Data Center Transformation Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Global Datacenter Transformation Market is Segmented by Service (Consolidation, Automation, Optimization, and Infrastructure Management), Level of Data Centre (Tier 1, Tier 2, Tier 3, and Tier 4), End User (Data Center Providers, Enterprises-BFSI, IT and Telecom, Healthcare, Retail, Manufacturing, Aerospace, Defense, and Intelligence, and Other End-Users), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Data Center Transformation Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Data Center Transformation Market Size

Data Center Transformation Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 21.09 Billion
Market Size (2030) USD 32.98 Billion
CAGR (2025 - 2030) 9.35 %
Fastest Growing Market North America
Largest Market Asia Pacific
Market Concentration Medium

Major Players

Data Center Transformation Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Data Center Transformation Market Analysis

The Data Center Transformation Market size is estimated at USD 21.09 billion in 2025, and is expected to reach USD 32.98 billion by 2030, at a CAGR of 9.35% during the forecast period (2025-2030).

Data center providers across the globe are gradually moving towards data center transformation in order to increase overall efficiency whilst reducing operational costs. Owing to the rapidly rising adoption of cloud, Ineternet of Things (IoT), and big data analytics across various enterprises as a part of their digital transformation strategy, the burden on the data centers is also increasing, leading to the growth in the data centers globally.

  • Moreover, data center traffic across the world is also increasing, considering the number of increasing communicating devices and more enterprises switching to software-as-a-service (SaaS)-based applications, as forecasted by Cisco, which will also drive the market.
  • With the increasing reliability and the increase in the number of data centers around the world, data center providers are finding it difficult to maintain consistency and operational efficiency
  •  Demand for data center services increased in many sectors which are dependent on digital infrastructures and this has resulted in an increase in the demand for Data Center Network Services. The need for data centres is increasing as a result of the rising number of enterprises and education institutions around the world who are Internet based, which means that they have to provide required program availability and data security.
  • Energy efficiency considerations are also gaining importance among data centers since energy accounts for almost 40% of total costs (according to network strategy and technology company Ciena). Infrastructure management, as a part of the data center transformation, is expected to gain traction over the years, considering the attempt to increase energy efficiency as a cost-saving measure.
  • The market for data center transformation was positively affected by the COVID 19 pandemic. Increasing awareness of the advantages provided by cloud computing to deliver a high security, reliable IT infrastructure and growing demand for building local data centres has also helped drive Data Centres growth.

Data Center Transformation Industry Overview

The data center transformation market is semi-conslidated owing to the presence of many players in the market operating in the domestic as well as the international market. The market is moderately concentrated, with key players adopting product and design innovation strategies. Some of the major players in the market are IBM Corporation, Cisco Systems, Inc., and Wipro, among others.

In September 2023 - Schneider Electric SE announced at its Collobration with investors a USD 3 billion multi-year agreement with Compass Datacenters. The agreement extends the companies’ existing relationship that integrates their respective supply chains to manufacture and deliver prefabricated modular data center solutions. 

In October 2022, Kyndryl announced a comprehensive hybrid cloud solution in collaboration with Dell Technologies and Microsoft Corporation. This solution empowers clients in data center, remote, and mainframe environments to expedite their cloud transformation journey by leveraging the infrastructure offered by Dell, Kyndryl's managed services, and Microsoft Azure.

In January 2022, IBM launched the IBM Z and Cloud Modernization Center to facilitate the adoption of hybrid clouds. The center serves as a digital gateway to a wide range of tools, resources, training, and ecosystem partners, assisting IBM Z clients in accelerating the digitization of their applications, processes, and data in a hybrid cloud environment.

Data Center Transformation Market Leaders

  1. IBM Corporation

  2. Cisco Systems, Inc.

  3. Microsoft Corporation

  4. Schneider Electric SE

  5. Wipro

  6. *Disclaimer: Major Players sorted in no particular order
Data Center Transformation Market Concentration
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Data Center Transformation Market News

  • Spetember 2023 - Schneider Electric SE has launched an industry-first guide to addressing new physical infrastructure design challenges for data centers to support the shift in artificial intelligence (AI)-driven workloads, setting the gold standard for AI-optimized data center design.
  • January 2022: Kyndryl established a strategic partnership with Google Cloud aimed at digital transformation projects and assisting business customers in becoming more data-driven and sustainable. It combined the companies' capabilities in data and analytics, artificial intelligence, and infrastructure modernization.
  • January 2022: Microsoft Corporation announced that it would build some of its most advanced data centers to date in Sweden. These new data network centers in Gävle and Sandviken are planned to be among the most sustainable in the world. Microsoft is building these data centers to meet the needs of future cloud services.

