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.

As of April 2025, there were 449 data centers in China, the most of any country or territory in the Asia-Pacific region. China had the fourth-highest number of data centers worldwide. Data centers in China As the leading market in public cloud in the Asia-Pacific region and an aspiring global leader in artificial intelligence, China has placed considerable weight on data center infrastructure, which underlies most of the advances in internet technology. The country dominates the global data center market in terms of revenue, trailing only the United States. In addition, China accounted for around 16 percent of the worldwide hyperscale data center capacity in the 4th quarter of 2023. The data center segment revenue in China is expected to have an annual growth rate of around 8.3 percent between 2025 and 2029. The outlook of data centers in the Asia-Pacific region The pandemic has accelerated enterprise digitalization across the Asia-Pacific region, driving a surge in demand for computational power. This trend, coupled with advancements in artificial intelligence and the region's significant population growth, points to a promising future for data centers in the region. For instance, the revenue in the data center market in India was forecast to grow further and is set to reach about 11.85 billion U.S. dollars by 2029. Meanwhile, economic growth and increasing internet penetration rates in Southeast Asian countries have been the primary drivers for data center demand growth in the subregion.

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...

The statistic shows the number of data centers worldwide in 2015, 2017, and 2021. In 2017, it was estimated that the number of data centers globally had fallen to *** million.

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Hyperscale Data Center Market Size 2025-2029

The hyperscale data center market size is forecast to increase by USD 485.5 billion, at a CAGR of 38.4% between 2024 and 2029.

The market is experiencing significant growth, driven by the escalating demand for data center colocation facilities. Businesses are increasingly seeking to outsource their IT infrastructure to hyperscale data centers, which offer cost savings, improved scalability, and enhanced security. Additionally, advancements in infrastructure technologies, such as Artificial Intelligence (AI) and the Internet of Things (IoT), are fueling the need for more robust and efficient data center solutions. However, the market also faces challenges. The consolidation of data centers is intensifying competition, as major players continue to expand their offerings and acquire smaller competitors. Furthermore, the increasing complexity of managing large-scale data centers presents operational challenges, including energy efficiency, cooling systems, and network connectivity. Companies must navigate these obstacles to effectively capitalize on the market's potential and maintain a competitive edge. To succeed, they must focus on delivering innovative solutions that address the evolving needs of their customers while ensuring operational efficiency and cost-effectiveness.

What will be the Size of the Hyperscale Data Center 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.
Request Free SampleThe market continues to evolve, with dynamic market activities shaping its landscape. Cloud storage solutions are increasingly being adopted, leading to data center consolidation and the rise of modular data centers. Power management and data center efficiency are key areas of focus, with an emphasis on renewable energy and green data centers. Cloud service providers are expanding their offerings, incorporating block storage, database services, and data analytics platforms. Data center construction and simulation tools are streamlining the design process, while data center interconnection and network security solutions are enhancing connectivity and protecting against cyber threats. High-performance computing and managed services are driving innovation in various sectors, including finance, healthcare, and research. Data sovereignty and data governance are becoming crucial considerations, with DNS management and IP addressing playing important roles in ensuring data privacy and compliance. Micro data centers and edge computing are gaining traction, extending data processing capabilities closer to the source. Hyperscale computing and load balancers are enabling scalable infrastructure, while hybrid cloud models and business continuity solutions are ensuring uptime and disaster recovery. Data center optimization, capacity planning, and virtualization technologies are optimizing network bandwidth and server utilization. Power usage effectiveness and water usage effectiveness are essential metrics, with building management systems and environmental monitoring solutions helping to reduce carbon footprint. Data center certifications and standards are ensuring best practices and driving industry growth. Cloud cost optimization and cloud migration are ongoing priorities, with infrastructure as code and machine learning solutions streamlining operations and reducing costs. Artificial intelligence and network switches are enhancing network performance and enabling new applications. Fiber optic cables and data center automation are improving network connectivity and efficiency. Overall, the market is characterized by continuous innovation and evolution, with a diverse range of applications and technologies shaping its future.

