Data Center Managed Services Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 54.23 Billion |
| Market Size (2030) | USD 107.52 Billion |
| Growth Rate (2025 - 2030) | 14.67% CAGR |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Data Center Managed Services Market Analysis by Mordor Intelligence
The data center managed services market size stands at USD 54.23 billion in 2025 and is forecast to reach USD 107.52 billion by 2030, reflecting a 14.67% CAGR over the period. Rapid outsourcing of infrastructure complexity, escalating AI workload density, and the need to mitigate rising power constraints fuel this expansion. Enterprises are turning to managed service providers (MSPs) for cost-effective hybrid orchestration, compliance assurance, and round-the-clock operations coverage. Intensifying regulatory mandates, mounting sustainability targets, and widening skill gaps continue to steer budgets toward third-party operators. Competitive pressures are spurring strategic consolidation, deeper vertical specialization, and joint offerings with AI hardware vendors to sustain differentiation and margin resiliency.
Key Report Takeaways
- By service type, managed IT infrastructure led with 41.63% of data center managed services market share in 2024; managed security services are forecast to expand at a 15.78% CAGR through 2030.
- By deployment model, cloud deployments captured 62.94% of the data center managed services market in 2024, while hybrid architectures are advancing at a 15.45% CAGR to 2030.
- By data center type, colocation facilities accounted for 54.83% of the data center managed services market size in 2024; edge and micro data centers record the highest growth at 15.33% CAGR.
- By end-user industry, IT and telecommunications held 29.74% share of the data center managed services market in 2024, whereas healthcare is climbing fastest at a 15.39% CAGR.
- By geography, North America retained 41.83% share of the data center managed services market size in 2024, but Asia-Pacific is rising at a 15.39% CAGR to 2030.
Global Data Center Managed Services Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Growing hyperscale-led colocation demand | +3.2% | Global, concentrated in North America, Asia-Pacific | Medium term (2-4 years) |
| Sustainability-linked SLA adoption | +1.8% | Europe, North America, Asia-Pacific tier-1 cities | Long term (≥ 4 years) |
| AI-driven predictive operations | +2.9% | Global, early adoption in North America, Europe | Short term (≤ 2 years) |
| Cloud cost-optimization outsourcing | +2.4% | North America, Europe, Asia-Pacific enterprise hubs | Medium term (2-4 years) |
| Edge data center roll-outs | +2.6% | Global, accelerated in Asia-Pacific, South America | Medium term (2-4 years) |
| Skill-gap outsourcing in operations and security | +2.1% | Global, acute in North America, Europe | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Growing Hyperscale-Led Colocation Demand
Hyperscale operators secured more than 1,200 MW of colocation capacity in 2024 to circumvent the 24-to-36-month lead time of greenfield builds. Equinix reported 89% utilization across its global portfolio, while Digital Realty booked USD 1.2 billion in new contracts, underscoring urgency for immediately available space.[1]Equinix Inc., “Investor Relations,” equinix.com MSPs bundle remote operations, network optimization, and managed security into turnkey packages that reduce hyperscalers’ overhead and accelerate go-to-market cycles. The effect is pronounced in Asia-Pacific, where sovereign cloud mandates obligate partnerships with locally licensed providers.
AI-Driven Predictive Operations
AI-enabled monitoring platforms are lowering unplanned downtime by 30–40% through predictive failure analytics. IBM’s Maximo Application Suite trimmed mean-time-to-resolution by 35% in early data center rollouts during 2024, validating the economic case for AI-augmented operations.[2]IBM, “Maximo Application Suite,” ibm.com Providers that integrate telemetry from power, cooling, and network assets offer 15–20% premium SLA tiers, attracting enterprises seeking higher reliability without scaling head-count.
Edge Data Center Roll-Outs
Edge capacity is projected to triple between 2024 and 2028 as latency-sensitive retail, manufacturing, and telecom workloads shift closer to end users. Verizon extended its mobile edge footprint to 47 U.S. metros in 2024, enabling sub-10 millisecond round-trip performance for real-time analytics and AR training.[3]Verizon Business, “Mobile Edge Computing Solutions,” verizon.com MSPs are pivoting to hub-and-spoke management models that blend centralized AI orchestration with localized field support.
