Data Centre Market

ID: MRFR/ICT/3299-HCR

100 Pages

Ankit Gupta

September 2025

Data Center Market Research Report: By Type (Enterprise Data Center, Colocation Data Center, Hyperscale Data Center, Managed Data Center), By End Use (IT and Telecom, BFSI, Government, Healthcare, Retail), By Deployment (On-Premise, Cloud, Hybrid), By Service (Infrastructure as a Service, Platform as a Service, Software as a Service) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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Summary Table of Contents Segmentation Infographic

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Data Centre Market Summary

The Global Data Center Market is projected to maintain a steady valuation of 60.8 USD Billion from 2024 to 2035.

Key Market Trends & Highlights

Data Center Key Trends and Highlights

The market is expected to remain at a valuation of 60.8 USD Billion throughout the forecast period.
The compound annual growth rate (CAGR) for the Global Data Center Market from 2025 to 2035 is 0.0%.
Despite the lack of growth, the market continues to attract investments due to its established infrastructure.
Growing adoption of cloud computing due to increasing demand for scalable solutions is a major market driver.

Data Centre Market

CAGR

0.0%

Market Size & Forecast

2024 Market Size	60.8 (USD Billion)
2035 Market Size	60.8 (USD Billion)
CAGR (2025-2035)	0.0%

Major Players

IBM, Rackspace Technology, Digital Realty, KDDI, Alibaba Cloud, Iron Mountain, Google, CyrusOne, Amazon Web Services, NTT Communications, Microsoft, Tencent Cloud, Lumen Technologies, Equinix, Oracle

Data Centre Market Trends

The Global Data Center Market is undergoing substantial growth as a result of the growing demand for cloud computing services and the necessity for data storage and management. Data centers are essential for the efficient processing and storage of data as businesses and individuals generate an increasing amount of data. The demand for these technologies has been further fuelled by the emergence of the Internet of Things (IoT) and big data analytics, which have compelled organizations to upgrade their infrastructure to accommodate these technologies.

The market is being further expanded by the advancement of technologies such as artificial intelligence and machine learning, which are also paving the way for intelligent data management solutions. The extensive adoption of hybrid and multi-cloud environments has become essential as a result of the ongoing digital transformation across multiple industries. Organizations are also aiming to safeguard sensitive information in an increasingly digitized world, which is evident in trends such as an increase in investment in data center infrastructure and a focus on enhancing data security and compliance.

Fig 1: Data Center Market Overview

The Global Data Center Market is poised for robust growth, driven by increasing demand for cloud computing and data storage solutions, which underscores the critical role of data centers in the digital economy.

U.S. Department of Commerce

Data Centre Market Drivers

Growing Demand for Cloud Services

The Global Data Center Market Industry experiences a notable surge in demand for cloud services, driven by the increasing reliance on digital solutions across various sectors. Organizations are migrating to cloud-based platforms to enhance operational efficiency and scalability. This trend is evident as the market is projected to reach 60.8 USD Billion in 2024, reflecting a robust growth trajectory. The shift towards cloud computing is not merely a trend but a fundamental transformation in how businesses operate, suggesting that the Global Data Center Market Industry is adapting to meet these evolving needs.

Market Segment Insights

Data Center Market Type Insights

The Global Data Center Market demonstrates a diverse landscape segmented by Type, showing significant growth across various types with distinct roles in supporting the digital economy. The increasing demand for data processing and storage solutions fuels growth in this sector. In 2024, the Enterprise Data Center market is projected to reach a valuation of 17.5 USD Billion and is expected to grow to approximately 37.8 USD Billion by 2035. Enterprise Data Centers primarily serve large organizations that require substantial capacity for data storage and processing, making them crucial for corporate operations.

They often exhibit significant adaptability to cater to specific business needs, aiding in ensuring data security and privacy, which is paramount for enterprises focused on compliance with global regulations.

Colocation Data Centers are projected to be valued at 22.0 USD Billion in 2024. They are expected to rise to about 42.5 USD Billion by 2035, demonstrating their pivotal role in the data center ecosystem. These centers allow multiple clients to share the physical space and resources, providing flexibility and cost efficiency. This appeals to businesses looking to mitigate capital expenditures while scaling their IT infrastructures. As enterprises increasingly adopt a hybrid approach, the relevance of colocation facilities continues to grow since they enable seamless integration between cloud and on-premise solutions.

Hyperscale Data Centers, valued at 20.0 USD Billion in 2024, are anticipated to reach around 50.0 USD Billion by 2035. These facilities are designed to scale efficiently and manage vast amounts of data, typically catering to large tech firms and cloud service providers. Hyperscale Data Centers dominate the market due to their operational efficiencies and ability to support the massive data processing and storage needs of modern enterprises. Their construction is driven by the growing trend of digital transformation globally, aiding in handling big data, artificial intelligence, and machine learning applications.

Managed Data Centers, though smaller in scale, with a valuation of 6.07 USD Billion in 2024 and projected to grow to approximately 19.7 USD Billion by 2035, represent a significant trend towards outsourcing IT infrastructure management. They offer businesses the convenience of leveraging expert management for their IT functions without the operational complexities associated with traditional data centers. This trend reflects the market's movement towards streamlined operations, allowing businesses to focus on their core activities while relying on managed service providers for data center operations.

Fig 2: Data Center Market Insights

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

Data Center Market End-Use Insights

The Global Data Center Market is expected to reach a valuation of 65.57 billion USD by 2024, showcasing the robust growth potential of this industry. This market can be segmented by end-use into various sectors, each playing a vital role in driving demand for data center services. The IT and Telecom sector continues to dominate, as continuous advancements in technology and communication networks require significant data storage and processing capabilities.

In addition, the Banking, Financial Services, and Insurance (BFSI) sector represents a substantial portion of the market, as financial institutions require secure and efficient data management to support their operations and regulatory compliance.The Government sector is increasingly adopting data centers to enhance efficiency within public services and ensure national security, thus reinforcing the importance of robust data infrastructure. Healthcare has emerged as a significant contributor due to the rising need for electronic health records and data management solutions that facilitate seamless patient care.

Retail is also evolving with the digital transformation, where data centers are critical for managing inventory, improving customer experience, and supporting e-commerce platforms.Data Center Market Deployment Insights

The Global Data Center Market, particularly within the Deployment segment, is experiencing robust growth as organizations increasingly rely on efficient data management solutions. As of 2024, the market is valued at approximately 65.57 billion USD and is projected to expand significantly by 2035. The deployment models, including On-Premise, Cloud, and Hybrid, are pivotal to this growth.

On-premise solutions allow organizations to maintain control over their infrastructure, occupying a crucial role in sectors requiring stringent security measures.Cloud deployment continues to gain traction due to its flexibility and scalability, enabling businesses to deploy resources on demand, which is fundamental in a fast-paced digital landscape. Meanwhile, Hybrid solutions, which combine both on-premise and cloud infrastructures, offer businesses the adaptability needed to optimize workloads and manage data effectively. The rise in remote working and digital transformations are primary factors contributing to the growing demand in this segment.

The Global Data Center Market revenue statistics reflect a changing landscape, with significant investments aimed at enhancing infrastructure efficiency and performance while addressing challenges such as energy consumption and data security.

Data Center Market Service Insights

The Global Data Center Market, particularly in the Service segment, has shown robust growth and development, positioning itself as a critical component of contemporary IT infrastructure. By 2024, the overall market is expected to reach a valuation of 65.57 billion USD, reflecting a steady demand for efficient data management solutions globally. The Service segment encompasses various offerings, including Infrastructure as a Service, Platform as a Service, and Software as a Service.

Infrastructure as a Service, for instance, provides enterprises with scalable resources, enabling cost efficiency and flexibility, which is vital for organizations adapting to changing technological landscapes.Platform as a Service plays a fundamental role in streamlining application development processes, facilitating quick deployment, and reducing time to market for new applications. Meanwhile, Software as a Service continues to gain traction among businesses seeking easy-to-access, subscription-based software solutions, enhancing overall productivity.

This segmentation within the Global Data Center Market not only boosts operational efficiency but also aligns with market trends emphasizing automation and cloud computing, positioning the Global Data Center Market as a pivotal player in the digital transformation journey.

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Regional Insights

The Global Data Center Market exhibits substantial growth across different regions, with the market valued at 65.57 USD Billion in 2024 and expected to reach 150.0 USD Billion by 2035. In North America, a remarkable valuation of 28.0 USD Billion in 2024 is projected to escalate to 64.0 USD Billion by 2035, confirming its dominance in the market. Europe follows closely with a valuation of 16.5 USD Billion in 2024, expanding to 36.5 USD Billion in 2035, highlighting its significant role in data center infrastructure development.

APAC, valued at 15.5 USD Billion in 2024, will see growth to 35.5 USD Billion by 2035, reflecting the increasing demand for data services in rapidly growing economies.South America and MEA initially exhibit smaller market sizes, at 3.0 USD Billion and 2.6 USD Billion, respectively, in 2024, yet they are expected to grow to 7.5 USD Billion and 6.5 USD Billion by 2035. This varied growth across regions illustrates distinct trends influenced by technology adoption, increased internet penetration, and strategic investments in cloud and data services that drive the overall Global Data Center Market revenue.

The North American and European markets significantly impact data governance and compliance. At the same time, APAC presents emerging opportunities due to its rapid digital transformation, making them critical regions within the Global Data Center Market segmentation.

Fig 3: Data Center Market Regional Insights

Data Center Market Regional Insights

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

Key Players and Competitive Insights

The Global Data Center Market is a rapidly evolving and fiercely competitive landscape characterized by continuous innovation, strategic partnerships, and the growing demand for data processing capabilities from various sectors. As enterprises increasingly prioritize digital transformation, the need for efficient and scalable data center solutions has surged. Factors such as the rising deployment of cloud computing services, the growing need for enhanced data storage, and the emphasis on reducing operational costs have given rise to a dynamic environment where key players are continually seeking to improve their offerings.

The market is segmented by service type, deployment, and geography, highlighting the diverse approaches by different entities to cater to specific regional needs. Understanding the competitive insights in this space involves analyzing the strengths, weaknesses, market presence, and future strategies of major players who are shaping the industry.IBM has maintained a significant presence in the Global Data Center Market with its comprehensive suite of services that spans hybrid cloud solutions and advanced analytics. The company's infrastructure services and its focus on AI-driven data management provide it with a competitive edge as organizations seek to optimize their operations.

IBM's strengths lie in its long-standing expertise in IT and deep industry knowledge, allowing it to address a wide array of customer needs.

The company's substantial investments in research and development enable it to remain at the forefront of technological advancements while enhancing customer engagement. Through strategic collaborations and acquisitions, IBM has fortified its global footprint, offering reliable data center solutions that emphasize security, scalability, and efficiency across various industries.Alibaba Cloud is a formidable player in the Global Data Center Market, widely recognized for its cloud computing solutions and extensive suite of services tailored to meet various businesses' needs. The company has successfully expanded its data center presence across numerous global regions, providing a robust infrastructure for enterprises looking to leverage cloud technology.

Alibaba Cloud's offerings include a range of key products such as Elastic Compute Service, Apsara Stack, and various data analytics tools, all designed to support organizations in their digital transformation journeys. Strengthening its market position, the company has engaged in strategic mergers and acquisitions that enhance its technological capabilities and broaden its service portfolio. Additionally, Alibaba Cloud emphasizes innovation through a strong commitment to research and development, which positions it well to compete against other major players while meeting the evolving demands of international customers seeking reliable and scalable data center services.

Key Companies in the Data Centre Market market include

Industry Developments

Recent developments in the Global Data Center Market have been significant, showcasing the continuous evolution and expansion of key players. In September 2023, Digital Realty announced its acquisition of a data center facility in Dallas, Texas, enhancing its service capabilities in a significant market. Additionally, Amazon Web Services launched new regions in Asia-Pacific, reflecting the growing demand for cloud services across the region. In August 2023, Equinix completed its acquisition of an interconnection platform, bolstering its global reach and service offerings. Market growth is further evidenced by IBM's investment in AI-driven data center solutions aimed at improving operational efficiencies.

Meanwhile, Alibaba Cloud reported increased revenue from data center services, attributing success to a surge in digital transformation initiatives worldwide. Over the past couple of years, the Global Data Center Market has seen unprecedented growth, driven by increased data consumption and the rise of cloud services, with major companies like Google and Microsoft continuously expanding their infrastructures to meet client needs and enhance performance. The market's trajectory signifies a robust demand for innovation and infrastructure development in response to a rapidly digitalizing economy.

