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 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 8.4 million.

As of 2024, 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 as of March 2024. 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 15 percent of the worldwide hyperscale data center capacity in the 2nd quarter of 2022. The data center segment revenue in China is expected to have an annual growth rate of around nine percent between 2024 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.

The number of hyperscale data centers worldwide reached 992 in 2023, up from just 700 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 39 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.

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.

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

In 2023, Equinix had a total of 242 International Business Exchange (IBX) data centers across the globe, with almost half located in the Americas region. This was an increase of six data centers on the previous year, with the California-based operator looking to capitalize on an increasing global data center demand driven by digital transformation.

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.

Global Hyperscale Data Centers Market to hit USD 246.62B by 2029 growing at 19.2% CAGR. Explore trends, drivers, and competition for strategic insights with The Business Research Company.

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.

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 data center virtualization market size reached USD 11.7 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 37.8 Billion by 2033, exhibiting a growth rate (CAGR) of 13.91% during 2025-2033. The rising need to reduce cost and enhance operational efficiency among organizations, the increasing focus on business continuity and disaster management, and the surging need to consolidate and centralize data centers are some of the major factors propelling the data center virtualization market.

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

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!

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.

Global Managed Data Center Market is segmented by Type (Managed Storage, Managed Hosting, Managed Colocation), Deployment Type (Cloud, On-premise), End-user Industry (BFSI, Energy, Healthcare, Manufacturing, Retail, Other End-user Industries), and Geography (North America (United States, Canada), Europe (Germany, UK, France, Spain, and Rest of Europe), Asia Pacific (India, China, Japan, and Rest of Asia-Pacific), and Latin America (Brazil, Argentina, and Rest of Latin America), and Middle East & Africa (UAE, Saudi Arabia, South Africa, and Rest of MEA). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Compute instances are expected to have the highest share of global data center storage capacity by 2021, with the capacity forecast to reach around 470 exabytes by then. Other enterprise workloads, such as business application and collaboration workloads, will also make up big portions of overall data center storage capacity in 2021. Consumer workloads such as social networking and video streaming are projected to witness rapid growth during the forecast period.

Data center storage

Data center storage refers to the tools, technologies, hardware, software and processes used to manage storage resources within data centers and infrastructure. It is forecast that by 2021, there will be 7.2 million date centers in the world. The advancement of our digital society has generated an ever-greater amount of data and it is projected that by 2021, around 1,327 EB data would be stored in data centers – almost an 8-fold increase from 2015. Big data is an important driver of growth in stored data and is projected to make up a bulk of overall data stored in data centers.

The Edge Data Center Market is projected to grow at 28.5% CAGR, reaching $45.3 Billion by 2029. Where is the industry heading next? Get the sample report now!

The Data Center Power Market Report is Segmented by Type (Solution (Power Distribution Unit, UPS, Busway, and Other Solutions), Service (Consulting, System Integration, and Professional Services), End-User Application (Information Technology, Manufacturing, BFSI, Government, Telecom, and Other End-User Applications), Data Center Size (Small and Medium and Large), and Geography (North America, Europe, Asia-Pacific, and Rest of the World). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The size and share of the market is categorized based on Application (Newly Built Data Centers, Rebuilt Data Centers) and Product (Micro Data Centers, Mobile Data Centers, Cloud Data Centers, Green Data Centers, Mega/Hyper scale Data Centers, Software Defined Data Centers, Virtual Data Centers, Others) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Data Centre Power Market size was valued at USD 22.16 Billion in 2023 and is projected to reach USD 34.6 Billion by 2031, growing at a CAGR of 6.32% from 2024 to 2031.

Key Market Drivers:
Digital Transformation: Businesses from all industries are increasingly relying on cloud computing, big data analytics, and the Internet of Things (IoT), all of which require huge data storage and processing capabilities. This translates into an increasing demand for data centers with reliable power infrastructure.
Data Proliferation: The amount of data generated globally is rapidly increasing, owing to variables such as social media usage, connected gadgets, and online transactions. This increasing data volume needs the expansion of data centers and their power consumption.
Hyper-Scale Data Centers: The proliferation of massive, centralized data centers with high computational capability needs considerable and efficient power supply systems. These hyper-scale facilities are becoming more popular to meet the ever-increasing data demands.
Hardware Advancements: Newer types of servers and IT equipment are more powerful, but they also consume more energy. This continual device growth necessitates changes to data center power infrastructure to meet rising power demands. The rise of technologies like artificial intelligence and machine learning necessitates specialized hardware like GPUs and TPUs (Tensor Processing Units).