Data Center Market Size, Share, Growth Analysis, By Component(Hardware Software, Services), Type(On-premise, Hyperscale, HPC, Colocation), Server Rack Density, Data Center Redundancy, PUE, Design, Tier Level, Enterprise Size, End User, and Region - Industry Forecast 2024-2031


Report ID: SQMIG45B2088 | Region: Global | Published Date: June, 2024
Pages: 157 |Tables: 234 |Figures: 81

Data Center Market Insights

Global Data Center Market size was valued at USD 342.06 billion in 2022 and is poised to grow from USD 364.50 billion in 2023 to USD 605.96 billion by 2031, growing at a CAGR of 6.56% during the forecast period (2024-2031). 

The global market has showed a vast growth in the last years and it is connected to the growth of digitalization, cloud solutions, and need in the number of operations with data. This market consists of hyperscale, colocation, edge, and enterprise data centers, all of which are applied for various business purposes with other forms of necessities. Hyperscale data centers, typically defined by their building-block capacity and designed for handling over scalability, are mainly encouraged by key players in the CSP segment such as Amazon Web Services (AWS), Google Cloud and Microsoft Azure. These providers are still committing significant amounts of money locked into data center growth to meet the increased convergence of third-party cloud services, AI, and big data. The rise in adoption of cloud solutions and analytics technology across industries has provided further boost to this growth as organizations have begun opting more for cloud computing in order to scale up their business. The colocation data centers also witnessed significant growth rates as it provides space, power, and cooling facilities for several clients. Business needs coupled with the requirement for efficient and affordable systems of data storage have prompted a great interest in colocation. The communication argues that building and maintaining optimum data centers for small and medium-sized enterprises (SMEs) would not require a heft amount of capital expenditure in comparison to outsourcing. Also, the major colocation providers are moving towards offering hybrid cloud options, while enhancing the adoption in the market. 

Edge data centers have become essential in the data center architecture as place that is aimed at bringing processing facilities closer to the consumers. This closeness improves efficiency of certain applications like self-driving cars, IoT, and AR as well minimizes latency. One of the main drivers of the edging data centers is 5G technology because this technology requires data processing on the edge of a network due to the demand for low-latency applications. The enterprise data center segment continues to be vital to organizations that need secure, compliant, and highly controlled internal processing environments. While this trend is still evident with organizations gradually shifting their own data centers to the cloud and colocation spaces, there are still enterprises which are indeed pouring their resources on optimizing and enhancing their in-house DC sites for hybrid IT. This balance enables them to gather the advantages belonging to both the cloud and the traditional center models. Sustainability is gradually gaining significance within the data center sector. Due to the energy consumption that is characteristic of data centers, there is a strong focus on making them as environmentally friendly as possible with regards to using renewable sources of energy, reducing the amount of energy consumed per rack, and finding new ways of cooling the equipment. Major corporations have embraced sustainability initiatives towards attaining significant reduction of carbon emissions and overall impacts.

US Data Center Market is poised to grow at a sustainable CAGR for the next forecast year.

Market Snapshot - 2024-2031

Global Market Size

USD 231.22 Billion

Largest Segment

Cloud Data Center

Fastest Growth

Cloud Data Center

Growth Rate

5.10% CAGR

Global Data Center Market ($ Bn)
Country Share for North America Region (%)

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Data Center Market Segmental Analysis

The global data center market is segmented by component, type, server rack density, data center redundancy, PUE, design, tier level, enterprise size, end user, and region. Based on component, the market is segmented into hardware, software, and services. Based on hardware market is segmented into servers, enterprise network equipment PDU, and UPS. Based on software, the market is segmented into DCIM, virtualization, and others. Based on services, market is segmented into managed infrastructure services, hosting services, support services, and professional services. Based on type, the market is segmented into on-premise, hyperscale, HPC, Colocation, and edge. Based on server rack density, the market is segmented into <10kW, 10-19kW, 20-29kW, 30-39kW, 40-49kW, and >50kW. Based on data center redundancy, the market is segmented into N+1, 2N, N+2, and N. Based on PUE, the market is segmented into Less than 1.2, 1.2 - 1.5, 1.5 - 2.0, and Greater than 2.0. Based on design, the market is segmented into traditional, containerized, and modular. Based on tier level, the market is segmented into Tier 1, Tier 2, Tier 3, and Tier 4. Based on enterprise size, the market is segmented into large enterprise, and small & medium enterprises. Based on end user, the market is segmented into cloud service provider, technology provider, telecom, healthcare, BFSI, retail & e-commerce, entertainment & media, energy, and others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. 

