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Data Center Market Size Overview: From Historical Performance To The 2030 Forecast
The data center market has demonstrated substantial growth in recent years. It is projected to expand from $299.63 billion in 2025 to $324.25 billion in 2026, achieving a compound annual growth rate (CAGR) of 8.2%. This historical growth can be credited to various elements, such as the increasing pace of enterprise digital transformation, the broader embrace of cloud computing, growing demands for data storage, the proliferation of internet and mobile usage, and advancements in enterprise IT modernization.
The data center market size is anticipated to show significant expansion in the next few years, reaching $460.61 billion by 2030 at a compound annual growth rate (CAGR) of 9.2%. This growth over the forecast period is attributable to factors such as the increasing deployment of AI workloads, the broader use of edge computing cases, the growing demand for sustainable data centers, rising investments in digital infrastructure, and an increasing regulatory focus on data sovereignty. Major trends expected during this forecast period encompass the expansion of hyperscale data center facilities, a rise in the deployment of edge data centers, the growing adoption of modular data center designs, an increased emphasis on energy-efficient infrastructure, and enhanced integration of AI-driven data center management.
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What Factor Is Increasing Demand In The Data Center Market?
The increasing volume of IoT-connected devices is anticipated to drive the expansion of the data center market. IoT-linked devices are defined as non-standard computing units that establish wireless network connections and possess the capability to transmit data. The growing number of IoT devices fuels the need for sophisticated data center solutions, equipped to manage the specific challenges presented by vast data quantities, the necessity for real-time processing, and the demands for scalability and security within the evolving IoT landscape. For example, in November 2022, a report from Ericsson, a Sweden-based telecommunication company, noted that broadband IoT (4G/5G), which links the majority of cellular IoT devices, reached 1.3 billion connections in 2022. It is projected that nearly 60% of cellular IoT connections will be broadband IoT connections by the end of 2028, with 4G connecting the primary share. Therefore, the rising number of IoT-linked devices is a key factor propelling the growth of the data center market.
Which Segments Make Up The Data Center Market?
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 Emerging Trends: What Are Industry Leaders Focusing On?
Leading companies in the data centre market are concentrating on developing modular, liquid-cooled pre-fabricated data centre units. This focus aims to address the increasing demand for swift 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, integrating power, cooling, racks, and monitoring systems, delivered as a complete module instead of being constructed on-site from individual components. 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 enhance energy efficiency, and is factory-assembled and tested, thereby reducing on-site build time and associated costs. Additionally, it offers customizable power/cooling setups and facilitates rapid deployment from edge environments to mid-sized enterprise applications.
Major Companies To Know In The Data Center Market
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 Landscape: Largest Region In 2025
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.
