Global Data Center Market Size & Share, Growth Insights – Area to Reach 109.61 Million Sq. Ft. and Power Capacity to Exceed 28,307 MW Globally by 2031
GLOBAL DATA CENTER MARKET SIZE AND SHARE
| MARKET SIZE (INVESTMENT) | USD 959.19 Billion (2031) |
| MARKET SIZE (AREA) | 109.61 Million Square feet (2031) |
| MARKET SIZE (POWER CAPACITY) | 28,307 MW (2031) |
| CAGR - INVESTMENT (2025-2031) | 10.95% (2031) |
| HISTORIC YEAR | 2022-2024 |
| BASE YEAR | 2025 |
| FORECAST YEAR | 2026-2031 |
| LARGEST REGION (BY INVESTMENT) | North America |
| GEOGRAPHIC ANALYSIS | North America, Latin America, Western Europe, Nordic, Central & Eastern Europe, Middle East, Africa, APAC, and Southeast Asia |
| MAJOR PLAYERS | AirTrunkAligned Data CentersAmazon Web Services (AWS)AppleCDC Data CentresCloudHQ |
GLOBAL DATA CENTER MARKET SIZE & INSIGHTS
The global data center market size witnessed investments of USD 514.26 billion in 2025 and will witness investments of USD 959.19 billion by 2031, growing at a CAGR of 10.95% during the forecast period. The data center market investments grew by around 35.22% in comparison to 2024. This is primarily driven by an increase in deployment of AI workloads across data centers worldwide, triggered by billions of dollars in yearly investments from hyperscale operators such as Amazon Web Services (AWS), Apple, Google, Meta (Facebook), and Microsoft.
Global data center expansion is increasingly being driven by large-scale AI infrastructure initiatives. Global data center expansion is increasingly being driven by large-scale AI infrastructure initiatives. A notable example is the Stargate Project, unveiled in January 2025 at the White House by OpenAI, SoftBank Group, Oracle, and MGX. The initiative aims to develop next-generation AI-ready data center infrastructure across the US, with plans to invest up to $500 billion over four years. An initial $100 billion has been committed for immediate deployment toward data centers and supporting infrastructure.
Geopolitical conflicts and regional instability may lead to delays in data center construction due to supply chain disruptions, material shortages, and labor constraints. At the same time, the need for resilient and localized digital infrastructure is expected to drive higher investments in data centers across relatively stable markets in the region.
DATA CENTER MARKET INSIGHTS BY AREA
The global data center market by area is expected to reach 109.61 million sq ft by 2031, due to the increasing demand for larger and more specialized facilities. Hyperscale cloud providers and colocation operators are expanding their campuses to meet the rising need for computing power, storage capacity, and artificial intelligence (AI) workloads.
Modern hyperscale data centers typically range from 200,000 to 1,000,000 square feet (18,500 to 93,000 square meters) per facility, while multi-building campuses can cover several million square feet. The rapid deployment of AI and high-performance computing infrastructure necessitates additional white space, power rooms, cooling systems, and equipment yards, which further increases the overall built-up area for each project.
The growing demand for edge data centers is also contributing to construction activity, as smaller facilities are being developed closer to end users to reduce latency. Additionally, increasing rack densities, stricter redundancy requirements, and the need for dedicated renewable energy and cooling infrastructure are expanding the footprint of new developments. As cloud adoption, digital services, and global data generation continue to rise, developers are acquiring larger land parcels and constructing larger data center campuses. This trend is leading to substantial growth in the total construction area of data centers worldwide.
DATA CENTER MARKET INSIGHTS BY POWER CAPACITY
The global data center market by power capacity is expected to reach 28,307 MW by 2031, owing to the increasing electricity demands of cloud computing, artificial intelligence (AI), machine learning, and high-performance computing applications. Traditionally, enterprise data centers operate at capacities between 1 and 10 megawatts (MW). In contrast, modern hyperscale facilities typically range from 20 to 100 MW. However, the rapid expansion of AI workload has led to the development of next-generation data center campuses that require between 100 and 500 MW or more. Some planned hyperscale and AI-focused campuses are even targeting power capacities of up to 1 gigawatt (GW).
The higher rack densities, often exceeding 30 to 100 kilowatts (kW) per rack for AI applications, significantly increase the power and cooling requirements compared to traditional data center deployments. As a result, data center operators are heavily investing in substations, transmission infrastructure, backup power systems, and renewable energy integration. The availability of reliable and scalable power has become one of the most critical criteria for site selection for new data center projects.
Major players, such as Amazon, Google, Meta and Microsoft, are at the forefront of this initiative, securing contracts for a substantial total of 40 gigawatts (GW) of wind and solar power in the US through Power Purchase Agreements (PPAs).
Key Report Takeaways
- Facility Type - The colocation data center segment based on investment accounted for the largest market share in 2025.
- Infrastructure - IT infrastructure accounted for the largest share of the global data center market in 2025.
- IT Infrastructure - The server infrastructure accounted for the largest global data center market share of around 64% in 2025.
- Electrical Infrastructure - The UPS system dominated and held the largest share of around 28% of the global data center market.
- Mechanical Infrastructure - The cooling systems segment dominated the mechanical infrastructure of the global data center market in 2025.
- Cooling Systems - The chillers system accounts for the largest share of around 38% of the global data center market in 2025.
- Cooling Techniques - The liquid-based cooling technique is expected to witness the highest growth during the forecast period.
- General Construction - The core and shell development segment accounted for the largest share of the global data center market in 2025.
- Tier Standard - Tier III data centers dominate the global data center market, accounting for the largest share in 2025.
Note: Market size and forecast figures are generated using Arizton's proprietary estimation framework, based on facility-level primary and secondary research, updated as of the current reporting cycle.
Global Existing & Upcoming Data Center Portfolio
EXISTING FACILITY DATA POINTS
- Location — region, city, full address
- Operator / owner name & facility name
- Core & shell white-floor area
- Core & shell IT load capacity
- Rack Capacity
- Tier standard (I–IV) & redundancy design
- Year of operations
UPCOMING FACILITY DATA POINTS
- Investor name & location
- Planned area & power capacity (MW)
- Total investment (USD Million)
- Electrical / mechanical / construction investment split
- Announcement year & project status
- Expected year of opening
- Retail & wholesale colocation pricing
GLOBAL DATA CENTER MARKET TRENDS, OPPORTUNITIES & DRIVERS
TRENDS
Data Center Operators Enhance Sustainability
The adoption of renewable energy is on the rise across the globe, and it will continue to grow. Data centers are responsible for most of the global electricity consumption, and they have a significant impact on the environment. To reduce their environmental impact, data center operators are powering their facilities with renewable and green energy.
The Australian government has implemented numerous policies and programs aimed at promoting data center sustainability and fostering the adoption of best practices in sustainability and Environmental, Social, and Governance (ESG) standards. Through collaboration among data center operators, policymakers, and industry associations, there is the potential to develop a more sustainable and robust data center industry in Australia.
As the demand for digital services is rising, the focus on sustainable initiatives should also be raised simultaneously across the world to promote sustainability and reduce green house gases.
Latin America is strengthening its position as a sustainable data center hub through renewable energy expansion and policy support. Countries such as Argentina, Chile, Colombia, and Mexico have established ambitious clean energy targets, creating favorable conditions for hyperscale deployments. For example, Argentina's proposed OpenAI–Sur Energy Stargate project links AI infrastructure deployment with dedicated renewable energy supply, while Colombia released over 5GW of grid connection capacity in 2025 to accelerate new solar and wind projects that can support future data center demand.
Adoption of Artificial Intelligence
The adoption of artificial intelligence across various industries for enhanced operations has seen significant improvement and it has also increased demand for computing power and advanced data management.
Europe is undergoing rapid digital transformation driven by widespread enterprise adoption of AI, cloud, and data-driven technologies, significantly increasing demand for data center infrastructure. Countries such as Germany, the UK, and Italy show near-universal digital connectivity, with Germany reporting 93% of organizations prioritizing AI and digital technologies, the UK reaching 97.8% internet penetration with over 55 million social media users, and Italy achieving 90% internet penetration.
