Data Center Market Size Hits USD 1,008.65 Billion by 2034

According to Precedence Research, the global data center market size is valued at USD 386.71 billion in 2025 and it is estimated to hit approximately USD 1,008.65 billion by 2034, growing at a double-digit CAGR of 11.24% from 2025 to 2034.

/EIN News/ -- Ottawa, April 22, 2025 (GLOBE NEWSWIRE) -- The data center market is expected to grow at a compound annual growth rate (CAGR) of 11.24% over the next decade. The total market size is projected to rise from USD 347.64 billion in 2024 to more than USD 386.71 billion in 2025. The data center industry is expected to exceed $906.73 billion by 2033, according to a new forecast from the market insights company Precedence Research. The North American market was evaluated at USD 142.53 billion in 2024 and is registering a solid CAGR of 11.38% during the forecast period.

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The versatile applications of artificial intelligence, cloud computing, and digital infrastructure, and the increased need for data storage, data processing, and data retrieval, accelerate the growth of the data center market.

Data Center Market Key Findings:

• North America contributed more than 41% of the market share in 2024.
• Asia Pacific is projected to grow at a significant CAGR between 2025 and 2034.
• By component, the solution segment accounted for the major market share of 65.76% in 2024.
• By component, the services segment is expanding at a solid CAGR from 2025 to 2034.
• By type, the hyperscale segment is expected to expand at the fastest CAGR over the projected period.
• By enterprise size, the small & medium enterprises segment is representing a fastest CAGR over the projected period.
• By end-user, the BFSI segment generated the highest market share in 2024.
• By end-user, the IT & telecom segment is growing at a notable CAGR over the projected period.

The Comprehensive Support Services by IBM in 2025

Sr. No.	Launch of the Service/Product
1.	A new software solution named IBM Z Crypto Discovery and Inventory (IBM zCDI).
2.	A next-generation mainframe named IBM z17, powered by a strong AI infrastructure.
3.	The first mixture of experts (MoE) models, named Llama 4 Scout and Llama 4 Maverick.
4.	AI Assistants with Matt Vest
5.	CP4I for B2B and Managed File Transfer (MFT) capabilities.

Data Center Market Overview:

A data center is an ideal place to store vast amounts of data, computing machines, hardware equipment, etc. A data center market is driven by computing infrastructure used by IT systems such as data storage drives, servers, and network equipment. Data centers are beneficial in providing backup power during power outages. They also provide temperature-controlled facilities to extend the lifespan of equipment. The ease of implementing security measures to achieve compliance with data laws drives the market’s significance.

The evolution of modern data centers is leading to better management of IT complexity. The availability of several computing resources, file storage devices, block storage devices, and power subsystems boosts the expansion of these innovative data center solutions. The accessibility to on-premise data centers, colocation data centers, and cloud data centers accelerates the adoption of digital services among consumers in the market.

• In February 2025, NTT announced the launch of a new data center in West Bengal, India.
  

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Major Key Trends in the Data Center Market

• Generative AI Solutions: It is easy to customize the data of your own company and combine it with other advanced technologies to create useful applications. Several vendors are preferring this approach to benefit their businesses.
  

Also Read: Generative AI Market Size Projected Growth from USD 37.89 Billion in 2025 to USD 1005.07 Billion by 2034 at a CAGR of 44.2%

• Hybrid Cloud: Rapid customization and the combination of several applications that can run on-premises than those apps that run in the cloud are possible, this has also boosted the demand for data center outsourcing. There is a great shift towards more modular software architectures, higher-bandwidth networks, faster APIs, distributed cloud infrastructure, and low-code/no-code tools to achieve the above purpose.
  
• Multicloud Users: The major cloud providers provide support for the connections between their platforms, protocols, tools, and standards that enable one to run workloads. According to Oracle, 98% of enterprises use more than one cloud provider.
  

Limitations & Challenges in the Data Center Market

• Establishment of Specialty Cloud Providers: It becomes difficult to launch a new data center due to power and grid constraints. Many enterprises fail to afford, build, and expand new data centers, due to which AI cloud providers and specialty GPU are rising to fill the gap.
  
• Increase in Power Demand: It becomes necessary to develop more energy-efficient hardware, utilize more renewable energy sources, and optimize current cooling systems.
  
