Delivering more actionable and strategically valuable research, The Business Research Company’s 2026 market reports feature market attractiveness analysis, total addressable market evaluation, company benchmarking matrices, interactive Excel dashboards, expanded supply chain intelligence, emerging startup coverage, and detailed product insights.
Data Center Market Value Analysis: What Growth Is Expected Over The Forecast Period?
The data center market size has experienced strong growth in recent years. It is anticipated to increase from $299.63 billion in 2025 to $324.25 billion in 2026, at a compound annual growth rate (CAGR) of 8.2%. The growth observed in the historic period can be linked to factors such as the expansion of enterprise digital transformation, increased adoption of cloud computing, growing data storage requirements, wider internet and mobile usage, and the rise in enterprise IT modernization.
The data center market is projected to experience substantial expansion in the coming years. By 2030, its value is anticipated to reach $460.61 billion, demonstrating a compound annual growth rate (CAGR) of 9.2%. This expansion throughout the forecast period can be attributed to factors such as the rise in AI workload implementation, the broadening application of edge computing, the increasing need for environmentally friendly data centers, heightened investments in digital infrastructure, and a greater regulatory emphasis on data sovereignty. Key trends expected during this period involve the scaling up of hyperscale data center facilities, the increasing deployment of edge data centers, a greater embrace of modular data center architectures, an intensified commitment to energy-efficient infrastructure, and improved integration of AI-powered data center management.
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Data Center Market Demand Drivers: What Is Fueling Industry Growth?
The increasing prevalence of IoT-linked devices is anticipated to stimulate the expansion of the data center market moving forward. IoT-linked devices are nonstandard computing units that establish wireless connections to a network and possess data transmission capabilities. The rising count of IoT devices necessitates sophisticated data center solutions designed to manage the significant data volumes, the requirement for real-time processing, and the demands for scalability and security within the dynamic IoT environment. For example, in November 2022, a report issued by Ericsson, a Sweden-based telecommunication company, showed that broadband IoT (4G/5G), which connects the majority of cellular IoT devices, attained **1.3 billion** connections in **2022**. It is projected that nearly **60%** of cellular IoT connections will be broadband IoT connections by the conclusion of **2028**, with **4G** accounting for most of these. Hence, the growing number of IoT-linked devices is a primary driver for the data center market’s growth.
Data Center Market Categorization By Product Type And Application
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 Trends Driving Strategic Industry Expansion
Major companies operating in the data centre market are increasingly developing modular, liquid-cooled pre-fabricated data centre units, aimed at addressing the rising demand for rapid deployment, high-density compute, energy efficiency, and edge infrastructure. A modular, liquid-cooled pre-fabricated data centre unit functions as a factory-assembled building block that consolidates power, cooling, racks, and monitoring systems, delivered as a complete module rather than being constructed on-site from scratch. As an illustration, 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 configuration, utilizes chilled-water cooling to boost energy efficiency, and is factory-assembled and tested to reduce on-site build time and cost. It also provides customisable power/cooling configurations and enables swift deployment from edge to mid-sized enterprise settings.
Data Center Market Company Landscape And Strategic Competition
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 Geographic Analysis: Where Is Demand Growing The Fastest?
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.
