The data centre market attained a value of USD 402.71 Billion in 2025. The market is expected to grow at a CAGR of 11.40% during the forecast period of 2026-2035. By 2035, the market is expected to reach USD 1185.34 Billion.
Data centre operations are evolving through artificial intelligence (AI) improvements in effectiveness, reliability, and scalability. AI will fulfill an effective function by automating the management of workloads, monitoring the health of the system on a continual basis, allowing it to predict failure of available equipment, and optimizing energy usage. AI applications are dramatically impacting data centres itself by applying GPU intensive workloads, therefore a data centre will require adequate infrastructure and scalable and advanced cooling within their facilities. Automation will also allow for optimized resource that minimizes human interactions to lessen opportunity for errors and minimize operational downtime.
The rapid shift to cloud computing is driving the data centre market development. Businesses are increasingly migrating workloads to cloud platforms like AWS, Microsoft Azure, and Google Cloud, demanding hyperscale and colocation data centres for reliable infrastructure. In June 2025, Alibaba Cloud opened a second South Korea data centre to meet rising local demand for AI and cloud. This trend is fueled by the need for scalable, cost-effective solutions that support remote work, digital transformation, and real-time analytics.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
11.4%
Value in USD Billion
2026-2035
*this image is indicative*
| Global Data Centre Market Report Summary | Description | Value |
| Base Year | USD Billion | 2025 |
| Historical Period | USD Billion | 2019-2025 |
| Forecast Period | USD Billion | 2026-2035 |
| Market Size 2025 | USD Billion | 402.71 |
| Market Size 2035 | USD Billion | 1185.34 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 11.40% |
| CAGR 2026-2035 - Market by Region | Latin America | 19.5% |
| CAGR 2026-2035 - Market by Country | India | 21.5% |
| CAGR 2026-2035 - Market by Country | China | 19.4% |
| CAGR 2026-2035 - Market by Component | Services | 19.7% |
| CAGR 2026-2035 - Market by Construction | Rebuild Data Centre | 16.1% |
| Market Share by Country 2025 | UK | 4.2% |
Edge computing is reshaping the data centre market trends by decentralizing data processing closer to end users and devices. In July 2025, NES Data revealed plans to launch edge and containerized data centres in India for enhancing local connectivity and supporting scalable digital infrastructure. This is essential for supporting latency-sensitive applications such as autonomous vehicles, IoT, smart cities, and AR/VR. Traditional centralized data centres are now complemented by smaller, distributed edge facilities. These micro data centres reduce transmission time, improve user experience, and enable real-time decision-making.
Data sovereignty laws and regulatory frameworks are influencing where and how data centres are built. Governments worldwide are implementing rules that require data to be stored and processed within national borders, particularly in sectors like finance, healthcare, and defence. This is prompting global operators to localize infrastructure and develop region-specific facilities. Compliance with GDPR, India's data protection laws, and similar legislation in China and Brazil is now a strategic necessity
Environmental sustainability is a key driver of innovation and investment in the data centre industry. With rising concerns over energy consumption and carbon emissions, operators are adopting green practices, such as renewable energy integration, efficient cooling systems, and low-power hardware. In July 2025, DayOne began construction of its first 20MW hydrogen-powered data centre in Singapore. Innovations like liquid cooling, AI-driven energy management, and carbon-neutral facilities are also gaining momentum.
The rise of hyperscale data centres continues to reshape the market. Hyperscale operators, such as Amazon, Microsoft, Meta, and Google require vast, scalable environments capable of supporting millions of users simultaneously. The demand for hyperscale centres is also driven by the explosion of data from AI, streaming, gaming, and social media. In September 2025, Techno Digital launched a 36MW AI-ready hyperscale data centre in Chennai, blending advanced technology with innovative, precise engineering.
The data centre market is attracting significant investment from institutional players, private equity firms, and infrastructure funds. In July 2025, Google revealed plans to invest USD 6 billion in a new data centre in southern India, boosting cloud infrastructure and regional connectivity. Investment vehicles are being formed to acquire or develop data centre campuses, colocation facilities, and edge infrastructure. This influx of capital enables operators to scale rapidly, adopt new technologies, and enter emerging markets.
