Data Center Market Size, Share, By Component (Solution and Services), By Type (Colocation, Hyperscale, Edge and Others), By Enterprise Size (Large Enterprises and Small & Medium Enterprises (SMEs)), and By End User (BFSI, IT & Telecom, Government, Energy & Utilities and Others), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Trends, Analysis and Forecast till 2034

Report Code: PMI511223 | Publish Date: March 2024 | No. of Pages: 185

Data Center Market Overview

Data Center Market was valued at US$ 232.4 billion in 2024 and is projected to grow at a CAGR of 11.0% to reach US$ 603.1 billion by 2034.

A data center maintains the IT infrastructure necessary to develop, run, and distribute applications and services as well as store and handle data associated with such applications and services. It is an actual room, building, or facility. Physical sites for business data centers are created to pool IT resources and apparatus for data processing, distribution, and archiving. The market for data centers is expanding rapidly due to the use of cutting-edge technologies, including cloud computing, edge computing, artificial intelligence, machine learning, and the Internet of Things (IoT).

The demand for digital services, cloud computing usage, technological improvements, growing user bases, regulatory constraints, data storage needs, and corporate scalability across geographies has all increased. Together, these factors highlight the need for more processing power, efficient infrastructure, and storage capacity to handle the growing amount of data and online activity. The global market's need is rising due to all of these expanding requirements.

Also, throughout the projected period, it is anticipated that growing access to the Internet of Things and hybrid and multicloud architectural solutions will present appealing prospects for the expansion of the data center industry. However, as concerns about data privacy increase in tandem with the demand for managed services, early acceptance is becoming more difficult to achieve, hindering market growth.

Data Center Market

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

Data Center Market Dynamics

Data Center Market Drivers:

Developments in cloud computing  

  • A data center within a business that uses a network of computer programs and storage options to exchange data and information. Global data center expansion is being driven by the shift from traditional on-premises physical servers to virtual network-based data centers, which is brought about by the advancement of multi-cloud computing. Additionally, the equipment and space costs are split with the offset costs of other businesses. As a result, several small and medium-sized companies are joining this sector, which will encourage the data center industry's expansion.

Public and private sector initiatives  

  • The government and commercial sectors' investments in the construction of data centers to facilitate large-scale data center storage present lucrative growth prospects for the data center industry. Due to the deluge of data they are dealing with, company executives are always trying to stay ahead of their rivals and must handle all business-critical data.

Data Center Market Restrains:

Substantial investment costs along with the rise in concerns over data privacy

  • Nevertheless, the hefty upfront costs associated with designing and constructing data centres are expected to impede market demand. A significant amount of capital was invested in the equipped data centers' construction, land, electrical infrastructure, and cooling systems. It is becoming more difficult for early adoption to occur, impeding market growth, as worries about data privacy and the need for managed services rise.

Data Center Market Segmentation

Data Center Market is segmented based on component, type, enterprise size, end user, and region.

Component Insights

  • Solution: This category includes power solutions, servers and storage devices, networking technologies, and hardware and software for data centre operations.
  • Services: The services section offers knowledge and assistance with system integration and implementation and monitoring and maintenance services for data centre operations.

Type Insights

  • Colocation: Colocation data makes it affordable for enterprises to share and lease resources, so it holds the largest market share. One of the main reasons for its rise is the increasing popularity of colocation data centres among SMEs.
  • Hyperscale: The hyperscale market is anticipated to grow quickly throughout the projected timeframe. The rising demand for cloud computing services is driving the need for hyperscale data centres to provide improved storage, processing power, and network resources to support a wide range of cloud-based applications.
  • Edge: Smaller data centers nearer data sources are part of the edge type, allowing quicker processing and reduced latency for real-time applications. 
  • Others: Specialised data centers for particular uses, such as disaster recovery or high-performance computing, are under the other category type.

