Data Center Market to Reach $517.17 Billion by 2030 Fueled by AI, Cloud, and IoT Demand

Global Data Center Market projected to more than double by 2035 as cloud, AI, and edge-computing drive explosive demand.

WILMINGTON, DE, UNITED STATES, December 4, 2025 /EINPresswire.com/ -- According to a new report Data Center Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component (Solution and Services), Type (Colocation, Hyperscale, Edge, and Others), Enterprise Size (Large Enterprises and Small & Medium Enterprises (SMEs)), and End User (BFSI, IT & Telecom, Government, Energy & Utilities, and Others): Global Opportunity Analysis and Industry Forecast, 2021-2030, The global data center market Size was valued at USD 187.35 billion in 2020, and is projected to reach USD 517.17 billion by 2030, registering a CAGR of 10.5% from 2021 to 2030.

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𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗙𝗿𝗲𝗲 𝗣𝗗𝗙 𝗕𝗿𝗼𝗰𝗵𝘂𝗿𝗲: https://www.alliedmarketresearch.com/request-sample/A13117

𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐲𝐧𝐚𝐦𝐢𝐜𝐬
The data center market is being shaped by multiple converging trends:
• 𝗕𝗼𝗼𝗺 𝗶𝗻 𝗖𝗹𝗼𝘂𝗱 & 𝗔𝗜 𝗔𝗱𝗼𝗽𝘁𝗶𝗼𝗻: The surge in cloud computing adoption and the rise of AI/ML workloads are major growth drivers. Enterprises shifting to cloud-first or hybrid strategies push demand for scalable, robust data-center infrastructure.

• 𝗘𝘅𝗽𝗹𝗼𝘀𝗶𝗼𝗻 𝗼𝗳 𝗗𝗮𝘁𝗮 𝗚𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻 & 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀: With IoT, streaming, e-commerce, digital payments and online services proliferating, data volumes are skyrocketing — driving up demand for storage, bandwidth and computing power around the world.

• 𝗛𝘆𝗽𝗲𝗿𝘀𝗰𝗮𝗹𝗲 & 𝗖𝗼𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻: Large data centers and colocation facilities are dominating capacity growth. In 2024, large-format facilities accounted for a major share, and colocation captured nearly half the revenue share.

• 𝗚𝗲𝗼𝗴𝗿𝗮𝗽𝗵𝗶𝗰 𝗦𝗵𝗶𝗳𝘁 & 𝗠𝗮𝗿𝗸𝗲𝘁 𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻: While traditional markets in North America and Europe remain strong, capacity growth is accelerating in secondary markets and emerging geographies — especially in Asia-Pacific — driven by regulatory demands (e.g. data residency), lower costs, and rising digital adoption.

• 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 & 𝗘𝗻𝗲𝗿𝗴𝘆 𝗘𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆 𝗣𝗿𝗲𝘀𝘀𝘂𝗿𝗲𝘀: As data centers consume large power and generate heat, there is growing emphasis on energy-efficient designs, cooling technologies, renewable energy sourcing, and resource optimization — vital for long-term viability and reducing carbon footprint.

𝗖𝗼𝗻𝗻𝗲𝗰𝘁 𝘁𝗼 𝗔𝗻𝗮𝗹𝘆𝘀𝘁: https://www.alliedmarketresearch.com/connect-to-analyst/A13117

𝗦𝗲𝗴𝗺𝗲𝗻𝘁 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄
The data-center market is broadly segmented by infrastructure type (hardware, software, services), facility type (hyperscale self-built, colocation), size/tier (large vs medium; Tier-3, Tier-4) and end-user industry (IT & telecom, BFSI, enterprises, etc.).

In 2024, hardware continued to be the leading revenue-generating segment, while software-led services emerged as the fastest-growing category, driven by rising demand for management platforms, cloud-native solutions, and value-added services.

𝗥𝗲𝗴𝗶𝗼𝗻𝗮𝗹 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
Region-wise, North America accounts for a significant share of the global data center market, driven by the presence of major vendors and the availability of advanced technological infrastructure. Moreover, the increasing adoption of cloud computing solutions across the IT & telecommunications and BFSI sectors is expected to accelerate the growth of the virtualization security market in the region.

𝗙𝗼𝗿 𝗣𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗜𝗻𝗾𝘂𝗶𝗿𝘆: https://www.alliedmarketresearch.com/purchase-enquiry/A13117

𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
The key players operating in the data center market analysis include Alphabet Inc., Amazon.com Inc., Digital Realty, Equinix Inc., Hewlett Packard Enterprise, IBM Corporation, Microsoft, NTT Communication Corporation, Oracle, and SAP SE. These players have adopted various strategies to increase their market penetration and strengthen their position in the data center industry

The report focuses on growth prospects, restraints, and trends of the data center market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as the bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, the threat of substitutes, and bargaining power of buyers, on the data center market.

𝗞𝗲𝘆 𝗙𝗶𝗻𝗱𝗶𝗻𝗴𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗦𝘁𝘂𝗱𝘆
• By component, the solution segment led the highest data center market share, in terms of revenue in 2020.
• On the basis of enterprise size, the small & medium enterprises (SMEs) segment is expected to exhibit the fastest data center market growth rate during the forecast period.
• Region wise, North America generated the highest revenue in 2020.

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David Correa
Allied Market Research
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