AI Data Center Market Size, Share, Trends, Industry Analysis Report: By Component (Hardware and Software), By Data Center Type, By Industry, and By Region

Description

List of Tables

The AI data center market size is expected to reach USD 153.23 billion by 2034, according to a new study by Polaris Market Research. The report "By Component (Hardware and Software), Data Center Type, Industry, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Market Forecast, 2025-2034" gives a detailed insight into current market dynamics and provides analysis on future market growth.

An AI data center is a specialized facility designed to support the high-performance computing, storage, and networking needs required to run artificial intelligence and machine learning workloads efficiently.

Advancements in AI hardware are driving the demand for AI data centers. AI tasks require specialized hardware that can handle complex calculations at high speeds. Over the years, new and more powerful chips, such as Graphics Processing Units (GPUs), Tensor Processing Units (TPUs), and custom-built AI processors, have been developed to meet this need. These hardware innovations enable AI models to train more quickly and operate more efficiently. To fully benefit from these technologies, data centers are being redesigned to support and cool high-performance chips, driving the need for modern, AI-ready facilities with advanced infrastructure. This, in turn, is fueling the growth of the AI data center market.

AI workloads consume a significant amount of power, particularly when training large models or running data-intensive applications. This raises both environmental concerns and operational costs for companies. To tackle this, AI data centers are implementing energy-efficient solutions, including liquid cooling systems, optimized rack designs, and smart power management tools. These changes help reduce electricity use, lower carbon emissions, and improve overall performance. Sustainability is becoming a priority, especially as governments and organizations push for greener operations. This focus on energy efficiency is encouraging the growth of AI-specific data centers, which are built with sustainability in mind.

AI Data Center Market Report Highlights

In 2024, the hardware segment dominated the AI data center market due to the critical role that high-performance computing hardware, such as GPUs, TPUs, and AI-optimized processors, plays in supporting AI workloads.

The hyperscale data center segment is expected to witness the fastest growth during the forecast period due to growing data traffic worldwide.

In 2024, North America dominated the market, driven by the region's strong technological infrastructure and early adoption of AI applications.

Asia Pacific is expected to record a significant share during the forecast period, fueled by the increasing demand for AI applications in countries such as China, Japan, and South Korea.

The global key market players are Amazon Web Service.; CyrusOne; Digital Realty Trust, Inc.; Equinix, Inc.; IBM; Intel Corporation; Microsoft Corporation; NTT Communications; NVIDIA Corporation; Oracle Corporation; QTS Realty Trust, LLC; and Stack Infrastructure.

Polaris Market Research has segmented AI data center market report based on component, data center type, industry, and region:

By Component (Revenue - USD Billion, 2020-2034)

Hardware

Software

By Data Center Type (Revenue - USD Billion, 2020-2034)

Hyperscale Data Center

Colocation Data Center

Edge Data Center

Others

By Industry (Revenue - USD Billion, 2020-2034)

Healthcare

Retail

IT and Telecom

BFSI

Automotive

Media & Entertainment

Manufacturing

Others

By Regional Outlook (Revenue - USD Billion, 2020-2034)

