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Data Center Market size to record USD 329.82 billion growth from 2023-2027, Implementation of AI in data centers is one of the key market trends, Technavio

NEW YORK , May 6, 2024 /PRNewswire/ — The global data center market size is estimated to grow by USD 329.82 billion from 2023 to 2027, according to Technavio. This growth is expected to occur at a Compound Annual Growth Rate (CAGR) of 12.73% during the forecast period.

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Report Attribute


Base Year


Forecast period


Historic Data for

2017 – 2021

Segments Covered

Component (IT infrastructure, Power management, Mechanical construction, General construction, and Security solutions) and End-user (BFSI, Energy, IT, and Others)


Key Companies Covered

Alphabet Inc., Amazon.com Inc., Apple Inc., Cisco Systems Inc., CyrusOne LLC, Digital Realty Trust Inc., Equinix Inc., Hewlett Packard Enterprise Co., Intel Corp., International Business Machines Corp., Microsoft Corp., Nippon Telegraph and Telephone Corp., Oracle Corp., Salesforce Inc., SAP SE, Verizon Communications Inc., 365 Data Centers, China Telecom Corp. Ltd., Cyxtera Technologies Inc., and KDDI Corp.


Regions Covered

North America, APAC, Europe, South America, and Middle East and Africa

Key Trends Fueling Growth

  • Implementation of AI in data centers: 
    • Data centers are enhancing energy efficiency through AI, optimizing server, power, and cooling systems. AI expedites decision-making, slashes human errors, and yields valuable insights. Service providers leverage AI in automation to trim costs and expedite operations.
    • This enables smarter cooling by adjusting processes in real-time. AI predicts device performance, enabling preemptive adjustments to avert inefficiencies. Benefits include reduced infrastructure costs, faster deployment, and heightened issue responsiveness.
    • Recent initiatives, like Intel’s third Gen Intel Xeon Scalable processors, promise substantial performance boosts. By 2027, cloud data centers are projected to integrate AI-driven robots, elevating efficiency by over 30%, driving global market demand.

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Major Challenges:

  • Cybersecurity issues
    • Data is super important for businesses, helping them make money and plan for the future. But keeping sensitive data safe is a big worry. Things like customer info and social security numbers need to be protected. Cyberattacks are on the rise because more companies are using cloud and IoT tech.
    • Hackers can get into business servers and mess things up. This could even force small companies to shut down. This is a big problem for the global data center market. Also, governments are making strict rules to protect people’s data. Companies that don’t follow these rules can get fined a lot of money.
    • DDoS attacks are also getting more common. In these attacks, hackers overload servers with requests, making them useless for customers. All these things can really mess up a business’s plans.

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Segmentation Overview

  1. Component 
  • 1.1 IT infrastructure
  • 1.2 Power management
  • 1.3 Mechanical construction
  • 1.4 General construction
  • 1.5 Security solutions
  • End-user 
    • 2.1 BFSI
    • 2.2 Energy
    • 2.3 IT
    • 2.4 Others
  • Geography 
    • 3.1 North America
    • 3.2 APAC
    • 3.3 Europe
    • 3.4 South America
    • 3.5 Middle East and Africa

    1.1 IT infrastructure- The IT infrastructure segment is set for significant growth in the forecast period. This segment covers various components like server and storage infrastructure, software-defined networks, and automation software. The demand for computing power and storage is rising due to increased data traffic, driven by the shift to cloud-based solutions by enterprises globally.

    • Investments in hyperscale data centers (HDCs) have been a major driver of growth in this segment. Hyper scalers have poured nearly USD 200 billion into expanding their capacities and opening new centers. The expansion of green data centers, colocation data centers, and HDCs, along with advancements in virtualization technologies, will further fuel market growth.
    • The increase in HDCs will drive demand for IT infrastructure and related solutions worldwide, enhancing market growth prospects. This growth is supported by a focus on efficiency, strategic colocation, robust connectivity, and innovative virtualization practices. Overall, the outlook for the IT infrastructure segment is optimistic, with sustained growth anticipated in the coming years.

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    Analyst Review

    The Data Center Market is experiencing significant growth due to the increasing adoption of Artificial Intelligence, Machine Learning, and the Internet of Things by businesses and individuals. Cloud computing and Edge computing are key technologies driving this trend, enabling Cost savings, Scalability, and Flexibility for various industries. Digitalization has led to an increase in Data Center workloads, with Data Centers becoming essential for real-time data processing in sectors like online retail and e-commerce.

    Customers demand Personalized data, requiring advanced Data Center systems for efficient Storing and Analyzing. Facebook and Apple, among others, are investing heavily in Data Centers to meet their growing IT infrastructure needs. Cloud technology plays a crucial role in mitigating the risk of lost data and ensuring speed and reliability. Data Center systems continue to evolve, integrating advanced technologies to meet the demands of modern businesses.

    Market Overview

    The Data Center Market is a significant sector in the technology industry, driven by the increasing demand for digital transformation and cloud computing services. Machines, infrastructure, and software are essential components of data centers, which require cooling systems, power management, and security measures. Companies are investing in advanced technologies like Artificial Intelligence, Edge Computing, and the Internet of Things to enhance data center performance and efficiency.

    The market is competitive, with leading players offering comprehensive solutions, including colocation, interconnection, and managed services. The market is expected to grow, driven by the increasing adoption of digital technologies and the need for businesses to store and process large amounts of data.

    The Data Center Market also faces challenges such as energy consumption, data security, and the need for scalability and flexibility. Despite these challenges, the market continues to evolve, with innovations in areas like renewable energy and liquid cooling systems driving progress.

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    Key Topics Covered:

     1 Executive Summary
     2 Market Landscape
     3 Market Sizing
     4 Historic Market Size
     5 Five Forces Analysis
     6 Market Segmentation

    • Component 
      • IT Infrastructure
      • Power Management
      • Mechanical Construction
      • General Construction
      • Security Solutions
    • End-user 
    • Geography 
      • North America
      • APAC
      • Europe
      • South America
      • Middle East And Africa

     7 Customer Landscape
     8 Geographic Landscape
     9 Drivers, Challenges, and Trends
    10 Venodr Landscape
    11 Vendor Analysis
    12 Appendix

    About Technavio

    Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

    With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.


    Technavio Research
    Jesse Maida
    Media & Marketing Executive
    US: +1 844 364 1100
    UK: +44 203 893 3200
    Email: [email protected]
    Website: www.technavio.com/

    SOURCE Technavio

    Originally published at https://www.prnewswire.com/news-releases/data-center-market-size-to-record-usd-329-82-billion-growth-from-2023-2027–implementation-of-ai-in-data-centers-is-one-of-the-key-market-trends-technavio-302135513.html
    Images courtesy of https://pixabay.com

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