Data Center Market

Data Center Market Outlook (2024 to 2034)

The global data center market is set to reach a value of US$ 125.7 billion in 2024 and expand swiftly at a CAGR of 12% to end up at US$ 390.4 billion by the year 2034.

A data center is a physical location within an organization that is used to share IT resources and tools for processing, storing, and sharing information and applications. An enterprise's data center is built on a network of computer programs and storage options designed to exchange data and information. Global data center market expansion is being driven by the transition from traditional on-premise physical servers to virtual network-based data centers, made possible by the advancements in multi-cloud computing.

Because of the increase in data center complexity brought about by scalability, the data center industry is expected to develop significantly over the coming years. The market is set to surge in the years ahead due to the increasing adoption of high-end cloud computing in organizations, particularly in emerging economies. Furthermore, it is expected that rising investments in data center applications worldwide will fuel the expansion of the data center market size.

Over the projected period, a surging number of Internet of Things devices as well as hybrid and multi-cloud architectural solutions will present profitable potential in the data center market growth. To improve their operations and storage capabilities, contemporary data centers also use private or public cloud computing solutions to expand outside of a physical infrastructure. More importantly, servers in virtualized data centers are intended to be used remotely for heavy workload tasks.

Demand for green data centers is rising internationally as more companies embrace energy-efficient solutions in response to the growing emphasis on improving sustainability. The high need for green data centers has evolved due to increased pressure from governmental and regulatory agencies to enact strict laws and regulations to safeguard the environment and achieve environmental sustainability. This will increase demand for the market as a whole over the coming years. To reduce their reliance on non-renewable fossil fuels, green data centers primarily employ electricity generated by renewable energy sources such as solar, wind, and hydroelectric power. For operators of data centers, energy-efficient technologies result in considerable cost savings.

Report Attribute	Detail
Data Center Market Size (2024E)	US$ 125.7 Billion
Forecasted Market Value (2034F)	US$ 390.4 Billion
Global Market Growth Rate (2024 to 2034)	12% CAGR
Canada Market Growth Rate (2024 to 2034)	11.9% CAGR
China Market Value (2034F)	US$ 46.4 Billion
North America Market Share (2024E)	31%
East Asia Market Share (2034F)	25%
Key Companies Profiled	IBM Corporation; Google LLC; Equinix, Inc.; AT&T Inc.; Apple Inc.; Cisco Systems Inc.; Alphabet Inc.; Microsoft Corporation; NTT Communications Corporation; Oracle Corporation; SAP SE.

Which Market Trends are Becoming Profitable for Data Center Companies?

“Growing Requirement for Data Center Uptime and Energy Efficiency”

The main cause of sudden large losses, brand harm, decreased productivity, and possible data loss of companies has been outages or downtimes in their operations.

• 50% of participants in the 2019 Uptime Institute global data center study reported experiencing an outage or significant decline in IT services over the previous three years. Over 37% of respondents to the Uptime Institute's 2020 research cited power failure as a major source of disruptions.

For a considerable time, the most frequent cause of network or data center failures has been power supply problems. To reduce the environmental effect of data center power use, several governments have introduced PUE limitations in response to the rising demand for energy in data centers and the declining PUE. As a result, many businesses use contemporary data center infrastructure techniques to boost resilience, availability, agility, and power efficiency.

DCIM aids in workflow management, asset information gathering, node monitoring, network and power connectivity tracking, and uptime prevention in data centers. Availability and energy efficiency of data centers are enhanced by proactive maintenance and timely troubleshooting, which also complies with new energy laws and boost overall performance.

What is Becoming a Hurdle in the Path of Market Growth?

“Serious Data Security and Privacy Concerns”

More organizations are moving their data to cloud environments and modernizing their infrastructures; thus, it becomes crucial to guarantee sensitive information availability, confidentiality, and integrity. Risks of data breaches, illegal access, and regulatory non-compliance are the highest during these shifts.

Achieving a delicate equilibrium between a smooth transition and strong security protocols necessitates careful planning, strict encryption, access restrictions, and compliance with changing data protection laws. Inadequately addressing these issues might result in ruined consumer trust, legal troubles, and reputational harm, all of which would seriously impede the advancement of the data center transformation project. Businesses frequently collaborate with outside providers on several facets of data center transformation.

To reduce the danger to third parties, providers need to abide by security guidelines and data privacy laws. Additionally, to safeguard sensitive and private data while transferring it between on-premise and cloud environments, enterprises need to follow uniform data handling procedures. Different data must adhere to particular geographic restrictions, as per various rules. All this makes handling of data extremely important.