South Africa is positioning itself as a regional AI hub, with Cassava Technologies planning an NVIDIA-powered AI factory and AI supercomputer deployment. The government has also allocated $28.4 million toward AI, blockchain, and digital capability research. In parallel, South Africa’s data center markets in Johannesburg, Cape Town, and Durban are seeing rising demand for AI, ML, and HPC workloads, reinforcing the need for high-density, AI-optimized infrastructure across the continent.
The Nordics are emerging as a leading destination for sustainable AI infrastructure, combining renewable energy availability with large-scale AI-focused data center investments. For Instance, Verne and Nscale's 15 MW liquid-cooled NVIDIA GB300 AI deployment in Iceland is powered entirely by renewable energy
RESTRAINTS
Restraints Impact Analysis
Carbon Emissions and Sustainability Pressures
Data centers are highly energy-intensive and contribute significantly to global electricity consumption and greenhouse gas emissions. Growing scrutiny over carbon emissions, water consumption, and environmental impact is increasing pressure on operators to adopt renewable energy, energy-efficient cooling, carbon reduction measures, and transparent sustainability reporting. Meeting increasingly stringent ESG and climate requirements can also raise development and operating costs.
Site Selection and Infrastructure Constraints
The availability of suitable land, reliable water resources, power infrastructure, network connectivity, and supportive local regulations remains a major challenge for data center development. Land scarcity and rising property costs in established markets, water stress in regions such as the Middle East and Africa, environmental and permitting requirements, and community opposition can delay projects, increase CAPEX, and restrict expansion.
Security and Operational Risks
Rising cyberattacks; ransomware, physical security threats, and increasingly stringent data protection regulations are increasing the complexity and cost of operating critical digital infrastructure. Data center operators must continuously invest in cybersecurity, physical protection, monitoring, compliance, and business continuity measures to safeguard increasingly valuable AI, cloud, and enterprise workloads.
Power Availability and Grid Reliability
Limited grid capacity, aging electricity infrastructure, connection delays, and power outages are emerging as critical constraints on data center expansion, particularly as AI workloads significantly increase power requirements. In several markets, grid limitations have delayed or restricted new projects, while operators are increasingly turning to PPAs, on-site generation, energy storage, and backup power systems to secure reliable capacity.
GLOBAL DATA CENTER MARKET OPPORTUNITIES
The rapid expansion of AI creates significant opportunities for hyperscale and colocation operators, GPU/cloud providers, power suppliers, and data center developers to build high-density, AI-ready capacity. Large-scale investments such as the U.S. Stargate initiative, Alibaba’s planned AI infrastructure investment in China, and YTL–NVIDIA’s AI infrastructure investment in Malaysia highlight the scale of the opportunity.
Emerging markets across Latin America, Africa, APAC, and the Middle East offer strong growth potential as governments accelerate AI, cloud, connectivity, and renewable energy programs. Countries such as Brazil, Mexico, Argentina, South Africa, Malaysia, Australia, and the UAE are increasingly positioning themselves for AI and hyperscale infrastructure investment.
The transition toward liquid cooling, advanced power systems, and AI-optimized data centers creates opportunities across the data center technology ecosystem. Direct-to-chip and immersion cooling can support racks exceeding 50 kW and are increasingly relevant for GPU- and HPC-intensive deployments.
Renewable energy and sustainable infrastructure represent another major opportunity, particularly through PPAs, dedicated renewable projects, waste-heat recovery, low-carbon backup power, and 24/7 clean-energy solutions. The convergence of AI growth and sustainability is expected to accelerate investment in data centers that can deliver high computing capacity while managing power, cooling, water, and carbon requirements efficiently.
GLOBAL DATA CENTER MARKET DRIVERS
Enhanced Connectivity Through Submarine Cables
Submarine cables are vital as they enable high-speed, low-latency international connectivity, supporting the growing digital economy of the region. They are essential for cloud services, data centers, and cross-border internet traffic.