Analysis by Component 

In 2023, the hardware segment has acquired the position of largest segment in the market with the market share of 65%. The universally increasing usage of social media, e-commerce, and IoT require data storage to scale up to offer additional storage and computational capacity. The cyclical hardware upgrades including the processing equipment, servers, storage facilities, graphic processing unit and the memory compel data centers to upgrade their hardware facilities, which fuels the hardware segment in the market. As for the future developments, it is necessary to state that more performance improvement hardware solutions are necessary to enhance the productivity of complicated computations and model training. 

The growth of the software segment has been projected to be the highest at a CAGR over 9.5% during the forecast period. The demand for virtualization and cloud computing services is anticipated to drive software segment. It will be significantly useful for advanced software solutions which help data centers to improve their defense measures such as encryption, detecting possibility of intruders, controlling the access, and monitoring. Also, as green data centers become more relevant because of the rising demand for efficient energy usage, the software for data centers has to scale up to manage cooling and energy intake mechanisms, among others. 

Analysis by Enterprise Size 

The large enterprise segment held the highest revenue share of over 80% for the market in 2023. Large enterprises create and handle huge data from multiple sources, such as customer transactions, interactions, and operations. Further, there has been a rise in the adoption of cloud computing to boost operations, enhance scalability, and minimize costs. The data center offers capabilities to support advanced technologies and applications. It is vital in housing cloud infrastructure, promising reliable access to cloud services. The growing global operations and advanced technologies are driving the growth of the market across large enterprises. 

The small enterprises segment is expected to register the fastest growth at a CAGR of over 10.2% over the forecast period. Small enterprises are focused on investing more in online technologies to attract customers and stay competitive worldwide. Most small enterprises depend on data centers to manage inventory, transaction, and customer information efficiently and securely. Small businesses also adopt cloud services for cost-effective software, infrastructure, and storage solutions. This growing demand across small enterprises is anticipated to boost the growth of the market in future years.

Global Data Center Market Size By Component (%)

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Data Center Market Regional Insights

North America dominated the market and was estimated at having the largest value share of approximately 40% in 2023. Being an region of high interest in technological innovation and digital transformation, North America is a strategic location. In the era of a growing regional digital economy, data centers now have to provide cloud computing, e-commerce, online services, and other similar digital initiatives. There is a popular adoption of cloud services in North America because of the ability to scale, flexibility as well as cost that go with the services. This is true due to increased demand for more data centers to enhance the cloud providers’ infrastructure services. Due to constant advancement in technology, finance, healthcare, entertainment and e-commerce industries among others generate and need large amounts of data. The data generated in various industries as a result of increased digitization is massive and needs to be stored, processed, and analyzed using data centers. 

The Asia Pacific can be projected to rise at the fastest CAGR of approximately 9.45% over the course of the forecast period. Finance, healthcare, manufacturing & retail businesses are some of the industries that are quickly embracing digitization in the Asia Pacific region. The rise of internet-based technologies has led to a need to locate an appropriate data center to support cloud computing and IoT, AI, and other emerging technologies. The growth of e-commerce across the Asia Pacific region means there are data centers to process the work of online transactions, stock, and customers that make shopping easy and efficient. Asia Pacific region especially has more people using mobile phones including smart phones demanding for data centers for purposes of handling usage of mobile applications, mobile money and any other mobile based services.