Country-wise Insights

The United States and China are key markets for data centers. Japan is forecast to account for a data center market share of 29.4% in East Asia by the end of 2034.

What Makes the United States a High-profit Market?

“Presence of Big Corporations Such as Apple and Microsoft”

Attribute	United States
Market Value (2024E)	US$ 17.3 Billion
Growth Rate (2024 to 2034)	11.9% CAGR
Projected Value (2034F)	US$ 53.4 Billion

Because large firms such as Apple and Microsoft are so prevalent in the U.S., the industry is still extremely profitable. With their cutting-edge technologies and services, these IT behemoths help to boost the market and generate a lot of chances for investment and growth. Their effect affects many industries and adds to the nation's overall economic success, extending beyond the technology industry.

The established reputation and worldwide presence of corporations such as Apple and Microsoft are important in maintaining the United States as a profitable market for enterprises operating in the country, drawing in both foreign and domestic investments.

How is the Market for Data Centers Evolving in Japan?

“Increasing Scope of Machinery, Robotics, and Medical & Scientific Research”

Attribute	Japan
Market Value (2024E)	US$ 8.4 Billion
Growth Rate (2024 to 2034)	13.1% CAGR
Projected Value (2034F)	US$ 28.7 Billion

Japan is considered a data center powerhouse, consisting of numerous data center clusters offering several colocation opportunities. Significant opportunities are there in the country in the data center space, given its lucrativeness in the fields of technology, machinery, robotics, medical and scientific research, and machinery.

Category-wise Insights

Based on application, the government segment is projected to expand at a CAGR of 9.9% between 2024 and 2034.

Which Type of Data Center is Becoming More Prominent in the Industry?

“New Data Centers Gaining Immense Popularity”

Attribute	New Data Center
Segment Value (2024E)	US$ 90.5 Billion
Growth Rate (2024 to 2034)	11.4%CAGR
Projected Value (2034F)	US$ 265.5 Billion

New data centers, especially green data centers, are gaining popularity in the sector and are starting to stand out among competitors. This novel method of managing data is attracting a lot of attention and has the potential to completely change how data centers function. In addition to changing the industry, the idea offers several advantages in terms of efficacy, affordability, and scalability.

Where is Application of Data Centers Extremely High?

“IT & Telecom Industry Reliance on Data Centers for Efficient Services”

Attribute	IT & Telecom
Segment Value (2024E)	US$ 45.2 Billion
Growth Rate (2024 to 2034)	10.7% CAGR
Projected Value (2034F)	US$ 124.9 Billion

Data centers are widely used by IT and telecom companies to deliver effective services. Large-scale information management and processing depend heavily on these data centers. The industry needs to guarantee dependable and high-performing apps and services for users. Utilizing data centers facilitates effective service delivery, data storage, and smooth communication, all of which assist the operations and expansion of the sector.

Market Condition

Key players in the data center industry have strong customer networks across the globe. Market frontrunners are tech giants with deep pockets, which aids them in investing heavily in development. Additionally, leading companies are offering diversified services that are tailored to individual customers.

Key growth strategies adopted by market participants are agreements & contracts, collaborations, and new product developments to withstand their market position. Keeping abreast of important data center market trends such as big data collection and data analytics is the need of the hour.

• With the release of IBM Turbonomic version 8.9.6, in August 2023, IBM revealed the launch of its new Turbonomic Reporting Dashboards, which are presently available to Turbonomic SaaS clients. The enhanced reporting dashboards in IBM Turbonomic provide detailed insights into supply chain usage and application performance.
• Microsoft said in June 2023 that its first cloud region will soon be accessible in Italy, giving Italian businesses access to scalable, reliable, and available cloud services and reaffirming its dedication to fostering sustainable innovation and digital transformation in the nation.
• Microsoft and SAP joined hands together in February 2023 to introduce RISE with SAP in Microsoft's hyperscale cloud data center area in Qatar.

Fact.MR provides detailed information about the price points of key data center providers positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Key Segments of Data Center Market Research

• By Type :

  • New Data Centers
    • Internal Data Centers
    • Service Provide Data Centers
  • Data Center Rebuild

• By Application :

  • IT & Telecom
  • BFSI
  • Government
  • Healthcare
  • Others

• By Consulting :

  • Network Design
  • Network Design & Planning
  • Security Consulting
  • Network Analysis
  • Benchmarking
  • Needs Assistant
  • Operation Assessment
  • Process Improvement

• By Integration :

  • Project Management
  • Installation
  • Test & Debug
  • Custom Software Development
  • Security Implementation
  • Change Management
  • System Configuration
  • Training & Site Preparation

• By Region :

  • North America
  • Latin America
  • Eastern Europe
  • Western Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa