PUBLISHER: Grand View Research | PRODUCT CODE: 1790112
PUBLISHER: Grand View Research | PRODUCT CODE: 1790112
Managed Data Center Services Market Summary
The global managed data center services market size was estimated at USD 53.88 billion in 2024 and is projected to reach USD 174.25 billion by 2033, growing at a CAGR of 14.2% from 2025 to 2033. Organizations across industries are increasingly shifting from owning and operating their own data centers to outsourcing their infrastructure needs to managed service providers.
This transformation is driven by the high capital and operational costs associated with building, maintaining, and upgrading in-house data centers. Managed data center services offer businesses scalable solutions where they pay only for the resources they use, optimizing IT expenditure. This is especially beneficial for SMEs and enterprises undergoing digital transformation, as they can quickly scale infrastructure to meet fluctuating demands without the burden of managing physical assets. The growing adoption of cloud and hybrid IT models is also a significant driver for the managed data center services industry. As businesses adopt multi-cloud and hybrid strategies to combine the benefits of public cloud, private cloud, and on-premises systems, the complexity of managing such environments increases. Managed service providers help bridge these gaps by offering seamless integration, security, and monitoring services across heterogeneous environments. This enables businesses to focus on core operations while maintaining robust, compliant, and optimized IT ecosystems.
With the surge in cyberattacks, data breaches, and stricter global data regulations such as GDPR, HIPAA, and India's DPDP Act, organizations are under pressure to ensure high levels of data protection and regulatory compliance. Managed data center providers are investing heavily in advanced security protocols, continuous monitoring, and compliance management tools to address these challenges. By outsourcing to providers with strong cybersecurity frameworks and compliance expertise, businesses can mitigate risks, avoid penalties, and ensure business continuity, making this a critical growth driver for the market. As of January 2025, data from the International Association of Privacy Professionals (IAPP), a U.S.-based global organization focused on privacy, indicates that 144 countries have implemented national data privacy laws. These laws now extend protections to around 6.64 billion individuals, representing 82% of the global population. This marks a notable rise from the 79% coverage reported in the prior update.
Global Managed Data Center Services Market Report Segmentation
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the managed data center services market report based on type, deployment, enterprise size, end use, and region.