Global Data Center Market Analysis & Forecast 2019-2028

The global data center market size is expected to increase with a CAGR of 25.8%, during the forecast period 2022-2028. The exponential growth of cloud data is the leading contributor to the expansion of the market. Due to the increasing demand for social media, analytics, and cloud services across the globe, the demand for data centers is expected to open a pool of opportunities for the global data center market. In recent years, the use of social media platforms is expected to explode, necessitating the construction of new data storage facilities.

In addition, the increasing significance of e-commerce databases is also one of the primary factors driving the expansion of the global data center market. Companies that engage in e-commerce utilize data centers to store and transfer these data sets for a variety of organizational purposes, including branding, promotions, etc. In addition, the growing acceptance of Software-as-a-service (SaaS) cloud solutions is anticipated to generate a lucrative potential for data center market expansion. 

During the forecast period, an increase in spending on data center technology, a rise in multi-cloud adoption, and a network upgrade to support 5G technology are anticipated to create lucrative growth opportunities for the data center market.

However, the high cost of data center development is one of the reasons inhibiting industry expansion. Installations of server cooling, storage, and networking equipment with new uninterruptible power systems (UPS), battery plants, diesel generators, and HVAC systems can be prohibitively expensive. Moreover, cybersecurity issues are expected to pose a significant obstacle to the growth of the global data center market. Increased data privacy concerns and growing demand for managed services pose a significant barrier to early adoption.

IT & Telecom end user segment dominates the global data center market on the back of increasing data volume, growth in cloud computing, and increased adoption of big data analytics among others. The IT and telecom sector is responsible for generating and storing a large amount of data. This data includes customer information, financial data, and operational data. The increasing volume of data is driving the demand for data centers that can store and process this data efficiently.

Moreover, cloud computing is a major trend in the IT and telecom sector. Cloud computing services are hosted in data centers, and the growth of cloud computing is driving the demand for data center capacity. Big data analytics is another major trend in the IT and telecom sector. Big data analytics requires large amounts of data to be stored and processed, which is driving the demand for data center capacity.

Government end user segment is expected to contribute significantly in the forthcoming years

The government of India developed numerous Government-to-Citizen (G2C) delivery platforms, such as the National eGovernance Plan (NeGP), e-visa, and National CSR Data site, to improve its performance reliance on IT-intensive services. In addition, the expansion of e-commerce and online marketplaces has propelled the market for colocation data centers and is anticipated to continue to do so in the future years.

Besides, the increased adoption of technology by small and medium enterprises (SMEs) across all industries paired with stringent government requirements is anticipated to increase the demand for additional data centers in the forthcoming years. It is anticipated that the media and entertainment business will also experience significant growth. 

The demand for cloud services and social media services shows no indication of abating, several technology companies are investing in the construction of additional huge data centers. These facilities will be essential for managing the massive amounts of data generated by the media and entertainment industry, big data social media analytics, and the information gathered by IoT devices, which presents enormous opportunities for data center providers in the media and entertainment sector.

Increasing network design pervasiveness is expected to expedite the global construction of data centers to manage massive data volumes. This is likely to have a lasting impact on the change of data center architecture to accommodate increased data volumes and a range of digital information delivered via diverse devices.

Numerous areas, including online shopping, social network administration, online banking transactions, and other financial operations, have been impacted by digitization. Together with the proliferation of smartphones and the Internet of Things (IoT), is expected to result in the movement of vast quantities of data and vital information on digital platforms.

Efficient power management solutions in North America are likely to drive growth

North America is anticipated to hold a significant portion of the data center market share since it has a huge penetration of data centers. Governments and regulatory agencies have enacted and implemented numerous rules and regulations to minimize carbon footprints and energy usage. This has led to the widespread adoption of efficient power management solutions, which is expected to fuel regional demand for data centers.

• For instance, a significant amount of resources are allocated to cooling and maintenance systems. As a result, it becomes crucial to add efficient power management equipment, such as PDUs, busways, and UPSs, among others, in data centers in order to control excessive expenditures.

Moreover, due to the significant increase in the number of colocation data centers in emerging economies, such as India and China, the Asia Pacific data center market is anticipated to experience growth throughout the forecasting period. In addition, an increase in the global number of telecom subscribers utilizing smartphones and tablets is predicted to boost regional demand for data centers during the projection period.

