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

The data center colocation market was valued at USD 30.42 billion in 2022 and is expected to reach USD 46.30 billion by 2028, growing at a CAGR of 7.25%.

The global data center market is projected to grow at a CAGR of 5.03% and is expected to reach USD 289.66 billion by 2028 from USD 215.73 billion in 2022

Global Data Center Services market size is expected to reach $148.02 billion by 2029 at 15.4%, segmented as by services, installation and integration services, training services, consulting services, maintenance and support, other services

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.

BCC Research Market Analyst says global market for data centers is expected to grow from $418.2 billion in 2025 and is projected to reach $691.6 billion by the end of 2030.

Arizton’s 2025 Data Center Market Forecast offers investment trends, market size, and growth outlook by region and facility type.The investment is expected to reach USD 627.40 billion by 2030, growing at a CAGR of 8.75% during the forecast period.

Data Center Market is projected to reach USD 876.80 billion by 2033, growing at a CAGR of 10.64% from 2025-2033.

Green Data Center Market is Segmented by Component (Service, Solution), Data Center Type (Colocation Providers, Hyperscalers/Cloud Service Providers, Enterprise, and Edge), Tier Type (Tier 1 and 2, Tier 3, Tier 4), Industry Vertical (Healthcare, BFSI, Government and More) and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

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

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

The 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.

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...

In 2021, Equinix held approximately ** percent of the market share of data centers. In total, the fifteen largest data center colocation providers own roughly **** of the market, which amounts to ** billion U.S. dollars in total. Data centers are facilities that centralize an organization's information technology equipment and operations.

According to Cognitive Market Research, the global IDC Internet Data Center market size will be USD 51415.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 10.80% 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 20566.20 million in 2024 and will rise at the compound annual growth rate (CAGR) of 9.0% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 15424.65 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 11825.57 million in 2024 and will rise at the compound annual growth rate (CAGR) of 12.8% from the year 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 2570.78 million in 2024 and will rise at a compound annual growth rate (CAGR) of 10.2% from the year 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 1028.31 million in 2024 and will rise at the compound annual growth rate (CAGR) of 10.5% from the year 2024 to 2031.
The SME category is the fastest growing segment of the IDC Internet Data Center industry

Market Dynamics of IDC Internet Data Center Market

Key Drivers for IDC Internet Data Center Market

Growing Demand for Cloud Services to Boost Market Growth:

The increasing adoption of cloud computing services is a significant driving factor for the Internet Data Center (IDC) market. As businesses of all sizes transition to cloud-based solutions for enhanced scalability, flexibility, and cost-effectiveness, the demand for reliable data centers has surged. Organizations are increasingly relying on IDC facilities to host their applications, store data, and manage digital assets securely.

Increased Focus on Data Security and Compliance to Drive Market Growth:

Data security and compliance are critical factors driving the IDC market as organizations prioritize protecting sensitive information and adhering to regulatory standards. With the growing frequency of cyberattacks and data breaches, businesses are investing in secure data center solutions to mitigate risks and safeguard their assets.

Key Restraint Factor for the IDC Internet Data Center Market

High Capital Expenditure and Operational Costs Will Limit Market Growth:

The IDC (Internet Data Center) market faces significant restraint due to high capital expenditure (CapEx) and operational costs associated with building and maintaining data centers. Establishing a modern IDC requires substantial investments in infrastructure, including servers, storage, networking equipment, and cooling systems, as well as securing real estate in strategic locations.

Energy Usage and Ecological Consequences: Data centers represent significant energy consumers, frequently attracting criticism regarding their carbon footprints. Stringent environmental regulations and sustainability objectives exert pressure on operators to implement energy-efficient technologies.

Key Trends for IDC Internet Data Center Market

Edge Data Centers and Decentralized Architecture: To minimize latency and facilitate real-time processing in applications such as autonomous vehicles and smart cities, edge computing is becoming increasingly popular, resulting in the emergence of smaller, regionally distributed data centers.

Green Data Centers and Renewable Energy Use: Sustainability remains a primary concern, with numerous providers channeling investments into solar, wind, and water-cooled systems to establish environmentally friendly data centers and decrease operational carbon footprints.

Impact of Covid-19 on the IDC Internet Data Center Market

COVID-19 significantly impacted the IDC (Internet Data Center) market by accelerating digital transformation and increasing reliance on cloud services as businesses shifted to remote work. The surge in online activities, e-commerce, and demand for data storage and processing put additional pressure on data centers to expand capacity and improve services. Many organizations prioritized investments in IT infrastructure to support remote operations, leading to increased demand for IDC services. However, the pandemic also brought challenges, inclusive of supply chain disruptions and hindrance in the construction of n...

Global Data Center Renovation market size is expected to reach $96.05 billion by 2029 at 27.8%, segmented as by product, cooling, power, it racks and enclosures, networking equipment, dcim, other products

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

Global Edge Data Center market size is expected to reach $44.45 billion by 2029 at 28.0%, internet penetration and digitalization driving edge data center market

Data Center UPS Market size was valued at USD 3.95 Billion in 2024 and is projected to reach USD 5.14 Billion by 2031, growing at a CAGR of 4.00% from 2024 to 2031.

Global Data Center UPS Market Drivers

Growing Data Centre Construction: To guarantee a steady power supply and shield vital IT equipment from power outages, data centres around the world are building more and more infrastructure. This has increased the need for UPS systems.

Growing Concerns about Data Security and Integrity: In response to the increasing threat of data loss or corruption resulting from power outages, enterprises are prioritising the purchase of reliable power backup systems, such as UPSs.

Initiatives for Digital Transformation: Highly available and dependable IT infrastructure is needed for the continuous digital transformation taking place in a number of industries. UPS systems are essential for sustaining data centre uptime and continuous operation, which supports digitalization initiatives.

Increase in Cloud Computing Adoption: The need for data centre capacity is rising as a result of the quick uptake of cloud computing services, including public, private, and hybrid clouds. UPS systems provide backup power during utility outages, which is crucial for guaranteeing the dependability and accessibility of cloud-based services.

Internet Data Center (IDC) Market Outlook 2032

The global internet data center (IDC) market size was USD 53.14 Billion in 2023 and is likely to reach USD 130.59 Billion by 2032, expanding at a CAGR of 10.6% during 2024–2032. The market growth is attributed to the rising healthcare sector and expansion of 5g technology.



The expansion of 5G technology is expected to increase the demand for edge computing, where data is processed closer to the source of data generation. This shift is likely to lead to the development of smaller, decentralized data centers that are integrated into urban infrastructure, providing low-latitude, high-reliability services. These technologies promise to enhance the performance and efficiency of IDCs and open up new avenues for innovation and service delivery in the data center market.

Increasing healthcare sector offers expansive opportunities for IDC growth, driven by the digitalization of health services and the need for compliant, secure data management solutions. With the increasing adoption of electronic health records (EHRs), telemedicine, and mobile health applications, healthcare providers require robust data centers to store and process sensitive patient information securely.



Additionally, the integration of AI and machine learning for diagnostic and predictive analytics further compounds the data processing needs. IDC providers capitalize on this trend by offering specialized services that meet the stringent regulatory standards of the healthcare industry, such as HIPAA in the US, ensuring data integrity and security while facilitating the seamless operation of healthcare IT systems.

Internet Data Center (IDC) Market Dynamics

Major Drivers

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