Sustainability-Linked SLA Adoption
Enterprises are now embedding carbon intensity requirements into contracts, demanding PUE figures below 1.3 and 75% renewable energy sourcing by 2027. Digital Realty earmarked USD 2 billion for renewable procurement and cooling upgrades, targeting carbon neutrality by 2030. Liquid cooling gains traction, reducing chiller energy by 20–30%, yet capital costs pose a challenge to mid-tier competitors.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Power-grid capacity bottlenecks | -2.8% | North America (Northern Virginia, Phoenix), Europe (Frankfurt, Amsterdam), Asia-Pacific (Singapore) | Short term (≤ 2 years) |
| Vendor lock-in and repatriation risk | -1.9% | Global, acute in North America, Europe | Medium term (2-4 years) |
| Scarcity of specialist labor | -1.6% | Global, most severe in North America, Europe | Short term (≤ 2 years) |
| Heightened data-sovereignty rules | -1.4% | Europe (GDPR), China (PIPL), India (DPDPA) | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Power-Grid Capacity Bottlenecks
Utility queues now stretch 18–36 months in Northern Virginia, Frankfurt, and Singapore. Dominion Energy flagged a 30-month interconnection backlog in 2024, forcing operators to evaluate secondary markets such as Ohio and Texas. AI clusters seeking contiguous 50–100 MW blocks feel the pinch most acutely, prompting some MSPs to add on-site gas turbines or fuel cells despite higher complexity.
Vendor Lock-In and Repatriation Risk
Cloud repatriation projects frequently overrun budgets by 2–3 times due to data egress fees and application refactoring. Enterprises therefore favor hybrid managed services that balance cost and control, yet rely on MSPs to orchestrate policies across on-premise, colocation, and public cloud estates. Maintaining dual infrastructure raises total cost of ownership but mitigates unilateral pricing shifts by hyperscalers.
Segment Analysis
By Service Type: Security Services Outpace Infrastructure Management
Managed security services are registering a 15.78% CAGR to 2030, the fastest among all service layers. Zero-trust architecture mandates, with ransomware liabilities averaging USD 4.5 million per incident, and ISO 27001 adoption funnel budgets are directed toward continuous threat monitoring. Managed IT infrastructure still accounts for 41.63% of data center managed services market share, underscoring its role as the operational backbone.
Providers are expanding security operations centers to meet 24/7 coverage commitments while integrating immutable storage snapshots and AI-driven anomaly detection. The data center managed services market size for security services is poised to capture a larger share of enterprise spending as compliance penalties escalate. Mid-tier MSPs without in-house security expertise often pursue acquisitions to fill capability gaps, a trend that was mirrored by Rackspace’s 2024 deal, which broadened its managed detection and response portfolio.
Note: Segment shares of all individual segments available upon report purchase
By Deployment Model: Hybrid Architectures Gain Momentum
Cloud deployments captured 62.94% share in 2024, reflecting a decade of rapid migration; however, hybrid models are accelerating at a 15.45% CAGR. Enterprises see improved economics for predictable 24/7 workloads by retaining core compute on-premise while using cloud for burst capacity. Financial services institutions exemplify this balance, hosting transaction engines in compliant colocation cages and leveraging cloud analytics for customer-facing insights.
MSPs differentiate through orchestration layers that abstract infrastructure heterogeneity, enforcing uniform security and cost policies. The data center managed services market size tied to hybrid frameworks rises as sovereign data laws demand localized storage while maintaining global application responsiveness. Successful MSPs embed policy engines that trigger automated workload moves based on latency, cost, and compliance thresholds without service disruption.
By Data Center Type: Edge Facilities Challenge Colocation Dominance
Colocation remains dominant with 54.83% share, driven by hyperscalers leasing turnkey megawatt blocks. Yet edge and micro facilities are scaling at 15.33% CAGR as retail analytics, autonomous machinery, and mobile AR demand single-digit millisecond latency. Lumen added 120 U.S. edge data centers in 2024, underscoring the growth potential of distributed topologies.