How is this Hyperscale Data Center Industry segmented?

The hyperscale 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. TypeCritical infrastructureSupport infrastructureEnd-userBFSIEnergyITOthersComponentSolutionsServiceDeployment TypeGreenfieldBrownfield GreenfieldBrownfield Energy SourceRenewable EnergyUPS SystemsHybrid PowerEnergy StorageGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKMiddle East and AfricaUAEAPACChinaIndiaJapanSouth AmericaBrazilRest of World (ROW).

By Type Insights

The critical infrastructure segment is estimated to witness significant growth during the forecast period.In the dynamic data center market, design plays a crucial role in accommodating various technologies such as NoSQL databases, edge computing, DDoS protection, software-defined networking, content delivery networks, and more. Renewable energy and green data centers are increasingly prioritized to reduce carbon f

The size of the US Data Center Industry market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 6.00% during the forecast period.A data center is a facility that keeps computer systems and networking equipment housed, processing, and transmitting data. It represents the infrastructure on which organizations carry out their IT operations and host websites, email servers, and database servers. Data centers, therefore, are imperative to any size business: small start-ups or large enterprise since they enable digital transformation, thus making business applications available.The US data center industry is one of the largest and most developed in the world. The country boasts robust digital infrastructure, abundant energy resources, and a highly skilled workforce, making it an attractive destination for data center operators. Some of the drivers of the US data center market are the growing trend of cloud computing, internet of things (IoT), and high-performance computing requirements.Top-of-the-line technology companies along with cloud service providers set up major data center footprints in the US, mostly in key regions such as Silicon Valley and Northern Virginia, Dallas, for example. These data centers support applications such as e-commerce-a manner of accessing streaming services-whose development depends on its artificial intelligence financial service type. As demand increases concerning data center capacity, therefore, the US data centre industry will continue to prosper as the world's hub for reliable and scalable solutions. Recent developments include: February 2023: The expansion of Souther Telecom to its data center in Atlanta, Georgia, at 345 Courtland Street, was announced by H5 Data Centers, a colocation and wholesale data center operator. One of the top communication service providers in the southeast is Southern Telecom. Customers in Alabama, Georgia, Florida, and Mississippi will receive better service due to the expansion of this low-latency fiber optic network.December 2022: DigitalBridge Group, Inc. and IFM Investors announced completing their previously announced transaction in which funds affiliated with the investment management platform of DigitalBridge and an affiliate of IFM Investors acquired all outstanding common shares of Switch, Inc. for USD approximately USD 11 billion, including the repayment of outstanding debt.October 2022: Three additional data centers in Charlotte, Nashville, and Louisville have been made available to Flexential's cloud customers, according to the supplier of data center colocation, cloud computing, and connectivity. By the end of the year, clients will have access to more than 220MW of hybrid IT capacity spread across 40 data centers in 19 markets, which is well aligned with Flexential's 2022 ambition to add 33MW of new, sustainable data center development projects.. Key drivers for this market are: , High Mobile penetration, Low Tariff, and Mature Regulatory Authority; Successful Privatization and Liberalization Initiatives. Potential restraints include: , Difficulties in Customization According to Business Needs. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

As of March 2025, *** data centers were listed as being located in Germany, the most of any European nation. Data centers are facilities housing critical IT infrastructure designed to store, process, and manage vast volumes of data. The United States is home to the largest share of data centers worldwide, with over ***** facilities.

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

Data Centre Equipment Market Outlook

As of 2023, the global data centre equipment market size stands at approximately USD 150 billion and is projected to reach around USD 300 billion by 2032, growing at a robust CAGR of 8%. This market's significant growth is driven by increasing data generation, rapid technological advancements, and heightened demand for cloud-based services. The demand for high-performance computing, alongside the proliferation of the Internet of Things (IoT) and edge computing, is catalyzing the expansion of data centre infrastructure across various industries.

