Data Center Market Report 2024 (Global Edition)

Global Data Center Market Report 2024 Market Size Split by Component (Solution, Services), by Type (Colocation, Hyperscale, Edge, Others), by Enterprise Size (Large Enterprises, Small & Medium Enterpr...

Data Center Market Report Description

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Competitive Landscape of the Data Center Market

In the data center market, competition is fierce among industry giants such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform, alongside numerous smaller players vying for market share and innovation dominance.

 

Top Companies Market Share in Data Center Industry: (In no particular order of Rank)

• IBM Corporation
• Amazon.Com
• Inc.
• Equinix
• Inc.
• Hewlett Packard Enterprise Company
• Cisco System
• Inc.
• Alphabet
• Inc.
• Microsoft Corporation
• NTT Communications Corporation
• Oracle Corporation
• SAP SE.
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

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Regional Analysis of the Data Center Market

Which Region Dominates the Data Center Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024 and accounted for around 40% of the global revenue. North America dominates the data center market with a robust infrastructure and high adoption of advanced technologies. Major players like the United States and Canada exhibit substantial investments in data center construction, driven by increasing demand for cloud services, big data analytics, and IoT applications. Additionally, favorable government initiatives, such as tax incentives and supportive regulatory frameworks, further stimulate market growth. The region's mature telecommunications network and strong economic environment position it as a key hub for data center development and innovation.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific region, the data center market is witnessing rapid growth driven by increasing digitalization, adoption of cloud services, and expansion of internet connectivity. Countries like China, India, Japan, and Singapore are key contributors, with significant investments in data center infrastructure. Favorable government policies, emerging technologies, and the proliferation of mobile devices are further fueling market expansion. However, challenges such as regulatory complexities, power infrastructure limitations, and environmental concerns continue to impact the region's data center industry.

 

The current report Scope analyzes Data Center Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Data Center

According to Cognitive Market Research, the global Data Center Market size was estimated at USD 342514.2 Million, out of which North America held the major market of more than 40% of the global revenue with a market size of USD 137005.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.

• In North America, the enterprise segment is a key driver of the data center market, fueled by increasing demand for cloud services, big data analytics, and digital transformation initiatives.
• Large corporations and businesses require robust and scalable infrastructure to support their expanding data needs and ensure reliable operations.
• Additionally, regulatory requirements regarding data storage and security further propel the adoption of data center services among enterprises, contributing significantly to market growth in the region.
• According to Cognitive Market Research, the US had a major share in the Data Center Market with a market size of USD 108097.48 million in 2024 and is projected to grow at a CAGR of 4.7% during the forecast period.
• The growth of big data analytics, artificial intelligence (AI), and machine learning (ML) applications necessitates robust infrastructure.
• The Canada Data Center Market had a market share of USD 16440.68 million in 2024 and is projected to grow at a CAGR of 5.0% during the forecast period.
• Investments from both domestic and international players, coupled with government incentives to promote data center infrastructure development, further fuel market growth in Canada.
• The Mexico Data Center Market is projected to witness growth at a CAGR of 4.7% during the forecast period, with a market size of USD 12467.52 million in 2024.

Europe Data Center

According to Cognitive Market Research, the global Data Center Market size was estimated at USD 342514.2 Million, out of which Europe held the market of more than 30% of the global revenue with a market size of USD 102754.26 million in 2024 and will grow at a compound annual growth rate (CAGR) of 2.5% from 2024 to 2031.

• In Europe, the data center market is propelled by several key drivers within different segments.
• For instance, the enterprise segment is primarily driven by the increasing adoption of cloud computing services, digital transformation initiatives, and the need for secure and compliant data storage solutions.
• Meanwhile, the telecommunications segment is fueled by the demand for high-speed connectivity, 5G network deployments, and edge computing infrastructure.
• Additionally, government regulations promoting data sovereignty and privacy also contribute to market growth across various segments in Europe.
• The United Kingdom Data Center Market had a market share of USD 17262.72 million in 2024 and is projected to grow at a CAGR of 5.3% during the forecast period.
• In the UK, Government support for technology infrastructure development and favorable investment policies also contribute to market growth.
• The France Data Center Market is projected to grow at a CAGR of 3.7% during the forecast period, reaching a market size of USD 9453.39 million in 2024.
• According to Cognitive Market Research, the Germany Data Center Market size was valued at USD 20345.34 million in 2024 and is projected to grow at a CAGR of 4.7% during the forecast period.
• Germany's strategic location in Europe also positions it as a gateway for international data traffic, further boosting the growth of the data center market in the region.
• The Italy Data Center Market is projected to grow at a CAGR of 3.9% during the forecast period, reaching a market size of USD 8836.87 million in 2024.
• The Russia Data Center Market is projected to grow at a CAGR of 3.5% during the forecast period, reaching a market size of USD 15926.91 million in 2024.
• The Spain Data Center Market is projected to grow at a CAGR of 3.6% during the forecast period, reaching a market size of USD 8425.85 million in 2024.
• The Luxembourg Data Center Market is projected to grow at a CAGR of 4.6% during the forecast period, reaching a market size of USD 3185.38 million in 2024.
• The Portugal Data Center Market is projected to grow at a CAGR of 4.3% during the forecast period, reaching a market size of USD 2157.84 million in 2024.
• The Greece Data Center Market is projected to grow at a CAGR of 4.8% during the forecast period, reaching a market size of USD 1233.05 million in 2024.
• The rest of the European data Center Market is projected to witness growth at a CAGR of 3.2% during the forecast period, with a market size of USD 15926.91 million in 2024. .

