Market Overview:
The Global Data Center Market size is expected to grow from USD 246.71 billion in 2022 to USD 364.50 billion by 2030, at a CAGR of 5 % during the forecast period (2023-2030).
A data center is a physical location where the organization's vital data and applications are managed. A network of computer and storage resources that enables the storing and delivery of shared applications and data is the foundation of a data center. There have been many improvements made to the infrastructure since the design of modern data centers was first developed. Traditional on-premises physical servers are being replaced with virtual networks that can handle a large amount of workload and can be managed in a cloud environment.
Top Key Players for Data Center Market:
Coresite (USA), QTS Realty Trust, Inc (USA), China Telecom (China), Interxion Holding N.v. (Netherlands), NTT Communications (Japan), IBM Corporation (USA), Amazon Web Services (USA), CyrusOne Inc (USA), Equinix (USA), Digital Realty (USA), Cyxtera Technologies (USA), Iron Mountain Inc (USA), KAO Data Campus (UK) and Other Major Players.
Market Dynamics and Factors for Data Center Market:
Drivers:
An Enormous Increase in Data Generation, Storage, and Consumption
The exponential surge in data consumption, generation, and storage has catalyzed the Data Center Market's expansion. As digital activities and technologies advance, businesses and individuals require colossal data processing capabilities, propelling demand for data center infrastructure. These centers accommodate the influx of data, delivering seamless online experiences, enabling AI-driven insights, and supporting cloud services. With the proliferation of IoT devices, streaming services, and data-intensive applications, the need for robust data centers intensifies, fostering market growth to meet escalating data demands effectively.
Opportunities:
Growing Need to Improve Data Center Performance to Raise Overall Reliability of Data Centers and Growing Demand for Modern Data Centers
The escalating requirement for advanced data centers, coupled with the imperative to enhance performance, presents a significant opportunity in the Data Center Market. As industries embrace digital transformation, the demand for high-speed, scalable, and efficient data centers surges. This trend creates openings for innovative solutions that optimize data processing, reduce latency, and bolster overall reliability. Meeting these demands ensures seamless operations, higher uptime, and improved user experiences. Consequently, companies investing in developing and upgrading data centers stand to capitalize on the growing market need for reliable, high-performance infrastructure in the digital age.
Segmentation Analysis of the Data Center Market:
By Type, Cloud-based data centers are dominating the Data Center Market due to their scalability, cost-efficiency, and flexibility. They enable businesses to outsource their IT infrastructure, reducing maintenance and upfront expenses. This model accommodates growing data demands, supports remote work, and offers streamlined services, attracting enterprises seeking agile solutions to manage and store their data effectively in a rapidly evolving digital landscape.
By End-User, The IT & Telecom segment is thriving in the Data Center Market as the digitalization of industries drives demand for data storage and processing. With expanding online services, 5G deployment, and IoT integration, IT & Telecom companies require robust data centers to ensure efficient operations, low latency, and seamless user experiences.
Regional Analysis of the Data Center Market:
North America covers a majority of the share in Global Data Center Market revenue. Last year, the North American region dominated the market with over 40% of the market share. This is by and large attributed to several cloud service providers operating in the region. Moreover, rising e-commerce sales in the United States and Canada are responsible for regional market expansion. U.S. serves as a home for many giant IT firms, such as Google, Facebook, Uber, Twitter, etc., and hence has a highly advanced, extensive, and efficient technological infrastructure which leads to high demand for modern next-generation data centers that are more technologically advanced and efficient in managing a large amount of data.
Key Industry Development:
In December 2022, Equinix, Inc., the world's leading digital infrastructure company, announced its plans to enter the South African market with an investment of US$160 million in data center investment in JOHANNESBURG. Equinix is entering one of the largest and most digitally developed nations on the African continent. Earlier this year Equinix also had the acquisition of MainOne, the leading West African data center and connectivity solutions provider.
Regional Outlook (Revenue in USD Million; Volume in Units, 2023-2030)
North America
- The U.S.
- Canada
- Mexico
Eastern Europe
- Russia
- Bulgaria
- The Czech Republic
- Hungary
- Poland
- Romania
- Rest of Eastern Europe
Western Europe
- Germany
- UK
- France
- Netherlands
- Italy
- Spain
- Rest of Western Europe
Asia Pacific
- China
- India
- Japan
- Singapore
- Australia
- New-Zealand
- Rest of APAC
Middle East & Africa
- Turkey
- Saudi Arabia
- Qatar
- UAE
- Israel
- South Africa
South America
- Brazil
- Argentina
- Rest of SA