Global Data Center Market Size By Geography
  • Largest
  • Fastest

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Data Center Market Dynamics

Data Center Market Driver

Increasing Cloud Adoption 

  • Cloud computing market which has captured a large interest for the global data centers market is a key factor to growth. Today, still, organizations from diverse industries incorporate cloud solutions to optimize the scalability, flexibility, and cost-effectiveness of their business processes. This is due to the changing demands of business and organizational for quick and instant infrastructure of computing that helps them to improve operation efficiency and therefore support the process of digitalization. The large data center services provider are seeing operational capacity growth and hence increasing investment in new facilities which will create a large new data center capacity across the globe. This trend is especially evident among businesses in areas such as e-commerce, financial services, and healthcare, where businesses must have sound, growing IT infrastructure. 

Expansion of IoT Devices 

  • The increase in demand for IoT devices, which are rapidly finding their way into more homes than ever before. With the world becoming more interconnected by other smart machines, it is expected that data centers are capable of handling the enormous volume of data that is produced. Internet of Things (IoT) devices have found application in various markets such as home automation, industrial control and automated healthcare services. A large number of data traffic and its rapid continuing growth increases the demand for available capacity of data centers and an improvement in the quality of infrastructure required for proper data handling along with minimal delay in data processing. This means a growing need for data center solutions that can address those challenges, and this is driving the market forward. 

Restraints 

High Operational Costs 

  • Some of the challenges that will limit the growth of data centers include high operating costs which prove costly when operating data centers. A major factor is that data centers are large systems that need investment on cooling and power as well as security. Especially if a data center is located in an area that has a highly priced electricity tariff, the cost of electricity is a significant factor to consider since data centers need to regulate their environment to ensure optimal performance. However, personnel to work in the data center and manage the facility increases cost of operation due to their high skills in the department. The cost related to these expenses may be steep in cases where it is almost impossible for a company to extend the capacity of data center or bring improvements to the facility. 

Data Protection and Privacy Issues 

  • Today, customers are concerned about their data security and privacy, which hinders market development. As we know, data centers save and analyze large amounts of various information, which makes them potentially vulnerable to hackers. Penalties resulting from breaches may include increased cost, loss of reputation, and fines all of which should be avoided. Consequently, it is critical to achieve high levels of security, including state-of-the-art encryption, intrusion detection mechanisms and implementing security checks and audits on a regular basis, but most of these measures are expensive and challenging to build and maintain. Furthermore, there is no single comprehensive set of regulatory standards in terms of data protection in the numerous countries that are present in the world, which complicates the task of large international businesses to protect the data they manage and store effectively.

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Data Center Market Competitive Landscape

The competitive landscape of the global data center market is dominated by a mix of established tech giants and emerging players. Key players  lead the market with extensive global networks, advanced technologies, and substantial financial resources. These companies continuously innovate and expand their data center capabilities, investing in new facilities and cutting-edge technologies like artificial intelligence and machine learning to enhance performance and efficiency. Additionally, colocation providers play a crucial role by offering scalable solutions and enabling businesses to manage their IT infrastructure without significant capital expenditure. Emerging players and regional specialists are also entering the market, providing tailored solutions and focusing on specific geographic areas or industries. This diverse competitive environment drives innovation, improves service quality, and leads to a wider range of options for customers.

Data Center Market Top Player’s Profiles

  • Hewlett Packard Enterprise (HPE) (United States) 
  • Cisco System, Inc. (United States) 
  • Hitachi Ltd (Japan) 
  • IBM Corporation (United States) 
  • NTT Communications (Japan) 
  • ABB (Switzerland) 
  • Dell Technologies (United States) 
  • Schneider Electric (France) 
  • Comarch SA (Poland) 
  • Huawei Technologies Co., Ltd. (China) 
  • SAP SE (Germany) 
  • Equinix Inc. (United States) 
  • Oracle (United States) 
  • Amazon.com Inc. (United States) 
  • Alphabet Inc. (United States) 
  • Microsoft (United States) 
  • Digital Realty (United States) 
  • Tata Communications Ltd (India) 
  • GPX India Pvt. Ltd. (India) 
  • Aermec UK Ltd. (United Kingdom)

Data Center Market Recent Developments

  • In March 2024, Ardian, a private investment firm revealed that a deal with Verne, the UK based green data center platform has been sealed. This latest deal also contributed to the growth of Ardian’s focus in late last year Verne robust expansion plan in Northern Europe to support with a fund commitment of up to 1 billion $. 2 billion. The funding for this grand plan is achievable through newly incorporated green financing package floating marked by a group of European and International renowned banks.  