Asia Pacific Data Center

According to Cognitive Market Research, the global Data Center Market size was estimated at USD 342514.2 Million, out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 78778.27 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.

• In the Asia-Pacific region, the data center market is predominantly driven by the rapid digital transformation initiatives of enterprises across diverse sectors such as banking, finance, retail, and telecommunications.
• The proliferation of cloud computing services, increasing internet penetration, and the growing adoption of emerging technologies like IoT and AI are key drivers.
• Moreover, the shift towards remote working arrangements and the rising demand for data storage and processing capabilities further fuel the expansion of the data center market in this region.
• According to Cognitive Market Research, the China Data Center Market size was valued at USD 354.50.22 million in 2024 and is projected to grow at a CAGR of 7.5% during the forecast period.
• Rapid digital transformation across industries, spurred by government initiatives like "Made in China 2025" and "Internet Plus," fuels demand for data storage and processing.
• The Japan Data Center Market is projected to grow at a CAGR of 6.5% during the forecast period, reaching a market size of USD 10871.40 million in 2024.
• The India Data Center Market had a market share of USD 9453.39 million in 2024 and is projected to grow at a CAGR of 9.8% during the forecast period.
• The rise of cloud computing, IoT adoption, and e-commerce activities further amplify the need for robust data center infrastructure.
• The South Korea Data Center Market is projected to grow at a CAGR of 7.1% during the forecast period, reaching a market size of USD 7877.83 million in 2024.
• The Australia Data Center Market is projected to grow at a CAGR of 7.7% during the forecast period, reaching a market size of USD 4096.47 million in 2024.
• The Southeast Asia Data Center Market is projected to grow at a CAGR of 9.0% during the forecast period, reaching a market size of USD 5435.70 million in 2024.
• The Rest of the Asia Pacific Data Center Market is projected to witness growth at a CAGR of 7.8% during the forecast period, with a market size of USD 5593.26 million in 2024. .

South America Data Center

According to Cognitive Market Research, the global Data Center Market size was estimated at USD 342514.2 Million, out of which Latin America market of more than 5% of the global revenue with a market size of USD 17125.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.

• In Latin America, the data center market segment is driven primarily by the increasing adoption of cloud computing solutions. Enterprises across various industries are migrating their IT infrastructure to the cloud to achieve cost savings, scalability, and flexibility.
• Additionally, the demand for data storage and processing capabilities is rising due to the proliferation of digital services and the expansion of e-commerce.
• These factors are propelling the growth of data center facilities and services in the region.
• According to Cognitive Market Research, the Brazil Data Center Market size was valued at USD 7329.80 million in 2024 and is projected to grow at a CAGR of 6.0% during the forecast period.
• Brazil's large population and evolving tech landscape create opportunities for both domestic and international players to capitalize on the growing market demand.
• The Argentina Data Center Market had a market share of USD 2877.12 million in 2024 and is projected to grow at a CAGR of 6.3% during the forecast period.
• The Increasing internet penetration and mobile connectivity are fueling demand for cloud services and data center infrastructure.
• The Colombia Data Center Market is projected to grow at a CAGR of 5.2% during the forecast period, reaching a market size of USD 1524.19 million in 2024.
• The Peru Data Center Market is projected to grow at a CAGR of 5.6% during the forecast period, reaching a market size of USD 1404.31 million in 2024.
• The Chile Data Center Market is projected to grow at a CAGR of 5.7% during the forecast period, reaching a market size of USD 1233.05 million in 2024.
• The Rest of the Latin America Data Center Market is projected to witness growth at a CAGR of 4.5% during the forecast period, with a market size of USD 2757.24 million in 2024. .

Middle East and Africa Data Center

According to Cognitive Market Research, the global Data Center Market size was estimated at USD 342514.2 Million, out of which the Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 6850.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.