South America-1 (SAm-1) is the longest subsea cable system serving Latin America, providing high-capacity fiber connectivity that links the country to the US, Puerto Rico, Brazil, Chile, Peru, Guatemala, Argentina, and Ecuador. The system offers ring-based route redundancy and multiple landing points across South America, ensuring resilient international traffic flow and enhanced network reliability.
Several upcoming submarine cable projects, including Norte Conectado (Infovia 02), Norte Conectado (Infovia 04), and Firminia, are expected to significantly improve connectivity in areas that have traditionally lacked robust digital infrastructure. These initiatives are particularly important for extending high-speed connectivity beyond the major metropolitan regions in Brazil.
Europe has been increasing its digital infrastructure by expanding submarine cable connectivity, which plays a pivotal role in driving the region’s cross-border connectivity and data transmission speeds to support the rising demands for cloud computing services, digitalization, and AI.
Heightened Demand for Cloud Services
The adoption of cloud computing services and applications continues to rise rapidly, leading to the establishment of vast hyperscale cloud-based data centers. Cloud computing changes the dynamics of data center facilities, leading to several innovations and the inculcation of modern infrastructure.
Colocation service providers are also witnessing high demand for cloud connectivity solutions. Moreover, cloud connectivity solutions are expected to grow in countries that are likely to be aided by the growth in internet backbone and colocation facilities during the forecast period.
Microsoft, Google, Oracle, and AWS are among the top cloud providers in the market. Other companies, such as Alibaba Cloud, Tencent Cloud, OVHcloud, and IBM Cloud, also operate in the market and have significant market share.
Google has announced a $40 billion investment in Texas through 2027 to expand its cloud and AI infrastructure footprint. The initiative includes the development of new data center campuses in Armstrong and Haskell counties, with one Haskell County facility being co-located with a solar and battery energy storage project, reinforcing a focus on sustainable operations.
SEGMENTATION INSIGHTS
BY FACILITY TYPE
The global data center market by facility type is segmented into hyperscale data centers, colocation data centers, and enterprise data centers. The colocation data center segment based on investment accounted for the largest market share in 2025. The colocation data centers contributed to generating the majority of the data center investments in the European data center market in 2025, accounting for around 68% of the market’s overall investment share, due to the increasing demand for third-party data centers across European countries.
The US data center colocation market is experiencing record-breaking investment levels, driven by the surging demand for cloud services, the expansion in edge computing, as well as the increasing use of technologies such as AI, big data, and the Internet of Things (IoT).
BY INFRASTRUCTURE
Based on infrastructure, IT infrastructure accounted for the largest share of the global data center market in 2025. IT infrastructure in data centers consists of servers, storage, and network infrastructure. The IT infrastructure market has witnessed significant changes over the last few years, driven by the increased construction of self-built data centers by hyperscale operators, as well as the expansion and development of new projects by colocation operators. The growing deployment of these facilities is supporting demand for advanced IT infrastructure to meet the increasing requirements for cloud, AI, and other high-performance workloads.
BY IT INFRASTRUCTURE
Based on the IT infrastructure, the server infrastructure accounted for the largest global data center market share of around 64% in 2025. Servers are available in a variety of types and configurations. In terms of form factors, servers are classified as rack servers, blade servers, and tower servers. The most common servers in the market include rack and blade servers from vendors such as Cisco Systems, Hewlett Packard Enterprise, Dell Technologies, IBM, Lenovo, and NetApp. The increasing adoption of AI, cloud computing, and HPC workloads is driving demand for high-performance servers across data centers globally. In addition, the growth of hyperscale and colocation data centers is increasing server deployments to support expanding computing and data processing requirements.
BY ELECTRICAL INFRASTRUCTURE
Based on the electrical infrastructure, the UPS system dominated and held the largest share of around 28% of the global data center market. Data center operators are increasingly installing UPS systems with capacities of more than 750 kVA to support efficient operations and meet the growing power requirements of high-density facilities.
