Artificial Intelligence (AI) Data Center Market Size and Share
Artificial Intelligence (AI) Data Center Market Analysis by Mordor Intelligence
The Global Artificial Intelligence Data Center Market size is estimated at USD 39.49 billion in 2025, and is expected to reach USD 124.70 billion by 2030, at a CAGR of 25.85% during the forecast period (2025-2030).
The Global AI Data Center market is undergoing rapid transformation as organizations increasingly adopt AI technologies to meet the growing demand for advanced computational capabilities. This shift is driven by the rising implementation of generative AI applications, which require specialized infrastructure to handle the immense processing power needed for large-scale AI models. As a result, data centers are evolving from traditional setups to high-density, AI-optimized facilities designed to support these advanced workloads efficiently.
North America leads the Global AI Data Center market, bolstered by substantial investments from major technology firms and a supportive regulatory framework. The U.S. market is expected to grow significantly, with data center capacity projected to expand from 25 GW in 2024 to over 80 GW by 2030, largely due to the economic potential of generative AI. Meanwhile, the Asia-Pacific region is emerging as a key growth area, with countries like China, Japan, and Singapore making significant strides in AI infrastructure development. Europe, despite facing challenges such as energy constraints and stringent regulations, continues to expand its AI data center capacity, particularly in key markets like Paris and Frankfurt.
Among data center types, CSP (Cloud Service Provider) facilities dominate the market, driven by hyperscalers like AWS, Microsoft Azure, and Google Cloud, which are heavily investing in AI-optimized infrastructure. In terms of components, hardware remains the largest segment, reflecting the critical need for specialized equipment such as GPUs and advanced cooling systems. NVIDIA maintains a stronghold in the AI chip market, commanding approximately 80% market share in 2025, while competitors like AMD and Intel focus on innovative, cost-effective solutions to capture market share. This competitive dynamic presents both opportunities and challenges for enterprises implementing AI infrastructure.
However, the market faces significant challenges, particularly in addressing power constraints. Data center electricity demand is expected to double or triple by 2028, potentially accounting for 6.7-12% of total U.S. electricity consumption. This has spurred innovations in energy-efficient designs and alternative cooling technologies. Additionally, a shortage of skilled professionals capable of managing AI-centric data centers is becoming a critical issue, with 58% of operators reporting difficulties in finding qualified talent. To address this, organizations are investing in workforce training programs and automation technologies to bridge the skills gap while ensuring operational efficiency.
Global Artificial Intelligence (AI) Data Center Market Trends and Insights
Exponential Growth of AI Workloads Necessitating GPU-Dense Facilities
The rapid expansion of AI workloads is driving a fundamental transformation in data center designs, with rack densities increasing significantly to accommodate the computational requirements of advanced AI models. Traditional data centers, which were originally designed to handle 6-15 kW per rack, are now being replaced by AI-optimized facilities capable of supporting 20-50 kW per rack. In some cases, these configurations can even reach up to 100 kW WWT. This shift is particularly evident in the hyperscale market, where capacity is projected to triple by 2030, primarily driven by the growing adoption of generative AI applications, as reported by Synergy Research Group.
According to the International Energy Agency, AI-optimized data centers are expected to see a fourfold increase in demand over the coming years, with the United States accounting for nearly half of the rise in electricity consumption. This transformation is creating significant opportunities for specialized infrastructure providers while also pushing traditional data center operators to reevaluate their facility designs and power distribution systems. As AI continues to reshape the data center landscape, the industry is adapting to meet the increasing demand for smarter, more efficient, and higher-capacity infrastructure.
Rising Adoption of Generative AI among Cloud Service Providers in North America
Cloud service providers are increasingly incorporating generative AI capabilities into their platforms, leading to significant investments in specialized data center infrastructure. By 2025, 90% of IT leaders are expected to deploy generative AI, with 81% of these initiatives being driven by C-suite executives, highlighting the strategic importance of AI at the highest levels of organizations (Flexential). This strong executive focus is resulting in substantial budget allocations, with 70% of organizations dedicating at least 10% of their IT budgets to AI infrastructure. The growing demand for AI-enabled data centers is evident, as more than half of the top leasing deals in Q4 2024 were tied to AI workloads, according to financial reports from major colocation providers (The Globe and Mail).
This surge in AI adoption is reshaping the competitive dynamics among cloud providers. To meet the rising demand, providers are not only expanding their in-house infrastructure but also forming strategic alliances with specialized AI infrastructure firms. These partnerships aim to enhance their capabilities and accelerate the deployment of AI-optimized data centers. As a result, the industry is witnessing a shift toward more advanced, scalable, and efficient infrastructure solutions to support the growing computational needs of generative AI applications.
