Data Center Market Research Report Includes Size, Share, and Growth in Terms of
Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2023–2028.
|MARKET INVESTMENT (2028)||USD 289.66 Billion|
|MARKET INVESTMENT (2022)||USD 215.73 Billion|
|CAGR BY REVENUE (2022-2028)||5.03%|
|MARKET SIZE - AREA (2028)||58.15 Million Square Feet|
|POWER CAPACITY (2028)||9,778.6 MW|
|MARKET SEGMENTS||Facility, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Technique, General Construction, Tier Standards, and Geography|
|GEOGRAPHIC ANALYSIS||North America, Latin America, Western Europe, Nordics, Central & Eastern Europe, Middle East, Africa, APAC, and Southeast Asia|
The worldwide data center market was valued at USD 215.73 billion in 2022 and is expected to reach USD 289.66 billion by 2028, growing at a CAGR of 5.03% from 2022 to 2028. The market is driven by the rapid expansion of cloud service providers, increased demand from content and network providers, on-premises migration to cloud/colocation facilities, government initiatives toward digitalizing the economy, etc. The growing popularity of IoT, Big Data, the emergence of 5G networks, favorable government policies, free cooling, and climatic conditions are among the major factors driving the growth of the data center market.
North America and Western Europe are among the mature and developed markets in data center development. APAC countries such as China, Japan, Singapore, Australia, and others are among the advanced market with the presence of all the global data center operators. Countries such as India, Malaysia, Indonesia, Hong Kong, and others are witnessing growth in terms of development from several new operators entering the data center market.
Hyperscalers such as Meta (Facebook), Microsoft, Google, and Amazon Web Services are actively involved in expanding their presence in existing locations across the U.S. and are expanding to other countries apart for the United States. The Nordics region is also among the preferred location by the hyperscalers to develop data center facilities owing to the free cooling solutions, availability of renewable energy, district heating systems, and others. Some major colocation operators involved in the investment in 2022 include Equinix, Digital Realty, QTS Realty Trust, Iron Mountain, Vantage Data Centers, NTT Global Data Centers, STACK Infrastructure, CyrusOne, ST Telemedia Global Data Centres, AirTrunk, GDS Services, VNET Group, and others.
Some trends and enablers that will contribute to the growth of the data center market worldwide include:
Adoption of Advanced IT Infrastructure
The data center market has witnessed several new trends in adopting IT infrastructure in data centers. Some trends include the adoption of ARM-based architecture, the adoption of NVMe storage devices, the adoption of converged and hyper-converged infrastructure, the adoption of 200/400 GbE ports, and others. ARM technology is also being adopted by cloud providers such as Microsoft, Amazon Web Services, and Oracle, which have been running ARM-based chips in their data centers. Some leading vendors that offer NVMe storage options include Hewlett Packard Enterprise, Hitachi Vantara, Dell Technologies, NetApp, IBM, and Pure Storage.
Focus On Improving the Sustainability of Data Centers
The increasing data center power consumption and the need to decrease carbon emissions have prompted many service providers to purchase clean, renewable energy sources to power their current and new facilities. There is a high interest in adopting renewable power sources among global and local data center operators. Also, many smaller operators are installing solar panels on the rooftops of their facilities to power the data centers.
Innovative and Sustainable Data Center Power Technologies
Several data center operators are upgrading their data centers from traditional technologies to new ones. Such new technologies will also help companies focus on sustainability in the data center market. Some such innovations are as follows:
Ai-Based Infrastructure Boosting Liquid Immersion and Direct-To-Chip Cooling Solutions
The liquid cooling will witness massive growth among data centers that deploy AI & ML workloads. These technologies require powerful computing capabilities for TPU, where the heat generated exceeds the cooling limit and thus demands superior efficiency to keep the chips working optimally. For instance, most upcoming data center facilities will include at least one data hall to support the deployment of advanced two-phase immersion cooling and direct-to-chip cooling solutions. Meta (Facebook) has announced its plan to pause several new and expansion projects across the U.S., as it wants to create a new AI design for the facilities.
Government Support to Develop Data Centers
Over the past few years, the data center market growth has been focused on countries offering tax incentives. Many state and local governments provide investments and sales tax incentives to attract operators. The U.S. is leading in providing tax incentives to data center operators. Several states in the U.S. provide tax incentives to data centers for investments, job opportunities, and compensation for employees. Several states in India have launched their own data center policies to attract investment and create a global hub for data center facilities. Some of the states in India that have announced their data center policies include Telangana, Uttar Pradesh, West Bengal, Karnataka, Tamil Nadu, Haryana, and Odisha.
Impact of Supply Chain Disruptions
Supply chain disruptions are a major challenge faced by data center developers recently. With the onset of COVID-19, supply chain disruptions increased, leading to a shortage of infrastructure such as power equipment, cooling infrastructure, chips, and other infrastructure. Also, political instability and disturbances between Russia and Ukraine led to a price hike in energy and fuel costs. One of the major shortages faced by operators was chip shortage, which led to a decline in the manufacturing of several infrastructures.
Data Center IT Infrastructure
Data Center Electrical Infrastructure
Data Center Mechanical Infrastructure
Data Center General Construction Services
Middle East & Africa (MEA) Region
Data Center IT Infrastructure Providers
Data Center Support Infrastructure Providers
Data Center Construction Contractors
Data Center Investors/Operators
Frequently Asked Questions
The global data center market size was valued at USD 215.73 billion in 2022 and is expected to reach USD 289.66 billion by 2028.
The global data center market share is growing at a CAGR of 5.03% from 2022-2028.
Regarding area, the global data center market is expected to reach 58.15 million square feet by 2028.
Some key trends in the data center market are edge data center investments fueled by 5G deployment, a surge in rack power density, sustainable innovations in data center power technologies, automation & intelligent monitoring solutions, and liquid immersion & direct-to-chip cooling driven by the adoption of AI-based infrastructure.
In the global data center market, power capacity is expected to reach 9,778.6 MW by 2028.
The worldwide data center market is expected to grow at a CAGR of 5.03% from 2022 to 2028.
The following factors are likely to contribute to the growth of the data center market during the forecast period:
Base Year: 2022
Forecast Year: 2023–2028
The study considers the present scenario of the global data center market and its market dynamics for 2023−2028. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspects of the market. It profiles and examines leading and prominent companies operating in the market.
The report includes the investment in the following areas:
Segmentation by Facility Type
Segmentation by Infrastructure
Segmentation by IT Infrastructure
Segmentation by Electrical Infrastructure
Segmentation by Mechanical Infrastructure
Segmentation by Cooling Systems
Segmentation by Cooling Technique
Segmentation by General Construction
Segmentation by Tier Standards
Segmentation by Geography
ABOUT OUR DATA CENTER CAPABILITIES
MARKET AT GLANCE
· INVESTMENT: MARKET SIZE & FORECAST
· AREA: MARKET SIZE & FORECAST
· POWER CAPACITY: MARKET SIZE & FORECAST
FACILITY TYPE SEGMENTATION
TIER STANDARDS SEGMENTATION
REST OF LATIN AMERICA
KEY INVESTORS & INVESTMENTS
OTHER WESTERN EUROPEAN COUNTRIES
FINLAND & ICELAND
CENTRAL & EASTERN EUROPE
OTHER CENTRAL & EASTERN EUROPEAN COUNTRIES
OTHER MIIDDLE EASTERN COUNTRIES
OTHER AFRICAN COUNTRIES
REST OF APAC
REST OF SOUTHEAST ASIA
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