Smaller data centers and hyperscale facilities using in-rack UPS solutions are the major contributors to UPS systems with capacities of less than 500 kVA. The growing deployment of high-density IT infrastructure, AI workloads, and cloud computing is increasing the need for reliable backup power solutions across data centers.
The centralized UPS system installed at the DK01 facility in Esbjerg uses 2N redundancy to provide backup power and support uninterrupted operations during unexpected power disruptions. The increasing focus on power reliability, redundancy, and business continuity is encouraging data center operators to invest in advanced UPS systems, supporting the growth of the electrical infrastructure segment.
BY MECHANICAL INFRASTRUCTURE
The cooling systems segment dominated the mechanical infrastructure of the global data center market in 2025. Most modern data centers follow the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) cooling guidelines and Uptime Institute’s Tier standards for redundant design.
The placement of cooling units other than CRAC and CRAH systems depends on facility design, hotspot locations, airflow circulation, rack density, and hot/cold aisle containment. The growing deployment of high-density servers and AI workloads is increasing the demand for advanced cooling solutions. The adoption of liquid cooling and other energy-efficient technologies is further supporting investments in data center cooling infrastructure and market growth.
BY COOLING SYSTEMS
The chillers system accounts for the largest share of around 38% of the global data center market in 2025. CRAC and CRAH units are floor- or roof-mounted precision cooling systems that supply conditioned air to the data hall.
Data center facilities use multiple CRAC and CRAH units across data halls and containment areas, particularly in facilities designed to support more than 10 MW of IT load. The growing deployment of high-density servers and AI infrastructure is increasing the demand for high-capacity cooling systems and supporting market growth.
The Dubai Silicon Oasis Data Center has direct access to network distribution, enabling rapid interconnectivity across different speeds and media types. HVAC and CRAC units maintain optimal airflow, temperature, and humidity for continuous equipment operation.
BY COOLING TECHNIQUES
The liquid-based cooling technique is expected to witness the highest growth during the forecast period. In data centers, liquid-based cooling includes chilled-water cooling, direct liquid cooling, and immersion cooling.
Direct liquid cooling and immersion cooling are seeing higher adoption due to their ability to manage the heat generated by high-density servers and AI workloads. In contrast, the adoption of chilled-water systems is expected to decline gradually as operators increasingly seek water-efficient cooling solutions to reduce water consumption. The growing deployment of AI and high-performance computing infrastructure is further driving demand for liquid-based cooling technologies.
BY GENERAL CONSTRUCTION
In terms of general construction, the core and shell development segment accounted for the largest share of the global data center market in 2025. Data center construction is broadly divided into greenfield and brownfield development. Building development is carried out by major construction contractors in coordination with design and infrastructure providers and data center operators.
Densely populated cities are likely to witness a rise in brownfield projects during the forecast period due to limited land availability and location constraints. The growing demand for data center capacity in major urban areas is supporting investments in both new developments and the expansion of existing facilities.
Evolution Data Centres, a Singapore-based company, has partnered with Thai property developer Central Pattana PCL to construct a new data center in Bangkok.
BY TIER STANDARDS
Based on Tier standards, Tier III data centers dominate the global data center market, accounting for the largest share in 2025. A Tier III data center has a minimum of N+1 redundancy in power and cooling infrastructure, with around 1.6 hours of annual downtime and 99.982% availability.
The infrastructure components in Tier III facilities are concurrently maintainable, with a minimum N+1 redundancy level. The Calgary1 data center, Phase 1 facility of eStruxture Data Centers, has been certified as Tier III in design documents by the Uptime Institute.
GEOGRAPHY ANALYSIS
Americas
Europe
Middle East & Africa
APAC
COMPETITIVE LANDSCAPE
The global data center market has the presence of key investors such as AirTrunk, Aligned Data Centers, Amazon Web Services (AWS), Apple, CDC Data Centres, CloudHQ, Compass Datacenters, CyrusOne, DataBank, Digital Realty, EdgeConneX, Equinix, Global Switch, Google, Iron Mountain, Meta, Microsoft, NTT DATA, QTS Realty Trust, STACK Infrastructure, ST Telemedia Global Data Centres (STT GDC), Switch, Vantage Data Centers and others.
