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Data Center Renovation Market Revenue Growth On Track For A 27.9% CAGR Through 2030
The data center renovation market has seen substantial expansion in its size during recent years. Its value is projected to climb from $36 billion in 2025 to $45.98 billion in 2026, demonstrating a compound annual growth rate (CAGR) of 27.7%. The market’s historical growth can be attributed to factors such as aging data center infrastructure, increasing energy consumption, the expanding data needs of enterprises, the necessity to comply with uptime standards, and the proliferation of digital services.
The data center renovation market size is projected to experience substantial growth in the coming years. It will grow to $123 billion in 2030 at a compound annual growth rate (CAGR) of 27.9%. This expansion during the forecast period can be attributed to factors such as the increasing intensity of AI workloads, retrofits driven by sustainability goals, the wider adoption of liquid cooling, the rising demand for operational efficiency, and the proliferation of hybrid data centers. Furthermore, major trends anticipated in this period include upgrades to energy-efficient cooling, modernization of power infrastructure, the implementation of modular data center designs, DCIM integration projects, and the optimization of high-density racks.
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Data Center Renovation Market Demand Drivers Opening New Revenue Streams
The data center renovation market is anticipated to expand due to the escalating adoption of online services. This rise in online service utilization across diverse applications like payments, shopping, travel, entertainment, and medical services will lead to a surge in global data traffic across various industries. Consequently, leaders in the data center renovation market will be prompted to upgrade their existing back-end IT infrastructure to effectively manage these evolving market demands. A notable example illustrating this trend is the report from the International Telecommunication Union, a Switzerland-based United Nations agency for information and communication technologies, which stated that in September 2023, 67% of the world’s population, or 5.4 billion people, were actively using the Internet. This represents an increase from 5.3 billion people, or 66% of the world’s population, in 2022. This consistent growth in online service adoption is thus a primary catalyst for the expansion of the data center renovation market.
Data Center Renovation Market Segment Landscape And Growth Outlook
The data center renovation market covered in this report is segmented –
1) By Product: Cooling, Power, IT Racks And Enclosures, Networking Equipment, DCIM, Other Products
2) By Organization Size: Small Size Organization, Medium Size Organization, Large Size Organization
3) By Application: BFSI, IT And Telecom, Manufacturing, Government, Healthcare, Other Applications
Subsegments:
1) By Cooling: Air Conditioning Units (CRAC Or CRAH), Liquid Cooling Systems, In-Row Cooling, Free Cooling (Economizer), Hot Aisle Or Cold Aisle Containment Systems
2) By Power: Uninterruptible Power Supply (UPS) Systems, Backup Generators, Power Distribution Units (PDUs), Batteries and Energy Storage Solutions, Power Management Systems
3) By IT Racks And Enclosures: Server Racks, Rack Cabinets, Modular Racking Systems, Custom IT Enclosures
4) By Networking Equipment: Routers And Switches, Fiber Optic Cables And Connectors, Network Interface Cards (NICs), Firewalls And Load Balancers
5) By DCIM (Data Center Infrastructure Management): Monitoring And Management Software, Environmental Monitoring Tools (Temperature, Humidity Sensors), Asset Tracking And Management Systems, Energy Management Solutions
6) By Other Products: Fire Suppression Systems, Security Systems (Access Control, Surveillance), Cable Management Solutions, Environmental Sensors (Water, Smoke Detection), Physical Security Barriers
Data Center Renovation Market Trends Powering Strategic Industry Growth
Leading companies in the data center renovation market are introducing vertical data centers to boost their profitability. A vertical data center, within the context of data center renovation, represents a design or architectural approach that maximizes the efficient utilization of vertical space within a data center facility. For instance, in May 2023, Scala Data Centers, a Brazil-based data center provider, inaugurated its 6MW IT SGRUTB05 data center, which stands as the second-largest vertical facility in Latin America. SGRUTB05 features a built area of 6,700 sqm, measures 35.5 meters in height with five floors, three of which are dedicated to high-density data halls accommodating around 400 racks and providing a total power of nearly 9MW. Scala’s One Scala Template methodology, implemented by a Center of Excellence (CoE) comprising over 200 experts, optimized the design, project, construction, and commissioning processes for this data center, addressing the demands of the Hyperscale market. SGRUTB05 operates exclusively on renewable energy, boasts a PUE under 1.4, achieves zero WUE, and adheres to LEED and ANSI/TIA-942-B eco-friendly data center standards.
Data Center Renovation Market Competitive Landscape: Who Leads The Industry?
Major companies operating in the data center renovation market are Equinix; Digital Realty; NTT Communications; Iron Mountain; CyrusOne; QTS Realty Trust; DataBank; Flexential; STACK Infrastructure; CoreSite Realty; Aligned Data Centers; CloudHQ; Switch; RagingWire Data Centers; Evoque Data Center Solutions; Compass Datacenters; T5 Data Centers; Cologix; Vantage Data Centers; EdgeConneX
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Data Center Renovation Market Regional Split: Which Areas Are Fueling Growth?
South America was the largest region in the data center renovation market in 2025. North America was the second largest region of the data center renovation market. The regions covered in the data center renovation 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.