The exponential growth in data generation from various sources such as social media, online transactions, and IoT devices is one of the primary drivers of the data centre equipment market. With global internet users surpassing 5 billion, the volume of data generated daily is unprecedented and continually rising, necessitating advanced and scalable data centre solutions. This insatiable need for data processing, storage, and security is fostering the development and deployment of sophisticated data centre equipment.

Technological advancements are another crucial factor stimulating the market's growth. Innovations such as high-density server hardware, advanced networking solutions, and efficient power distribution units are enhancing the capabilities and efficiency of data centres. Additionally, the integration of artificial intelligence (AI) and machine learning (ML) in data centre operations is leading to predictive maintenance, optimized energy consumption, and improved overall performance. These technological strides are essential in meeting the escalating demands for data processing and storage.

The increasing adoption of cloud-based services is significantly propelling the data centre equipment market. As businesses transition from traditional on-premises IT infrastructure to cloud solutions, there is a burgeoning demand for data centres to support these cloud services. Cloud providers are investing heavily in building and expanding data centres to accommodate the growing needs of their customers. This trend is particularly pronounced in sectors such as IT and telecommunications, BFSI, and healthcare, where data security and accessibility are paramount.

Regionally, North America dominates the data centre equipment market due to the early adoption of advanced technologies and the presence of major cloud service providers. The region's well-established IT infrastructure and substantial investments in data centre expansion are driving market growth. Asia Pacific is emerging as a lucrative market, attributed to the rapid digitization, increasing internet penetration, and significant investments in IT infrastructure in countries like China and India. Europe is also witnessing substantial growth, spurred by stringent data protection regulations and the increasing need for data storage and processing capabilities.

Component Analysis

The data centre equipment market is segmented by component into servers, storage devices, power distribution units (PDUs), networking equipment, and others. Servers constitute the backbone of data centres, handling the processing and management of data. With the rise in data-intensive applications and services, the demand for high-performance, scalable servers continues to grow. Innovations in server technology, such as blade servers and microservers, offer enhanced performance and energy efficiency, making them integral to modern data centres.

Storage devices are another vital component, catering to the burgeoning need for data storage and retrieval. With data volumes reaching unprecedented levels, there is a substantial demand for advanced storage solutions such as solid-state drives (SSDs) and network-attached storage (NAS). These devices offer high speed, reliability, and scalability, making them indispensable in handling large datasets efficiently. Innovations in storage technology, including storage virtualization and cloud storage, are further augmenting the market.

Power distribution units (PDUs) play a critical role in ensuring the efficient distribution and management of power within data centres. With the increasing power density of data centres, there is a growing need for intelligent PDUs that offer remote monitoring, energy usage tracking, and load balancing. The adoption of energy-efficient PDUs is driven by the desire to reduce operational costs and improve sustainability. As data centres aim to minimize their carbon footprint, the demand for advanced PDUs is expected to rise significantly.

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AI Data Center Market Size 2025-2029

The AI data center market size is valued to increase by USD 35.54 billion, at a CAGR of 28.7% from 2024 to 2029. Explosion of generative AI and large language models will drive the AI data center market.

Major Market Trends & Insights

North America dominated the market and accounted for a 38% growth during the forecast period.
By Component - Hardware segment was valued at USD 2.43 billion in 2023
By Type - Hyperscale data centers segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 1.00 million
Market Future Opportunities: USD 35538.30 million
CAGR from 2024 to 2029 : 28.7%

Market Summary

The market is experiencing significant growth, driven by the increasing adoption of generative AI and large language models. These advanced technologies require substantial computational power and cooling capacity, making liquid cooling a baseline requirement for many organizations. However, power scarcity and electrical grid constraints pose challenges in meeting the energy demands of AI data centers. A real-world business scenario illustrates the importance of optimizing AI data centers. In the manufacturing sector, a leading company implemented AI-powered predictive maintenance to improve operational efficiency and reduce downtime. By analyzing real-time data from sensors and equipment, the AI system identified potential issues before they caused significant damage.
As a result, the company achieved a 15% reduction in maintenance costs and a 20% increase in production output. The adoption of AI in various industries continues to grow, leading to an increased demand for data centers capable of handling the computational requirements of these advanced technologies. Despite the challenges, companies are investing in innovative solutions, such as renewable energy sources and energy storage systems, to mitigate power constraints and ensure the reliability and efficiency of their AI data centers.

