The global data centre market size is expected to reach $652,01-billion in 2030 and is anticipated to grow at a CAGR of 11,2% from 2025 to 2030, according to a new report by Grand View Research.
The growing digital transformation across industries boosts a strong data centre infrastructure to support cloud computing, the Internet of Things (IoT), artificial intelligence (AI), and other digital initiatives.
The surging usage of cloud services involves data centres providing the required infrastructure for hosting and managing cloud-based services and applications.
Data centres with adequate processing and storage capacity are required to support the expanding use of data-intensive applications such as AI, machine learning, big data analytics, and virtual reality.
The development of Internet of Things (IoT) devices generates vast volumes of data that must be processed and analyzed, creating demand for data centres.
Furthermore, during the pandemic, the transition to remote work and virtual collaboration underlined the need of data centres in facilitating remote access, communication, and collaboration capabilities.
Because of the increasing expansion of online shopping and e-commerce platforms, data centres are required to handle transaction processing, inventory management, and consumer data storage. Data centres are essential for effective content distribution and good user experiences in streaming services, social media platforms, and online gaming.
The rising frequency and sophistication of cyberattacks highlight the importance of secure data storage and processing facilities such as those provided by data centres. Adoption of edge computing, which processes data closer to the source, necessitates the use of edge data centres to reduce latency and support real-time processing.
Data centres are used in smart city initiatives to handle and analyse data from sensors, cameras, and gadgets, allowing for better urban planning and resource management. Finance, healthcare, and government all require data centres that adhere to stringent regulatory standards for data security and privacy.
Some areas require that specific data be stored within their borders, necessitating the necessity for local data centre infrastructure.
Highlights of the data centre market report include
- The hardware segment accounted for the largest market share of over 67% in 2024 in the data centre market. The rapid growth of social media, digital transactions, and the Internet of Things (IoT) has increased the demand for expanded data storage and processing capabilities.
- The server segment dominated the market and accounted for the revenue share of over 34% in 2024. Modern servers are becoming more powerful and energy-efficient due to the continuous advancements in processor technology, memory, and storage solutions
- The virtualisation segment dominated the market and accounted for the revenue share of nearly 18% in 2024. Virtualization enables data centres to maximise the use of physical hardware by running multiple virtual machines (VMs) on a single physical server
- The professional services segment dominated the market and accounted for the revenue share of nearly 49.0% in 2024. Traditional data centres are increasingly struggling to accommodate the rising demands of modern workloads
- The on-premises segment dominated the market and accounted for the revenue share of over 39% in 2024, driven by the increasing focus on data security and privacy
- The <10kW segment dominated the market and accounted for the revenue share of over 36% in 2024. Businesses looking for on-premise or colocation-based infrastructure solutions prefer lower-density racks due to their affordability and ease of management.
- The N+1 segment dominated the market and accounted for the revenue share of nearly 70% in 2024 due to the increasing need for reliability and uptime in data centre operations.
- The data centre market in North America held a significant share of over 40% in 2024, driven by the increasing adoption of cloud computing, artificial intelligence (AI), and big data analytics.