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Which Factors Will Shape The Data Center Renovation Market Size Through 2030?
The data center renovation market has expanded significantly in recent years. Its valuation is expected to rise from $36 billion in 2025 to $45.98 billion in 2026, achieving a compound annual growth rate (CAGR) of 27.7%. Historically, this market’s growth has been driven by factors such as aging data center infrastructure, increasing energy consumption, the expanding data needs of enterprises, the necessity of complying with uptime standards, and the broadening of digital services.
The data center renovation market size is expected to experience substantial growth in the upcoming years. It is projected to reach $123 billion in 2030, demonstrating a compound annual growth rate (CAGR) of 27.9%. The expansion during the forecast period can be attributed to the rising intensity of AI workloads, sustainability-focused retrofits, the increasing adoption of liquid cooling, a greater demand for operational efficiency, and the growth in hybrid data centers. Significant trends anticipated for this period include upgrades to energy-efficient cooling, modernization of power infrastructure, modular data center design, DCIM integration projects, and high-density rack optimization.
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What Is Propelling The Data Center Renovation Market Toward $123 Billion By 2030?
The expanding utilization of online services is projected to drive the data center renovation market’s future growth. A rise in the adoption of online services for activities such as payments, shopping, travel, entertainment, and medical uses will lead to a surge in total data traffic across various industries. This development will prompt leaders in the data center renovation market to update their back-end IT infrastructure to manage the continuous market shifts. As an illustration, in September 2023, data from the International Telecommunication Union, a Switzerland-based United Nations agency focused on information and communication technologies, revealed that 67% of the global population, equivalent to 5.4 billion individuals, were actively using the Internet, an increase from 5.3 billion people (66% of the world’s population) in 2022. Consequently, the expanding utilization of online services is a key driver for the data center renovation market’s expansion.
What Are The Key Segments And Subsegments In The Data Center Renovation Market?
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 Behind The 27.9% CAGR Forecast
Major companies operating in the data center renovation market are launching vertical data centers to increase their profitability. In the context of data center renovation, a vertical data center refers to a design or architectural approach that maximizes the efficient use of vertical space within a data center facility. For instance, in May 2023, Scala Data Centers, a Brazil-based data center provider, launched the 6MW IT SGRUTB05 data center, which is the second-largest vertical facility in Latin America. SGRUTB05 boasts a 6,700 sqm built area, stands 35.5 meters tall with five floors, three of which are dedicated to high-density data halls housing around 400 racks and a total power of nearly 9MW. Scala’s One Scala Template methodology, executed by a CoE comprising over 200 experts, streamlined the design, project, construction, and commissioning processes for the data center, catering to Hyperscale market demands. SGRUTB05 operates exclusively on renewable energy, boasts a PUE under 1.4, zero WUE, and adheres to LEED and ANSI/TIA-942-B eco-friendly data center standards.
Major Companies Profiled In The Data Center Renovation Market Report
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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Where Does The Data Center Renovation Market Generate The Most Revenue?
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.
