Data Center Services Global Market Report 2025

Data center services encompass essential components necessary for the proper functioning of a data center, offering organizations networking, data backup and recovery, data management, website hosting, and related services through hardware and software infrastructure.

Key services provided within the data center services market include installation and integration, training, consulting, maintenance and support, among others. Installation and integration services involve setting up and consolidating data center management processes into a unified, user-friendly, and highly efficient platform. Data centers vary in size-small, medium, and large-providing services such as servers, storage, and networking solutions. These services find applications across various sectors such as BFSI, colocation, energy, government, healthcare, IT and telecom, manufacturing, and other industries.

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 sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.

The data center services market research report is one of a series of new reports from The Business Research Company that provides data center services market statistics, including data center services industry global market size, regional shares, competitors with a data center services market share, detailed data center services market segments, market trends and opportunities, and any further data you may need to thrive in the data center services industry. This data center services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The data center services market size has grown rapidly in recent years. It will grow from $74.6 billion in 2024 to $83.53 billion in 2025 at a compound annual growth rate (CAGR) of 12.0%. The growth in the historic period can be attributed to the rising adoption of digitalization, an increase in the number of data centers, strong economic growth in emerging markets, and growing demand for cloud computing.

The data center services market size is expected to see rapid growth in the next few years. It will grow to $148.02 billion in 2029 at a compound annual growth rate (CAGR) of 15.4%. The growth in the forecast period can be attributed to an increase in usage of OTT (over-the-top) services, increasing Internet penetration, increasing volume of structured and unstructured data, and increasing 5g subscriptions. Major trends in the forecast period include new technology advancements, micro data center services, hyper-scale data centers with clean energy, focus on off-grid data center-as-a-service, and partnerships and collaborations.

The forecast of 15.4% growth over the next five years reflects a modest reduction of 0.4% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. The U.S. may experience reduced cost-effectiveness in deploying managed data center services, especially as tariffs impact service delivery tools and offshore workforce arrangements. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The increasing adoption of digitalization is anticipated to significantly drive the growth of the data center services market. This trend is fueled by the need for enhanced productivity, reduced operational costs, quicker decision-making, improved efficiency, technological advancements, and the push for digitalization from various stakeholders. As digitalization continues to expand, it will generate a vast amount of data that must be stored, thereby increasing the demand for data centers. This rising need for data centers will subsequently lead to a greater demand for data center services necessary for setting up, managing, and operating these facilities. For example, in December 2023, Eurostat, a Luxembourg-based intergovernmental organization, reported that 45.2% of EU enterprises purchased cloud computing services primarily for hosting their email systems and storing electronic files. Moreover, the purchases of cloud computing services by EU enterprises rose by 4.2% in 2023 compared to 2021. Thus, the growing adoption of digitalization is expected to propel the data center services market.

The rise in the usage of Over-The-Top (OTT) services is poised to contribute significantly to the growth of the data center services market. Leading OTT service providers leverage global data center services, particularly for data storage, to deliver content to users from secure and controlled data center environments. The increasing reliance on diverse OTT services is expected to drive demand for data center services as these providers expand their offerings. For instance, statistics from Demand Sage indicate that the global OTT user base reached 3.26 billion in 2022, with projections estimating an increase to 3.5 billion users in 2023. Additionally, OTT revenue is anticipated to grow from $272.70 billion in 2022 to $316.10 billion in 2023. This surge in OTT services is poised to be a key factor propelling the growth of the data center services market in the foreseeable future.

Key players in the data center services market are focusing on the adoption of next-generation technologies, such as data center automation platforms, to enhance operational efficiency and improve service delivery and customer satisfaction. A data center automation platform is an advanced system designed to streamline and manage data center operations, boosting efficiency by automating tasks, minimizing human error, and integrating various IT services and management tools. For example, in September 2024, Nokia Corporation, a Finnish telecom company, launched the industry's most advanced data center automation platform tailored for the AI era, called the Event-Driven Automation platform. This cutting-edge solution aims to reduce human errors in network operations, significantly minimizing network disruptions and service downtime. Built on Kubernetes, this multivendor platform employs a modern intent-based approach to network automation and features capabilities such as digital twin functionality and GenAI assistance. Furthermore, it integrates seamlessly with a variety of IT service management systems, event notification systems, and cloud management platforms, resulting in a reduction of operational effort by up to 40% through the simplification of data center lifecycle operations.

