Data Center Market Size to See Stunning Growth: $ 517.17 billion with a CAGR of 10.5%

Growing enterprise adoption of high-end cloud computing and rising global investments in data centers fuel the expansion of the data center market.

WILMINGTON, DE, UNITED STATES, July 29, 2025 /EINPresswire.com/ -- A data center is a physical facility that is designed to make organizational computing possible and provide access to a large amount of data to perform daily operations, applications, and other processes in a cloud computing environment. Further, modern data center design often varies based on vendors providing the services or needs of various enterprises. The modern data center consists of crucial infrastructure.

However, an occupancy detection system in automotive applications is essential for implementing applications that allow a user to maintain efficiency in run applications, online presence, and process data. Moreover, the growing adoption of artificial intelligence and machine learning-powered solutions are forecast to propel the need for data center solutions, which is opportunistic for market growth.

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According to the report, the global data center market was estimated at $187.35 billion in 2020, and is anticipated to hit $517.17 billion by 2030, registering a CAGR of 10.5% from 2021 to 2030.

Rise in penetration of high-end cloud computing in enterprises and increase in investment in data center applications across the globe drive the growth of the global data center market. On the other hand, surge in concerns related to data privacy paired with growing demand for managed services impede the growth to some extent. However, increase in penetration of Internet of Things and hybrid & multi cloud architecture solutions are expected to pave the way for lucrative opportunities in the industry.

Impact of COVID-19 on Data Center Market

1. Surge in demand from cloud computing network solutions, during the pandemic, impacted the global data center market negatively.

2. However, increase in dependency on data center across healthcare, government, and BFSI sectors has driven the market positively, thereby providing the market with a mixed impact.

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Based on component, the solution segment dominated with the largest share in 2020, holding more than three-fourths of the global data center market. This is because in order to minimize the costs associated with the operations of data centers and to maximize profits, various organizations are now adopting more scalable and efficient power and cooling data center solutions. However, the services segment is expected to cite the fastest CAGR of 12.4% throughout the forecast period, owing to increasing expenditure in data center technology.

Based on solution, the hyperscale segment held the highest market share in terms of revenue, accounting for more than two-fifths of the global data center market. This is attributed to surge in demand for energy-efficient and cost-effective data interruptions solutions across large and small & medium enterprises. Simultaneously, the edge segment is estimated to exhibit the fastest CAGR of 13.1% during the forecast period.

Based on region, the market across North America dominated the market with major share in 2020, accounting for nearly two-fifths of the global data center market, due to the presence of a large number of data centers across the province. On the other hand, the market across Asia-Pacific is expected to witness the fastest CAGR of 14.7% from 2021 to 2030. This is owing to increasing volumes of data center traffic in countries, such as India, Australia, and China.

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Key players in the industry-

Amazon.com Inc.
SAP SE
Digital Realty
Equinix Inc.
Hewlett Packard Enterprise
IBM Corporation
Oracle,Microsoft
Alphabet Inc.
NTT Communication Corporation

Other Trending Report:

1. Data Center Security Market

2. Data Center Colocation market

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