Data Center Market is Forecasted to Expand at a CAGR of 12% from 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.

The trend of green data centers has gained high traction, given the increasing need for cost-effective and energy savings along with enhanced efficiency and sustainability. Largely driven by digitization in every industry, data centers are expected to witness potential growth prospects across mature as well as emerging markets. Market participants are leveraging on the megatrend of digitalization. The prime strategy adopted by market frontrunners is enriching their services through value addition at each node of their offerings.

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This newly published and insightful report sheds light on Market Insights of IT Data Center, key dynamics, their impact on the overall value chain from suppliers to end-users and Growth of IT Data Center Market.

As data centers shift toward supporting more digital strategies, their business will depend on the capabilities of the IT ecosystem to underpin new initiatives. The requirement for a more decentralized approach, to address the need for digital business infrastructure, has been recognized by organizations that have embarked on the digital business journey. With the rapid rise in velocity and volume of data, inefficiency increases with regard to streaming information to the data center for processing.

Data Center Market: Installation & Construction Activities Spearhead with Surging Activities of New Data Center Construction
Revenues from the installation & construction of data centers are poised to remain significantly larger than those from consulting & integration services, albeit the latter will present a comparatively higher growth rate through 2028. The construction of new data center space has demonstrated a five-year high. North American Data Centers, a firm that tracks the data center industry in North America, has stated data center projects of nearly 300 megawatts capacity are under construction in the region.

The surge in construction activities of new data centers is underpinned by a five-year high inventory of the industry and reflecting increased confidence in space leases by real estate developers across leading geographic markets.

Revenues from new data centers are likely to surpass US$ 104,000 Mn by 2028-end.
Although data center rebuilds currently account for a significantly lower share of the data center market, an impressive growth rate, even though slightly lower than new data center construction, has been foreseen for data center rebuilds in the upcoming years.

The growth of the data center rebuilds is primarily driven by the hyperscale service providers, who are changing ways an IT space is sold and built. In the meantime, the data center providers are revamping their construction strategies for delivering capacity faster in larger chunks. The ongoing shift of the enterprise IT workloads, moving out of the on-premises data center to purpose-built facilities that are operated by colocation and cloud platforms providers, is the “trend behind the trend”.

Data Center Market: Impressive Momentum for Consulting & Integration of Data Centers
Data center consulting and integration services are likely to record an impressive rise in light of the rising complexity pertaining to the network design requirements. This coupled with the growing need for data centers across a wide range of industrial sectors will continue to augur well for the growth of the data center market in the near future. Revenues from data center consulting & integration are projected to exhibit an impressive 12.5% CAGR through 2028, which is greater than those from installation & construction.

Data center end-user proliferation, in combination with the rise in customizability and versatility in relevant network designs, will continue to be a key growth determinant for data center the market. With data center transformation being one of the top agendas among enterprises, demand for consulting & integration services is high as enterprises seek expertise for aiding their business strategy, planning, and implementation. “Data center service providers that invest in the consulting & integration skills, for supporting the digital initiatives of their customers, will continue to witness robust remunerativeness in the near future,” says a lead Fact.MR analyst.

The data center market will continue to showcase high growth in North America, wherein majority share of the market will continue to be accounted by the U.S. The data center market in Europe will trail that of North America, in terms of revenues; however, revenues from Europe will increase at a comparatively higher rate than those from North America through 2028.

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Key Companies Profiled

• IBM Corporation
• Google LLC
• Equinix, Inc.
• AT&T Inc.
• Apple Inc.
• Cisco Systems Inc.

Key Segments Covered
By Type:

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

By Application:

• Data Centers for IT & Telecom
• Data Centers for BFSI
• Data Centers for Governments
• Data Centers for Healthcare
• Others

By Consulting:

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

By Integration:

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

Competitive Landscape
Major companies have strong customer networks across the globe. Market frontrunners are tech giants with deep pockets, which aids them to invest heavily in development. Additionally, these players offer diversified services that are tailored as per individual customers.

Growth strategies adopted by market participants are agreements & contracts, collaborations, and new product developments to withstand their market position.

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