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

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How is the AI Data Center Market Segmented ?

The AI data center 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

  Hardware
  Software
  Services


Type

  Hyperscale data centers
  Edge data centers
  Colocation Data centers


Deployment

  Cloud-based
  On-premises
  Hybrid cloud


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    The Netherlands
    UK


  APAC

    Australia
    China
    India
    Japan


  Rest of World (ROW)

By Component Insights

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

The market is undergoing constant evolution, with the hardware segment leading the charge. This segment, comprising the physical infrastructure tailored to AI workloads, is undergoing a significant and capital-intensive transformation. At its core lies the accelerators, specialized processors that execute the parallel mathematical operations necessary for both training and inference. These components, driven by product cycles, are shaping the market's trajectory. For instance, the March 2024 introduction of NVIDIA's Blackwell architecture set a new performance benchmark, necessitating infrastructure upgrades due to its substantial power and cooling requirements. The market also prioritizes power usage effectiveness, with data centers increasingly adopting energy-efficient metrics like GPU acceleration, distributed computing, and server virtualization.

Additionally, there's a growing emphasis on disaster recovery planning, data center automation, and fault tolerance mechanisms. These trends are further influenced by the integration of deep learning frameworks, machine learning algorithms, and AI inference engines into the data center infrastructure. Furthermore, the market is witnessing the emergence of cloud computing platforms, AI ops solutions, and container orchestration, which optimize capacity planning models and network latency. These advancements underscore the dynamic nature of the market, with a projected 35% increase in AI workload optimization by 2026.

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The Hardware segment was valued at USD 2.43 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

North America is estimated to contribute 38% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

See How AI Data Cent

The number of hyperscale data centers worldwide reached *** in 2023, up from just *** two years prior. What are data centers? Data centers are buildings dedicated to house computer systems. As increasingly sophisticated enterprise applications emerge, the growth in data being generated demands more data center capacity. To meet this demand, hyperscalers’ CAPEX is continually increasing, with a large share of it targeted directly at data centers. It is therefore not surprising that a large amount of the servers being sold are not those of enterprises and are instead going into cloud providers' data centers. Where are most data centers located? Most hyperscale data centers are located in the United States with a share of ** percent of the global total. China and Japan take the second and third place, respectively. Providers including Amazon Web Services (AWS), Microsoft Azure, and Google Cloud continue to build data centers in different regions around the world to enlarge their global infrastructure. This increases connectivity and compensates for downtime in availability zones in case of an incident.

As per Cognitive Market Research's latest published report, the Global Data Center Cooling market size was $10.25 Billion in 2022 and it is forecasted to reach $23.89 Billion by 2030. Data Center Cooling Industry's Compound Annual Growth Rate will be 11.63% from 2023 to 2030. Factors Affecting Data Center Cooling market growth

Rise in the number of data centers

Data center facilities are widely used for networked computer servers that store large amounts of data. The number of data centers across the world is growing due to the massive amount of digital information stored and streamed. As demand for digital services across the globe has increased exponentially due to high number of internet users, the requirement for data centers has also increased. It has been studied that, almost 2% of global electricity is been used by data centers. The use of electricity for data centers is rising globally. For instance, data centre electricity use in Ireland has more than tripled since 2015, accounting for 14% of total electricity consumption in 2021.

Data centers are associated with the storage and share of several applications and data. It centralized the organization's shared IT operations and equipment for the purposes of storing, processing, and distributing data and applications. As data centres are associated with storage management, backup and recovery of critical data etc., it is considered to be one of the vital areas. Hence protection of components in data centre becomes the prime responsibility of organization.

Thus, one of the crucial tasks for any data center is to monitor and manage the environment. Excessive use of electricity stimulates high temperatures which can damage IT equipment, causing them to fail. Hence, data center cooling ensures enough cooling, ventilation and humidity to keep all the facilities with ideal temperature. Hence, rise in the number of data center facilities drives the growth of data center cooling market around the globe.

Growing demand for cost-effective and efficient data center cooling solutions to fuel market growth

Restraining Factor of Data Center Cooling Market:

High cost associated with the installation of data centers facilities

The excessive high cost in setting and installing data center facilities may hinder the growth of market. The cost of installing data center facility reaches somewhere upto $1000-4000 per rack. However, manufacturers are coming up with innovative solutions which can reduce the cost of installation as the demand for data center is growing exponentially. This will increase the further growth of market in coming years.

Current Trends in Data Center Cooling:

Rising sustainability in data center cooling facility

Rising environmental concern stimulates the concern for sustainability in the data center industry. Thus, methods like utilizing eco-friendly cooling solutions have been rising to get rid of high energy consumption. Thus, some of the big players have removed mechanical cooling in their facilities to opt for more sustainable ways of cooling. For instance, in year 2015, Digital Realty has built a 6MW data center in London without mechanical cooling. The cooling system has also started using AI for data center cooling. Google's AI for cooling uses sensors to collect data every five minutes. Then, the algorithm predicts how the cooling systems’ current performance will bring benefits and disadvantages in energy consumption. Further, data centers are aiming to remove wasted energy in cooling or eradicate it if possible.

Impact of COVID-19 pandemic on Data Center Cooling Market:

Demand for data centers during the out-break of COVID-19 have seen rapid growth due to the inclination towards remote working. This has further driven the demand for cloud services in order to provide secure and robust IT culture. This drives the market for data center cooling during COVID-19. Moreover, high usage of data centers by pharmaceutical companies and research institutions during the COVID-19 pandemic positively impacted the growth of data center cooling market during the lockdown period. Definition of Data Center Cooling:

Data center cooling collectively known as tools, equipment, systems, and techniques that ensures required temperature and humidity levels within any data center facility. It works by removing excess heat from a facility and ensures server uptime by prov...

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

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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

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.

Introduction

This dataset shows the maximum observed utilisations of operational data centres identified in UK Power Networks' region.

The utilisations have been determined using actual demand data from connected sites within UK Power Networks licence areas, from 1 January 2023 onwards.

Maximum utilisations are expressed proportionally, by comparing the maximum half-hourly observed import power seen across the site's meter point(s), against the meter's maximum import capacity. Units for both measures are apparent power, in kilovolt amperes (kVA).

To protect the identity of the sites, data points have been anonymised and only the site's voltage level information has been provided - and our estimation of the data centre type - has been provided.

Methodological Approach

Over 100 operational data centre sites (and at least 10 per voltage level) were identified through internal desktop exercises and corroboration with external sources.

After identifying these sites, their addresses and their MPAN(s) (Meter Point Administration Number(s)) were identified using internal systems.

Half-hourly smart meter import data were retrieved using internal systems. This included both half-hourly meter data, and static data (such as the MPAN's maximum import capacity and voltage group, the latter through the MPAN's Line Loss Factor Class Description). Half-hourly meter import data came in the form of active and reactive power, and the apparent power was calculated using the power triangle.

In cases where there are numerous meter points for a given data centre site, the observed import powers across all relevant meter points are summed, and compared against the sum total of maximum import capacity for the meters.

The maximum utilisation for each site was determined via the following equation (where S = Apparent Power in kilovolt amperes (kVA)):

% Maximum Observed Utilisation =

 MAX(SUM( SMPAN Maximum Observed Demand))

 SUM( SMPAN Maximum Import Capacity)

Quality Control Statement

The dataset is primarily built upon customer smart meter data for connected customer sites within the UK Power Networks' licence areas.

