PUBLISHER: The Business Research Company | PRODUCT CODE: 1980854
PUBLISHER: The Business Research Company | PRODUCT CODE: 1980854
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.
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.
Tariffs have impacted the data center outsourcing market by increasing the cost of importing servers, networking equipment, and power and cooling infrastructure. Outsourcing service providers have faced higher procurement expenses, which have influenced service pricing for enterprise clients. Regions such as North America, Europe, and Asia Pacific that rely on cross-border hardware supply chains are most affected. Hardware intensive outsourcing models and colocation services are particularly exposed to tariff pressures. However, tariffs are encouraging regional sourcing of infrastructure components. This is supporting localized data center investments and improving long-term supply chain resilience.
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 data center outsourcing industry global market size, regional shares, competitors with a 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 scenario of the industry.
The data center outsourcing market size has grown strongly in recent years. It will grow from $209.92 billion in 2025 to $226.42 billion in 2026 at a compound annual growth rate (CAGR) of 7.9%. The growth in the historic period can be attributed to high capital cost of in house data centers, early enterprise it outsourcing adoption, growth of colocation facilities, need for operational cost optimization, expansion of enterprise it workloads.
The data center outsourcing market size is expected to see strong growth in the next few years. It will grow to $304 billion in 2030 at a compound annual growth rate (CAGR) of 7.6%. The growth in the forecast period can be attributed to rising cloud hybrid strategies, increasing focus on core business agility, growth of data intensive applications, demand for energy efficient data centers, expansion of global outsourcing contracts. Major trends in the forecast period include third party data center operations, hybrid outsourced infrastructure models, managed colocation service adoption, remote infrastructure monitoring, scalable outsourced disaster recovery.
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. 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 companies operating 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 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center outsourcing market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the data center outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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 Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses 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, including technological disruption, regulatory shifts, and changing consumer preferences? 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, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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