Enterprise Size Insights

  • Large Enterprises: The large enterprise segment had the highest market revenue share. Big businesses generate and manage enormous amounts of data from various sources, including operations, consumer interactions, and transactions. In addition, cloud computing adoption has increased to improve scalability, streamline operations, and save expenses.
  • Small & Medium Enterprises (SMEs): Throughout the projection period, the small and medium-sized business segment is anticipated to increase at the quickest rate. Small businesses are concentrating their investments on internet technologies to attract clients and maintain their competitiveness in the global market.

End User Insights

  • BFSI: To safely process and store highly confidential financial data, BFSI end users are continuously dependent on data centres.
  • IT & Telecom: During the anticipated period, telecom and IT will likely continue to dominate this term. IT and telecom users require massive data centers for cloud services, content distribution, and core network operations.
  • Government: The need for data centers is expanding rapidly due to the rise in e-Government projects being introduced by the government and the rising demands of citizens for online services. Establishing strategic infrastructure that enables high availability, rapid scaling, effective management, and optimal resource utilisation is constantly required.
  • Energy & Utilities: The energy and utilities sector uses data centres to analyse data, implement smart metering systems, and monitor the grid.
  • Others: The industries listed under "Others" include production, medical care, and retail, all of which depend increasingly on the handling and storage of data.

Data Center Market Regional Insights

  • North America market is estimated to witness a significantly high revenue share over the forecast period because of numerous massive industries and IT companies. Similarly, rising public and private investment in data center building in the US and Canada is fueling the expansion of the data center industry in North America.
  • The Asia Pacific market is estimated to witness the fastest revenue share due to the area's booming e-commerce industry. This industry depends on data centres to handle customer information, inventories, and online transactions to deliver quick and easy shopping experiences. Data centres are in greater demand in Asia Pacific due to the region's widespread use of smartphones and mobile devices for managing mobile payments, app usage, and mobile-based services.
  • The Europe's market is expanding steadily and is a developed market that prioritizes sustainability and energy efficiency in data center architecture.
  • The Latin American market is an emerging region where the need for data center services is increasing due to rising internet usage.
  • The Middle East and Africa market is in its developmental stages. Businesses in a variety of industries are demanding more data processing and storage capacity as a result of the fast economic expansion that several MEA nations are experiencing.

Data Center Market Report Scope:

Attribute

Details

Market Size 2024

US$ 232.4 billion

Projected Market Size 2034

US$ 603.1 billion

CAGR Growth Rate

11.0%

Base year for estimation

2023

Forecast period

2024 – 2034

Market representation

Revenue in USD Billion & CAGR from 2024 to 2034

Market Segmentation

By Component - Solution and Services

By Type - Colocation, Hyperscale, Edge and Others

By Enterprise Size - Large Enterprises and Small & Medium Enterprises (SMEs)

By End User - BFSI, IT & Telecom, Government, Energy & Utilities and Others

Regional scope

North America - U.S., Canada

Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe

Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific

Latin America - Brazil, Mexico, Argentina, Rest of Latin America

Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the Data Center Market report based on component, type, enterprise size, end user, and region:

Data Center Market, By Component:

  • Solution
  • Services

Data Center Market, By Type:

  • Colocation
  • Hyperscale
  • Edge
  • Others

Data Center Market, By Enterprise Size:

  • Large Enterprises
  • Small & Medium Enterprises (SMEs)

Data Center Market, By End User:

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

 Data Center Market, By Region:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East & Africa

Data Center Market Key Players

The key players operating the Data Center Market include Alphabet Inc., and Amazon. Com Inc., Digital Realty, Equinix Inc., Hewlett Packard Enterprise, IBM Corporation, China Telicom, NTT Communication Corporation, Oracle, and SAP SE.

Data Center Market Size,

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

Data Center Market Key Issues Addressed

  • In April 2023, Microsoft opened the first trusted cloud space in Central and Eastern Europe, Poland. Three actual locations, each with one or more data centers, are part of Microsoft's Polish cloud area, which is situated in and around Warsaw. It guarantees the nation's highest standards of privacy, data security, and legal compliance.
  • In March 2022, Microsoft announced its intention to set up its latest data center area in Hyderabad, Telangana. This strategic investment is consistent with Microsoft's commitment to helping customers thrive in a cloud and AI-enabled digital economy and will become part of the world's largest cloud infrastructure.