The data center managed services market share held by edge deployments is widening as MSPs introduce hub-and-spoke control planes that push AI inference to local nodes while centralizing training workloads. Colocation leaders respond by pairing downtown interconnection hubs with suburban edge annexes, bundling single-contract managed services that span both tiers. Standardization hurdles persist due to vendor-specific hardware stacks, constraining economies of scale.
Note: Segment shares of all individual segments available upon report purchase
By End-User Industry: Healthcare Drives Fastest Expansion
The IT and telecommunications sectors still generate 29.74% of the 2024 revenue, while healthcare is accelerating at a 15.39% CAGR. Telehealth visits increased from 5% of U.S. consultations in 2019 to 38% in 2024, intensifying demand for HIPAA-compliant hosting and disaster recovery infrastructures. Electronic health record workloads require high-density storage, pushing providers to integrate GPU-powered analytics for imaging and diagnostics.
The data center managed services industry is expanding to include specialized healthcare business units staffed with HITRUST-certified personnel. BFSI, retail, and manufacturing also migrate critical systems to managed environments seeking 24/7 uptime guarantees and regulatory compliance. Energy, utilities, and government verticals emphasize operational technology convergence and air-gapped configurations, sustaining steady, though comparatively slower, uptake.
Geography Analysis
North America retained 41.83% share in 2024. Power constraints in Northern Virginia, Phoenix, and Silicon Valley push new capacity to Columbus, Dallas, and Atlanta, where utilities offer surplus load and land prices remain moderate. Canada leverages hydropower and cooler climates to attract latency-tolerant workloads, while Mexico hosts near-shore deployments targeting South America. A mature MSP ecosystem and deep enterprise outsourcing culture support continued regional leadership.
Asia-Pacific grows at a 15.39% CAGR to 2030, the fastest among regions. China’s Data Security Law and India’s Digital Personal Data Protection Act drive localized infrastructure mandates, boosting demand in Beijing, Mumbai, and Bangalore. Japan faces capacity challenges in Tokyo, shifting builds to Osaka. Singapore’s moratorium on new permits until 2027 channels investment to Malaysia and Indonesia. Sovereign cloud strategies and government subsidy programs underpin the region’s robust expansion.
Europe commands considerable revenue, anchored by Germany, the United Kingdom, and France. Frankfurt’s power backlog elongates approval cycles beyond 24 months. Brexit dynamics encourage dual-site footprints across EU and UK jurisdictions. Nordic countries offer 100% renewable grids and free cooling benefits, although added latency to central European populations limits adoption for real-time workloads. The Middle East, led by the United Arab Emirates and Saudi Arabia, invests heavily to diversify economies, while Africa’s progress remains uneven outside South Africa and Nigeria.
Competitive Landscape
The data center managed services market features moderate fragmentation. The top 10 providers generate nearly half of the global revenue. Colocation leaders Equinix and Digital Realty expand up the stack, bundling security, network, and application management into single contracts. IT services majors IBM and NTT deepen infrastructure portfolios, merging application hosting with zero-trust security. Hyperscalers, such as Microsoft Azure and Alibaba Cloud, blur service lines by offering managed operations for hybrid environments, thereby intensifying price pressure.
Strategic alliances proliferate. Schneider Electric and NVIDIA formed a partnership in 2024 to support racks with thermal loads exceeding 100 kW. MSPs unable to finance specialized cooling or AI cluster orchestration face margin compression. Edge management emerges as white-space territory, with no clear leader yet able to manage thousands of micro-sites at scale. Acquisitions totaled 15 in 2024, reflecting consolidation as mid-tier firms seek scale or vertical depth.
Investment continues in AI-powered operations and sustainability differentiation. Providers deploying predictive maintenance platforms report churn rates 30% lower than peers still reliant on manual processes. Vertical specialization, particularly in healthcare and finance, secures premium pricing through compliance expertise. Operators with scale, renewable power commitments, and AI automation stand poised to capture outsized growth.
Data Center Managed Services Industry Leaders
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Fujitsu Ltd
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Cisco Systems Inc.
