Data Center Services Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Service (Managed Hosting Service, Colocation Service), By Data Center (Tier 1, Tier 2, Tier 3, Tier 4), By End User Industry (BFSI, Healthcare, Retail, Manufacturing, IT & Telecom, Others), By Region, and By Competition, 2020-2030F

Market Overview

The Global Data Center Services Market will grow from USD 69.03 Billion in 2024 to USD 228.73 Billion by 2030 at a 22.10% CAGR. Data center services encompass the comprehensive suite of activities supporting the implementation, maintenance, operation, and enhancement of facilities that provide processing, storage, networking, and distribution of data within an enterprise. The global market's expansion is fundamentally driven by the escalating adoption of cloud computing, the exponential proliferation of data generated across various industries, and the widespread acceleration of digital transformation initiatives. A primary catalyst is the increasing integration of artificial intelligence and machine learning applications, demanding substantial computational power and storage capabilities. According to the International Energy Agency, investment in data centers is expected to reach $580 billion in 2025.

However, a significant challenge impeding continued market expansion is the persistent issue of power infrastructure bottlenecks. The immense and rapidly growing electricity demands of modern data centers frequently strain existing grids and cause delays in securing adequate power capacity, particularly in established core markets.

Key Market Drivers

The Global Data Center Services Market is significantly influenced by the explosive growth in data generation and the increasing demand from artificial intelligence and machine learning workloads. The sheer volume of digital information created and processed globally necessitates extensive infrastructure for storage, retrieval, and analysis. This continuous expansion of the datasphere directly translates into a heightened requirement for data center services, including colocation, managed hosting, and cloud infrastructure. According to Statista, in May 2025, as reported by Rivery, the global volume of data created, captured, copied, and consumed is projected to reach 181 zettabytes by the end of 2025. This substantial data proliferation places immense pressure on existing data center capacities, driving investments in new facilities and upgrades to support the scale and complexity of modern data environments.

Concurrently, the escalating demand from artificial intelligence and machine learning workloads exerts considerable influence on the market by requiring specialized, high-density computing environments. AI and ML operations are computationally intensive, necessitating advanced processing units, high-speed interconnects, and efficient cooling systems that traditional data centers may not adequately provide. This demand catalyzes innovation in data center design and service offerings, focusing on high-performance computing solutions. According to Forbes, in November 2025, in an article titled "All Roads Lead To NVIDIA: Bankrolling Its Own AI Gold Rush", hyperscalers such as Microsoft, Meta, Google, and Amazon are projected to spend nearly $400 billion on datacenter infrastructure in 2025 alone. These investments underscore the critical role data centers play in enabling AI advancements. Overall, the foundational infrastructure supporting these trends is expanding robustly; according to Macquarie Asset Management, in August 2025, in an article titled "Data centres: Powering the growth of AI and cloud computing", global data center power capacity expanded to 81 gigawatts in 2024, representing a 211% increase over the past decade. This growth trajectory highlights the sustained and increasing reliance on comprehensive data center services across industries.

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Key Market Challenges

A significant challenge impeding the global data center services market expansion is the persistent issue of power infrastructure bottlenecks. The immense and rapidly growing electricity demands of modern data centers frequently strain existing grids and cause substantial delays in securing adequate power capacity, particularly within established core markets. This directly impacts the ability to build new facilities and expand existing ones, limiting the provision of essential processing, storage, and networking services.

This constraint notably hampers market growth by creating considerable uncertainty and extending project timelines for developers and operators. According to the International Energy Agency, in April 2025, approximately 20% of planned data center projects risk significant delays due to power infrastructure issues. Such delays result in deferred revenue, increased development costs, and an inability to meet the escalating demand for data center capacity, ultimately slowing the overall market trajectory.

Key Market Trends

Decentralized Edge Computing Deployments represents a significant market trend, addressing the escalating demand for reduced latency and enhanced real-time data processing. This approach involves placing smaller data centers closer to data sources and end-users, which is critical for supporting the proliferation of IoT devices, 5G networks, and latency-sensitive applications. The shift towards distributed infrastructure allows for faster response times and improved application performance, which is vital for industries requiring immediate data analysis. According to Infrastructure Masons' "State of the Digital Infrastructure Industry 2025 Report," launched in April 2025, data centers are projected to account for 4% of global power consumption by 2030, reflecting the increasing, distributed footprint of digital infrastructure. This architectural evolution drives investment in modular, scalable edge solutions. Complementing this, according to Equinix's Global Interconnection Index (GXI) 2024, released in February 2024, edge infrastructure is expected to expand at over two times the rate of core infrastructure through 2026.

