PUBLISHER: The Business Research Company | PRODUCT CODE: 1889350
PUBLISHER: The Business Research Company | PRODUCT CODE: 1889350
Datacenters are dedicated facilities that house computer systems, servers, storage devices, and networking equipment. They are used to securely store, manage, and process large amounts of data, ensuring reliable access to applications and services. Datacenters also provide power backup, cooling, and physical security to maintain optimal IT infrastructure performance.
The main components of datacenters are hardware, data center infrastructure management software, and services. Hardware includes servers, storage devices, networking equipment, racks, power supplies, and cooling systems that enable data processing, storage, and connectivity. Services include managed infrastructure, hosting, support, and professional services. Datacenters serve organizations of different sizes, including large enterprises and small and medium enterprises, across industries such as cloud service providers, technology, telecom, healthcare, banking, financial services and insurance, retail, e-commerce, entertainment, media, energy, and others.
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 rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the services sector, particularly in business services, IT, and professional consulting operations. Higher costs for imported technology, office equipment, and essential digital infrastructure have raised operating expenses for service providers, forcing them to either pass on costs to clients or absorb margin pressures. Outsourcing firms and IT service companies are also facing challenges due to increased costs of hardware components and delayed global supply chains, affecting project delivery timelines and profitability. Additionally, retaliatory tariffs have dampened demand for U.S.-based professional services in key international markets, leading to a slowdown in export-driven revenue streams. The sector must now prioritize digital transformation, cost optimization, and expanding domestic client bases to sustain growth and maintain competitiveness amid ongoing trade uncertainty.
The datacenters market research report is one of a series of new reports from The Business Research Company that provides datacenters market statistics, including datacenters industry global market size, regional shares, competitors with an datacenters market share, detailed datacenters market segments, market trends and opportunities, and any further data you may need to thrive in the datacenters industry. This datacenters 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 datacenters market size has grown rapidly in recent years. It will grow from $328.11 billion in 2024 to $375.56 billion in 2025 at a compound annual growth rate (CAGR) of 14.5%. The growth in the historic period can be attributed to increasing enterprise data generation, rising adoption of cloud services, expansion of colocation facilities, growing data traffic from digitalization, and higher digital banking adoption.
The datacenters market size is expected to see rapid growth in the next few years. It will grow to $636.50 billion in 2029 at a compound annual growth rate (CAGR) of 14.1%. The growth in the forecast period can be attributed to the expansion of edge computing, rising adoption of artificial intelligence (AI) workloads, growing adoption of remote work, increasing focus on green data centers, and a surge in 5G network deployments. Key trends in the forecast period include advancements in modular data center designs, innovations in liquid cooling solutions, research in energy-efficient server architectures, technological progress in workload automation, and developments in optical interconnect systems.
The growing demand for cloud services is expected to drive the growth of the data center market going forward. Cloud services provide on-demand computing resources, including storage, servers, databases, networking, and software, delivered over the internet to support digital business operations. Businesses are increasingly adopting cloud services to gain scalability and flexibility, adapt to changing workloads, and accelerate digital transformation. The rising demand for cloud services supports data centers by promoting the development and expansion of high-performance storage and processing facilities needed to host and manage cloud workloads efficiently. For instance, in April 2023, a report by Microsoft Corporation indicated that public cloud spending in Australia is projected to increase from $7.95 billion in 2022 (A$12.2 billion) to $14.56 billion by 2026 (A$22.4 billion). This growing demand is driving the expansion of the data center market.
Major companies in the data center market are adopting technological developments, such as data center building block solutions, to simplify deployment, reduce risk, and accelerate large-scale infrastructure projects. Data center building block solutions are modular, pre-engineered components that allow organizations to build, scale, or upgrade data centers quickly with consistent performance. In October 2025, Supermicro, a US-based IT solutions provider, launched its DCBBS line, offering pre-integrated servers, storage, management software, liquid cooling, networking, and electrical components. The solutions support modular packaging at system, rack, and full data center levels with rigorous L11/L12 testing. SuperCloud Composer software provides unified infrastructure management for compute, network, cooling, and power from a single portal.
In December 2024, Blackstone, a US-based provider of alternative asset management and investment services, acquired AirTrunk for $16.1 billion. The acquisition expands Blackstone's digital infrastructure footprint and hyperscale data center capabilities in the Asia-Pacific region to meet growing cloud and AI demand and scale market share and operational capacity. AirTrunk is an Australia-based provider of hyperscale data centers, cloud infrastructure, and colocation design, build, and operations across Asia Pacific and Japan.
Major companies operating in the datacenters market are Amazon Web Services Inc., Google LLC, Microsoft Corporation, Alibaba Cloud Computing Co. Ltd., Dell Technologies Inc., Huawei Technologies Co. Ltd., Tencent Cloud Computing (Beijing) Company Limited, Hitachi Ltd, IBM Corporation, Cisco Systems Inc., Oracle Corporation, Schneider Electric SE, ABB Ltd., Hewlett Packard Enterprise Development LP, NTT Communications Corporation, Equinix Inc., Digital Realty Trust Inc., Comarch SA, Sify Technologies Limited, CoreSite Realty Corporation, China Telecom Americas Inc., CyrusOne Inc., Yotta Infrastructure Private Limited, and Lumen Technologies Inc.
North America was the largest region in the datacenters market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the urban landscaping market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the datacenters market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The datacenters market consists of revenues earned by entities by providing services such as colocation hosting, cloud hosting, data backup and recovery, network management, infrastructure monitoring, disaster recovery services, and managed information technology (IT) services. The market value includes the value of related goods sold by the service provider or included within the service offering. The datacenters market also includes sales of servers, storage devices, networking equipment, power distribution units, cooling systems, racks, uninterruptible power supplies, generators, cabling systems, industrial gateways, and on-premise cloud appliances. 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.
Datacenters 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 datacenters 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 datacenters ? 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 datacenters 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 technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.