Market Size and Growth Projections
The global data center market size is expected to reach a valuation of US$220 Bn in 2024 and further expand to US$551 Bn by 2031, demonstrating a robust CAGR of 10.1% over the forecast period from 2024 to 2031.
Market Introduction and Key Trends
Once known merely as small rooms housed by businesses on-site, data centers have seen tremendous growth in all dimensions over the past decade. Today, they have become the lifeblood of the worldwide IT industry, predominantly managed by multinational operators.
With projections of a strong double-digit annual growth rate and worldwide investments in new data center facility construction hitting the US$50 billion mark through 2031, the data center economy is building up faster than expected and will demonstrate aggressive growth in the years to come.
Drivers of Data Center Market Growth
Digitalization and Data Generation
With rapidly expanding digitalization, both individuals and businesses are responsible for massive data generation that needs to be stored and made easily and securely accessible. The data center market report highlights that the increasing demand for data centers presents a flexible and scalable solution to cater to the ballooning demands.
Local Spatial Circumstances
Local spatial circumstances significantly influence data center market growth. Countries like Russia and China, which have stringent regulations regarding data sovereignty, are experiencing a critically growing need for localized data centers.
Digital Content and eCommerce Expansion
The rapid surge in digital content and aggressive eCommerce expansion will further drive data center demand. With an expanding consumer base for online stores and media streaming, organizations are more inclined towards creating a strong data center infrastructure.
Market Share Insights
The global data center market is dominated by a few key players, including multinational corporations and large-scale operators that control significant market shares. These leading companies are investing heavily in expanding their data center facilities and adopting cuttingedge technologies to maintain their competitive edge.
The global data center market is on a trajectory of rapid expansion, driven by increasing digitalization, stringent data sovereignty regulations, and the burgeoning demand for digital content and eCommerce. As the market continues to grow, investments in new data center
facilities and advancements in data center technologies are expected to accelerate, positioning the industry for substantial growth through 2031.