Data Center Market Size

Statistics for the 2023 & 2024 Data Center market size, created by Mordor Intelligence™ Industry Reports. Data Center size report includes a market forecast to 2029 and historical overview. Get a sample of this industry size analysis as a free report PDF download.


Market Size of data center Industry

Data Center Market Summary
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Icons Lable Value Study Period 2017 - 2029 Market Volume (2024) 45.3 Thousand MW Market Volume (2029) 71.98 Thousand MW Largest Share by Tier Type Tier 3 CAGR (2024 - 2029) 9.70 % Largest Share by Region North America

Major Players


*Disclaimer: Major Players sorted in no particular order

Key Players



Data Center Market Analysis

The Data Center Market size is estimated at 45.3 thousand MW in 2024, and is expected to reach 71.98 thousand MW by 2029, growing at a CAGR of 9.70%. Further, the market is expected to generate colocation revenue of USD 127,142.5 Million in 2024 and is projected to reach USD 254,548.4 Million by 2029, growing at a CAGR of 14.89% during the forecast period (2024-2029).

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USD 127,142.54 Million

Market Size in 2024

USD 254,410 Million

Market Size in 2029


CAGR (2017-2023)


CAGR (2024-2029)

IT Load Capacity

45,272.18 MW

Value, IT Load Capacity, 2024

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The IT load capacity of the data center market will have steady growth and is expected to reach 71,975.98 MW by 2029. It is estimated to reach 26 GB/month by 2029, thus rising data consumption would increase IT load capacity.

Total Raised Floor Space

Sq. Ft. 176.51 M

Volume, Raised Floor Space, 2024

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Globally, the total raised floor area is expected to increase to 284.2 million sq. ft by 2029. Growing urbanization and greater digital penetration in emerging markets such as India, Vietnam, Indonesia, and others are expected to drive growth.

Installed Racks


Volume, Installed Racks, 2024

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The number of installed racks is expected to reach 14,206,878 units by 2029. North America is expected to house the maximum number of racks by 2029. The fiber expansion, growing smart cities, and digitalization would increase DC facilities.

# of DC Operators & DC Facilities

897 and 3,695

Volume, DC Facilities, 2024

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There were 3,530 colocation data center facilities across the world in 2023. North America holds the highest market share. The development of fiber connectivity, and high demand for data center services are increasing DC projects.

Leading Market Player


Market Share, Digital Realty Trust, Inc., Inc.

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Digital Realty Trust Inc. has the highest market share of 8.5% compared to its competitors in the data center market. The company operates at an IT load capacity of 2,697.05 MW and is expected to increase its capacity in future.

Tier 3 data centers accounts for majority market share in 2023, Tier-4 is the fastest growing in forecasted period

  • The tier 3 segment currently holds a major share of the market. These tiers have an uptime of around 99.982%, translating into a downtime of 1.6 hours per year. With the increasing adoption of edge and cloud connectivity, the tier 3 segment is expected to grow further in the future.
  • Europe held a leading market share, with a 6,857.78 MW IT load capacity in 2022. The United Kingdom hosts the maximum number of tier 3 data centers, with Slough and Greater London holding a major share. In Ireland, Dublin is the only region that hosts more than 98% of the tier 3 facilities, with North and South Dublin holding a major share. The tier 3 segment in Europe is expected to grow from 7,979.69 MW in 2023 to 12,110.18 MW in 2029, at a CAGR of 7.20%.
  • The tier 4 segment is expected to record a CAGR of 16.2% during the forecast period. Various developed countries are focusing on adopting a Tier 4 certification to get the advantage of complete fault tolerance and redundancy for every component. Therefore, many developing regions are also adopting the tier 4 zone. In the United States, over 20% of the energy mix is contributed by renewable energy, which is expected to reach 50% by 2030. The majority of data center facilities under development are adding more IT power.
  • The tier 1 & 2 segment had the least growth as more than 70% of all traffic moves from server to server. Modern applications require significantly more data to travel within a data center at faster speeds and are more particular about latency. Since tier 1 & 2 data centers are projected to witness minimal growth, such growth is only expected from facilities that cater to SMEs with a minimal IT load.
Global Data Center Market

North America holds the major share and APAC is expected to be the fastest growing during the study period

  • The data center market has been largely concentrated in North America, Europe, and Asia-Pacific. Northern Virginia is the largest data center hotspot in the United States, accounting for over 13.07% of the data center installed capacity in 2022. However, the future market share is expected to reflect a decreasing trend until 2029, as the market has already reached maturity. Virginia offers an exemption from retail sales and uses tax for qualifying computer equipment purchased by data centers that meet statutory investment and employment requirements. Virginia was the first state to allow the tenants of colocation data centers to receive the benefits of sales tax exemption. Virginia also benefits from densely packed fiber backbones. Virginia Beach is the landing point for four new transoceanic fiber connection cables.
  • In Europe, the market is concentrated in FLAP-D metro markets, including Frankfurt, London/Slough, Amsterdam, Paris, and Dublin. The land price in London is around USD 150 per sq. ft. Higher land costs in London are expected to shift investments to other cities with lower land prices. For instance, Amsterdam has a lower land price for building facilities in the FLAP data center market, which is USD 38 per sq. ft.
  • In Asia-Pacific, Australia is one of the prominent countries in terms of the growth of data centers. The country is a major hub for data centers due to its focus on renewable energy. Sydney is now powered using 100% renewable electricity generated from wind and solar farms in regional NSW. In Melbourne, the Victorian government has also set aside USD 95 million to support AI startup development in the region. With increasing technology development hubs, the demand for data centers is expected to increase significantly.