Data Center Transformation Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Deliverables
  • 1.2 Study Assumptions
  • 1.3 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS

  • 4.1 Market Overview
  • 4.2 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.2.1 Threat of New Entrants
    • 4.2.2 Bargaining Power of Buyers/Consumers
    • 4.2.3 Bargaining Power of Suppliers
    • 4.2.4 Threat of Substitute Products
    • 4.2.5 Intensity of Competitive Rivalry

5. MARKET DYNAMICS

  • 5.1 Market Drivers
    • 5.1.1 Need to Reduce Costs and Increase Efficiency of Data Centers
    • 5.1.2 Adoption of Cloud-based Services
    • 5.1.3 Increasing Significance of E-commerce Databases are Expected to Grow at a Significant Rate
  • 5.2 Market Restraints
    • 5.2.1 ROI Concerns Over the Investment across Low Load Data Centers

6. MARKET SEGMENTATION

  • 6.1 By Services
    • 6.1.1 Consolidation Services
    • 6.1.2 Optimization Services
    • 6.1.3 Automation Services
    • 6.1.4 Infrastructure Management
  • 6.2 By Level of Data Center
    • 6.2.1 Tier 1
    • 6.2.2 Tier 2
    • 6.2.3 Tier 3
    • 6.2.4 Tier 4
  • 6.3 By End User
    • 6.3.1 Data Center Providers
    • 6.3.2 Enterprises
    • 6.3.2.1 IT and Telecom
    • 6.3.2.2 BFSI
    • 6.3.2.3 Healthcare
    • 6.3.2.4 Retail
    • 6.3.2.5 Manufacturing
    • 6.3.2.6 Aerospace, Defense, and Intelligence
    • 6.3.2.7 Other End Users
  • 6.4 By Geography
    • 6.4.1 North America
    • 6.4.2 Europe
    • 6.4.3 Asia Pacific
    • 6.4.4 Latin America
    • 6.4.5 Middle East & Africa

7. COMPETITIVE LANDSCAPE

  • 7.1 Company Profiles
    • 7.1.1 IBM Corporation
    • 7.1.2 Cisco Systems, Inc.
    • 7.1.3 NetApp, Inc.
    • 7.1.4 NTT Communications
    • 7.1.5 Dell EMC (Dell Inc.)
    • 7.1.6 Microsoft Corporation
    • 7.1.7 Schneider Electric SE
    • 7.1.8 HCL Technologies Limited
    • 7.1.9 Accenture plc
    • 7.1.10 Wipro Technologies
    • 7.1.11 Hitachi Vantara Federal, Corporation
    • 7.1.12 Emerson Network Power, Inc
  • *List Not Exhaustive

8. INVESTMENT ANALYSIS

9. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Data Center Transformation Industry Segmentation

The process of changing a data center in order to enhance its general functionality and performance is known as data center transformation. Some experts define and characterize data center transformation as large-scale change programs that affect many important aspects of data center use, such as hardware configurations, users, and business processes.

The data center transformation market is segmented by service (consolidation, automation, optimization, infrastructure management), level of the data center (tier 1, tier 2, tier 3, Tier 4), end user (data center providers, enterprises [BFSI, IT and telecom, retail, healthcare, manufacturing, aerospace, defense, and intelligence, and other end-users]), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa).The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Services Consolidation Services
Optimization Services
Automation Services
Infrastructure Management
By Level of Data Center Tier 1
Tier 2
Tier 3
Tier 4
By End User Data Center Providers
Enterprises IT and Telecom
BFSI
Healthcare
Retail
Manufacturing
Aerospace, Defense, and Intelligence
Other End Users
By Geography North America
Europe
Asia Pacific
Latin America
Middle East & Africa
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Data Center Transformation Market Research FAQs

How big is the Data Center Transformation Market?

The Data Center Transformation Market size is expected to reach USD 21.09 billion in 2025 and grow at a CAGR of 9.35% to reach USD 32.98 billion by 2030.

What is the current Data Center Transformation Market size?

In 2025, the Data Center Transformation Market size is expected to reach USD 21.09 billion.

Who are the key players in Data Center Transformation Market?

IBM Corporation, Cisco Systems, Inc., Microsoft Corporation, Schneider Electric SE and Wipro are the major companies operating in the Data Center Transformation Market.

Which is the fastest growing region in Data Center Transformation Market?

North America is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Data Center Transformation Market?

In 2025, the Asia Pacific accounts for the largest market share in Data Center Transformation Market.

What years does this Data Center Transformation Market cover, and what was the market size in 2024?

In 2024, the Data Center Transformation Market size was estimated at USD 19.12 billion. The report covers the Data Center Transformation Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Data Center Transformation Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Data Center Transformation Industry Report

Statistics for the 2025 Data Center Transformation market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Data Center Transformation 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.