• Renewable Energy Sources: It is critical to ensure balanced growth by achieving a sustainable and green IT infrastructure. There is a significant impact of using renewable energy sources such as wind, solar, and tidal.
  

Development of Data Center Platforms: Market’s Largest Potential

In October 2024, Oracle announced the investment of above US$6.5 billion in artificial intelligence and cloud computing in Malaysia. Oracle planned to establish a cloud region in Malaysia, including more than 150 infrastructure and SaaS services. The company aims to encourage the country’s digital economy and drive AI-powered innovation. The adoption of AI boosts the demand for data centers.

The cloud platforms and AI compete with each other for data center bandwidth. There is a rise in the expansion of international data centers. The KKR, an investment firm, made a strategic partnership with Energy Capital Partners by investing up to $50 billion to encourage growth. Apple announced the launch of a 315,773 sq ft data center on the company’s Waukee, Iowa campus.

• According to the survey conducted by NTT Corporation in September 2024, 68% of companies reported their inadequate capability to meet net-zero carbon emission goals. About 95% of respondents from enterprises think that they may lack to implement net-zero carbon emission plans. About 9% of enterprises reported their appropriate success in implementing net-zero targets.
  

Data Center Market Report Scope

Report Attribute	Key Statistics
Market Size in 2024	USD 347.64 Billion
Market Size in 2025	USD 386.71 Billion
Market Size by 2034	USD 1,008.65 Billion
CAGR	11.24%
Dominant Region	North America
Base Year	2024
Forecast Year	2025 to 2034
Historic Year	2020 to 2023
Segments Covered	Component, Type, Enterprise Size, End User, and Regions
Regions Covered	North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
Countries Covered	U.S., Canada, Mexico, China, Singapore, Japan, India, South Korea, Thailand, Germany, UK, France, Italy, Spain, Sweden, Denmark, Norway, Brazil, Mexico, Argentina, South Africa, UAE, Saudi Arabia, Kuwait and others
Companies Covered	Equinix, Inc., Digital Realty Trust, Inc., NTT Ltd., Global Switch Ltd., CyrusOne Inc., Interxion: A Digital Realty Company, China Telecom Corporation Limited, China Unicom (Hong Kong) Limited, AT&T Inc., Amazon Web Services, Inc. (AWS), Microsoft Corporation, Google LLC, IBM Corporation, Oracle Corporation, Cisco Systems, Inc., and others.

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What is the size of the U.S. Data Center Market?

The U.S. data center market size was valued at USD 121.15 billion in 2024. The market is projected to grow from USD 134.77 billion in 2025 to USD 357.89 billion by 2034, exhibiting a CAGR of 11.44% during the forecast period. North America dominated the global market with the highest share of 41% in 2024.

North America Upholds the Data Center Market: AI Revolution to Boom the Growth

The North America data center market size was estimated at USD 142.53 billion in 2024 and is growing at a CAGR of 11.38% during the forecast period. In June 2025, Data Centers Expo North America is organized at the Santa Clara Convention Center, CA, USA, for which several experts from the largest data center providers will be present. This expo will focus on the AI revolution, achieving net-zero emission goals, meeting future data center demand, and data center liquid cooling. Moreover, it will explore the innovations and emerging trends that are driving the future of data centers.

Also Read: Data Center Cooling Market Value Projected to Reach USD 226.39 Billion by 2034 Amid Rising Demand for Energy-Efficient Solutions

The agenda of this expo will also be an energy-efficient generative AI. The increased demand for cloud services and GenAI has spurred the expansion of the data center market in North America. Google is making efforts to invest in large-scale data centers in this region, while Microsoft is also contributing to capital expenditures in the U.S. in 2025.

Upward Trajectory of the Northern American Countries in the Digital Economy

• United States: The Amazon Web Services (AWS) invested over $108 billion in cloud computing infrastructure in the U.S. It contributes nearly $38 billion to the U.S. GDP by providing support to over 30,000 jobs per year in the local communities of AWS operations. It benefits the areas of construction, maintenance, connection, and operation of data centers.
  
• Canada: In April 2024, IBM announced the launch of a new cloud multizone region in Montreal, Quebec in Canada. IBM also announced the expansion of its cloud operations in Canada. This launch will enable Canadians to use generative AI and meet the needs related to data authority.

