USD 18.0 billion
Report ID:
SQMIG45B2217 |
Region:
Global |
Published Date: June, 2025
Pages:
189
|Tables:
93
|Figures:
68
Global Data Center Security Market size was valued at USD 18.0 billion in 2023 and is poised to grow from USD 21.1 billion in 2024 to USD 75.1 billion by 2032, growing at a CAGR of 17.2% during the forecast period (2025-2032).
The global data center security market growth is driven primarily by growing anxieties related to data thefts, cyber-attacks, and unauthorized access, which can result in sensitive data breach and loss of data integrity. Growing use of data-driven approaches, data creation in huge volumes, and the growing dependency of industries such as healthcare, retail, banking, and financial services on data availability have given birth to a spine-chilling requirement for effective data center security solutions and services.
Furthermore, increasing trends and volume of cyber-attacks are compelling organizations to invest in dependable security solutions for safeguarding their precious data and infrastructure. Moreover, strict regulatory norms and compliance standards also act as driving factors, compelling organizations to embrace end-to-end security solutions for the sake of compliance mandates.
For instance, the UK government, in September 2024, set out plans to consider data centers that store sensitive information as critical national infrastructure (CNI). This status is meant to provide such centers with additional government protection against cyberattacks and IT interruptions. The move is an indication of the increasing importance of data centers to national security and the need for robust regulatory mechanisms to avert their vulnerability. In addition, the developing trend of business process digitization and growing usage of data-centric operations further intensifies the demand for advanced data center security solutions. Thus, these factors also play an important role in fueling the growth of the global data center security sector.
What Role Does AI Play in Addressing Evolving Cyber Threats in Data Centers?
Through improved threat detection, response automation, and operation streamlining, artificial intelligence (AI) is transforming the global data center security market outlook. At Cisco Live 2024 in June 2024, Cisco unveiled major AI-powered breakthroughs, including updates to its SecureX platform. In hybrid and multi-cloud environments, such enhancements leverage AI to deliver enhanced visibility, accelerated threat detection, and remediation automation. In addition, Cisco established a USD 1 billion worldwide AI investment fund to assist in the creation of secure and dependable AI solutions. The fund will collaborate with organizations such as Cohere, Mistral AI, and Scale AI to improve AI infrastructure and model development.
Market snapshot - 2025-2032
Global Market Size
USD 18.0 billion
Largest Segment
Solution
Fastest Growth
Services
Growth Rate
17.2% CAGR
To get more reports on the above market click here to Buy The Report
The global data center security market is segmented into component, type, end use, and region. By component, the market is bifurcated into solution and services. Depending on type, it is classified into small data center, medium data center, and large data center. According to end use, the market is divided into IT & telecom, BFSI, retail & e-commerce, media & entertainment, healthcare, energy & utilities, government, manufacturing, and education. Regionally, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
As per the 2024 global data center security market analysis, the solution segment accounted for the maximum share in the industry and had a revenue share of 79.8%. Growth in remote culture fueled by usage of advanced technologies and growing connectivity in the network, presence and increased industry penetration of artificial intelligence and machine learning, rising data privacy awareness among customers, stringent regulation pertaining to data security, storage, and safeguarding, and steady growth in the usage of the internet leading to data generation at massive volumes are a few of the most significant drivers of growth for this segment. Technologies such as multi-factor authentication, biometric access solutions, high-definition video monitoring, and more are extensively used by organizations and data centers to offer data integrity.
The services segment is expected to exhibit the highest CAGR during the forecast period. Security, as a service, is provided by some of the data centers among their offerings to organizations by including security features such as intrusion detection systems, intrusion prevention systems, firewalls, next-generation firewalls (NGFWs), unauthorized access preventions, and others. Increased use of data-driven business operations and intensification of cyber threats are projected to develop an increase in demand for the services segment in the upcoming years.
Based on the 2024 global data center security market forecast, the large data centers category led the market. Large-scale operations, energy efficiency, numerous layers of power supply and cooling infrastructure for uninterrupted operations, strong and strict implementation of security measures, and other such factors are the key drivers for this segment's growth. These are usually referred to as "hyper-scale data centers." These are commonly situated on the periphery of major cities where land and power supply prices are cheap. Large data centers are mostly occupied by global cloud service provider businesses.
For example, Blackstone got a go-ahead in March 2025 to build a USD 13 billion complex that will extend 540,000 square meters and host cloud computing and enormous data storage services. With the business interests of those companies that deal with this sector in mind, the complex, which is projected to have thousands of employees, underscores the trend of siting enormous data centers where land and electricity are affordable.
Throughout the forecast period, the medium data center segment has the highest global data center security market share. This is due to the centers' cost-effective services and solutions, increasing subscribers of small and medium-sized businesses, less latency due to their proximity to each other, and the ability to switch up or down their capacity based on their immediate needs.