• Middle East and Africa, the data center market is primarily driven by the rapid digital transformation initiatives undertaken by governments and enterprises.
• Increasing adoption of cloud services, big data analytics, and IoT technologies are key drivers propelling market growth.
• Additionally, rising demand for colocation and managed services, coupled with growing investments in data center infrastructure, further fuel the market expansion.
• Moreover, the region's strategic geographic location and efforts to enhance connectivity contribute to its attractiveness for data center investments.
• The GCC Countries' Data Center Market is projected to witness growth at a CAGR of 6.5% during the forecast period, with a market size of USD 2931.92 million in 2024.
• The GCC's strategic location and favorable business environment also attract investments from international data center operators.
• The Egypt Data Center Market is projected to grow at a CAGR of 6.0% during the forecast period, reaching a market size of USD 719.28 million in 2024.
• The South Africa Data Center Market is projected to grow at a CAGR of 6.7% during the forecast period, reaching a market size of USD 1082.34 million in 2024.
• Challenges such as power supply reliability, high operating costs, and regulatory complexities remain significant considerations for market participants.
• The Turkey Data Center Market is projected to grow at a CAGR of 5.2% during the forecast period, reaching a market size of USD 589.12 million in 2024.
• The Nigeria Data Center Market is projected to grow at a CAGR of 4.8% during the forecast period, reaching a market size of USD 719.28 million in 2024.
• The Rest of the MEA Data Center Market is projected to witness growth at a CAGR of 4.7% during the forecast period, with a market size of USD 808.33 million in 2024. .

Data Center Market Analysis

Data Center Market Component Segment Analysis

Solutions segment encompasses hardware and software components necessary for building and maintaining data centers. Solutions include servers, storage systems, networking equipment, power distribution units, cooling systems, and data center management software. These components are essential for creating a reliable and efficient infrastructure to store, process, and manage data. The demand for data center solutions is driven by the increasing volume of digital data generated by businesses and the need for scalable and flexible computing resources.

Services include consulting, design and implementation, maintenance and support, managed hosting, colocation, and cloud services. Data center services help businesses optimize their infrastructure, improve performance, enhance security, and reduce operational costs. With the complexity of data center environments and the growing emphasis on outsourcing non-core activities, the demand for specialized services continues to rise, driving growth in this segment of the market.

• Solution 
• Services

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Data Center Industry. Request a Free Sample PDF!

Data Center Market Type Segment Analysis

Colocation facilities provide shared infrastructure and resources for multiple tenants. Companies opt for colocation to outsource their IT infrastructure while retaining control over their servers and equipment. Colocation data centers offer flexibility, scalability, and cost-effectiveness, making them suitable for small to medium-sized enterprises (SMEs) and businesses with varying workloads..

Hyperscale data centers are massive facilities designed to support the needs of large-scale cloud providers and internet companies. These data centers feature extensive scalability, high-performance computing capabilities, and massive storage capacities. Hyperscale facilities are characterized by their ability to efficiently handle immense volumes of data processing and storage demands, making them ideal for organizations with substantial computational needs, such as technology giants and enterprises operating on a global scale.

• Colocation 
• Hyperscale 
• Edge 
• Others

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Data Center Enterprise Size Segment Analysis

Large enterprises typically operate expansive data centers to handle vast amounts of data generated by their operations. These data centers require high-performance infrastructure, robust security measures, and scalability to accommodate growth. Large enterprises often invest in advanced technologies such as cloud computing, virtualization, and artificial intelligence to optimize their data center operations and support various business functions.

SMEs represent smaller businesses with relatively limited computing requirements compared to large enterprises. However, as the volume of digital data generated by SMEs continues to grow, the demand for data center services among this segment is increasing. SMEs typically rely on colocation facilities or cloud service providers to access data center resources without the need for significant upfront investments in infrastructure. These solutions offer SMEs scalability, flexibility, and cost-effectiveness in managing their data storage and processing needs.

• Large Enterprises
• Small & Medium Enterprises (SMEs)

Data Center End User Segment Analysis

BFSI data centers prioritize data protection, reliability, and low-latency connectivity to ensure secure and seamless transactions, risk management, and customer service delivery. They often employ advanced security measures, such as biometric access controls and encryption, to safeguard sensitive financial information.

IT & Telecom Data Centers serve the needs of the information technology and telecommunications industries, providing infrastructure for cloud computing, networking, and communication services. IT & Telecom data centers focus on scalability, flexibility, and high-speed connectivity to support the rapid growth of data traffic and the deployment of emerging technologies like 5G and IoT. They prioritize energy efficiency and cost-effectiveness, leveraging virtualization and automation technologies to optimize resource utilization and reduce operational expenses.

• BFSI
• IT & Telecom
• Government
• Energy & Utilities
• Others

Author's Detail

Kalyani Raje

Senior Research Analyst at Cognitive Market Research

LinkedIn

Profile

An optimistic Senior Research Analyst with years of experience in competitive assessment and business consulting. A seasoned professional and subject-matter expert (SME) in the Automobile & Transportation vertical.

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