in upgrading their facilities to remain competitive and meet evolving client demands.

Moreover, the pace of technolo...

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.

Worldwide spending on data center systems is projected to reach 260 billion U.S. dollars in 2024, marking a significant 10 percent increase from 2023. This growth reflects the ongoing digital transformation across industries and the increasing demand for advanced computing capabilities. The surge in data center investments is closely tied to the rapid expansion of artificial intelligence technologies, particularly with the wake of generative AI. AI chips fuel market growth The rise in data center spending aligns with the booming AI chip market, which is expected to reach 92 billion U.S. dollars by 2025. Nvidia has emerged as a leader in this space, with its data center revenue skyrocketing due to the crucial role its GPUs play in training and running large language models like ChatGPT. The global GPU market, valued at 65 billion U.S. dollars in 2024, is a key driver of this growth, powering advancements in machine learning and deep learning applications. Semiconductor industry adapts to AI demands The broader semiconductor industry is also evolving to meet the demands of AI technologies. With global semiconductor revenues surpassing 526 billion U.S. dollars in 2023, the market is expected to approach 611 billion U.S. dollars in 2024. AI chips are becoming increasingly prevalent in servers, data centers and storage infrastructures. This trend is reflected in the data centers and storage semiconductor market, which is projected to grow from 78 billion U.S. dollars in 2023 to 136 billion U.S. dollars by 2025, driven by the development of image sensors and edge AI processors.

Data Center Construction Market size was valued at USD 23.76 Billion in 2023 and is projected to reach USD 42.05 Billion by 2031, growing at a CAGR of 7.40% from 2024 to 2031.

Global Data Center Construction Market Drivers:

Rapid Data Increase: The exponential rise of digital data, fueled by developments such as IoT, big data analytics, and cloud computing, increases demand for data center building.

Increasing Cloud Adoption: Businesses are increasingly transitioning to cloud-based solutions to benefit from scalability, flexibility, and cost-efficiency.

Digital Transformation Initiatives: Organizations across industries are implementing digital transformation strategies to improve efficiency, innovation, and competitiveness.

Global Economic Expansion: Economic expansion and digitalization initiatives in emerging nations are driving the demand for data center infrastructure to support growing business operations.

The global edge data center market, valued at $20,625.6 million in 2024, is expected to reach $109,781.3 million by 2034, exhibiting a robust CAGR of 17.63% during the forecast period 2025-2034.

The Market Research Report Covers Global Green Data Center Companies and is Segmented by Service (System Integration, Monitoring Service, and Professional Service), Solution (Power, Servers, Management Software, Networking Technologies, Cooling, and Other Solutions), User (Colocation Providers, Cloud Service Providers, and Enterprises), Industry Vertical (Healthcare, Financial Services, Government, Telecom & IT, and Other Industry Verticals), and Geography. The market size and forecasts are provided in terms of value (USD million) for all the above segments.

The global green data center market was expected to be worth 53.88 billion U.S. dollars in 2023, with the North American market accounting for 21.85 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 187 billion U.S. dollars by the end of the decade.

Further information on the green data center market can be found here.

The global data center server market size reached USD 57.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 82.1 Billion by 2033, exhibiting a growth rate (CAGR) of 4.1% during 2025-2033. The escalating data growth, digital transformation initiatives, scalability demands, edge computing adoption, AI applications, and cybersecurity concerns are some of the major factors propelling the market.

IMARC Group provides an analysis of the key trends in each segment of the global data center server market report, along with forecasts at the global and regional levels for 2025-2033. Our report has categorized the market based on product and application.

The global data centre UPS market is expected to secure US$ 5,407.8 million in 2023. During the forecast period of 2023 to 2033, the market is likely to exhibit a CAGR of 6.9% while amassing a market value worth US$ 10,571.6, million. The growth of the market can be attributed to the increasing expansion of the consumer electronics sector.

Report Scope

The global Modular Data Center market is projected to grow significantly, from USD 29,317.6 Million in 2025 to USD 128,021.2 Million by 2035 an it is reflecting a strong CAGR of 13.8%.

Country-wise Insights

Category-wise Insights

As per a recent market study, the global edge data center market size is expected to reach 13.5 billion U.S. dollars in 2024, twice the size of the market in 2020. Experts have said that the growth of emerging technologies like 5G and IoT will contribute to this growth.

[231+ Pages Report] The global data center colocation market size is expected to grow from USD 62.3 billion in 2022 to USD 89.3 billion by 2030, at a CAGR of 14.7% from 2023-2030