To get detailed analysis on other segments, Request For Free Sample Report
As per the 2024 data center security market regional forecast, North America maintained a 36.2% market share spurred by growing cyberattacks and accelerated cloud adoption. Microsoft introduced advanced biometric and AI-enabled surveillance devices to its Azure data center presence in February 2024. This demonstrates the region's growth in hybrid cloud infrastructure and regulatory compliance, rendering security innovations critical to data protection and business continuity strategies.
The U.S. held 77.0% of the North American data center security market share in 2024 due to hyperscale participants and government efforts. Amazon Web Services (AWS) committed USD 10 billion in April 2024 to enhance the cybersecurity and physical facilities of its facilities in the United States. The United States' industry leadership is further solidified through the enforcement of AI-powered intrusion detection and zero-trust architectures, which supplement Executive Order 14028.
Growing fintech penetration and tightening privacy regulations are fueling growth in the Canadian data center security industry. eStruxture Data Centers in Montreal switched in July 2024 to temperature analytics and smart card access control in all of its facilities in response to changing PIPEDA regulations. This move illustrates how cloud growth and compliance are fueling demand for convergent data center security solutions, particularly in the banking and healthcare industries where data defense is critical to business operations.
The GDPR, sustainability requirements, and the move to edge computing all drive data center security innovation in Europe. In October 2024, Equinix invested Euro 140 million to construct secure, modular data centers with enhanced DDoS protection and AI-enabled monitoring throughout Germany and the Netherlands. This indicates that scalable, secure infrastructure is in increasing demand. As part of the cross-border digital boom, European firms are spending more on security and data sovereignty and resilience.
In accordance with post-Brexit data legislation and national cyber strategy records, the UK is improving data center security. In March 2024, Telehouse UK unveiled a new London East center, five-layer biometric access, machine-learning threat analysis, and round-the-clock unmanned aerial vehicle monitoring. With the rise in digital demand from sectors like banking, e-commerce, and artificial intelligence, which supports robust infrastructure defense, these changes demonstrate the UK's priority on future-proof security.
Tight privacy laws and data localization policies are influencing France's data center security. OVHcloud and Thales collaborated in 2024 to develop a secure cloud platform that fulfils the standards of the "SecNumCloud" certification. This step supports the French government's drive towards digital sovereignty. Compliance software expenditure, intrusion monitoring, and encrypted storage are increasing, especially in the defense and banking sectors with high-assurance security platforms.
Germany is dedicated to energy-efficient, secure data centers because of its industrial digitalization and compliance with GDPR. NTT opened a Euro 500 million data center complex in Berlin in May 2024, replete with physical intrusion prevention devices, AI-enabled surveillance, and cybersecurity protections. The nation's emphasis on secure data infrastructure serves cloud, telecom, and auto service providers in guarding against the risks of cyberattacks and legal violations.
The data center security sector is expected to grow at the highest CAGR of 18.3% by 2025 in Asia-Pacific. It is driven by the rapid digitalization, particularly in Southeast Asia, Japan, and India. Spurred by local cybersecurity regulations and cloud growth, Alibaba Cloud rolled out next-gen zero-trust security layers in its Asia-Pacific data centers in November 2024. Regional companies are focused on the adoption of safe infrastructure due to these developments.
Japan is leveraging automated and regulation-based updates to enhance the security of its data centers. To achieve the objectives of Japan's Cybersecurity Strategy 2021–2025, KDDI reinforced its Osaka data center in 2024 with AI-driven video surveillance and biometric smart card verification. Robust, self-sustaining data center security is increasingly required in the telecom, government, and fintech industries due to the nation's focus on updating its digital infrastructure, as well as 5G and IoT growth.
The Data Protection Act of 2023 and growing cloud use are driving growth in India's data center security industry. Yotta Infrastructure opened a secure facility in Noida in December 2024 that has real-time cyber surveillance and blockchain-based access logs. Security improvements are essential as digital services spread across the country and hyperscale investments increase. India's market is growing partly because of regulatory pressure and the requirement for safe data environments.
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
New Cybersecurity Threats and Attacks
Companies are increasingly investing more in next-generation data center security solutions because of the growth in ransomware attacks and data breaches across the globe. With more than USD 11.5 trillion in worldwide losses generated through cybercrime in 2024, hyperscalers such as AWS and Google Cloud have enhanced AI-based anomaly detection and biometric access control. Requirement for intrusion prevention, data loss protection, and real-time monitoring systems for critical infrastructure is growing amid a more harmful environment.
Robust data center security is more critical than ever due to the speeding transition to cloud and edge computing, which has grown attack surfaces. Decentralized data center growth in Europe and Asia-Pacific from 2024 through 2025 required stronger firewalls, microsegmentation, and encryption. The demand for scalable, flexible security systems to enable digital transformation initiatives is brought about by the increasing amount of sensitive information beyond the perimeters.