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Dell EMC
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IBM Corporation
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AT&T Corporation
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- November 2025: Hewlett Packard Enterprise earmarked USD 650 million to extend its GreenLake managed services platform, deploying AI-ready infrastructure in eight data centers. Each site will use liquid-cooling that supports 200-kilowatt racks and targets enterprises shifting AI training workloads to hybrid setups, a move that can trim steady-state costs by 22%
- October 2025: Accenture landed a seven-year, USD 480 million contract with a global pharmaceutical firm to run hybrid data centers across North America, Europe, and Asia-Pacific. The engagement bundles AI-based predictive operations, zero-trust security, and compliance oversight for FDA 21 CFR Part 11 and EU Annex 11, reflecting healthcare’s brisk 15.39% growth pace
- September 2025: Vertiv purchased a European cooling specialist for USD 290 million, adding immersion and direct-to-chip liquid-cooling that lowers power usage effectiveness below 1.2 and supports the stringent carbon-intensity clauses now common in managed-services contracts
- August 2025: China Telecom invested USD 420 million to expand its edge data center network to 85 sites in tier-2 and tier-3 Chinese cities. The rollout meets China’s Data Security Law mandate for local processing and targets industrial IoT, autonomous vehicles, and smart manufacturing workloads that need latency under 10 milliseconds
Global Data Center Managed Services Market Report Scope
The data center managed services market report is segmented by Service Type (Managed IT Infrastructure, Managed Network Services, Managed Security Services, Managed Storage and Backup, Managed Application Hosting), Deployment Model (Cloud, On-Premise, Hybrid), Data Center Type (Colocation Facilities, Hyperscale-Owned Sites, Enterprise On-Premise Sites, Edge/Micro Data Centers), End-User Industry (IT and Telecommunication, BFSI, Healthcare, Retail and e-Commerce, Manufacturing, Government and Defense, Energy and Utilities), and Geography (North America, South America, Europe, Asia-Pacific, Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).
| Managed IT Infrastructure |
| Managed Network Services |
| Managed Security Services |
| Managed Storage and Backup |
| Managed Application Hosting |
| Cloud |
| On-Premise |
| Hybrid |
| Colocation Facilities |
| Hyperscale-Owned Sites |
| Enterprise On-Premise Sites |
| Edge / Micro Data Centers |
| IT and Telecommunication |
| BFSI |
| Healthcare |
| Retail and e-Commerce |
| Manufacturing |
| Government and Defense |
| Energy and Utilities |
| North America | United States | |
| Canada | ||
| South America | Brazil | |
| Mexico | ||
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | United Arab Emirates |
| Saudi Arabia | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Rest of Africa | ||
| By Service Type | Managed IT Infrastructure | ||
| Managed Network Services | |||
| Managed Security Services | |||
| Managed Storage and Backup | |||
| Managed Application Hosting | |||
| By Deployment Model | Cloud | ||
| On-Premise | |||
| Hybrid | |||
| By Data Center Type | Colocation Facilities | ||
| Hyperscale-Owned Sites | |||
| Enterprise On-Premise Sites | |||
| Edge / Micro Data Centers | |||
| By End-User Industry | IT and Telecommunication | ||
| BFSI | |||
| Healthcare | |||
| Retail and e-Commerce | |||
| Manufacturing | |||
| Government and Defense | |||
| Energy and Utilities | |||
| By Geography | North America | United States | |
| Canada | |||
| South America | Brazil | ||
| Mexico | |||
| Argentina | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | United Arab Emirates | |
| Saudi Arabia | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the current size of the data center managed services market?
The market stands at USD 54.23 billion in 2025.
How fast is the market expected to grow by 2030?
It is projected to reach USD 107.52 billion, registering a 14.67% CAGR from 2025 to 2030.
Which service type is expanding the quickest?
Managed security services are rising at a 15.78% CAGR on the back of zero-trust mandates and ransomware threats.
Which region shows the fastest future growth?
Asia-Pacific leads with a forecast 15.39% CAGR driven by sovereign cloud policies and hyperscale investments.
Why are hybrid deployment models gaining favor?
Enterprises seek cost savings, latency control, and sovereignty compliance by balancing on-premise and cloud resources.
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