The smart meter data that is used is sourced from external providers. While UK Power Networks does not control the quality of this data directly, these data have been incorporated into our models with careful validation and alignment.

Any missing or bad data has been addressed though robust data cleaning methods, such as omission.

Assurance Statement

The dataset is generated through a manual process, conducted by the Distribution System Operator's Regional Development Team.

The dataset will be reviewed quarterly - both in terms of the operational data centre sites identified, their maximum observed demands and their maximum import capacities - to assess any changes and determine if updates of demand specific profiles are necessary.

This process ensures that the dataset remains relevant and reflective of real-world data centre usage over time.

There are sufficient data centre sites per voltage level to assure anonymity of data centre sites.

Other Definitions of key terms related to this dataset can be found in the Open Data Portal Glossary: https://ukpowernetworks.opendatasoft.com/pages/glossary/Download dataset information: Metadata (JSON)To view this data please register and login.

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 Cognitive Market Research, the global data center accelerator market was XX million. Data Center Accelerator Industry's compound annual growth rate (CAGR) was XX% from 2024 to 2031.

A data center accelerator is a piece of hardware or software designed to analyze visual data and improve computer speed
Over the course of the projection period, Asia-Pacific is anticipated to grow at the highest CAGR of XX%. The increasing use of cloud-based services like big data analytics and the Internet of Things is responsible for the market expansion in the region
The global market for data center accelerators is divided into four segments based on type: FPGA (field-programmable gate array), ASIC (application-specific integrated circuit), GPU (graphics processing unit), and CPU (central processing unit). The market is most influenced by the CPU (central processing unit) segment. 
The worldwide data center accelerator market is divided into two segments based on application: artificial intelligence, high-performance computing, and other applications. The market share that is largest belongs to the artificial intelligence division.

Market Dynamics

Key Drivers of the Data Center Accelerator Market

AI's growing use in HPC data centers is driving the global market growth

Deep learning-based accelerators are becoming increasingly popular in high-performance computing (HPC) data centers controlled by corporations such as HP and Dell EMC, despite the chipmakers' tremendous efforts to manufacture accelerators. This is mostly because there is a greater need for AI-focused data centers as a result of growing customer data collecting and the uptake of AI-based services. By analyzing consumer behavior data from social media comments, CRM systems, and product reviews, AI may be able to offer customized services. HPC technologies, which incorporate AI and machine learning, have significantly changed a number of industries, including financial services, manufacturing, healthcare, oil and gas, research, and educational institutions. These programs are capable of doing complex computations and processing data at up to quadrillions of times per second. MemryX Inc., a trailblazing startup concentrating on expediting artificial intelligence (AI) processing for edge devices, declared in March 2023 that it has partnered with Cachengo, a top supplier of AI hardware and software, to be the sole supplier of AI processors for their modular compute and storage servers. CloudScene data of 110 countries with information available indicates that there were around 8,000 data centers worldwide as of January 2021. Six of these nations are home to the bulk of data centers: the United States (33% of total), the United Kingdom (5.7%), Germany (5.5%), China (5.2%), Canada (3.3%), and the Netherlands (3.4%) (see figure 1 below). Approximately 64% of them are in NATO member nations, while 77% are found in OECD member states. There are more than 2,600 data centers located all around the United States. In October 2022, Accenture and Google Cloud revealed plans to broaden their global partnership. These plans included a reaffirmed dedication to developing new data and artificial intelligence (AI) solutions, growing their respective talent pools, and offering improved support to clients looking to reinvent their businesses on the cloud and build a strong digital foundation. June 2022: To become a leading digital healthcare provider, Sanofi has created its first digital accelerator. The accelerator would produce goods and services to support Sanofi's goal of using digital, data, and artificial intelligence (AI) to change medicine.