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Asia Pacific Expands Rapidly in the Upcoming Period

Asia Pacific is expected to witness the fastest rate of growth in the data center market during the predicted timeframe. In October 2024, Frost & Sullivan honored the ST Telemedia Global Data Centers (STT GDC) with the 2024 Asia Pacific Company of the Year award. The STT GDC company was recognized with this award for its strategic growth initiatives in the data center services industry.

In October 2024, Hitachi Energy attended Asia’s largest data center event, which delivered services, empowered customers and partners to manage the asset lifecycle from the start of life for a strong operational life to the end of life for replacement and decommission. Hitachi Energy itself aims to provide safe, smart, and sustainable power solutions for data centers. It also provides industrial power and automation solutions for 100 years.

Also Read: Data Center As A Service Market Size to Hit USD 694.27 Billion by 2034 | CAGR 20.73% (2025–2034)

Succeeding Path of Asia Pacific Countries towards Data Center Establishment

• Philippines: In July 2024, Equinix announced the acquisition of 3 new data centers in the Philippines from a leading technology solution company named Total Information Management. It was reported along with the expansions in Malaysia and Indonesia, which greatly enhance the company’s footprint in this region.
  
  
• Singapore: In November 2024, Equinix announced the launch of a data center in Singapore, which aims to enable global businesses to utilize the next-generation workloads. The company announced the initial investment of US$260 million to establish the new facility named SG6. It will be the sixth International Business Exchange data center of Equinix in Singapore. Singapore is making significant investments in advanced technologies like quantum computing. It is one of the leading technology hubs of the Asia Pacific region. The country is also making efforts to establish an AI governance framework.
  

Also Read: Surging Demand for Efficiency Drives Data Center Virtualization Market to USD 30.87 Billion by 2034

Data Center Market Segmentation Analysis:

Component Analysis

The solution segment dominated the market with the highest market share of 69.12% in 2024. The improved availability, enhanced security, increased efficiency, scalability, and cost-efficiency offered by the digital technology solutions drive the market’s growth remarkably. Moreover, data accessibility, global connectivity, data protection, and business continuity help to optimize the business workflows. The increased utilization of existing resources, improved productivity and workflow, and improved collaborations across functional teams boost the adoption of digital tech solutions.

The services segment is seen to grow at the fastest rate in the data center market in the upcoming years. The services, including installation, optimization, maintenance, and upgrading of the infrastructure, prove to be strategic for business firms and industries. The other services related to administration, software, and security also benefit the business operations. The complete IT management, physical infrastructure management, and several other services improve the overall portfolio in the market.

Also Read: Software Defined Data Center Market to Surge Beyond USD 529.48 Billion by 2034, Growing at 22.90% CAGR

Type Analysis

The colocation segment led the data center market in 2024. The colocation data centers facilitate the use of servers and other equipment from several companies in a single data center. The availability of retail colocation, wholesale colocation, and hybrid cloud-based colocation expands the market. The reliability, improved performance, physical security, third-party maintenance, speed, and scalability offered by these services accelerate the market’s growth.

The hyperscale segment is observed to be the fastest-growing in the data center market during the forecast period. The major rationales behind the success of hyperscale data centers are site location, energy sources, automation, and security. The benefits, such as enhanced economies of scale, balanced workloads, enhanced energy efficiency, and improved cooling efficiency, boost the market’s expansive reach. The ability of these services to rapidly meet the growing application demands drives the market significantly.

Enterprise Size Analysis

The large enterprises segment dominated the data center market in 2024. The large enterprises are beneficial for building data centers in accelerating the existing data center team and capacity delivery. They offer a business-objective-oriented approach and help to determine the required data centers. They help to set tailored business plans for delivering promising services.

The small & medium enterprises (SMEs) segment is expected to witness the fastest rate of growth during the predicted timeframe. The on-demand scalability, strong security, expert support, and cost savings benefit the small & medium enterprises. The various enterprises related to AI, software, E-commerce, financial services, and healthcare also benefit from digital technology solutions.

Also Read: Generative AI in E-Commerce Market Size Expected to Reach USD 3,519.84 Million by 2034

End User Analysis

The BFSI segment led the data center market in 2024. The demand for secure and resilient data infrastructure by banks, insurance companies, and financial institutions drives the market’s growth. The increased focus on regulatory compliance, enhanced cybersecurity, etc., accelerates the market’s expansion. The increased dependency on hybrid cloud solutions for seamless operations boosts the expansive reach of the BFSI segment in the market.