In February 2026, Google announced a $500 million investment to develop a new international digital exchange hub (“Digital Port”) in the Dominican Republic, marking its first such facility in Latin America outside the US. The project also includes new submarine cable connections to the US, significantly enhancing regional connectivity and positioning the country as a strategic digital gateway across the Americas.
In November 2025, Microsoft partnered with Powertrust to support the deployment of 270MW of solar power across Brazil and Mexico, receiving Renewable Energy Certificates from the projects. The initiative aligns with the broader investment of Microsoft in Brazil’s cloud and AI infrastructure and its long-term clean energy procurement strategy.
New entrants in the MEA region include Agility Logistics Parks, Anan, Cloudoon, DataVolt, Desert Dragon Data Centers, Ezditek, Humain, Kasi Cloud, Mega DC, MultiDC, NED, NEOIX, Pure Data Centres, Qareeb Data Centres, Techtonic, Volt and others.
In February 2025, DataVolt announced its plans for the development of a new AI-ready data center facility in Riyadh, Saudi Arabia; the company has planned to develop a Neom data center, with an IT power capacity of around 1.5 GW, in Neom, Saudi Arabia.
In March 2025, Open Access Data Centres announced its plan to invest around $240 million for the development of a new data center facility in Lagos. The data center will support 24 MW on completion and will be built in two stages. The first phase, with 12 MW, is likely to become operational by 2026.
Global Data Center Industry Leaders
Disclaimer: Major players sorted in no particular order.
RECENT INDUSTRY DEVELOPMENTS
GLOBAL DATA CENTER COLOCATION MARKET
View Colocation Report →TABLE OF CONTENTS FOR GLOBAL DATA CENTER INDUSTRY REPORT
GLOBAL DATA CENTER MARKET REPORT SCOPE
By Facility Type
- Hyperscale Data Centers
- Colocation Data Centers
- Enterprise Data Centers
By Infrastructure
- IT Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
By IT Infrastructure
- Server Infrastructure Storage Infrastructure Network Infrastructure
- Storage Infrastructure Network Infrastructure
- Network Infrastructure
By Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgear
- PDUs
- Other Electrical Infrastructure
By Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
By Cooling Techniques
- Air-based
- Liquid-based
By General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Physical Security
- Fire Detection & Suppression
- DCIM
By Tier Standard
- Tier I & II
- Tier III
- Tier IV
By Geography
- North America
- Latin America
- Western Europe
- Nordics
- Central & Eastern Europe
- Middle East
- Africa
- APAC
- Southeast Asia
MARKET DEFINITION
| Term | Definition |
|---|---|
| PUE | Power Usage Effectiveness — total facility energy divided by IT equipment energy; values closer to 1.0 indicate higher efficiency. |
| Redundancy (N, N+1, 2N) | Design standards describing backup capacity for power and cooling components, ranging from no redundancy (N) to fully duplicated systems (2N). |
| CRAC / CRAH | Computer Room Air Conditioner / Air Handler — equipment used to regulate temperature and humidity in the server environment. |
| Hot Aisle / Cold Aisle | Rack layout convention that separates cool air intake from hot air exhaust to improve cooling efficiency. |
| Colocation (Retail / Wholesale) | Retail colocation serves capacity needs under roughly 250 kW; wholesale colocation serves capacity needs between 250 kW and 4 MW. |
RESEARCH METHODOLOGY
Identify Key Variables
Variables and factors are tested against historical facility-level market data through an iterative process.
Build a Market Model
Market-size estimations are built in nominal terms with a consistent average selling price across the forecast period.
Validate & Finalize
Market numbers and analyst calls are validated through an extensive primary research network across levels and functions.
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Existing and upcoming facilities tracked across Global.
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KEY QUESTIONS ANSWERED IN THE REPORT
What is the growth rate of the global data center market?
How big is the global data center market?
What is the estimated market size in terms of area in the global data center market by 2031?
What are the key trends in the global data center market?
How much MW of power capacity is expected to reach the global data center market by 2031?
Last Refreshed on : September 2026