  • In January 2024, Evoque Data Center Solutions, a company offering colocation, connectivity and infrastructure services, unveiled that it had successfully acquired Cyxtera’s data center portfolio. The result of this merger is a large new data center firm, with more than 50 facilities and located predominantly in North America. Udhay Mathialagan, Evoque’s Chairman of the Board and Brookfield Infrastructure’s CEO and Global Data Centers pointed out that the merger with Cyxtera is in line with their long-term plan toward Data Infrastructure Investments. 

Data Center Key Market Trends

  • Edge Computing: The evolving concept of edge computing is one of the major trends in the further development of the global data center market. This concept entails working with data at the edge, that is mainly sourced from smart devices like IoT devices instead of relying on centralized data centers. Features of availability, reliability, scalability, response time, resource usage, and system stability have to be optimized to achieve the goal of minimizing latency and bandwidth consumption. That is why, with the development of applications such as autonomous vehicles, smart cities, and augmented reality, the need for edge computing solutions is increasing due. In aiding this trend, more compact, numerous data centers are being established at vantage points near the terminal customer, with improved performance and effectiveness. 
  • Sustainable Data Center Practices: Sustainability is something that has gained more recognition in the data center space in recent years. The increased consciousness of the effects of the environment have seen a shift towards the conservation of CO2 emissions of data centers. Current trends and buying activities identified revealed that organizations are beginning to procure energy efficient technologies, including cooling systems, renewable energy, and efficient hardware. Accompanying the increasing concern for environmental footprint in ICT, green data centers, which incorporate renewable energy and implement energy efficiency measures, are becoming prevalent. This not only aids in cutting down the cost of doing business but also aids in achieving Sustainable Development Goals without surpassing legal regulations while pumping up new and sustainable energy into the future of the industry.

Data Center Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research. 

According to our global Data Center Market analysis, market is evolving, as companies continue to invest in digital technologies. This is due to the fact that many organizations are now shifting to the use of data centers in their business operations after realizing that business decisions, which are aptly informed by data, depend on the reliability of the data centers. Several significant factors prevail as the determining forces within the markets. The increase usage of cloud computing services is among the key factors that contribute to the adoption of hybrid cloud networks. As the new generation applications demand hybrid and multi-cloud environments, businesses are on the lookout for new data center solutions that can address their needs for future growth.

Report Metric Details
Market size value in 2022 USD 342.06 billion
Market size value in 2031 USD 605.96 billion
Growth Rate 6.56%
Base year 2023
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Component
    • Hardware (servers, enterprise network equipment PDU, and UPS), software (DCIM, virtualization, and others), services (managed infrastructure services, hosting services, support services, and professional services).
  • Type
    • On-premise, hyperscale, HPC, Colocation, Edge
  • Server Rack Density
    • <10kW, 10-19kW, 20-29kW, 30-39kW, 40-49kW, >50kW
  • Data Center Redundancy
    • N+1, 2N, N+2, N
  • PUE
    • 1.2, 1.2 - 1.5, 1.5 - 2.0, Greater than 2.0
  • Design
    • traditional, containerized, modular
  • Tier Level 
    • Tier 1, Tier 2, Tier 3, Tier 4
  • Enterprise Size
    • Large enterprise, small & medium enterprises
  • End User
    • Cloud service provider, technology provider, telecom, healthcare, BFSI, retail & e-commerce, entertainment & media, energy, others
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Hewlett Packard Enterprise (HPE) (United States) 
  • Cisco System, Inc. (United States) 
  • Hitachi Ltd (Japan) 
  • IBM Corporation (United States) 
  • NTT Communications (Japan) 
  • ABB (Switzerland) 
  • Dell Technologies (United States) 
  • Schneider Electric (France) 
  • Comarch SA (Poland) 
  • Huawei Technologies Co., Ltd. (China) 
  • SAP SE (Germany) 
  • Equinix Inc. (United States) 
  • Oracle (United States) 
  • Amazon.com Inc. (United States) 
  • Alphabet Inc. (United States) 
  • Microsoft (United States) 
  • Digital Realty (United States) 
  • Tata Communications Ltd (India) 
  • GPX India Pvt. Ltd. (India) 
  • Aermec UK Ltd. (United Kingdom)
Customization scope

