PUBLISHER: Orion Market Research | PRODUCT CODE: 1801790
PUBLISHER: Orion Market Research | PRODUCT CODE: 1801790
Mega Data Center Market Size, Share & Trends Analysis Report by Solutions (IT Infrastructure Solutions, Support Infrastructure Solutions, Power Solutions, Cooling Solutions, Security Solutions, Management Software, and Others), by Services (System Integration, Monitoring Services, and Professional Services), by Verticals (Banking Financial Services and Insurance (BFSI), Telecom and IT, Media and Entertainment, Government and Public, Healthcare, Retail, E-commerce, and Others), and by End-User (Cloud Providers, Colocation Providers, and Enterprises), Forecast Period (2025-2035)
Industry Overview
Mega data center market, estimated at $27 billion in 2024, is projected to reach $48 billion, growing at a CAGR of 5.5% during the forecast period (2025-2035). The power of these data centers can range from 10 megawatts (MW) to 100 MW. The market is driven by a significant rise in big data and the increasing adoption of cloud-based services owing to their flexibility and cost-effectiveness. The companies are adopting colocation and cloud services to enhance the flexibility and scalability of their business efficiency and effectiveness.
Market Dynamics
Increasing Global Focus on Cloud Services and Digital Transformation
One of the main factors propelling the growth of the mega data center industry is the exponential rise in cloud computing. Businesses in a variety of sectors are moving to cloud platforms in order to satisfy their need for data management, computing power, and scalable storage. According to a Public First survey of over 3,000 U.S. businesses across various regions and industries, including more than 1,500 cloud users, 51% of U.S. businesses reported that they currently use cloud services in some capacity. Additionally, 21% indicated that they utilize Platform as a Service (PaaS) or Infrastructure as a Service (IaaS) to supplement or replace their IT infrastructure. Cloud services help companies save money by eliminating the need to maintain on-premises infrastructure. Data centers can handle vast amounts of information, enhancing operational efficiency for businesses. These large-scale data centers also provide the necessary space, power, and network bandwidth to facilitate smooth processing and the storage of extensive data loads, which is crucial for large-scale cloud operations.
Rising Adoption of Artificial Intelligence and Machine Learning
The increasing adoption of AI in data centers brings several benefits, including enhanced efficiency in High-Performance Computing (HPC) environments. It improves operational and managerial efficiency as well as resilience. Additionally, AI enhances predictive analytics, which helps automate routine operations, streamline resource management, and strengthen defenses against emerging security threats. Artificial Intelligence for Data Centre Operations (AIOps) is a multi-year, multi-stage collaboration between NREL and Hewlett-Packard Enterprise's Advanced Technology Group with the goal of improving data centre resilience and energy efficiency through automated data collection and AI. Building capabilities for an advanced smart facility and demonstrating data gathering and AI modelling approaches in the Energy Systems Integration Facility (ESIF) data centre are shared objectives of the extended activities under the AIOps project.
Market Segmentation
The BFSI sector is the largest industry that generates a vast amount of data. To manage this data effectively, the industry requires regulation and a structured organization. Data centres play a crucial role in automating various processes by storing customer records, managing employee information, and facilitating transactions. They also support electronic banking services such as remote banking, telebanking, and self-banking. Many banks maintain their data centres; however, it has been observed that the trend is changing due to fluctuations in the banks' profits.
The global mega data center market is further divided by region, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).
North America is expected to hold a major share of the global mega data center market. Advanced IT infrastructure, high demand for cloud services, along with the presence of key technology service providers, are some of the key factors contributing to the regional market growth. For instance, in August 2023, Virginia's Louisa County Board of Supervisors announced that Amazon Web Services (AWS) plans to invest $11 billion to establish two data center campuses in Louisa's Technology Overlay District (TOD) by 2040.
In Northern Virginia, the inventory of data centers is continuously increasing. As of 2023, the region boasts a total capacity of 2,132 megawatts (MW), reflecting a 19.5% growth compared to the same period in 2022. Despite rising construction costs in key markets such as Northern Virginia, Silicon Valley, Dallas/Fort Worth, and Chicago, these areas are experiencing unprecedented levels of new data center construction. Although higher energy prices have not significantly hindered development, the industry is facing some challenges, particularly regarding power availability and infrastructure bottlenecks. Local governments are actively working to resolve permitting and planning backlogs related to transmission projects, especially as utility companies strive to integrate renewable energy into the grid.
The global mega data center market is highly competitive with a significant number of global and regional vendors. Cisco Systems Inc., Dell Technologies Inc., Fujitsu Ltd, Hewlett Packard Enterprise Development LP, and Intel Corp. are some of the market leaders for Mega Data Center. These players are continuously expanding their product offerings to increase their market presence.
Recent Developments