Read more about this report - REQUEST FREE SAMPLE COPY IN PDF
The EMR’s report titled “Data Centre Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Component
Key Insight: The solutions segment encompasses hardware, software, and integrated systems that enable data centre functionality. This includes servers, storage devices, networking equipment, virtualization software, and cooling solutions. Innovations, such as software-defined data centres (SDDC) and AI-driven management platforms also improve efficiency and scalability. In June 2025, NTT DATA launched AI-powered software-defined infrastructure services to enhance automation and efficiency for Cisco product users.
Market Breakup by IT Infrastructure
Key Insight: The network segment plays a crucial role in the data centre market for ensuring efficient data flow and connectivity. With the rise of 5G, IoT, and edge computing, network infrastructure demands are growing rapidly to support low latency and high bandwidth applications. Companies lead in providing advanced networking equipment that enhances security and performance, enabling seamless data transmission and integration across cloud, colocation, and enterprise environments.
Market Breakup by Type
Key Insight: Hyperscale data centres are enormous facilities designed for global cloud giants like Amazon, Microsoft, and Google, capable of supporting millions of users with massive compute and storage capacity. These centres leverage custom hardware, advanced cooling, and energy optimization techniques to reduce costs and environmental impact. Their rapid expansion drives innovation and competition in the data centre industry. In July 2025, ECP and KKR launched a USD 4 billion hyperscale data centre campus in Texas, boosting cloud infrastructure capacity and innovation.
Market Breakup by Construction
Key Insight: New data centre construction is a leading segment, driven by escalating demand for cloud services, AI, and edge computing. Companies and hyperscale providers are investing heavily in greenfield projects to build cutting-edge, energy-efficient facilities tailored to modern workloads. New builds allow incorporation of advanced cooling, renewable energy, and automation from the ground up, ensuring future-proof infrastructure that meets regulatory and sustainability standards, which is critical for long-term operational efficiency.
Market Breakup by Industry
Key Insight: The banking, financial services, and insurance (BFSI) sector is the largest consumer of the data centre market due to its stringent requirements for security, compliance, and uptime. In August 2025, JPMorgan and Mitsubishi UFJ negotiated to back a USD 22 billion Texas data centre project, highlighting growing digital infrastructure investments. The BFSI sector’s increasing use of AI and blockchain technologies further drives demand for high-performance, resilient infrastructure capable of managing massive data volumes and regulatory complexities.
Market Breakup by Region
Key Insight: North America is the most dominating region, driven primarily by the United States and Canada’s mature cloud ecosystems and hyperscale data centre growth. The region leads in innovation around green data centres, AI integration, and edge computing. In October 2024, Microsoft built its first data centres using wood in Virginia, aiming to reduce carbon emissions and advance its climate goals. Additionally, strong enterprise demand and favorable regulatory environments contribute to rapid data centre market expansion.
Surging Adoption of Data Centre Services
The services segment is rapidly growing and includes colocation, managed services, cloud hosting, and consulting. Providers like Equinix and Digital Realty offer colocation spaces that allow businesses to rent physical space, power, and cooling while leveraging the provider’s network infrastructure. Managed services simplify operations by handling maintenance, security, and upgrades. Cloud service providers like AWS also fall under this segment, offering scalable, on-demand computing resources.
Data Centre Server & Storage to Witness Prominence
Servers form the backbone of the data centre IT infrastructure and dominate the data centre market due to their essential role in processing and managing workloads. Market leaders offer high-performance, scalable servers designed for demanding cloud, enterprise, and hyperscale environments. Innovations in blade servers, GPU-accelerated computing, and energy-efficient architectures are allowing data centres to meet escalating performance and capacity needs. In May 2205, Qualcomm launched server data centre processors designed to seamlessly integrate with Nvidia chips, boosting AI and computing performance.
Storage infrastructure is vital for handling the massive volumes of data generated daily. This segment includes SAN, NAS, and emerging software-defined storage solutions. Companies provide scalable and resilient storage options to ensure data integrity, quick access, and disaster recovery. With increasing data-intensive applications, including AI, analytics, and streaming, efficient storage solutions are critical to supporting real-time data processing and archival. The growing adoption of flash storage and cloud-integrated storage architectures is transforming this segment, making it increasingly important for overall data centre efficiency.
Thriving Demand for Colocation & Cloud Data Centre
The colocation data centre industry value is rising to provide third-party data centre space where businesses can rent racks or cages for their equipment while benefiting from shared power, cooling, and security. Providers like Equinix and Digital Realty lead this segment, which appeals to enterprises seeking to avoid the capital expense of building their own facilities. Colocation centres offer flexibility, scalability, and connectivity to multiple carriers and cloud providers, enabling hybrid IT environments.