The IT & Telecom segment is anticipated to be the fastest-growing in the data center market over the forecast period. The strong infrastructure supports the rising demand for digital services and data storage. The integration of edge computing, 5G network deployment, and modular data center solutions drives the market’s expansive reach.

Related Topics You May Find Useful:

• The global data center security market size was estimated at USD 15.96 billion in 2024 and is predicted to increase from USD 17.89 billion in 2025 to approximately USD 49.08 billion by 2034, expanding at a CAGR of 11.89% from 2025 to 2034.
  
• The global data center colocation market size was estimated at USD 72.98 billion in 2024 and is predicted to increase from USD 81.88 billion in 2025 to approximately USD 226.39 billion by 2034, expanding at a CAGR of 11.99% from 2025 to 2034.
  
• The global modular data center market size is calculated at USD 30.95 billion in 2024 and is projected to surpass around USD 155.52 billion by 2034, growing at a CAGR of 17.52% from 2024 to 2034.
  
• The global micro data center market size was estimated at USD 7.48 billion in 2024 and is predicted to increase from USD 9.65 billion in 2025 to approximately USD 88.36 billion by 2034, expanding at a CAGR of 28.01% from 2025 to 2034.
  
• The global data center infrastructure management (DCIM) market size was estimated at USD 3.19 billion in 2024 and is predicted to increase from USD 3.67 billion in 2025 to approximately USD 13.10 billion by 2034, expanding at a CAGR of 15.17% from 2025 to 2034.
  
• The global internet data center market size was estimated at USD 55.15 billion in 2024 and is predicted to increase from USD 60.89 billion in 2025 to approximately USD 151.77 billion by 2034, expanding at a CAGR of 10.65% from 2025 to 2034.
  
• The global edge data center market size accounted for USD 15.46 billion in 2024 and is expected to be worth around USD 84.41 billion by 2034, at a CAGR of 18.5% from 2024 to 2034.
  
• The global cloud data center market size was estimated at USD 29.34 billion in 2024 and is predicted to increase from USD 32.28 billion in 2025 to approximately USD 75.40 billion by 2034, expanding at a CAGR of 9.90% from 2025 to 2034.
  
• The global green data center market size was estimated at USD 71.47 billion in 2024 and is predicted to increase from USD 85.08 billion in 2025 to approximately USD 392.08 billion by 2034, expanding at a CAGR of 18.56% from 2025 to 2034.
  
• The global data center storage market size accounted for USD 63.72 billion in 2024 and is projected to surpass around USD 208.96 billion by 2034, growing at a CAGR of 12.61% from 2024 to 2034.

Data Center Market Top Companies

• Equinix, Inc.
• Digital Realty Trust, Inc.
• NTT Ltd.
• Global Switch Ltd.
• CyrusOne Inc.
• Interxion: A Digital Realty Company
• China Telecom Corporation Limited
• China Unicom (Hong Kong) Limited
• AT&T Inc.
• Amazon Web Services, Inc. (AWS)
• Microsoft Corporation
• Google LLC
• IBM Corporation
• Oracle Corporation
• Cisco Systems, Inc.
  

Recent Breakthroughs in the Data Center Market

• In October 2024, IBM announced the launch of the first IBM Quantum Data Center in Europe, including an IBM Quantum Heron-based system with reduced error rates, 25 25-fold increase in speed, and 16 times better performance than 2022 IBM Quantum systems. 
  
• In March 2025, Microsoft announced the launch of 3 data centers in Malaysia by mid-year, with an investment of up to $2.2 billion in the Southeast Asian country.
  

The data center market research report is categorized into the following segments and subsegments:

By Component

• Solution
• Services

By Type

• Colocation
• Hyperscale
• Edge
• Others

By Enterprise Size

• Large Enterprises
• Small & Medium Enterprises (SMEs)

By End User

• BFSI
• IT & Telecom
• Government
• Energy & Utilities
• Others
  

By Region

North America

• U.S.
• Canada
• Mexico
  

Asia Pacific

• China
• Singapore
• Japan
• India
• South Korea
• Thailand

Europe

• Germany
• UK
• France
• Italy
• Spain
• Sweden
• Denmark
• Norway

Latin America

• Brazil
• Mexico
• Argentina
  

Middle East and Africa

• South Africa
• UAE
• Saudi Arabia
• Kuwait

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