Companies within the data center services market are prioritizing the delivery of technologically advanced solutions to enhance their services and fortify their market positions. The integration of next-generation technologies into data center services, including automation, blockchain, IoT, 5G mobile broadband, cloud computing, AI, and data analytics, is a notable industry trend. As an illustration, in February 2023, Amazon Web Services Inc., a subsidiary of Amazon specializing in on-demand cloud computing platforms, introduced the Amazon Web Service Modular Data Center (AWS MDC) as part of the $9 billion Joint Warfighting Cloud Capability (JWCC) contract with the U.S. Department of Defense. The AWS MDC serves as an edge-computing service, offering secure access to AWS Outposts technology for government agencies. The Department of Defense leverages this solution to ensure reliable network connectivity and military-grade security in Disconnected, Disrupted, Intermittent, or Limited (DDIL) situations, addressing data processing needs with low latency.

In May 2024, JLL, a US-based real estate services firm, acquired SKAE Power Solutions for an undisclosed sum. This acquisition aims to enhance JLL's capability to provide comprehensive services and technical solutions across the data center lifecycle. SKAE Power Solutions, also based in the US, specializes in offering infrastructure and power-system design solutions for data centers.

Major companies operating in the data center services market include Fujitsu Ltd, Equinix Inc., Cisco Systems Inc, Huawei Technologies Co. Ltd, Capgemini SE, Hewlett Packard Enterprise Company, NTT Communications, Dell Technologies, IBM Corporation, HCL Technologies Limited, CtrlS, ESDS, GPX devlopes, sify technologies, Nxtra data limited, Alibaba Group, Chayora, China Mobile International, Chindata Group, GDS Services, Haoyun Changsheng, Keppel Data Centres, Shanghai Atrium, Tencent, Tenglong Holding Group, ABB Ltd, Interxion, Euclyde Data Centers, STT GDC, Echelon Data Center, NDC Data Centers GmbH, Broadcom Inc, Arista Networks, 4D Data Center, ClusterPower, Linxdatacenter, Infosys Poland, CoreSite LA1 Data Center, Digital Realty 350 E Cermak Data Center, Zenlayer, Cyxtera, Systems-X, ISK Global, Quanam, Ithreex Global, Systemico, Zimmic, Andes Digital, Nournet, Detasad, Mobily, STC, Salam, Gulf Data Hub, Go DC, Gateway Gulf, Nashirnet, MainOne, PCCW Global, Databridge, ONIX Data Centre, IXAfrica, ST Digital, Raxio, N+One, Africa Data Centres, Teraco, Rack Centre Africa.

North America was the largest region in the data center services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the data center services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The data center services market includes revenues earned by entities by providing access to applications and data. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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 Services 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 services 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.

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Where is the largest and fastest growing market for data center services ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The data center services 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 market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Services: Installation And Integration Services, Training Services, Consulting Services, Maintenance And Support, Other Services
• 2) By Type: Small Data Centers, Medium Data Centers, Large Data Centers
• 3) By Infrastructure Type: Servers, Storage And Networking
• 4) By Application: BFSI (Banking, Financial Services And Insurance), Colocation, Energy, Government, Healthcare, IT (Information Technology) And Telecom, Manufacturing, Other Applications
• Subsegments:
• 1) By Installation And Integration Services: Hardware Installation; Software Integration; Network Setup
• 2) By Training Services: User Training; Technical Training; Certification Programs
• 3) By Consulting Services: Infrastructure Assessment; Optimization Consulting; Security Consulting
• 4) By Maintenance And Support: On-Site Support; Remote Support; Preventive Maintenance
• 5) By Other Services: Disaster Recovery Services; Managed Services; Cloud Services Integration
• Companies Mentioned: Fujitsu Ltd; Equinix Inc.; Cisco Systems Inc; Huawei Technologies Co. Ltd; Capgemini SE; Hewlett Packard Enterprise Company; NTT Communications; Dell Technologies; IBM Corporation; HCL Technologies Limited; CtrlS; ESDS; GPX devlopes; sify technologies; Nxtra data limited; Alibaba Group; Chayora; China Mobile International; Chindata Group; GDS Services; Haoyun Changsheng; Keppel Data Centres; Shanghai Atrium; Tencent; Tenglong Holding Group; ABB Ltd; Interxion; Euclyde Data Centers; STT GDC; Echelon Data Center; NDC Data Centers GmbH; Broadcom Inc; Arista Networks; 4D Data Center; ClusterPower; Linxdatacenter; Infosys Poland; CoreSite LA1 Data Center; Digital Realty 350 E Cermak Data Center; Zenlayer; Cyxtera; Systems-X; ISK Global; Quanam; Ithreex Global; Systemico; Zimmic; Andes Digital; Nournet; Detasad; Mobily; STC; Salam; Gulf Data Hub; Go DC; Gateway Gulf; Nashirnet; MainOne; PCCW Global; Databridge; ONIX Data Centre; IXAfrica; ST Digital; Raxio; N+One; Africa Data Centres; Teraco; Rack Centre Africa.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.