PUBLISHER: The Business Research Company | PRODUCT CODE: 1750960
PUBLISHER: The Business Research Company | PRODUCT CODE: 1750960
Data center outsourcing refers to the strategic practice of contracting third-party service providers to manage, operate, and maintain an organization's data center infrastructure, resources, and operations. This approach allows businesses to enhance efficiency, reduce capital expenditures, and gain access to advanced technologies without the need for in-house management.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The main components of data center outsourcing include hardware, software, and services. Hardware encompasses the physical equipment used in a data center to store, process, manage, and secure digital data and resources. This includes the data center facilities, racks and cabinets, cabling and wiring, as well as power and cooling systems. These components are utilized across various industry sectors, including information technology (IT) and telecommunications, banking, financial services and insurance (BFSI), government, media and entertainment, healthcare and life sciences, and travel and logistics.
The data center outsourcing market research report is one of a series of new reports from The Business Research Company that provides data center outsourcing market statistics, including the data center outsourcing industry global market size, regional shares, competitors with the data center outsourcing market share, detailed data center outsourcing market segments, market trends, and opportunities, and any further data you may need to thrive in the data center outsourcing industry. This data center outsourcing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The data center outsourcing market size has grown strongly in recent years. It will grow from$194.83 billion in 2024 to $211.22 billion in 2025 at a compound annual growth rate (CAGR) of 8.4%. The growth observed in the historic period can be attributed to the increasing demand for cost efficiency, the rising adoption of cloud services, the growing use of managed services, the surge in data traffic, and the heightened focus on core business operations.
The data center outsourcing market size is expected to see strong growth in the next few years. It will grow to$287.60 billion in 2029 at a compound annual growth rate (CAGR) of 8.0%. The growth projected for the forecast period can be attributed to the increasing adoption of hybrid cloud, the rising demand for AI-driven data centers, the shift toward sustainable and green data centers, the growth of edge computing, and a stronger focus on cybersecurity and compliance. Key trends during this period include advancements in AI-driven automation, the development of energy-efficient data centers, the evolution of advanced hybrid cloud solutions, innovations in edge computing infrastructure, and the development of modular data centers.
The swift adoption of cloud computing is expected to boost the growth of the data center outsourcing market in the coming years. Cloud computing refers to the delivery of a wide range of computing services, including servers, storage, databases, networking, software, analytics, and intelligence, over the internet. The rapid shift to cloud computing is driven by its ability to offer scalable, cost-effective, and flexible infrastructure, allowing organizations to deploy applications and manage workloads more efficiently without significant investments in physical hardware. Data center outsourcing complements cloud computing by enabling organizations to delegate infrastructure management to specialized providers, which enhances scalability, reduces operational costs, and accelerates cloud adoption. For example, in December 2023, Eurostat, a Luxembourg-based government agency, reported that 42.5% of European Union (EU) enterprises adopted cloud computing services in 2023, marking a 4.2 percentage point increase from 2021. As a result, the growing adoption of cloud computing is fueling the expansion of the data center outsourcing market.
Leading companies in the data center outsourcing market are concentrating on developing cutting-edge solutions, such as gigascale AI hosting infrastructure data centers, to address the increasing demand for high-performance computing capabilities driven by artificial intelligence (AI) and machine learning workloads. Gigascale AI hosting infrastructure data centers are large-scale facilities optimized specifically for AI tasks. These centers support data center outsourcing by allowing companies to offload complex AI operations to specialized providers, reducing the need for in-house infrastructure and cutting operational costs. For instance, in November 2024, BSO Network Solutions Limited, an Ireland-based infrastructure and connectivity provider, introduced DataOne, a next-generation data center platform designed to support large-scale AI workloads. This launch enables BSO to offer scalable, energy-efficient solutions tailored to AI-driven enterprises, positioning the company as a key player in the evolving data center outsourcing market. The development of such specialized infrastructure highlights a broader industry trend in which outsourcing providers invest heavily in advanced technologies to meet the rising computational demands of modern businesses.
In December 2024, Blackstone Inc., a U.S.-based investment management firm, acquired AirTrunk for approximately A$24 billion (USD 15.024 billion). Through this acquisition, Blackstone aims to fast-track AirTrunk's growth as a leading hyperscale data center provider in the Asia Pacific region and Japan by leveraging its expertise, access to capital, and infrastructure investment capabilities. AirTrunk Operating Pty Ltd is an Australia-based provider of hyperscale data center services that specializes in outsourcing solutions.
Major players in the data center outsourcing market are Amazon Web Services Inc., Dell Technologies Inc., Accenture plc, IBM Corporation, Google Cloud, SAP SE, Hewlett Packard Enterprise Development LP, Fujitsu Limited, Tata Consultancy Services Limited, Capgemini SE, NTT DATA Group Corporation, Cognizant Technology Solutions Corporation, Infosys Limited, HCL Technologies Limited, Atos SE, Wipro Limited, Equinix Inc., Tech Mahindra Limited, T-Systems International GmbH, Digital Realty Trust Inc., Unisys Corporation.
North America was the largest region in the data center outsourcing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in data center outsourcing report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the data center outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The data center outsourcing market consists of revenues earned by entities by providing services such as managed hosting, colocation services, cloud services, and disaster recovery as a service. The market value includes the value of related goods sold by the service provider or included within the service offering. The data center outsourcing market also includes sales of storage solutions, networking equipment, security and compliance solutions and virtualization software. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Data Center Outsourcing Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on data center outsourcing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for data center outsourcing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The data center outsourcing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.