Data center market size to grow by $ 519.34 billion

Growth in data center market share by IT infrastructure segment will be significant during the forecast period. The data center information technology (IT) infrastructure includes all of the equipment, infrastructure, and IT solutions needed to configure or scale a data center. The use of such IT infrastructure is increasing due to the increased demand for computing and storage power to support the growth of global data traffic. This trend is expected to continue over the forecast period to create demand for servers and storage infrastructure, as well as other IT equipment.

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The report is segmented by component (IT infrastructure, mower management system, mechanical construction, general construction, and security solutions) and geography (North America, APAC, Europe, South America, and MEA).

Supplier Information

The global data center market is fragmented and vendors are deploying various organic and inorganic growth strategies to compete in the market.

The increasing competition in the market forces the suppliers to adopt various growth strategies such as promotional activities and advertising spend to improve the visibility of their products. Some vendors are also adopting inorganic growth strategies such as mergers and acquisitions to stay competitive in the market.

For example, in February 2019, Alphabet Inc. (through its subsidiary Google) announced its intention to acquire Alooma Inc. (Alooma), a data migration company. Likewise, in june 2020, Equinix Inc. announced the expansion of its Dallas Infomart Data Center campus with the opening of a new $ 142 million International Business Exchange Data Center and launch of its 5G and Edge Proof of Concept Center (POCC)

The report analyzes the competitive landscape of the market and offers information about several vendors of the market, including:

  • Alphabet Inc.
  • Inc.
  • Cisco Systems Inc.
  • Equinix inc.
  • Microsoft Corp.
  • NTT DATA Corp.
  • Oracle Corp.
  • SAP SE
  • Huawei Investment & Holding Co. Ltd.
  • International Business Machines Corp.

For more information on the growth strategies adopted by suppliers and their product offerings. Read a free sample report.

Geographic market analysis

North America will provide maximum growth opportunities in the data center market during the forecast period. According to our research report, the region will contribute 35% of the global market growth and is expected to dominate the market until 2025.

The United States is the key market for data centers in North America. Market growth in this region will be slower than market growth in European, APAC and South American regions. The growing adoption of cloud services by businesses across all industries in the United States and Canada will facilitate the growth of the data center market in North America over the forecast period.

Learn more about the geographic spread of this market as well as the detailed analysis of major regions.

Key market trends and challenges:

The increase in adoption of advanced computing is a major factor supporting the growth in data center market share. Edge computing is a network architecture in which data is stored and processed close to its origin. An edge server in this network serves as a connection between separate networks. The advantage of edge computing is that the stored content is close to the client machine, thereby reducing latency and improving server response. The increasing deployment of edge computing will therefore drive the demand for edge data centers, and the trend of edge data center deployments will continue during the forecast period, led by the advent of 5G technologies and IoT.

Cybersecurity issues will be a major issue for the data center market. Data is increasingly recognized as one of the primary assets for businesses to generate revenue opportunities by analyzing past trends and making decisions for the future. However, the security of sensitive data, which includes customers / usernames, addresses, phone numbers, and social security numbers, is a major concern for businesses. The threat of cyber attacks is increasing with the growing adoption of cloud services and the increasing adoption of IoT-based solutions. Such events would be a major challenge in the global data center market during the forecast period.

See a free sample to know the highlights on market trends and challenges affecting the data center market.

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Data center Market value chain analysis

It includes the following basic components:

  • Contributions
  • Engineering phase
  • Operations
  • Marketing and sales
  • Support activities
  • New arrivals

Associated reports:
Enterprise Data Management Market –The enterprise data management (EDM) market share is expected to increase by USD 64.08 billion from 2020 to 2025, and the market growth momentum will accelerate at a CAGR of 12.89%. Download a free sample now!

Data Preparation Tools Market –The data preparation tools market share is expected to increase by USD 4.78 billion from 2021 to 2026 at a CAGR of 20.82%. Download a free sample now!

Scope of the data center market

Cover of the report


Page number


Year of reference


Forecast period


Growth dynamics and CAGR

Accelerate to a CAGR of over 21%

Market growth 2021-2025

$ 519.34 billion

Market structure


Annual growth (%)

6.30 p.m.

Regional analysis

North America, APAC, Europe, South America and MEA

Efficient contribution to the market

North America at 35%

Main consumer countries

United States, China, United Kingdom, Australia, Japan and Germany

Competitive landscape

Leading companies, competitive strategies, reach of consumer engagement

Profiled companies

Alphabet Inc., Inc., Cisco Systems Inc., Equinix Inc., Microsoft Corp., NTT DATA Corp., Oracle Corp., SAP SE, Huawei Investment & Holding Co. Ltd. and International Business Machines Corp.

Market dynamics

Parent Market Analysis, Market Growth Drivers and Obstacles, Analysis of Fast Growing and Slow Growing Segments, Impact of COVID-19 and Future Consumer Dynamics, Analysis of Market Conditions for the Forecast Period.

Customization overview

If our report didn’t include the data you’re looking for, you can reach out to our analysts and customize the segments.

About Us:

Technavio is one of the world’s leading technology research and consulting companies. Their research and analysis focuses on emerging market trends and provides actionable insights to help companies identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialist analysts, Technavio’s report library includes over 17,000+ reports, spanning 800 technologies, spanning 50 countries. Their customer base consists of companies of all sizes, including more than 100 Fortune 500 companies. This growing customer base relies on Technavio’s comprehensive coverage, in-depth research and actionable market intelligence to identify opportunities in existing markets. and potentials and assess their competitive positions in changing market scenarios.

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