Costly Advanced Security
Data center security is expensive, particularly for mid-size companies, to have up-to-date data center security, such as encrypted network layers, biometric entry, and AI surveillance. Most companies delay updating because of the high operating and capital costs. Small cloud providers in Southeast Asia cited security cost restraints as the primary obstacle in 2025, preventing universal adoption of advanced solutions and exposing some centers to security risks.
Challenges in Merging Legacy Systems
The existing infrastructure employed by traditional data centers is often not compatible with contemporary security platforms. Employees need to be retrained and networks need to be re-architected in an effort to incorporate AI or zero-trust mechanisms. More than 40% of European businesses in 2024 reported that compatibility problems forced them to implement advanced threat detection later than anticipated, leading to inadequate layers of security and greater operational risks within environments with aging infrastructure.
Request Free Customization of this report to help us to meet your business objectives.
Key players in the highly competitive data center security market are investing in zero-trust design, artificial intelligence, and automation. IBM remained concentrated on hybrid cloud security offerings in 2024, while Cisco introduced encrypted traffic analytics for data centers. For the GDPR and CCPA markets, Oracle placed a strong focus on architecture that is compliance ready. To enhance threat detection functionality and safeguard cloud-native infrastructures, competitors are increasing their geographic presence, establishing cybersecurity alliances, and acquiring firms.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the data center security market is expected to grow steadily on account of edge computing adoption, cloud growth, and increased cyberattacks. It has now become crucial to invest in smart, adaptable security solutions because of mounting operational complexity and regulatory pressures on global companies. As Western economies are putting money into AI-based threat detection, digital transformation is leading Asian-Pacific regions to emerge strongly. Yet, deployment in smaller companies could be limited by prohibitive expense and limitations in existing solutions. Irrespective of this, innovation in zero-trust architecture, biometric control, and AI monitoring is revolutionizing the security landscape and enforcing data protection as a global strategic imperative.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 18.0 billion |
Market size value in 2032 | USD 75.1 billion |
Growth Rate | 17.2% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
|
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 |
|
Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Data Center Security 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 Security 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 Security Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Data Center Security 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.
REQUEST FOR SAMPLE
Global Data Center Security Market size was valued at USD 15.77 Billion in 2023 and is poised to grow from USD 18.42 Billion in 2024 to USD 63.8 Billion by 2032, growing at a CAGR of 16.8% in the forecast period (2025-2032).
The global data center security industry is highly competitive, with leading technology companies and cybersecurity firms adopting advanced strategies to strengthen their market position. Major players such as Cisco Systems, Fortinet, Palo Alto Networks, Check Point Software Technologies, and IBM are leveraging AI-driven security solutions, Zero Trust architectures, and cloud-based security models to protect critical infrastructure. One key strategy in the market is strategic partnerships and acquisitions to expand security capabilities. For example, in March 2024, Palo Alto Networks acquired a cybersecurity AI startup specializing in real-time threat intelligence, enhancing its AI-powered security offerings. Similarly, Cisco has been strengthening its Secure Access Service Edge (SASE) solutions by integrating AI-based security analytics to provide comprehensive protection for hybrid cloud environments. 'Google', 'AMD (Advanced Micro Devices)', 'Datadog', 'Cisco Systems', 'Fortinet', 'CyberArk', 'Thoma Bravo', 'Blackstone Inc.', 'Zayo Group', 'Hewlett Packard Enterprise (HPE)', 'CrowdStrike', 'Sophos'
The increasing frequency and sophistication of cyberattacks have made data center security a top priority for organizations. High-profile breaches in sectors such as healthcare, finance, and government have underscored the need for robust security frameworks. Companies are investing heavily in advanced threat detection, firewalls, and AI-driven cybersecurity solutions to mitigate risks. For example, in 2024, multiple financial institutions enhanced their security measures by adopting AI-powered intrusion detection systems to safeguard sensitive customer data.
AI-Powered Threat Detection and Response: Artificial intelligence is transforming data center security by enabling real-time threat detection, automated responses, and predictive analytics. AI-driven security tools can analyze vast amounts of data to identify suspicious activities, reducing the time required to mitigate cyber threats. In 2024, companies have started deploying AI-powered Security Information and Event Management (SIEM) systems to proactively detect and respond to anomalies before they escalate into major security incidents.
How Is the Rise in Cyber Threats Impacting Data Center Security Demand in North America?
Want to customize this report? This report can be personalized according to your needs. Our analysts and industry experts will work directly with you to understand your requirements and provide you with customized data in a short amount of time. We offer $1000 worth of FREE customization at the time of purchase.
Feedback From Our Clients
Report ID: SQMIG45B2217
[email protected]
USA +1 351-333-4748