Data Centre Market Trends

Data Center Market Overview

Data Center Market Size was valued at USD 169.42 Billion in 2021. The Data Center market industry is projected to grow from USD 208.44 Billion in 2022 to USD 520.41 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 12.29% during the forecast period (2024 - 2032). A data center is a physical infrastructure that small, medium and large companies use to back their data up information and data. Since most of these companies have a lot of information and data to back up, they need more than one data center to do the job. These markets themselves require many components and accessories to do a good job in terms of backing up data. These include switches, units that distribute and provide a continuous supply of power, ventilation areas, and the ability to connect to the World Wide Web (WWW.) Most companies use these data centers to manage and monitor the software that lets IT administrators do their jobs in terms of managing the IT department and the work that its employees do well.

Figure 1: Data Center Market Size, 2022-2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Data Center Market Trends

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  Rising Demand Among SMEs

  
  

The market is divided into big and small & medium-sized businesses. Due to the growing integration of cutting-edge business technologies such as big data and data analytics, which affects their requirement for the storage of massive amounts of data being created every day, the large enterprise category retains the largest share of the market. Because of this, international firms frequently choose corporate data centers with high levels of data security, which is a key reason for the growth of this market.

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  Increasing Adoption of Advanced Technologies is Supporting the Market Growth

  
  

The adoption of cutting-edge such as AI, machine learning, and big data, along with the growing penetration of data-generating devices such as wearables, smartphones, IoT sensors, and remote patient monitoring devices, is significantly accelerating the growth of the market. Businesses are using data analysis tools to analyze and manage massive amounts of data that may provide insights and trends about their business performance, industry trends, and client preferences, which are likely to propel market growth.

Data Center Market Segment Insights

Data Center Type Insights

The market segmentation, based on Type, includes Corporate data centers and Web hosting data centers. The corporate data centers segment holds the majority share in 2021 of the market. This is largely attributed to the fact that many big companies need affordable data centers that are capable of sending, retrieving, storing, and backing up large quantities of information and data.

Data Center Density Insights

Based on Density, the market segmentation includes Low, Medium, High, and Extreme. The High segment is accounted for the largest share of the market. Each cabinet in a high-density data center uses more than 10 kW of power. The quantity of energy used per square foot of floor area is another way to define data center density.

Data Center Vertical Insights

Based on Vertical, the market segmentation includes Banking & Financial Services, Telecom & IT, Government, and Healthcare. The Banking & Financial Services segment dominated the market in 2021. Due to the increased reliance on internet banking, as well as the increasing use of mobile wallets and online payment services. Additionally, the BFSI sector's requirement to maintain operations around-the-clock to maintain trade and economic activity is a major factor driving the expansion of the data center industry.

Figure 2: Data Center Market, by Vertical, 2021 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Data Center Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America dominates the data center market. The North American region is also home to some of the best, most efficient, and most advanced technical and technological infrastructure in the world. This makes implementing the new generation of data centers a quick and easy task. The North American region is also home to most of the companies that make data centers. This is a major factor that attributes to the high growth and market share in this region. Another key factor that is fueling growth and demand for the data centers market is the fact that American companies are the most productive in the world. They are also some of the richest companies in the world. This means that they have large treasuries that they can draw upon to find the huge monetary resources needed for the large investments in research and development that are needed to produce the next generation of data centers that are more technologically advanced and more efficient in terms of managing data and information in general.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: DATA CENTER MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Data Center Key Market Players & Competitive Insights

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth. With significant market development such as new product releases, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Data Center industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the Data Center industry to benefit customers and expand the market sector. Major market players, including Alphabet Inc, IBM Corporation, Hitachi Ltd, Cisco System Inc, Hewlett-Packard Inc, and others, are attempting to increase market demand by funding R&D initiatives.

Alphabet is a holding corporation for Google and its subsidiaries. It works in two divisions: Google Services and Google Cloud. Ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube are all part of the Google Services section. Google Cloud offers enterprise-ready cloud services such as Google Cloud Platform and Google Workspace. Developers may build, test, and deploy apps using Google Cloud Platform's infrastructure. Gmail, Docs, Drive, Calendar, Meet, and other Google Workspace collaboration features are available.

IBM (International Business Machines) is a firm that sells and services information technology. It provides solutions for automation, data and artificial intelligence (AI), infrastructure, security, and sustainability, such as enterprise content management, data management, business analytics, decision management, cloud hosting, cloud security, data security, asset management, and so on. The company serves banking, automotive, energy, insurance, manufacturing, life science, retail, and various other industries.

Key Companies in the Data Center market include

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  Alphabet Inc.

  
  


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  IBM Corporation

  
  


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  DuPont Fabros Technology

  
  


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  Hitachi Ltd

  
  


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  NTT Communications Corporation

  
  


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  Cisco System Inc

  
  


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  CyrusOne

  
  


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  Hewlett-Packard Inc

  
  


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  EMC Corporation

  
  


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  Seagate Technology Holdings

  
  

Data Center Industry Development

Cisco Systems took a crucial step in expanding its global infrastructure in May 2024, when it opened its first edge data centers in Indonesia. This move is part of Cisco's larger effort to strengthen its security footprint in the region and better serve customers in industries such as financial services and public services, which are becoming increasingly reliant on local data legislation and compliance needs.

Cisco expands its presence in Southeast Asia, particularly in Indonesia, one of the region's largest and fastest-growing markets. The company's objective to help businesses adapt safely and accelerate next-generation digital innovation across industries is supported by this growth.

NTT Ltd. increased its footprint in India in January 2024, opening a new data center facility in Noida, which is part of the Delhi National Capital Region (NCR). This six-acre complex is intended to handle a total capacity of 52.8 MW across two data centers, with the first data center providing 22.4 MW of IT load across 300,000 square feet.

The Noida campus is strategically located in one of India's largest and fastest-growing economic areas, which improves connectivity and accessibility. As a carrier-neutral facility, it allows clients to select from numerous network providers, assuring redundancy and reliability. The complex is linked to NTT's other data center facilities, ensuring low latency and easy connectivity to major public cloud providers.

Microsoft established a new trusted cloud region in Poland in April 2023, making it the first of its kind in Central and Eastern Europe. This cloud area comprises of three physical locations in and around Warsaw that house multiple data centers. These facilities are intended to provide modern cloud services while ensuring high levels of data security, privacy, and compliance with local and international standards.

Microsoft's trusted cloud area in Poland is a significant investment in local and regional cloud infrastructure. It improves data security, ensures regulatory compliance, and promotes economic growth through digital innovation. This program is likely to play a significant role in promoting technical growth and collaboration throughout Central and Eastern Europe.

Data Center Market Segmentation

Data Center Type Outlook

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  Corporate data centers

  
  


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  Web hosting data centers

  
  

Data Center Density Outlook

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  Low

  
  


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  Medium

  
  


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  High

  
  


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  Extreme

  
  

Data Center Vertical Outlook

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  Banking & Financial Services

  
  


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  Telecom & IT

  
  


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  Government

  
  


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  Healthcare

  
  

Data Center Regional Outlook