The widespread digitalization of businesses across the world along with the global adoption of cloud services by companies are significantly boosting the growth of the global data center market.  

According to a new research report by Next Move Strategy Consulting, the Global data center market was valued at USD 214.0 billion in 2023, and is expected to reach USD 421.4 billion by 2030, with a CAGR of 10.2% during the forecast period, 2024–2030.

The data center industry is experiencing significant growth driven by the global shift towards digitalization. With businesses and individuals increasingly relying on digital technologies, cloud services, and data-intensive applications, there's a heightened demand for robust and scalable data infrastructure. According to the International Data Corporation (IDC), spending on digital transformation (DX) is projected to reach nearly USD 3.9 trillion by 2027, with a five-year compound annual growth rate (CAGR) of 16.1% worldwide.

This surge in demand is further fueled by trends such as the Internet of Things (IoT), Artificial Intelligence (AI), machine learning, and the rise of remote work. Data centers play a crucial role in supporting these digital advancements by providing the necessary infrastructure for storing, processing, and efficiently managing vast amounts of data. As the landscape of digital services continues to evolve, along with the need for secure and high-performance computing, the data center industry remains at the forefront of driving global digital transformation initiatives.

Additionally, the widespread adoption of cloud services across diverse sectors such as technology, e-commerce, finance, healthcare, and government agencies is significantly propelling the expansion of the data center industry. As businesses increasingly migrate their operations and infrastructure to the cloud, there's a growing demand for data centers to facilitate the storage, processing, and management of large volumes of data.

According to Gartner's latest forecast, global end-user spending on public cloud services is projected to soar to USD 679 billion in 2024, showcasing a robust growth rate of 20.4% from the previous year's USD 563.6 billion. This surge in cloud adoption underscores the need for data center construction and expansion to accommodate the evolving requirements of businesses embracing cloud computing. Consequently, data center providers are investing in advanced technologies and infrastructure to meet the rising demand for cloud-based solutions, reshaping the data center landscape across various industries.

January 2024

Digital Realty launched its first Indian data center in Chennai, known as MAA10. This facility is designed to meet the growing demand for data center services in India, particularly from cloud and network service providers, reflecting the company's expansion into key global markets such as India.

June 2023

Equinix announced plan to open its first data centre in Kuala Lumpur in the first quarter of 2024, aiming to meet the increasing demand for data centre services in the Southeast Asian region and support the digital transformation efforts of businesses.

However, the data center sector faces hurdles such as high upfront costs and stringent environmental regulations. Setting up and managing data centers requires significant financial resources, hindering smaller enterprises. Also, compliance with environmental standards also poses challenges, leading to ongoing investments in energy-efficient technologies. Countries such as Singapore, the Netherlands, and Ireland have imposed restrictions to manage environmental impacts and infrastructure demands.

On the contrary, introduction of edge computing boosts the data center industry by cutting latency and enabling real-time processing. It brings computing resources closer to users, easing the burden on centralized cloud data centers and supporting applications such as IoT and AR. This approach offers scalability, flexibility, and industry-specific solutions, fostering edge cloud services.

Additionally, edge computing enhances security by processing data locally, addressing sovereignty concerns, and creating new opportunities for data center providers. For instance, Armada recently secured USD 55 million to offer mobile data centers and software for managing Starlink, leveraging IoT and AI advancements to bridge connectivity gaps.

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According to the report, leading players operating in the data center market include Amazon.com Inc., IBM Corporation, Microsoft Corporation, Cisco System Inc., Oracle Corporation, SAP SE, Hewlett Packard Enterprise Company, NTT Communications Corporation, Equinix Inc., Digital Reality Trust Inc. and others.

Key Insights from the Data center Market Report:

• The information related to key drivers, restraints, and opportunities and their impact on the data center market is provided in the report.

• The value chain analysis in the market study provides a clear picture of the roles of each stakeholder.

• The market share of the players in the global data center market along with their competitive analysis are provided in the report.