Cloud data centres, operated by providers like Amazon Web Services, Microsoft Azure, and Google Cloud, offer scalable, on-demand computing resources accessed via the internet. Cloud data centres dominate due to their flexibility, cost-effectiveness, and global reach. In July 2025, Google revealed plans to invest USD 6 billion in a 1GW cloud data centre campus in Visakhapatnam, Andhra Pradesh. The growing demand for hybrid and multi-cloud solutions further cements cloud data centres as a core part of modern IT strategies.
Rebuild Data Centre to Gain Traction
The rebuild data centre market remains essential for extending asset life and improving performance. Many enterprises and colocation providers upgrade legacy facilities to support higher power densities, better cooling systems, and enhanced security. In August 2025, Equinix upgraded its Paris PA3 facility with energy-efficient cooling and security enhancements to support enterprise and hyperscale client. This segment also addresses the need to modernize aging infrastructure to handle evolving workloads, reduce energy consumption, and integrate newer technologies.
Rising Data Centre Applications in Healthcare & Government and Defense
Healthcare is a rapidly growing segment, driven by the rise of telemedicine, electronic health records (EHR), and AI-enabled diagnostics. Hospitals, research labs, and health tech firms require secure, compliant data centres that protect sensitive patient information under regulations like HIPAA. Companies partner with cloud and colocation providers to support data-intensive medical imaging and real-time patient monitoring.
Government and defense data centre demand is significant, focusing on security, sovereignty, and disaster recovery. Agencies require robust, highly secure infrastructure to manage sensitive data, national security applications, and public services. In October 2024, Northrop Grumman unveiled flying data centre to provide secure, real-time military intelligence and enhanced battlefield data processing capabilities. This sector increasingly adopts hybrid and edge computing models to enhance real-time intelligence and mission-critical operations.
Europe & Asia Pacific to Drive Increased Data Centre Usage
Europe is more dominant in data centre presence, driven by robust regulatory concern for data privacy and sustainability. Germany, the Netherlands, and the United Kingdom are home to large colocation and hyperscale campuses. The growing deployment of hybrid cloud and edge data centres serves a wide range of industries from finance to manufacturing. Digital infrastructure modernisation also has strong investments from European governments that improve connectivity and drive demand for compliant, secure data centre solutions.
Asia Pacific is the region with the fastest growth in the global data centre market. Digital transformation in China, India, Singapore, and Australia is driving rapid demand for cloud, AI, and edge computing. Investments in data centres are led by local giants, geared towards increasing capacity and underpinning the internet user boom in the region. India’s capacity in the data centre will draw USD 20-25 billion in investments in the next five or six years. Initiatives by the government on digital economies and smart cities further drive growth.
| CAGR 2026-2035 - Market by | Country |
| India | 21.5% |
| China | 19.4% |
| USA | 18.4% |
| Saudi Arabia | 17.2% |
| Germany | 16.7% |
| Canada | XX% |
| UK | XX% |
| France | XX% |
| Italy | 14.2% |
| Australia | XX% |
| Brazil | XX% |
| Mexico | XX% |
| Japan | 13.3% |
Key players in the data centre industry are using diverse strategies to respond to rising demand and competition from other operators. Principal strategies include geographic expansion, with operators establishing data centres in emerging markets and edge locations to reduce latency and provide data sovereignty. Industry players are incorporating sustainability into business operations by focusing on investing in renewable energy sources, energy-efficient cooling systems, and carbon-neutral operations.
They are adhering to ESG and regulatory obligations while leveraging partnerships and acquisitions to develop and grow capabilities to enhance service offerings and exploit strategic assets or technologies. Firms are focusing on hybrid and multi cloud enablement with offerings integrated seamlessly with major cloud providers to attract and enhance enterprise customers' experience. They are also offering modular and scalable infrastructure for delivery and capacity planning; prioritization of cybersecurity with planned investments in zero-trust architecture and AI security modelling and threat detection.
Founded in 2015, Hewlett Packard Enterprise (HPE) is headquartered in Houston, the United States. HPE is known for innovations in hybrid cloud, edge computing, and AI-driven infrastructure. Its HPE GreenLake platform has been a key achievement, offering flexible, on-demand IT services across various industries.
