The Global Data Center Infrastructure market size was valued at US$ 70.3 billion in 2024 and is expected to reach US$ 160.4 billion by 2031. The Data Center Infrastructure market is estimated to record a CAGR of 12.5% from 2025 to 2031. The adoption of sustainable and green data centers is likely to remain a key trend in the market.
The Data Center Infrastructure Market is being propelled by multiple strategic business drivers shaping the digital economy. Foremost is the rapid acceleration of digital transformation, which demands scalable, resilient infrastructure to support cloud computing, big data analytics, artificial intelligence (AI), and the Internet of Things (IoT). As enterprises generate and process unprecedented volumes of data, investing in robust infrastructure ensures seamless operations and competitive advantage. Additionally, the rise of edge computing to reduce latency and support real-time applications is increasing the need for distributed, flexible infrastructure solutions. This enhances user experiences and opens new opportunities for innovation. Moreover, the push for automation and intelligent infrastructure management through AI and machine learning optimizes resource utilization, reduces downtime, and lowers operational expenses. Collectively, these factors fuel ongoing investment and innovation in the data center infrastructure market.
Data Center Infrastructure refers to the foundational physical and technological components that support the operation of a data center. It encompasses the critical hardware, software, and environmental systems required to host, manage, and deliver IT services and data storage securely and efficiently. Key components of data center infrastructure include servers, storage devices, networking equipment, power supply units, cooling systems, and physical security measures. Together, these elements ensure continuous availability, performance, and scalability of IT resources necessary to support business operations and digital services. Moreover, data center infrastructure must be designed for efficiency and resilience, balancing energy consumption with operational demands to control costs and meet sustainability targets. Effective infrastructure management reduces the risk of downtime, safeguards sensitive information, and provides the agility to scale resources in response to evolving business needs.
The exponential increase in data generated by both enterprises and consumers is a primary driver of the data center infrastructure market. As digital transformation accelerates, organizations are producing and collecting vast amounts of data through customer interactions, IoT devices, social media, and business operations. This surge demands robust infrastructure capable of handling significant storage, processing, and networking requirements to ensure data accessibility and performance. Enterprises rely on this data for critical business insights, predictive analytics, and decision-making, which means that latency, speed, and reliability are non-negotiable. Traditional data centers are evolving or being supplemented by cloud and edge computing models to meet these demands efficiently. Enhanced storage systems, high-speed networking, and powerful processing units are essential to manage the volume, velocity, and variety of data. Moreover, regulatory compliance and data privacy laws require a secure and scalable infrastructure to safeguard sensitive information while supporting rapid data growth. Companies investing in scalable, high-capacity infrastructure not only improve operational efficiency but also unlock new opportunities for innovation and competitive advantage.
The expansion of edge computing is a significant factor driving demand for advanced data center infrastructure. As businesses increasingly rely on real-time, low-latency applications such as autonomous vehicles, IoT devices, augmented reality, and video streaming, processing data closer to the source has become essential. Edge data centers, located nearer to end users and devices, reduce latency and bandwidth demands on centralized data centers, enabling faster decision-making and enhanced user experiences. However, deploying and managing these distributed edge facilities adds layers of complexity to traditional data center operations. Organizations must invest in scalable, resilient infrastructure that can support diverse workloads across multiple, often remote, locations. This necessitates flexible power, cooling, and networking solutions tailored to smaller, geographically dispersed sites.
Furthermore, edge computing infrastructure must integrate seamlessly with core data centers and cloud platforms, ensuring consistent security, compliance, and operational visibility across hybrid environments. This integration drives demand for sophisticated Data Center Infrastructure Management (DCIM) tools that provide centralized control and real-time monitoring.
Key segments that contributed to the derivation of the Data Center Infrastructure market analysis are offering, data center size, tier type, and end user
The geographic scope of the Data Center Infrastructure market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East and Africa, South and Central America.
North America dominated the market in 2024. The Data Center Infrastructure market in North America is expanding rapidly, driven by several key business factors. The ongoing surge in digital transformation initiatives is fueling demand for scalable, resilient, and efficient data center infrastructure. Organizations across sectors such as finance, healthcare, and technology are investing heavily in upgrading their data centers to support cloud computing, AI, big data analytics, and IoT deployments. Another critical driver is the growing emphasis on energy efficiency and sustainability. With data centers accounting for a significant portion of regional energy consumption, companies are adopting advanced cooling systems, renewable energy sources, and energy management technologies to reduce operational costs and meet regulatory requirements. This push aligns with corporate sustainability goals and compliance mandates, further accelerating infrastructure investments. The rise of edge computing is also shaping the market. To address latency-sensitive applications and localized data processing needs, businesses are deploying edge data centers closer to end-users, creating demand for flexible and distributed infrastructure solutions.
The regional trends and factors influencing the Data Center Infrastructure Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Data Center Infrastructure Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2024 | US$ 70.3 Billion |
| Market Size by 2031 | US$ 160.4 Billion |
| Global CAGR (2025 - 2031) | 12.5% |
| Historical Data | 2021-2023 |
| Forecast period | 2025-2031 |
| Segments Covered |
By Offering
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Data Center Infrastructure Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Data Center Infrastructure Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The Data Center Infrastructure market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Data Center Infrastructure market are listed below:
The “Data Center Infrastructure Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
North America dominated the Data Center Infrastructure market in 2024.
The growing demand for cloud computing, IoT adoption across industries, and growing data volumes are the major factors driving the market.
Dell, HPE, Cisco, IBM, and ABB are among the leading players in the Data Center Infrastructure market.
The adoption of sustainable and green data centers is likely to remain a key trend in the market.
The market is expected to grow at a CAGR of 12.5% over the forecast period.
The estimated value of the Data Center Infrastructure market is expected to reach US$ 160.4 billion by 2031.