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Data Center Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Data Center Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Data Center Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Data Center Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Data Center Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Data Center Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Global Data Center Market size was valued at USD 342.06 billion in 2022 and is poised to grow from USD 364.50 billion in 2023 to USD 605.96 billion by 2031, growing at a CAGR of 6.56% during the forecast period (2024-2031). 

The competitive landscape of the global data center market is dominated by a mix of established tech giants and emerging players. Key players  lead the market with extensive global networks, advanced technologies, and substantial financial resources. These companies continuously innovate and expand their data center capabilities, investing in new facilities and cutting-edge technologies like artificial intelligence and machine learning to enhance performance and efficiency. Additionally, colocation providers play a crucial role by offering scalable solutions and enabling businesses to manage their IT infrastructure without significant capital expenditure. Emerging players and regional specialists are also entering the market, providing tailored solutions and focusing on specific geographic areas or industries. This diverse competitive environment drives innovation, improves service quality, and leads to a wider range of options for customers. 'Hewlett Packard Enterprise (HPE) (United States) ', 'Cisco System, Inc. (United States) ', 'Hitachi Ltd (Japan) ', 'IBM Corporation (United States) ', 'NTT Communications (Japan) ', 'ABB (Switzerland) ', 'Dell Technologies (United States) ', 'Schneider Electric (France) ', 'Comarch SA (Poland) ', 'Huawei Technologies Co., Ltd. (China) ', 'SAP SE (Germany) ', 'Equinix Inc. (United States) ', 'Oracle (United States) ', 'Amazon.com Inc. (United States) ', 'Alphabet Inc. (United States) ', 'Microsoft (United States) ', 'Digital Realty (United States) ', 'Tata Communications Ltd (India) ', 'GPX India Pvt. Ltd. (India) ', 'Aermec UK Ltd. (United Kingdom)'

Cloud computing market which has captured a large interest for the global data centers market is a key factor to growth. Today, still, organizations from diverse industries incorporate cloud solutions to optimize the scalability, flexibility, and cost-effectiveness of their business processes. This is due to the changing demands of business and organizational for quick and instant infrastructure of computing that helps them to improve operation efficiency and therefore support the process of digitalization. The large data center services provider are seeing operational capacity growth and hence increasing investment in new facilities which will create a large new data center capacity across the globe. This trend is especially evident among businesses in areas such as e-commerce, financial services, and healthcare, where businesses must have sound, growing IT infrastructure. 

Edge Computing: The evolving concept of edge computing is one of the major trends in the further development of the global data center market. This concept entails working with data at the edge, that is mainly sourced from smart devices like IoT devices instead of relying on centralized data centers. Features of availability, reliability, scalability, response time, resource usage, and system stability have to be optimized to achieve the goal of minimizing latency and bandwidth consumption. That is why, with the development of applications such as autonomous vehicles, smart cities, and augmented reality, the need for edge computing solutions is increasing due. In aiding this trend, more compact, numerous data centers are being established at vantage points near the terminal customer, with improved performance and effectiveness. 

North America dominated the market and was estimated at having the largest value share of approximately 40% in 2023. Being an region of high interest in technological innovation and digital transformation, North America is a strategic location. In the era of a growing regional digital economy, data centers now have to provide cloud computing, e-commerce, online services, and other similar digital initiatives. There is a popular adoption of cloud services in North America because of the ability to scale, flexibility as well as cost that go with the services. This is true due to increased demand for more data centers to enhance the cloud providers’ infrastructure services. Due to constant advancement in technology, finance, healthcare, entertainment and e-commerce industries among others generate and need large amounts of data. The data generated in various industries as a result of increased digitization is massive and needs to be stored, processed, and analyzed using data centers. 

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