North America

Canada

Mexico

Europe

Germany

France

Italy

Spain

Netherlands

Russia

Rest of Europe

Asia Pacific

China

Japan

India

Malaysia

South Korea

Indonesia

Australia

Rest of Asia Pacific

Middle East & Africa

Saudi Arabia

UAE

Israel

South Africa

Rest of Middle East & Africa

Latin America

Brazil

Argentina

Rest of Latin America

Product Code: PM5622

1. Introduction

1.1. Report Description
- 1.1.1. Objectives of the Study
- 1.1.2. Market Scope
- 1.1.3. Assumptions
1.2. Stakeholders

2. Executive Summary

2.1. Market Highlights

3. Research Device Methodology

3.1. Overview
- 3.1.1. Data Mining
3.2. Data Sources
- 3.2.1. Primary Sources
- 3.2.2. Secondary Sources

4. Global AI Data Center Market Insights

4.1. AI Data Center Market - Market Snapshot
4.2. AI Data Center Market Dynamics
- 4.2.1. Drivers and Opportunities
  - 4.2.1.1. Government Incentives
  - 4.2.1.2. Rising Data Volume
- 4.2.2. Restraints and Challenges
  - 4.2.2.1. High Initial Cost
4.3. Porter's Five Forces Analysis
- 4.3.1. Bargaining Power of Suppliers (Moderate)
- 4.3.2. Threats of New Entrants: (Low)
- 4.3.3. Bargaining Power of Buyers (Moderate)
- 4.3.4. Threat of Substitute (Moderate)
- 4.3.5. Rivalry among existing firms (High)
4.4. PESTEL Analysis
4.5. AI Data Center Market Trends
4.6. Value Chain Analysis

5. Global AI Data Center Market, by Component

5.1. Key Findings
5.2. Introduction
- 5.2.1. Global AI Data Center Market, by Component, 2020-2034 (USD billion)
5.3. Hardware
- 5.3.1. Global AI Data Center Market, by Hardware, by Region, 2020-2034 (USD billion)
5.4. Software
- 5.4.1. Global AI Data Center Market, by Software, by Region, 2020-2034 (USD billion)

6. Global AI Data Center Market, by Data Center Type

6.1. Key Findings
6.2. Introduction
- 6.2.1. Global AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
6.3. Hyperscale Data Center
- 6.3.1. Global AI Data Center Market, by Hyperscale Data Center, by Region, 2020-2034 (USD billion)
6.4. Colocation Data Center
- 6.4.1. Global AI Data Center Market, by Colocation Data Center, by Region, 2020-2034 (USD billion)
6.5. Edge Data Center
- 6.5.1. Global AI Data Center Market, by Edge Data Center, by Region, 2020-2034 (USD billion)
6.6. Others
- 6.6.1. Global AI Data Center Market, by Others, by Region, 2020-2034 (USD billion)

7. Global AI Data Center Market, by Industry

7.1. Key Findings
7.2. Introduction
- 7.2.1. Global AI Data Center Market, by Industry, 2020-2034 (USD billion)
7.3. Healthcare
- 7.3.1. Global AI Data Center Market, by Healthcare, by Region, 2020-2034 (USD billion)
7.4. Retail
- 7.4.1. Global AI Data Center Market, by Retail, by Region, 2020-2034 (USD billion)
7.5. IT and Telecom
- 7.5.1. Global AI Data Center Market, by IT and Telecom, by Region, 2020-2034 (USD billion)
7.6. BFSI
- 7.6.1. Global AI Data Center Market, by BFSI, by Region, 2020-2034 (USD billion)
7.7. Automotive
- 7.7.1. Global AI Data Center Market, by Automotive, by Region, 2020-2034 (USD billion)
7.8. Media & Entertainment
- 7.8.1. Global AI Data Center Market, by Media & Entertainment, by Region, 2020-2034 (USD billion)
7.9. Manufacturing
- 7.9.1. Global AI Data Center Market, by Manufacturing, by Region, 2020-2034 (USD billion)
7.10. Others
- 7.10.1. Global AI Data Center Market, by Others, by Region, 2020-2034 (USD billion)

