Global Data Center Market Size To Exceed USD 987.68 Billion By 2035 | CAGR of 10.80%

Global Data Center Market Size To Exceed USD 987.68 Billion By 2035

According to a research report published by Spherical Insights & Consulting, the Global Data Center Market Size is Expected to Grow from USD 319.53 Billion in 2024 to USD 987.68 Billion by 2035, at a CAGR of 10.80% during the Forecast period 2025-2035.

Browse key industry insights spread across 270 pages with 130 market data tables and figures & charts from the report on "Global Data Center Market Size, Share, and COVID-19 Impact Analysis, By Component (Hardware, Data Center Infrastructure Management Software, and Services), By Data Center Type (Colocation, Hyperscale, Edge, and Others), By Tier Level (Tier 1 and Tier 2, Tier 3, and Tier 4), By Data Center Size (Small, Medium, and Large), By Industry (BFSI, IT & Telecom, Healthcare, Government, Manufacturing, Retail & E-commerce, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 – 2035." Get Detailed Report Description Here: https://www.sphericalinsights.com/reports/data-center-market

The data center market refers to the site where companies collect, handle, store, and share enormous volumes of data. It is equipped with storage systems, networked PCs, and related hardware. The data center serves as a central location for critical IT operations and services, supporting communications, data storage, and business applications. The market growth is driven by the rise in digital transformation is making strong data infrastructure increasingly important. The adoption of private, public, and hybrid cloud computing is one of the primary drivers of this growth. Investments in data centers are rising to support efficient and scalable digital operations. The deployment of 5G and the need for lower latency are driving the growth of edge data centers. However, the market growth is hindered by the high initial and ongoing costs make data center investments challenging, especially for startups and SMEs. These financial burdens can impact profitability and slow expansion for larger enterprises as well.

The hardware segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period.

Based on the component, the data center market is divided into hardware, data center infrastructure management software, and services. Among these, the hardware segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. The growth is driven by the demands of modern computing, from well-known enterprise applications to cutting-edge technologies like big data analytics and artificial intelligence, which provide the framework for building robust, high-performing infrastructure. Furthermore, this equipment may be scaled up or down to meet changing needs, allowing companies to expand their processing capacity as needed without suffering from extended downtime.

The colocation segment accounted for the largest share in 2024 and is anticipated to grow at the fastest CAGR during the forecast period.

Based on the data center type, the data center market is divided into colocation, hyperscale, edge, and others. Among these, the colocation segment accounted for the largest share in 2024 and is anticipated to grow at the fastest CAGR during the forecast period. The segmental growth is due to the many scalability options that colocation facilities provide, tenants can quickly and efficiently expand their IT infrastructure in response to changing business needs. When infrastructure resources are shared with multiple tenants, the initial capital investment required to build and maintain a private data storage facility is reduced.  Additionally, because of economies of scale, colocation providers may offer reasonably priced security and connectivity solutions, which reduce operating expenses for tenants.

The tier 3 segment dominated the market in 2024 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the tier level, the data center market is divided into tier 1 and tier 2, tier 3, and tier 4. Among these, the tier 3 segment dominated the market in 2024 and is anticipated to grow at a significant CAGR during the forecast period. The growth is attributed to redundant network connectivity across many ISPs and carriers, ensuring a range of reliable communication methods. As a result, there is a decreased likelihood of network outages and consistent connectivity for mission-critical services and applications.

The large segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the data center size, the data center market is divided into small, medium, and large. Among these, the large segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period. The growth is attributed to tenants having access to a range of network service providers, cloud providers, and internet exchanges, enabling them to establish fast, low-latency connections to their preferred carriers and cloud platforms. This improves network performance, increases connectivity possibilities, and makes hybrid and multi-cloud installations easier.

The IT and telecom segment accounted for the largest share in 2024 and is projected to grow at a substantial CAGR during the forecast period.

Based on the industry, the data center market is divided into BFSI, IT & telecom, healthcare, government, manufacturing, retail & e-commerce, and others. Among these, the IT and telecom segment accounted for the largest share in 2024 and is projected to grow at a substantial CAGR during the forecast period. The growth is driven by strategies for digital transformation that IT and telecom companies are doing to modernize their infrastructure, apps, and services. Data centers play an important role in these efforts by providing the processing power, storage space, and networking capabilities needed to deploy new technologies and deliver state-of-the-art digital services.

North America is expected to hold the majority share of the global data center market during the forecast period.

North America is expected to hold the majority share of the global data center market during the forecast period. The region's growth is expanding due to the rapid adoption of big data applications, cloud services, and artificial intelligence has raised the region's demand for data centers. Increased use of generative AI and other cutting-edge technology by businesses necessitates better data processing skills and a more robust infrastructure. Large investments from well-known companies like Cisco, IBM, Schneider Electric, and others are driving market expansion.

Asia Pacific is anticipated to grow at the fastest pace in the global data center market during the forecast period. The region's higher growth, and this trend is expected to continue, with total supply expected to rise from 11.1 GW in 2023 to 26.7 GW by 2028. Furthermore, Indonesia's growing population and increasing demand for digital products have made it a vital market. Significant investments are being made to build hyperscale data centers, particularly in Jakarta and Eastern Java.

Major vendors in the global data center market are Comarch SA (Poland), Alibaba Cloud, Tencent Cloud, Amazon Web Services, Inc., Oracle, AT&T Intellectual Property, NTT Communications Corporation, Lumen Technologies (CenturyLink), Microsoft, China Telecom Americas, Inc., IBM Corporation, CoreSite, Google Cloud, CyrusOne, Equinix, Inc., and others.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Key Market Development 

• In December 2024, Amazon Web Services (AWS) will offer revamped data center infrastructure to meet the growing demand for artificial intelligence (AI) and sustainability. The changes include advancements in liquid cooling, power distribution, and rack design, resulting in a sixfold increase in rack power density over the next two years. AWS claimed that these enhancements aim to increase computational power per site by 12%, improve energy efficiency, and improve system availability.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the data center market based on the below-mentioned segments:

Global Data Center Market, By Component

• Hardware
• Data Center Infrastructure Management Software
• Services

Global Data Center Market, By Data Center Type

• Colocation
• Hyperscale
• Edge
• Others

Global Data Center Market, By Tier Level

• Tier 1 and Tier 2
• Tier 3
• Tier 4

Global Data Center Market, By Data Center Size

• Small
• Medium
• Large

Global Data Center Market, By Industry

• BFSI
• IT & Telecom
• Healthcare
• Government
• Manufacturing
• Retail & E-commerce
• Others

 Global Data Center Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa

About the Spherical Insights & Consulting

Spherical Insights & Consulting is a market research and consulting firm which provides actionable market research study, quantitative forecasting and trends analysis provides forward-looking insight especially designed for decision makers and aids ROI.

Which is catering to different industry such as financial sectors, industrial sectors, government organizations, universities, non-profits and corporations. The company's mission is to work with businesses to achieve business objectives and maintain strategic improvements. 

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