The increasing penetration of cloud providers, government laws for local data protection, and increasing investments by businesses are all driving the expansion of the data center market in Brazil. In addition, the introduction of the General Law on the Protection of Personal Data (LGPD) in August 2020 is anticipated to promote the country’s adoption of cloud services and data center services.

Market structure and competition landscape

The key players in the data center market globally are Hewlett Packard Enterprise Development LP, IBM Corporation, Digital Realty Trust, Oracle, Equinix, Inc, Global Switch, Hitachi, Ltd, Microsoft, NTT Communications Corporation, Huawei Technologies Co., Ltd, Infiniti Research Limited, Qualcomm Technologies, Inc., Apple, Inc., Google LLC, among others.

To maintain their market position, the key players in the data center market focus on various growth strategies such as partnerships, mergers and acquisitions, and product portfolio expansion. Some of the key developments in the data center market are;

• In February 2022, AtlasEdge, a European edge data center firm, announced the acquisition of the largest purpose-built data center in Yorkshire City, England, Cornelius House.
• In June 2021, NTT Ltd. introduced Global Data Centre Interconnect (GDCI), an integrated global network fabric service. It provides private and secure connectivity between the global data centers of NTT and the largest cloud service providers.
• In March 2020, Digital Realty bought Interxion of the Netherlands. Interxion is pursuing a rapid expansion of its data centers. Multiple data center development projects are in progress at the data center provider.
• In February 2020, Equinix, Inc. announced the launch of its data center in Melbourne, Australia, to serve the government’s smart city development ambitions and local customers’ connectivity needs.

Key Market Segmentation

RationalStat has segmented the global data center market based on the type, enterprise size, consulting, integration, end user, and region.

• Global Data Center Market Value (US$ Million) and Volume (units) Analysis By Type
  • Colocation
  • Hyperscale
  • Edge
  • Green and Sustainable
• Global Data Center Market Value (US$ Million) and Volume (units) Analysis By Enterprise Size
  • Large Enterprise
  • Small and Medium Enterprise (SMEs)
• Global Data Center Market Value (US$ Million) and Volume (units) Analysis By Consulting
  • Network Design
  • Network Planning
  • Security Consulting
  • Network Analysis
  • Benchmarking
  • Needs Assessment
  • Operation Assessment
  • Process Improvement
• Global Data Center Market Value (US$ Million) and Volume (units) Analysis By Integration
  • Project Management
  • Installation
  • Test & Debug
  • Custom Software Development
  • Security Implementation
  • Change Management
  • Software Configuration
  • Training & Site Preparation
• Global Data Center Market Value (US$ Million) and Volume (units) Analysis By End User
  • Banking, Financial Services and Insurance (BFSI)
  • Telecommunication & IT
  • Energy & Utilities
  • Government
  • Media and Entertainment
  • Others (Healthcare, Retail, Education, etc.)
• Global Data Center Market Value (US$ Million) and Volume (units) Analysis By Region
  • North America
    • US
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Western Europe
    • Germany
    • UK
    • France
    • Spain
    • Italy
    • Benelux
    • Nordic
    • Rest of Western Europe
  • Eastern Europe
    • Russia
    • Poland
    • Rest of Eastern Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • ASEAN (Indonesia, Vietnam, Malaysia, etc.)
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC
    • South Africa
    • Turkey
    • Rest of the Middle East & Africa

Research Methodology

RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.

RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the data center market numbers are:

• Defining the problem by understanding the type of market and data required by the client.
• Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
• Formulating a hypothesis to create market numbers, forecasts, influencing factors, and their relevance.
• Evaluating and analyzing the data by referring to data sources utilized and leveraged.
• Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.

Secondary Sources

• Annual reports, company filings, investor presentations, product catalogs, white papers, research reports, trade fairs, and company documents.
• Available industry and market-related documents in the public domain.
• Paid databases including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others.
• Whitepapers, research papers, and industry blogs

Why Buy this Report?

The report is intended for telecommunication and electronics associations, data center service providers, logistics players, investment firms, government organizations, educational organizations, regulatory agencies, research organizations, and market research firms, among others. The report provides an in-depth analysis of market size, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.