8. Global AI Data Center Market, by Geography

8.1. Key Findings
8.2. Introduction
- 8.2.1. AI Data Center Market Assessment, By Geography, 2020-2034 (USD billion)
8.3. AI Data Center Market - North America
- 8.3.1. North America: AI Data Center Market, by Component, 2020-2034 (USD billion)
- 8.3.2. North America: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
- 8.3.3. North America: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.3.4. AI Data Center Market - U.S.
  - 8.3.4.1. U.S.: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.3.4.2. U.S.: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.3.4.3. U.S.: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.3.5. AI Data Center Market - Canada
  - 8.3.5.1. Canada: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.3.5.2. Canada: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.3.5.3. Canada: AI Data Center Market, by Industry, 2020-2034 (USD billion)
8.4. AI Data Center Market - Europe
- 8.4.1. Europe: AI Data Center Market, by Component, 2020-2034 (USD billion)
- 8.4.2. Europe: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
- 8.4.3. Europe: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.4.4. AI Data Center Market - UK
  - 8.4.4.1. UK: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.4.4.2. UK: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.4.4.3. UK: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.4.5. AI Data Center Market - France
  - 8.4.5.1. France: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.4.5.2. France: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.4.5.3. France: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.4.6. AI Data Center Market - Germany
  - 8.4.6.1. Germany: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.4.6.2. Germany: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.4.6.3. Germany: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.4.7. AI Data Center Market - Italy
  - 8.4.7.1. Italy: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.4.7.2. Italy: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.4.7.3. Italy: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.4.8. AI Data Center Market - Spain
  - 8.4.8.1. Spain: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.4.8.2. Spain: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.4.8.3. Spain: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.4.9. AI Data Center Market - Netherlands
  - 8.4.9.1. Netherlands: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.4.9.2. Netherlands: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.4.9.3. Netherlands: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.4.10. AI Data Center Market - Russia
  - 8.4.10.1. Russia: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.4.10.2. Russia: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.4.10.3. Russia: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.4.11. AI Data Center Market - Rest of Europe
  - 8.4.11.1. Rest of Europe: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.4.11.2. Rest of Europe: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.4.11.3. Rest of Europe: AI Data Center Market, by Industry, 2020-2034 (USD billion)
8.5. AI Data Center Market - Asia Pacific
- 8.5.1. Asia Pacific: AI Data Center Market, by Component, 2020-2034 (USD billion)
- 8.5.2. Asia Pacific: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
- 8.5.3. Asia Pacific: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.5.4. AI Data Center Market - China
  - 8.5.4.1. China: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.5.4.2. China: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.5.4.3. China: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.5.5. AI Data Center Market - India
  - 8.5.5.1. India: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.5.5.2. India: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.5.5.3. India: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.5.6. AI Data Center Market - Malaysia
  - 8.5.6.1. Malaysia: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.5.6.2. Malaysia: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.5.6.3. Malaysia: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.5.7. AI Data Center Market - Japan
  - 8.5.7.1. Japan: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.5.7.2. Japan: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.5.7.3. Japan: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.5.8. AI Data Center Market - Indonesia
  - 8.5.8.1. Indonesia: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.5.8.2. Indonesia: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.5.8.3. Indonesia: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.5.9. AI Data Center Market - South Korea
  - 8.5.9.1. South Korea: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.5.9.2. South Korea: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.5.9.3. South Korea: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.5.10. AI Data Center Market - Australia
  - 8.5.10.1. Australia: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.5.10.2. Australia: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.5.10.3. Australia: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.5.11. AI Data Center Market - Rest of Asia Pacific
  - 8.5.11.1. Rest of Asia Pacific: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.5.11.2. Rest of Asia Pacific: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.5.11.3. Rest of Asia Pacific: AI Data Center Market, by Industry, 2020-2034 (USD billion)
8.6. AI Data Center Market - Middle East & Africa
- 8.6.1. Middle East & Africa: AI Data Center Market, by Component, 2020-2034 (USD billion)
- 8.6.2. Middle East & Africa: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
- 8.6.3. Middle East & Africa: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.6.4. AI Data Center Market - Saudi Arabia
  - 8.6.4.1. Saudi Arabia: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.6.4.2. Saudi Arabia: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.6.4.3. Saudi Arabia: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.6.5. AI Data Center Market - UAE
  - 8.6.5.1. UAE: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.6.5.2. UAE: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.6.5.3. UAE: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.6.6. AI Data Center Market - Israel
  - 8.6.6.1. Israel: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.6.6.2. Israel: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.6.6.3. Israel: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.6.7. AI Data Center Market - South Africa
  - 8.6.7.1. South Africa: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.6.7.2. South Africa: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.6.7.3. South Africa: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.6.8. AI Data Center Market - Rest of Middle East & Africa
  - 8.6.8.1. Rest of Middle East & Africa: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.6.8.2. Rest of Middle East & Africa: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.6.8.3. Rest of Middle East & Africa: AI Data Center Market, by Industry, 2020-2034 (USD billion)
8.7. AI Data Center Market - Latin America
- 8.7.1. Latin America: AI Data Center Market, by Component, 2020-2034 (USD billion)
- 8.7.2. Latin America: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
- 8.7.3. Latin America: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.7.4. AI Data Center Market - Mexico
  - 8.7.4.1. Mexico: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.7.4.2. Mexico: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.7.4.3. Mexico: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.7.5. AI Data Center Market - Brazil
  - 8.7.5.1. Brazil: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.7.5.2. Brazil: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.7.5.3. Brazil: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.7.6. AI Data Center Market - Argentina
  - 8.7.6.1. Argentina: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.7.6.2. Argentina: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.7.6.3. Argentina: AI Data Center Market, by Industry, 2020-2034 (USD billion)
- 8.7.7. AI Data Center Market - Rest of Latin America
  - 8.7.7.1. Rest of Latin America: AI Data Center Market, by Component, 2020-2034 (USD billion)
  - 8.7.7.2. Rest of Latin America: AI Data Center Market, by Data Center Type, 2020-2034 (USD billion)
  - 8.7.7.3. Rest of Latin America: AI Data Center Market, by Industry, 2020-2034 (USD billion)

