Data Center Infrastructure Market Size and Growth 2031

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.

Data Center Infrastructure Market Analysis

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 Market Overview

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.

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Data Center Infrastructure Market: Strategic Insights

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Data Center Infrastructure Market Drivers and Opportunities

Growing Data Volumes to Favor Market

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.

Edge Computing Expansion

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.  

Data Center Infrastructure Market Report Segmentation Analysis

Key segments that contributed to the derivation of the Data Center Infrastructure market analysis are offering, data center size, tier type, and end user

• Based on offering, the market is bifurcated into hardware and services. The hardware segment dominated the market in 2024. The hardware segment is further divided into Power Distribution Units, UPS Systems, Generators, Transfer Switches, Racks, Cooling and Thermal Systems, and Others.
• On the basis of data center size, the market is divided into Small Data Center, Mid-Sized Data Center, and Large Data Center. The Mid-Sized Data Center segment dominated the market in 2024.
• Based on tier type, the Data Center Infrastructure market is divided into Tier 1, Tier 2, Tier 3, and Tier 4. The Tier 3 segment dominated the market in 2024.
• Based on end user, the market is segmented into Enterprises, Telecom Service Providers, and Cloud Service Providers. The Cloud Service Providers segment dominated the market in 2024.

Data Center Infrastructure Market Share Analysis by Geography

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.

Data Center Infrastructure Market Regional Insights

The regional trends and factors influencing the Data Center Infrastructure Market throughout the forecast period have been thoroughly explained by the analysts at The 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.

Data Center Infrastructure Market Report Scope

Data Center Infrastructure Market Players Density: Understanding Its Impact on Business Dynamics

The Data Center Infrastructure 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:

1. Equinix, Inc.
2. Digital Realty Trust, Inc.
3. NTT Global Data Centers
4. GDS Holdings
5. CyrusOne
6. Microsoft Azure

Disclaimer: The companies listed above are not ranked in any particular order.

Data Center Infrastructure Market News and Recent Developments

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:

• Alphabet’s Google announced an investment of US$25 billion in data centers and artificial intelligence infrastructure over the next two years in states across the biggest electric grid in the U.S. Google will also spend US$3 billion to modernize two hydropower plants in Pennsylvania to help meet the growing power demand from data centers and AI in the region. (Source: Google, Press Release, July 2025)

• Amazon announced an investment of US$10 billion to expand data center infrastructure in North Carolina to boost artificial intelligence and cloud computing technology, including plans to build a 20-building campus. The company said its investment would support AI initiatives, creating 500 new high-skilled jobs. Amazon has already invested US$12 billion in North Carolina, supporting 24,000 full- and part-time jobs directly. (Source: Amazon, Press Release, June 2025)

Data Center Infrastructure Market Report Coverage and Deliverables

The “Data Center Infrastructure Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Data Center Infrastructure market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Data Center Infrastructure market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Data Center Infrastructure market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Data Center Infrastructure market
• Detailed company profiles