Data Center Market Global Trends And Revenue Growth Up To 2030

Data Center Market Summary

The global data center market size was estimated at USD 347.60 billion in 2024 and is projected to reach USD 652.01 billion by 2030, growing at a CAGR of 11.2% from 2025 to 2030. The rapid adoption of digital transformation initiatives, cloud computing, and emerging technologies such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) has significantly increased the amount of data generated worldwide. As businesses migrate to cloud platforms, automate processes, and integrate connected devices, the need for advanced data storage, processing power, and efficient IT infrastructure continues to rise.

This growing demand has led to the expansion of data center infrastructure on a global scale, as organizations seek scalable, energy-efficient, and secure solutions to support modern workloads. The market is strongly influenced by the increasing reliance on hyperscale and colocation data centers. Hyperscale operators such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are consistently expanding their data center footprints to serve global enterprises that require reliable cloud computing, high-performance storage, and seamless service availability. These companies are investing heavily in new facilities, advanced networking capabilities, and sustainable operations to meet rising demand.

In parallel, the demand for colocation services is increasing as businesses pursue cost-effective alternatives to building and managing their own data centers. Colocation facilities provide companies with scalable infrastructure, robust connectivity, enhanced physical and network security, and reduced capital expenditure. These advantages make colocation solutions particularly appealing for enterprises looking to streamline IT operations while maintaining strong performance and reliability.

Key Market Trends & Insights

• The data center market in North America held a significant share of over 40.0% in 2024, driven by strong cloud adoption, high digital readiness, and substantial investments in IT modernization.
• The data center market in the U.S. is expected to grow significantly at a CAGR of 10.7% from 2025 to 2030 due to growing cloud service usage, data-intensive applications, and technological innovation.
• Based on component, the hardware segment accounted for the largest market share of over 67.0% in 2024 in the data center market, reflecting continued demand for servers, storage devices, and networking equipment.
• Based on hardware, the server segment dominated the market and accounted for the revenue share of over 34.0% in 2024, supported by the rising need for advanced compute capacity.
• Based on software, the virtualization segment dominated the market and accounted for the revenue share of nearly 18.0% in 2024 due to its role in improving resource utilization and operational efficiency.

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Market Size & Forecast

• 2024 Market Size: USD 347.60 Billion
• 2030 Projected Market Size: USD 652.01 Billion
• CAGR (2025-2030): 11.2%
• North America: Largest market in 2024
• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights

Key players operating in the data center industry are Amazon Web Services (AWS), Inc. Microsoft, Google Cloud, Alibaba Cloud, and Equinix, Inc. The companies are focusing on various strategic initiatives, including new product development, partnerships & collaborations, and agreements to gain a competitive advantage over their rivals. The following are some instances of such initiatives.

• In February 2025, Alibaba Cloud, the digital technology arm of Alibaba Group, opened its second data center in Thailand to meet the growing demand for cloud computing services, particularly for generative AI applications. The new facility enhances local capacity and aligns with the Thai government's efforts to promote digital innovation and sustainable technology. Offering a range of services including elastic computing, storage, databases, security, networking, data analytics, and AI solutions, the data center aims to address industry-specific challenges.
• In December 2024, Amazon Web Services (AWS) introduced redesigned data center infrastructure to accommodate the growing demands of artificial intelligence (AI) and sustainability.  The updates features advancements in liquid cooling, power distribution, and rack design, enabling a sixfold increase in rack power density over the next two years. AWS stated that these enhancements aims to deliver a 12% boost in compute power per site, improve energy efficiency, and enhance system availability.
• In May 2024, Equinix, Inc. launched its first two data centers in Malaysia, with the International Business Exchange (IBX) facilities now operational in Johor and Kuala Lumpur. The facilities are intended to cater to Equinix Inc.'s customers in Malaysia while enhancing regional connectivity.

Key Players

• Alibaba Cloud
• Amazon Web Services, Inc.
• AT&T Intellectual Property
• Lumen Technologies (CenturyLink)
• China Telecom Americas, Inc.
• CoreSite
• CyrusOne
• Digital Realty
• Equinix, Inc.
• Google Cloud
• IBM Corporation
• Microsoft
• NTT Communications Corporation
• Oracle
• Tencent Cloud

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Conclusion

The global data center market is poised for sustained growth as organizations deepen their reliance on cloud computing, automation, and data-driven technologies. Increasing data generation, combined with the need for secure, scalable infrastructure, continues to fuel demand for hyperscale and colocation facilities. Hardware advancements, software optimization, and efficiency-focused innovations are further enhancing data center capabilities. Regions such as North America remain key contributors, while global investments continue to accelerate. As businesses pursue digital transformation and adopt advanced technologies, data centers will remain essential to supporting operational continuity, high-performance computing, and long-term technological progress across all major industries.