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Data Center Market Size, Value And Growth Trajectory Through 2030
The data center market size has experienced robust expansion in recent years. It is projected to increase from $299.63 billion in 2025 to $324.25 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 8.2%. Historically, this growth can be linked to the rise in enterprise digital transformation, broader adoption of cloud computing, escalating data storage needs, increased internet and mobile usage, and ongoing enterprise IT modernization initiatives.
The data center market is poised for substantial growth over the next few years. Its valuation is predicted to climb to $460.61 billion by 2030, achieving a compound annual growth rate (CAGR) of 9.2%. This expected increase during the forecast period is attributed to several factors, including the rising deployment of AI workloads, the expansion of edge computing use cases, a growing demand for sustainable data centers, increased investments in digital infrastructure, and a heightened regulatory focus on data sovereignty. Significant trends anticipated within this period include the expansion of hyperscale data center facilities, increased deployment of edge data centers, a growing adoption of modular data center designs, an enhanced focus on energy-efficient infrastructure, and improved integration of AI-driven data center management.
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Data Center Market Growth Backed By Core Demand Fundamentals
The growing count of devices linked to the Internet of Things (IoT) is projected to propel the expansion of the data center market in the future. Such devices are non-traditional computing units that establish wireless network connections and are capable of data transmission. The proliferation of IoT devices fuels a need for advanced data center solutions adept at managing the distinct hurdles presented by vast data volumes, the necessity for real-time data handling, and the demands for adaptability and robust security within the progressing IoT environment. As an illustration, a report from Ericsson, a telecommunications firm based in Sweden, indicated that in November 2022, broadband IoT (encompassing 4G/5G), responsible for connecting most cellular IoT devices, attained 1.3 billion connections in 2022. By the close of 2028, almost 60% of cellular IoT connections are expected to be broadband IoT, primarily utilizing 4G technology. Consequently, the expanding deployment of IoT-linked devices is a key factor in the growth of the data center market.
Data Center Market Segment Landscape And Growth Outlook
The data center market covered in this report is segmented –
1) By Type: Colocation, Hyperscale, Edge, Other Types
2) By Component: Solution, Services
3) By Enterprise Size: Large Enterprises, Small And Medium Enterprises (SMEs)
4) By End User: BFSI, IT And Telecom, Government, Energy And Utilities, Other End Users
Subsegments:
1) By Colocation: Retail Colocation, Wholesale Colocation
2) By Hyperscale: Cloud Service Providers, Large-Scale Enterprises
3) By Edge: Micro Data Centers, Mobile Edge Computing
4) By Other Types: Modular Data Centers, Containerized Data Centers, Traditional Data Centers
Data Center Market Growth Trends Reshaping The Competitive Landscape
Major companies operating in the data centre market are increasingly focused on developing modular, liquid-cooled pre-fabricated data centre units, intending to satisfy the growing demand for quick deployment, high-density computing, energy efficiency, and edge infrastructure. A modular, liquid-cooled pre-fabricated data centre unit functions as a factory-assembled building block that integrates power, cooling, racks, and monitoring systems, delivered as a complete module rather than being constructed from scratch on-site. For instance, in November 2023, Vertiv Group Corp., a US-based provider of critical digital infrastructure, launched its SmartMod Max CW modular data centre unit. This unit supports up to 200 kW of IT load in a single module, utilizes chilled-water cooling to boost energy efficiency, and is factory-assembled and tested to reduce on-site build time and cost. It also offers customizable power/cooling configurations and enables rapid deployment from edge to mid-sized enterprise environments.
Data Center Market Competitive Landscape: Who Leads The Industry?
Major companies operating in the data center market are Caterpillar Inc.; Cummins Inc.; ABB Ltd.; Generac Power System Inc.; KOHLER Group; Hitech Power Protection; Rolls Royce Power Systems AG; Aggreko Company; Eaton Corporation; F.G. Wilson; Atlas Copco; Himoinsa SL; MTU Friedrichshafen GmbH; Wärtsilä Corporation; Schneider Electric SE; Siemens AG; Emerson Electric Co.; Socomec Group; Riello UPS; Vertiv Co.; Delta Electronics Inc.; Toshiba Corporation; Fuji Electric Co.Ltd.; Kirloskar Electric Company; Yanmar Co. Ltd.
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Data Center Market Regional Breakdown: Where Is Demand Concentrated?
North America was the largest region in the data center market in 2025. The regions covered in the data center market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
