The global data center market size was estimated at USD 347.60 billion in 2024 and is projected to reach USD 652.01 billion by 2030, growing at a CAGR of 11.2% from 2025 to 2030. The accelerating adoption of digital transformation strategies, cloud computing, and advanced technologies such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) has significantly driven up global data processing and storage needs.

This surge in demand has led to the substantial expansion of data center infrastructure, enabling organizations to deploy scalable and efficient data management solutions. A notable trend in this space is the increasing reliance on hyperscale and colocation data centers. Leading hyperscale providers including Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are rapidly growing their global data center networks to support the surging need for cloud computing and storage. In parallel, colocation services are gaining traction as companies seek cost-effective alternatives to constructing in-house data centers. These facilities offer benefits such as scalable infrastructure, enhanced connectivity, and robust security—making them highly attractive for optimizing IT operations.

Additionally, the growth of edge computing is playing a pivotal role in the industry’s evolution. With rising data volumes generated by IoT devices and real-time applications, the demand for low-latency data processing is escalating. Edge data centers, positioned close to data sources, are helping reduce latency and improve application performance—especially in critical sectors such as healthcare, autonomous vehicles, and smart cities.

Sustainability is also at the forefront of data center market growth. Operators are increasingly adopting energy-efficient designs, incorporating renewable energy sources, and utilizing advanced cooling solutions to lower environmental impact. Government regulations and sustainability goals are further encouraging the development of green data centers. Meanwhile, technological advancements such as liquid cooling, AI-driven management platforms, and modular designs are improving operational efficiency and reducing overall costs, making modernization more appealing to enterprises.

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Key Market Trends & Insights:

• North America accounted for over 40.0% of the global market share in 2024.

• The U.S. market is projected to grow at a CAGR of 10.7% from 2025 to 2030.

• By component, the hardware segment represented over 67.0% of the total market share in 2024.

• Within hardware, the server segment dominated with a 34.0% revenue share.

• In software, virtualization led the market with a nearly 18.0% share in 2024.

Market Size & Forecast:

• 2024 Market Size: USD 347.60 Billion

• 2030 Projected Market Size: USD 652.01 Billion

• CAGR (2025–2030): 11.2%

• North America: Largest regional market

• Asia Pacific: Fastest-growing region

Key Developments:

• Alibaba Cloud opened its second data center in Thailand (Feb 2025), strengthening local AI capabilities and digital innovation.

• AWS (Dec 2024) launched redesigned infrastructure to support AI and sustainability goals, enhancing compute power and energy efficiency.

• Equinix (May 2024) opened two data centers in Malaysia to boost regional connectivity and meet rising demand.

Leading Companies in the Data Center Market:

• Alibaba Cloud
• Amazon Web Services, Inc.
• AT&T Intellectual Property
• Lumen Technologies (CenturyLink)
• China Telecom Americas, Inc.
• CoreSite
• CyrusOne
• Digital Realty
• Equinix, Inc.
• Google Cloud
• IBM Corporation
• Microsoft
• NTT Communications Corporation
• Oracle
• Tencent Cloud

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Conclusion:

The global data center market is witnessing robust expansion, fueled by the digital economy’s growing appetite for secure, scalable, and high-performance data infrastructure. As technologies like AI, IoT, and edge computing become more mainstream, the need for advanced data center capabilities will continue to rise. Combined with an increasing emphasis on sustainability and innovation, these factors are expected to significantly shape the competitive landscape and drive sustained growth in the market over the forecast period.