Future Outlook

Data Centre Market Future Outlook

The Global Data Center Market is projected to maintain a 0.0% CAGR from 2024 to 2035, driven by advancements in energy efficiency, cloud computing demand, and edge computing integration.

New opportunities lie in:

Invest in energy-efficient cooling technologies to reduce operational costs.
Develop hybrid cloud solutions to cater to diverse client needs.
Leverage AI for predictive maintenance and operational optimization.

By 2035, the market is expected to stabilize, reflecting evolving technological landscapes and strategic adaptations.

Market Segmentation

Data Center Market Type Outlook

Enterprise Data Center
Colocation Data Center
Hyperscale Data Center
Managed Data Center

Data Center Market End-Use Outlook

IT and Telecom
BFSI
Government
Healthcare
Retail

Data Center Market Service Outlook

Infrastructure as a Service
Platform as a Service
Software as a Service

Data Center Market Regional Outlook

North America
Europe
South America
Asia Pacific
Middle East and Africa

Data Center Market Deployment Outlook

On-Premise
Cloud
Hybrid

Report Scope

Report Attribute/Metric	Details
Market Size 2023	60.81(USD Billion)
Market Size 2024	65.57(USD Billion)
Market Size 2035	150.0(USD Billion)
Compound Annual Growth Rate (CAGR)	7.82% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	IBM, Alibaba Cloud, Iron Mountain, Rackspace Technology, Digital Realty, KDDI, Google, CyrusOne, Amazon Web Services, NTT Communications, Microsoft, Tencent Cloud, Lumen Technologies, Equinix, Oracle
Segments Covered	Type, End Use, Deployment, Service, Regional
Key Market Opportunities	Edge computing expansion, Cloud service growth, Sustainability and energy efficiency, AI and machine learning adoption, Increased cybersecurity demand
Key Market Dynamics	cloud adoption surge, energy efficiency focus, regulatory compliance pressure, edge computing expansion, increased data privacy concerns
Countries Covered	North America, Europe, APAC, South America, MEA

Market Highlights

Author

Ankit Gupta

Senior Research Analyst

Ankit Gupta is an analyst in market research industry in ICT and SEMI industry. With post-graduation in "Telecom and Marketing Management" and graduation in "Electronics and Telecommunication" vertical he is well versed with recent development in ICT industry as a whole. Having worked on more than 150+ reports including consultation for fortune 500 companies such as Microsoft and Rio Tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.

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FAQs

What is the expected market size of the Global Data Center Market in 2024?

The Global Data Center Market is expected to be valued at 65.57 USD Billion in 2024.

What is the projected market size for the Global Data Center Market by 2035?

By 2035, the Global Data Center Market is projected to reach a valuation of 150.0 USD Billion.

What is the expected compound annual growth rate (CAGR) for the Global Data Center Market from 2025 to 2035?

The Global Data Center Market is expected to grow at a CAGR of 7.82% from 2025 to 2035.

Which region is projected to dominate the Global Data Center Market in 2024?

North America is projected to dominate the Global Data Center Market with a value of 28.0 USD Billion in 2024.

What will be the market size for the Colocation Data Center segment in 2035?

The Colocation Data Center segment is expected to be valued at 42.5 USD Billion by 2035.

Who are the major players in the Global Data Center Market?

Key players in the Global Data Center Market include IBM, Alibaba Cloud, Google, and Amazon Web Services.

What is the expected size of the Hyperscale Data Center segment in 2024?

The Hyperscale Data Center segment is valued at 20.0 USD Billion in the year 2024.

How much will the Managed Data Center segment be worth by 2035?

The Managed Data Center segment is projected to reach a value of 19.7 USD Billion by 2035.

What is the market value for Europe in 2024?

Europe is expected to contribute a market value of 16.5 USD Billion in 2024.

What are some key growth drivers of the Global Data Center Market?

Key growth drivers include increasing data traffic and the rising demand for cloud services.

Data Center Market Research Report - Global Forecast to 2035 Infographic

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