The Green Data Center and Sustainable Infrastructure Focus is another pivotal trend, emphasizing the industry’s commitment to environmental responsibility. This trend is fueled by stringent regulatory requirements, corporate sustainability goals, and the economic benefits of energy efficiency. It involves adopting renewable energy sources, implementing advanced cooling technologies, and embracing circular economy principles throughout the data center lifecycle. These initiatives aim to minimize the environmental impact of data center operations and optimize resource utilization. According to Infrastructure Masons, in November 2025, major technology companies collectively funded 21.7 gigawatts of renewable US energy contracts in 2024 alone. This ongoing commitment not only mitigates environmental concerns but also enhances operational efficiencies and bolsters market competitiveness. Further illustrating this, according to AWS, in November 2025, the company expanded its use of recycled water across more than 120 U.S. data centers, preserving an estimated 530 million gallons of drinking water annually.

Segmental Insights

The IT and Telecom segment is experiencing rapid growth within the Global Data Center Services Market, driven by an accelerating need for robust digital infrastructure. This surge is primarily fueled by the widespread expansion of 5G networks, which necessitates high-capacity, low-latency data processing capabilities across distributed data centers. Furthermore, the increasing adoption of cloud platforms and the proliferation of AI and Machine Learning workloads within the sector demand scalable and secure data center environments. These factors collectively propel significant investments in data center services to support ongoing digital transformation initiatives and the development of edge computing solutions.

Regional Insights

North America dominates the global data center services market due to its advanced technological infrastructure and the significant presence of major hyperscale cloud providers. These leading technology companies continuously invest in expanding data center capacities to support the burgeoning demand from cloud computing, artificial intelligence, and big data analytics workloads. The region also benefits from a mature interconnection framework and extensive fiber optic networks, which are crucial for low-latency data transmission and robust connectivity. Furthermore, a favorable investment climate, often supported by governmental incentives, alongside robust data privacy regulations, encourages continuous development and innovation in data center infrastructure.

Recent Developments

• In November 2025, ABB expanded its partnership with Applied Digital to supply power infrastructure for Applied Digital's second AI factory campus in North Dakota, United States. This collaboration focuses on delivering new medium voltage electrical infrastructure for large-scale data centers, specifically designed to meet the increasing power demands of artificial intelligence workloads. The long-term agreement highlights a commitment to developing innovative power architectures that enhance efficiency, performance, and reliability within the global data center services market. The Polaris Forge 2 campus, near Harwood, North Dakota, is projected to cover 300 MW of AI data centers, with initial phases becoming operational in 2026 and 2027.

• In November 2025, Prime Data Centers announced a strategic collaboration with Lambda, the Superintelligence Cloud, to deploy high-density NVIDIA AI infrastructure at Prime's LAX01 AI-ready data center campus in Vernon, California. This partnership aims to power the next generation of superintelligence with infrastructure optimized for large-scale AI training and inference. The LAX01 facility, Vernon's inaugural AI-ready data center, provides 33 MW of critical power across 242,000 square feet, engineered for GPU-accelerated environments. This initiative represents a significant development in the global data center services market, providing specialized infrastructure crucial for advancing artificial intelligence capabilities.

• In November 2025, Google announced a substantial €5.5 billion investment in Germany, primarily allocated to infrastructure and office expansions through 2029. This investment includes the construction of a new data center in Dietzenbach and continued development of its existing campus in Hanau. These facilities are intended to strengthen Google's cloud regions in Germany, supporting high-performance and low-latency services, especially those crucial for AI-powered solutions. The initiative underscores Google's commitment to enhancing its digital infrastructure in Europe, which directly impacts the global data center services market by expanding capacity and supporting advanced computing demands.

• In November 2024, Meta, in collaboration with state and local officials, announced an investment exceeding $1 billion for an artificial-intelligence-optimized data center campus in Beaver Dam, Wisconsin. This significant capital outlay will establish a new facility spanning over 700,000 square feet, designed for efficiency, flexibility, and sustainability. The data center is expected to come online in 2027, creating over 1,000 skilled trade jobs during peak construction and more than 100 operational jobs. This investment reinforces the expansion of the global data center services market, particularly in supporting the escalating demands for AI infrastructure.

Key Market Players

• Fujitsu Limited
• IBM Corporation
• Singapore Telecommunications Limited
• Digital Realty Trust Inc.
• Cisco Systems Inc.
• Equinix Inc.
• Hewlett Packard Enterprise Company
• Vertiv Group Corp.
• Dell Inc.

Report Scope:

In this report, the Global Data Center Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Data Center Services Market, By Service:

o   Managed Hosting Service

o   Colocation Service

• Data Center Services Market, By Data Center:

o   Tier 1

o   Tier 2

o   Tier 3

o   Tier 4

• Data Center Services Market, By End User Industry:

o   BFSI

o   Healthcare

o   Retail

o   Manufacturing

o   IT & Telecom

o   Others

• Data Center Services Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Data Center Services Market.

Available Customizations:

Global Data Center Services Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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