PUBLISHER: The Business Research Company | PRODUCT CODE: 2133585
PUBLISHER: The Business Research Company | PRODUCT CODE: 2133585
Data centers are physical facilities that contain interconnected computers, servers, storage systems, networking equipment, computational infrastructure, and application delivery controllers. Businesses rely on data centers to support their operations by storing, processing, managing, and securing organizational data assets and providing the infrastructure required for digital services.
The primary types are colocation, hyperscale, edge, and other types. Data center colocation is a service model in which enterprise customers rent physical space within a data center to house servers and other hardware required for their business operations. The components consist of solutions and services. The enterprise sizes include large enterprises and small & medium enterprises (SMEs). The end users include BFSI, IT and telecom, government, energy and utilities, and other end users.
Tariffs are influencing the data center market by increasing the costs of imported servers, cooling systems, power equipment, and construction materials required for developing new facilities. North America and Europe are experiencing greater cost pressure because of their dependence on imported information technology and electrical components, while Asia-Pacific is facing higher expenses for large-scale hyperscale projects. These tariffs are increasing capital expenditures and extending facility deployment timelines. At the same time, they are encouraging localized equipment manufacturing, regional sourcing, and greater investment in modular and prefabricated data center solutions.
The data center market research report is one of a series of new reports from The Business Research Company that provides data center market statistics, including data center industry global market size, regional shares, competitors with a data center market share, detailed data center market segments, market trends and opportunities, and any further data you may need to thrive in the data center industry. This data center 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 market size has grown exponentially in recent years. It will grow from $464.28 billion in 2025 to $583.44 billion in 2026 at a compound annual growth rate (CAGR) of 25.7%. The growth in the historic period can be attributed to growth in enterprise digital transformation, expansion of cloud computing adoption, increasing data storage requirements, growth of internet and mobile usage, and rising enterprise IT modernization.
The data center market size is expected to see exponential growth in the next few years. It will grow to $1323.95 billion in 2030 at a compound annual growth rate (CAGR) of 22.7%. The growth in the forecast period can be attributed to increasing deployment of AI workloads, expansion of edge computing applications, rising demand for sustainable data center infrastructure, growing investments in digital infrastructure, and increasing regulatory attention toward data sovereignty. Major trends in the forecast period include continued expansion of hyperscale data center facilities, increasing deployment of edge data centers, wider adoption of modular data center architectures, greater emphasis on energy-efficient infrastructure, and enhanced integration of AI-powered data center management systems.
The growing number of IoT-connected devices is expected to support the expansion of the data center market going forward. IoT-connected devices are nontraditional computing devices that establish wireless network connections and are capable of transmitting data. The rising deployment of IoT devices is increasing demand for advanced data center solutions capable of addressing the large volumes of data generated, supporting real-time processing, providing scalability, and maintaining security across the expanding IoT ecosystem. For instance, in November 2022, according to a report published by Ericsson, a Sweden-based telecommunications company, broadband IoT technologies using 4G and 5G, which connect most cellular IoT devices, reached 1.3 billion connections in 2022. By the end of 2028, broadband IoT connections are projected to account for nearly 60% of cellular IoT connections, with 4G expected to represent the majority. Therefore, the increasing number of IoT-connected devices is driving demand for the data center market.
Key companies operating in the data centre market are focusing on developing modular, liquid-cooled prefabricated data centre units to meet the rising demand for rapid deployment, high-density compute, energy efficiency, and edge infrastructure. A modular, liquid-cooled prefabricated data centre unit is a factory-assembled building block that integrates power, cooling, racks, and monitoring systems, delivered as a complete module rather than built on-site from scratch. For example, in November 2023, Vertiv Group Corp., a US-based provider of critical digital infrastructure, launched its SmartMod Max CW modular data centre unit. It supports up to 200 kW of IT load in a single unit, uses chilled-water cooling to improve energy efficiency, and is factory-assembled and tested to reduce on-site build time and cost. It also offers customizable power and cooling configurations and enables rapid deployment across edge and mid-sized enterprise settings.
In February 2024, Marubeni Corporation, a Japan-based provider of trading, infrastructure, and renewable energy solutions, partnered with Yondr Group to develop hyperscale data centers in the West Tokyo region. Through this partnership, Marubeni aimed to utilize its renewable energy network and local market expertise to accelerate the deployment of large-scale hyperscale data centers and support its expansion into the digital infrastructure sector. Yondr Group is a UK-based developer, owner, and operator of hyperscale data centers.
Major companies operating in the data center market are Caterpillar Inc., Cummins Inc., ABB Ltd., Generac Power System Inc., KOHLER Group, Hitech Power Protection, Rolls Royce Power Systems AG, Aggreko Company, Eaton Corporation, F.G. Wilson, Atlas Copco, Himoinsa SL, MTU Friedrichshafen GmbH, Wartsila Corporation, Schneider Electric SE, Siemens AG, Emerson Electric Co., Socomec Group, Riello UPS, Vertiv Co., Delta Electronics Inc., Toshiba Corporation, Fuji Electric Co.Ltd., Kirloskar Electric Company, Yanmar Co. Ltd.
North America was the largest region in the data center market in 2025. The regions covered in the data center 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 market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The data center market consists of sales of IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, and other services that are used to store, process, and disseminate data and applications. 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 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 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 ? 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 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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