Increased FPGA demand brings abundant opportunities for the market growth

Field Programmable Gate Arrays, or FPGAs, are prefabricated silicon devices that may be electrically programmed to become almost any digital system after they are manufactured. They can be constructed and then reprogrammed to meet the requirements of certain applications. They are a group of programmable interconnect-connected reconfigurable logic blocks (CLBs). Furthermore, because FPGA chips combine the greatest features of application-specific integrated circuits (ASICs) and processor-based systems, they are widely used in a wide range of industries. For low-to-medium volume productions, ASIC often takes a significant amount of time and financial resources to build the initial device. O...

According to Cognitive Market Research, the global Data Centre Liquid Cooling market size in 2023 was XX Million. The Data Centre Liquid Cooling Industry's compound annual growth rate (CAGR) will be XX% from 2023 to 2031.

The global Data Centre Liquid Cooling market will expand significantly by XX% CAGR between 2023 to 2031.
North America held the major market of more than XX% of the global revenue with a market size of USD XX million in 2023 and will grow at a compound annual growth rate (CAGR) of XX% from 2023 to 2031.
The IT & Telecom industry held the highest Data Centre Liquid Cooling market revenue share in 2023.

Market Dynamics of the Data Centre Liquid Cooling Market

Key Drivers of the Data Centre Liquid Cooling Market

Rising Demand for Developed Data Centres will be mirrored in the Data Centre Liquid Cooling Market

To boost efficiency, these information homes are being used more regularly. The requirement for additional CPUs to improve their density raises the cooling requirements of these data centres even further. The market has a great deal of room for growth, which justifies the increasing need for data centres that are energy-efficient and for data centre cooling systems. Many significant companies are preparing for expansion. Moreover, the rapid increase in data generation and the subsequent global spike in demand for data centres are responsible for the favourable growth prognosis. Data centres need efficient cooling equipment since they generate a lot of heat and use a lot of electricity.

For instance, McKinsey & Co. reports, the surge in demand for data centres has caught the interest of various investors, including those in growth capital, buyouts, real estate, and infrastructure. Demand is predicted to reach 35 gigawatts (GW) in the US market alone by 2030. Demand is assessed by power consumption, which takes into account the number of servers a data centre can hold. Given the inherent relationships in the market, the demand for liquid cooling systems for data centres will also rise.

https://www.mckinsey.com/industries/

Technological Advancements Drive the Data Centre Liquid Cooling Market Growth

Organisations are being encouraged to boost their investments in creating new data centre facilities due to the rapid rise of cloud services, the increasing prominence of big data, and the better penetration of connected devices. It is projected that all of these causes will increase demand for data centre liquid cooling systems. An expansion in data centre locations worldwide is closely correlated with this need. The pandemic's increased expenditure on IT infrastructure is opening doors for the global expansion of both new and existing data centre facilities. Moreover, by providing a higher degree of automation, software-based data centres are also fostering industry expansion.

For instance, according to Stream Data Centre's released study, data centre development is being driven by innovation in apps and technology infrastructure because of the quick rise of cloud services, big data, and connected devices. The requirement for liquid cooling systems in these facilities is rising as a result of this exponential increase.

https://www.streamdatacenters.com/wp-content/uploads/

Key Restraints of the Data Centre Liquid Cooling Market

High Investment Requirement Restricts the Data Centre Liquid Cooling Market Growth

The pandemic-induced shift toward digital transformation has underscored the necessity of constructing data centre facilities that offer scalability, security, and adaptability. Consequently, the demand for the data centre cooling industry is expected to grow as investments in new data centre facilities rise. But it's expected that the hefty investment requirements and specialised infrastructure required to set up and operate these data centre solutions would impede the industry's expansion. In addition, the business is expected to face hurdles from decreased carbon emissions and cooling problems during events like power outages.

For instance, a report by McKinsey & Co. lists several variables that drive up the cost of data centre cooling systems. One such aspect is increased interest rates, which drive up the cost of funding deals in general and data centres specifically. Additionally, because of the tight labour market, fluctuating commodity prices, rising inflation, and constricted supply chains, worl...

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 DriversThe 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.