Data Center Market Company Profile

  • Alphabet Inc. *
    • Company Overview
    • Product Portfolio
    • Key Highlights
    • Financial Performance
    • Business Strategies
  • Amazon. Com Inc.
  • Digital Realty
  • Equinix Inc.
  • Hewlett Packard Enterprise
  • IBM Corporation
  • China Telicom
  • NTT Communication Corporation
  • Oracle
  • SAP SE

“*” marked represents similar segmentation in other categories in the respective section.

Data Center Market Table of Contents

  1. Research Objective and Assumption
    • Preface
    • Research Objectives
    • Study Scope
    • Years Considered for the study
    • Assumptions
    • Abbreviations
  2. Research Methodology
    • Research data
    • Primary Data
      • Primary Interviews
      • Primary Breakdown
      • Key data from Primary Sources
      • Key Industry Insights
    • Secondary Data
      • Major Secondary Sources
      • Secondary Sources
    • Market Estimation
    • Top-Down Approach
      • Approach for estimating Market Share by Top-Down Analysis (Supply Side)
    • Bottom-Up Approach
      • Approach for estimating market share by Bottom-up Analysis (Demand Side)
    • Market Breakdown and Data Triangulation
    • Research Assumptions
  3. Market Preview
    • Executive Summary
    • Key Findings—Global Outlook for Cell and Gene Therapy Strategies
      • Key Questions this Study will Answer
      • Market Snippet, By Component
      • Market Snippet, By Type
      • Market Snippet, By Enterprise Size
      • Market Snippet, By End User
      • Market Snippet, By Region
    • Opportunity Map Analysis
    • Executive Summary—3 Big Predictions
  4. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
      • Market Trends
    • DR Impact Analysis
    • PEST Analysis
    • Porter’s Five Forces Analysis
    • Opportunity Orbit
    • Market Investment Feasibility Index
    • Macroeconomic Factor Analysis
  5. Market Segmentation, By Component, 2024-2034, (US$ Bn)
    • Overview
      • Market Value and Forecast (US$ Bn), and Share Analysis (%), 2024-2034
      • Y-o-Y Growth Analysis (%), 2024-2034
      • Segment Trends
    • Solution
      • Overview
      • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024-2034
    • Services
      • Overview
      • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024-2034
  6. Market Segmentation, Type, 2024-2034, (US$ Bn)
    • Overview
      • Market Value and Forecast (US$ Bn), and Share Analysis (%), 2024-2034
      • Y-o-Y Growth Analysis (%), 2024-2034
      • Segment Trends
    • Colocation
      • Overview
      • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024-2034
    • Hyperscale
      • Overview
      • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024-2034
    • Edge
      • Overview
      • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024-2034
    • Others
      • Overview
      • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024-2034
  7. Market Segmentation, Enterprise Size, 2024-2034, (US$ Bn)
    • Overview
      • Market Value and Forecast (US$ Bn), and Share Analysis (%), 2024-2034
      • Y-o-Y Growth Analysis (%), 2024-2034
      • Segment Trends
    • Large Enterprises
      • Overview
      • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024-2034
    • Small & Medium Enterprises (SMEs)
      • Overview
      • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024-2034
  8. Market Segmentation, End User, 2024-2034, (US$ Bn)
    • Overview
      • Market Value and Forecast (US$ Bn), and Share Analysis (%), 2024-2034
      • Y-o-Y Growth Analysis (%), 2024-2034
      • Segment Trends
    • BFSI
      • Overview
      • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024-2034
    • IT & Telecom
      • Overview
      • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024-2034
    • Government
      • Overview
      • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024-2034