9. Competitive Landscape

9.1. Expansion and Acquisition Analysis
- 9.1.1. Expansion
- 9.1.2. Acquisitions
9.2. Partnerships/Collaborations/Agreements/Exhibitions

10. Company Profiles

10.1. Amazon Web Service
- 10.1.1. Company Overview
- 10.1.2. Financial Performance
- 10.1.3. Product Benchmarking
- 10.1.4. Recent Development
10.2. CyrusOne
- 10.2.1. Company Overview
- 10.2.2. Financial Performance
- 10.2.3. Product Benchmarking
- 10.2.4. Recent Development
10.3. Digital Realty Trust, Inc.
- 10.3.1. Company Overview
- 10.3.2. Financial Performance
- 10.3.3. Product Benchmarking
- 10.3.4. Recent Development
10.4. Equinix, Inc.
- 10.4.1. Company Overview
- 10.4.2. Financial Performance
- 10.4.3. Product Benchmarking
- 10.4.4. Recent Development
10.5. IBM
- 10.5.1. Company Overview
- 10.5.2. Financial Performance
- 10.5.3. Product Benchmarking
- 10.5.4. Recent Development
10.6. Intel Corporation
- 10.6.1. Company Overview
- 10.6.2. Financial Performance
- 10.6.3. Product Benchmarking
- 10.6.4. Recent Development
10.7. Microsoft Corporation
- 10.7.1. Company Overview
- 10.7.2. Financial Performance
- 10.7.3. Product Benchmarking
- 10.7.4. Recent Development
10.8. NTT Communications
- 10.8.1. Company Overview
- 10.8.2. Financial Performance
- 10.8.3. Product Benchmarking
- 10.8.4. Recent Development
10.9. NVIDIA Corporation
- 10.9.1. Company Overview
- 10.9.2. Financial Performance
- 10.9.3. Product Benchmarking
- 10.9.4. Recent Development
10.10. Oracle Corporation
- 10.10.1. Company Overview
- 10.10.2. Financial Performance
- 10.10.3. Product Benchmarking
- 10.10.4. Recent Development
10.11. QTS Realty Trust, LLC
- 10.11.1. Company Overview
- 10.11.2. Financial Performance
- 10.11.3. Product Benchmarking
- 10.11.4. Recent Development
10.12. Stack Infrastructure
- 10.12.1. Company Overview
- 10.12.2. Financial Performance
- 10.12.3. Product Benchmarking
- 10.12.4. Recent Development