Cisco Systems, established in 1984 and based in San Jose, the United States, pioneered internet protocol-based networking and continues to innovate in cybersecurity, cloud infrastructure, and IoT. Cisco’s development of Webex and cutting-edge enterprise networking solutions underscores its technological leadership.
IBM, or International Business Machines Corporation, was founded in 1911 and is headquartered in Armonk, the United States. Known for its long-standing legacy in computing, IBM has shifted toward AI, cloud, and quantum computing. Key innovations include Watson AI and advancements in quantum systems and hybrid cloud platforms.
Founded in 1995 and headquartered in Chennai, India, Sify Technologies is a leading digital services provider in India. It was among the first Indian companies to offer internet services and has since expanded into data centres, cloud, and managed services. Its integrated ICT ecosystem supports enterprise digital transformation across sectors.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players in the data centre market are Dell Technologies Inc, Fujitsu Limited, and Hitachi, Ltd, among others.
Download your free sample of the Data Centre Market Trends 2026 report today to explore in-depth analysis, growth drivers, and key opportunities. Stay ahead with expert insights on cloud, hyperscale, and edge data centre developments. Don’t miss the latest market intelligence to strategize effectively in this rapidly evolving digital infrastructure space. Get your complimentary report now!
Upto 15% Off
USD
$2499 $2249
$3999 $3599
$4999 $4249
$5999 $5099
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
Get in touch with us for a customized solution tailored to your unique requirements and save upto 35%!
The market is projected to grow at a CAGR of 11.40% between 2026 and 2035.
Key strategies driving the market include expanding cloud adoption, investing in energy-efficient infrastructure, leveraging AI and automation, enhancing cybersecurity measures, and focusing on edge computing. Additionally, strategic partnerships, colocation services, and sustainability initiatives are crucial for meeting growing data demands and regulatory requirements while ensuring scalability and resilience.
The key trends guiding the growth of the global data centre market include the growing investment in 5G testing and its deployment, increasing adoption of edge computing, and rapid technological advancements.
The major regions in the market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.
The leading components of data centre in the market are solution and services.
The major IT infrastructure segments in the global data centre market are network, server, and storage.
The significant types of the product in the market include cloud data centre, colocation data centre, enterprise data centre, and hyperscale data centre, among others.
The leading construction segments in the market include new data centre and rebuild data centre.
The significant industries in the data centre market are banking, financial services, and insurance, healthcare, government and defence, manufacturing, IT and telecom, retail, and energy, among others.
The key players in the market report include Hewlett Packard Enterprise Company, Cisco Systems Inc, IBM Corporation, Sify Technologies Limited, Dell Technologies Inc, Fujitsu Limited, and Hitachi, Ltd, among others.
In 2025, the market reached an approximate value of USD 402.71 Billion.
North America is the most dominating region, driven by mature cloud ecosystems.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Component |
|
| Breakup by IT Infrastructure |
|
| Breakup by Type |
|
| Breakup by Construction |
|
| Breakup by Industry |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
| Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
Datasheet
One User
USD 2,499
USD 2,249
tax inclusive*
Single User License
One User
USD 3,999
USD 3,599
tax inclusive*
Five User License
Five User
USD 4,999
USD 4,249
tax inclusive*
Corporate License
Unlimited Users
USD 5,999
USD 5,099
tax inclusive*
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Small Business Bundle
Growth Bundle
Enterprise Bundle
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Number of Reports: 3
20%
tax inclusive*
Small Business Bundle
Number of Reports: 5
25%
tax inclusive*
Growth Bundle
Number of Reports: 8
30%
tax inclusive*
Enterprise Bundle
Number of Reports: 10
35%
tax inclusive*
How To Order
Select License Type
Choose the right license for your needs and access rights.
Click on ‘Buy Now’
Add the report to your cart with one click and proceed to register.
Select Mode of Payment
Choose a payment option for a secure checkout. You will be redirected accordingly.
Gain insights to stay ahead and seize opportunities.
Get insights & trends for a competitive edge.
Track prices with detailed trend reports.
Analyse trade data for supply chain insights.
Leverage cost reports for smart savings
Enhance supply chain with partnerships.
Connect For More Information
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
We employ meticulous research methods, blending advanced analytics and expert insights to deliver accurate, actionable industry intelligence, staying ahead of competitors.
Our skilled analysts offer unparalleled competitive advantage with detailed insights on current and emerging markets, ensuring your strategic edge.
We offer an in-depth yet simplified presentation of industry insights and analysis to meet your specific requirements effectively.
Share