Data Center Infrastructure Market Size and Growth 2031
Coverage: Data Center Infrastructure Market covers analysis By Offering (Hardware (Power Distribution Units, UPS Systems, Generator, Transfer Switches, Racks, Cooling and Thermal Systems, Others), Services), Data Center Size (Small Data Center, Mid-Sized Data Center, Large Data Center), Tier Type (Tier 1, Tier 2, Tier 3, Tier 4), End User (Enterprises, Telecom Service Providers, Cloud Service Providers) and Geography (North America, Europe, Asia Pacific, Middle East and Africa, South and Central America)
- Report Date : Sep 2025
- Report Code : TIPRE00040989
- Category : Technology, Media and Telecommunications
- Status : Upcoming
- Available Report Formats :
- No. of Pages : 150
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.
Strategic Insights
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 Report Scope
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
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
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.
- Equinix, Inc.
- Digital Realty Trust, Inc.
- NTT Global Data Centers
- GDS Holdings
- CyrusOne
- Microsoft Azure
- Vertiv Group Corp
- Amazon Web Services (AWS)
- Google Cloud Platform
- Meta Platforms (Facebook)
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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