Competitive Landscape
The AI data center market exhibits a complex competitive landscape characterized by intense rivalry among established players and the emergence of specialized providers focused on AI-optimized infrastructure. NVIDIA dominates the AI chip market with approximately 80% market share, leveraging its advanced GPU technology and comprehensive CUDA software ecosystem to maintain a commanding position PatentPC. This market concentration creates both opportunities and challenges for enterprises implementing AI infrastructure, as NVIDIA's technology sets the standard while potentially limiting alternatives. Competitors like AMD and Intel are pursuing strategic innovations to gain ground, with AMD's MI300X chip featuring 192GB of memory competing against NVIDIA's GH200 (141GB) to potentially lower costs for data centers.
White-space opportunities are emerging in specialized areas such as energy-efficient AI accelerators, advanced cooling technologies, and software solutions that optimize AI infrastructure utilization. Companies are increasingly leveraging technology to gain competitive advantage, with innovations in areas like AI-powered cooling optimization and predictive maintenance creating differentiation in a crowded market. The competitive dynamics extend beyond hardware to encompass software and services, with cloud providers developing proprietary AI platforms while specialized infrastructure providers focus on delivering optimized environments for AI workloads. According to a recent patent filing by Microsoft, the company is developing new thermal management techniques that could reduce cooling energy consumption by up to 30% in high-density AI environments, highlighting the strategic importance of innovation in maintaining competitive advantage
Artificial Intelligence (AI) Data Center Industry Leaders
-
NVIDIA Corporation
-
Amazon Web Services (AWS)
-
Google LLC
-
Vertiv Group Corp.
-
Intel Corporation
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- May 2025: NVIDIA unveiled its next-generation Blackwell architecture GPUs specifically designed for AI data centers, featuring 208 billion transistors and delivering up to 4x better performance per watt compared to the previous generation, significantly reducing the energy footprint of AI training and inference workloads
- April 2025: Microsoft announced a USD10 billion investment in new AI data center infrastructure across three regions, incorporating advanced liquid cooling technology and on-site renewable energy generation to support its expanding AI services while advancing sustainability goals.
Global Artificial Intelligence (AI) Data Center Market Report Scope
The research encompasses the full spectrum of AI applications in data centers, covering hyperscale, colocation, enterprise, and edge facilities. The analysis is segmented by component, distinguishing between hardware and software. Hardware considerations include power, cooling, networking, IT equipment, and more. Software technologies under scrutiny encompass machine learning, deep learning, natural language processing, and computer vision. The study also evaluates the geographical distribution of these applications.
Additionally, it assesses AI's influence on sustainability and carbon neutrality objectives. A comprehensive competitive landscape is presented, detailing market players engaged in AI-supportive infrastructure, encompassing both hardware and software utilized across various AI data center types. Market size is calculated in terms of revenue generated by products and solutions providers in the market, and forecasts are presented in USD Billion for each segment.
By Data Center Type | CSP Data Centers | ||
Colocation Data Centers | |||
Others (Enterprise and Edge) | |||
By Component | Hardware | Power | |
Cooling | |||
IT Equipments | |||
Others | |||
Software Technology | Machine Learning | ||
Deep Learning | |||
Natural Language Processing | |||
Computer Vision | |||
Services - (Managed Services, Proffesional Services, etc) | |||
By Geographic Region | North America | ||
Europe | |||
Asia-Pacific | |||
Latin America | |||
Middle East & Africa |
CSP Data Centers |
Colocation Data Centers |
Others (Enterprise and Edge) |
Hardware | Power |
Cooling | |
IT Equipments | |
Others | |
Software Technology | Machine Learning |
Deep Learning | |
Natural Language Processing | |
Computer Vision | |
Services - (Managed Services, Proffesional Services, etc) | |
By Geographic Region | North America |
Europe | |
Asia-Pacific | |
Latin America | |
Middle East & Africa |
Key Questions Answered in the Report
How big is the Artificial Intelligence Data Center Market?
The Artificial Intelligence Data Center Market size is expected to reach USD 39.49 billion in 2025 and grow at a CAGR of 25.85% to reach USD 124.70 billion by 2030.
What is the current Artificial Intelligence Data Center Market size?
In 2025, the Artificial Intelligence Data Center Market size is expected to reach USD 39.49 billion.
Who are the key players in Artificial Intelligence Data Center Market?
NVIDIA Corporation, Amazon Web Services (AWS), Google LLC, Vertiv Group Corp. and Intel Corporation are the major companies operating in the Artificial Intelligence Data Center Market.
Which is the fastest growing region in Artificial Intelligence Data Center Market?
North America is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Artificial Intelligence Data Center Market?
In 2025, the Asia Pacific accounts for the largest market share in Artificial Intelligence Data Center Market.
What years does this Artificial Intelligence Data Center Market cover, and what was the market size in 2024?
In 2024, the Artificial Intelligence Data Center Market size was estimated at USD 29.28 billion. The report covers the Artificial Intelligence Data Center Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Artificial Intelligence Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Page last updated on: May 29, 2025
Artificial Intelligence (AI) Data Center Industry Report
Statistics for the 2025 Artificial Intelligence (AI) Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Artificial Intelligence (AI) Data Center analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.