    • Energy & Utilities
      • Overview
      • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024-2034
    • Others
      • Overview
      • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024-2034
  9. Global Market, By Region, 2024-2034, (US$ Bn)
    • Overview
      • Market Value and Forecast (US$ Bn), and Share Analysis (%), 2024-2034
      • Y-o-Y Growth Analysis (%), 2024-2034
      • Regional Trends
    • North America
      • Market Size and Forecast (US$ Bn), By Component, 2024-2034
      • Market Size and Forecast (US$ Bn), By Type, 2024-2034
      • Market Size and Forecast (US$ Bn), By Enterprise Size, 2024-2034
      • Market Size and Forecast (US$ Bn), By End User, 2024-2034
      • Market Size and Forecast (US$ Bn), By Country, 2024-2034
        • U.S.
        • Canada
    • Europe
      • Market Size and Forecast (US$ Bn), By Component, 2024-2034
      • Market Size and Forecast (US$ Bn), By Type, 2024-2034
      • Market Size and Forecast (US$ Bn), By Enterprise Size, 2024-2034
      • Market Size and Forecast (US$ Bn), By End User, 2024-2034
      • Market Size and Forecast (US$ Bn), By Country, 2024-2034
        • Germany
        • UK
        • France
        • Russia
        • Italy
        • Rest of Europe
    • Asia Pacific
      • Market Size and Forecast (US$ Bn), By Component, 2024-2034
      • Market Size and Forecast (US$ Bn), By Type, 2024-2034
      • Market Size and Forecast (US$ Bn), By Enterprise Size, 2024-2034
      • Market Size and Forecast (US$ Bn), By End User, 2024-2034
      • Market Size and Forecast (US$ Bn), By Country, 2024-2034
        • China
        • India
        • Japan
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Market Size and Forecast (US$ Bn), By Component, 2024-2034
      • Market Size and Forecast (US$ Bn), By Type, 2024-2034
      • Market Size and Forecast (US$ Bn), By Enterprise Size, 2024-2034
      • Market Size and Forecast (US$ Bn), By End User, 2024-2034
      • Market Size and Forecast (US$ Bn), By Country, 2024-2034
        • Brazil
        • Mexico
        • Rest of Latin America
    • Middle East & Africa
      • Market Size and Forecast (US$ Bn), By Component, 2024-2034
      • Market Size and Forecast (US$ Bn), By Type, 2024-2034
      • Market Size and Forecast (US$ Bn), By Enterprise Size, 2024-2034
      • Market Size and Forecast (US$ Bn), By End User, 2024-2034
      • Market Size and Forecast (US$ Bn), By Country, 2024-2034
        • GCC
        • Israel
        • South Africa
        • Rest of Middle East
  10. Competitive Landscape
    • Heat Map Analysis
    • Market Presence and Specificity Analysis
  11. Company Profiles
    •  
      • Alphabet Inc.
        • Company Overview
        • Product and Portfolio
        • Key Highlights
        • Financial Overview
        • Business Strategies
      • Amazon. Com Inc.
      • Digital Realty
      • Equinix Inc.
      • Hewlett Packard Enterprise
      • IBM Corporation
      • China Telicom
      • NTT Communication Corporation
      • Oracle
      • SAP SE.
  12. The Last Word
    • Future Impact
    • About Us
    • Contact

FAQs

Data Center Market was valued at US$ 232.4 billion in 2024 and is projected to grow at a CAGR of 11.0% to reach US$ 603.1 billion by 2034.

Data Center Market is segmented based on component, type, enterprise, end user and region.

Investments by government and private enterprises in the development of data centres to support large-scale storage of data centres provide profitable growth opportunities for the data centre market.

The North America data centre dominates the market due to the presence of a large number of technology giants and other large industries.

The Key players operating in the Data Center Market includes Alphabet Inc., and Amazon. Com Inc., Digital Realty, Equinix Inc., Hewlett Packard Enterprise, IBM Corporation, China Telicom, NTT Communication Corporation, Oracle, and SAP SE.