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

Edge Data Center Market Report is Segmented by Component (Solution, Services), by Data Center Size (Small, Medium, and More), Tier Type (Tier 1 and 2, Tier 3, Tier 4), End User ( IT & Telecom, BFSI, and More) and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Edge Data Center Market Size and Share

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Edge Data Center Market Analysis by Mordor Intelligence

The edge data center market size reached USD 18.08 billion in 2025 and is forecast to hit USD 52.11 billion by 2030, expanding at a 23.58% CAGR. Growing demand for sub-10 millisecond response times, the rollout of 5G radios, and rapid AI workload migration keep construction pipelines full. Local-processing mandates in more than 40 countries continue to steer budgets toward distributed architectures that keep data within national borders. Operators also pursue renewable micro-grids that shave 15-20% from power bills, turning sustainability into a competitive lever. Moderate rivalry prevails as hyperscale incumbents such as Microsoft and Oracle clash with focused specialists, including EdgeConneX and Vapor IO, while capital flows stay strong despite short-term cost inflation.

Key Report Takeaways

  • By component, Solutions led with 63.5% of edge data center market share in 2024; Services is poised to grow at a 24.7% CAGR through 2030.
  • By data-center size, Large facilities controlled 54.7% share of the edge data center market in 2024, yet Mega sites will expand fastest at 26.9% CAGR.
  • By tier, Tier 3 held 53.7% share in 2024, while Tier 4 configurations are advancing at 26.2% CAGR through 2030.
  • By end user, BFSI accounted for 29.3% share of the edge data center market size in 2024, whereas IT & Telecom will post the highest 24.3% CAGR through 2030. 
  • By geography, North America captured 27.32% share in 2024; Asia-Pacific is projected to climb at a 25.1% CAGR to 2030.

Segment Analysis

By Component: Services accelerate as solutions remain dominant

Solutions retained 63.5% of edge data center market share in 2024 as enterprises raced to install physical racks and orchestration software. The edge data center market will nevertheless see Services expand at a 24.7% CAGR, fueled by demand for managed operations that offset talent gaps. Outsourced monitoring can cut run-rate costs 30-40% versus in-house oversight, a fact underscored by Lumen’s AI-driven portfolio that yields 40-50% margins.

The trend signals a pivot from capital expenditure toward outcome-based models. As deployments multiply across hundreds of rooftops and retail closets, clients value guaranteed SLAs more than asset ownership. EdgeConneX’s Japan buildout exemplifies platforms engineered for service delivery over plain colocation.

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By Data Center Size: Mega sites gain speed on large-site base

Large campuses captured 54.7% of the edge data center market in 2024 by balancing capacity with proximity. Yet Mega facilities are on track to post a 26.9% CAGR through 2030 as hyperscalers transplant design playbooks to metro-adjacent parcels. Deploying a single 100-MW node often reduces cooling and power costs 20-25% relative to scattering smaller rooms.

Telecom operators still lean on Medium enclosures for 5G edge lattices, but cloud majors favor Mega cells for regional service planes. Scala’s USD 500 million “AI City” in Brazil typifies the model, serving an urban region instead of a single district.

By Tier Type: Tier 4 reliability commands premium pricing

Tier 3 remains the workhorse with 53.7% share, but Tier 4 is scaling at 26.2% CAGR as financial-trading and healthcare workloads demand 99.995% uptime. Deutsche Bank’s distributed-cloud stack relies on Tier 4 redundancy to underpin algorithmic trades that span millions of daily orders.

Operators accept 25-35% higher build costs because downtime risks eclipse infrastructure savings. Insurers often grant premium discounts when proofs show Tier 4 certification, strengthening the business case for capital outlays.

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By End-User: IT & Telecom overtakes BFSI growth

BFSI held 29.3% of the edge data center market size in 2024 owing to real-time fraud detection and low-latency trading. The IT & Telecom cohort, however, will grow faster at 24.3% CAGR as carriers monetize 5G through edge APIs and AI inference. Retail smart-shelf pilots and factory predictive-maintenance suites add diversified demand. Audi, for instance, lifted overall equipment effectiveness 12% by processing ML models locally.

Government and smart-city programs also adopt nodes for traffic control and public-safety analytics. India’s rural “Bank on Wheels” processes transactions offline, syncing once connectivity resumes—a proof that edge designs reach beyond urban cores.

Geography Analysis

North America controlled 27.32% of edge data center market share in 2024 on the back of early 5G launches and mature fiber backbones. Growth is now tilting toward secondary metros where land is cheaper and grid headroom ample. Core Scientific’s USD 4 billion plan to convert bitcoin farms in Texas shows how legacy assets can be reborn for AI inference. Developers still grapple with 25-35% higher construction costs compared with global norms and with acute technician shortages outside coastal hubs.

Asia-Pacific is forecast to log a 25.1% CAGR, making it the prime driver of edge data center market expansion. China’s “New Infrastructure” and India’s Digital India initiatives embed local-processing mandates in national strategies. Digital Edge secured USD 1.6 billion to scale regional footprints as Tokyo and Jakarta vie for hub status. Build budgets run 40-50% below North American equivalents, while vocational programs churn a growing cadre of certified engineers.

Edge Data Center Market CAGR (%), Growth Rate by Region
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Competitive Landscape

The edge data center market features moderate concentration. Equinix, Digital Realty, and Microsoft anchor global portfolios, while EdgeConneX, Vapor IO, and Compass Datacenters specialize in distributed formats. Partnerships outweigh zero-sum rivalry: Verizon meshes its fiber access with NVIDIA GPUs to market turnkey AI hubs. Sustainability stands out as a tiebreaker; providers that overlay micro-grids and free-cooling routinely trim operating costs 15-20% and win ESG-minded tenants.

Niche innovators exploit gaps. PowerSecure pairs with Edged Energy to embed on-site generators, lowering grid dependence. Metrobloks raised USD 5.2 million for curb-side micro-data-centers in bustling urban cores. AI-assisted maintenance cuts trouble tickets by one-fifth and keeps staffing lean, advantages that resonate as wage inflation rises.

Edge Data Center Industry Leaders

  1. American Tower Corporation

  2. DartPoints

  3. Digital Realty Trust

  4. EdgeConneX

  5. H5 Data Centers

  6. *Disclaimer: Major Players sorted in no particular order
Media Market Concentration
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Recent Industry Developments

  • June 2025: Brazil’s Patria launched a USD 1 billion data-center platform targeting São Paulo and Mexico City markets.
  • May 2025: Chesapeake Planning Commission rejected the city’s first large-scale data-center proposal after environmental pushback.
  • January 2025: Brookfield opened talks to bring new investors into Ascenty, its Brazilian unit, to accelerate expansion.
  • January 2025: TPA Group unveiled plans for a USD 5 billion, nine-building campus in Newton County, Georgia, for completion by 2030.

Table of Contents for Edge Data Center Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Proliferation of IoT and connected devices
    • 4.2.2 Surge in video/5G-driven data traffic
    • 4.2.3 Latency-critical AR/VR and autonomous apps
    • 4.2.4 Data-sovereignty regulations
    • 4.2.5 AI inferencing workloads moving to edge
    • 4.2.6 Renewable-energy micro-grids at edge sites
  • 4.3 Market Restraints
    • 4.3.1 High capex for edge facility build-outs
    • 4.3.2 Interoperability and management gaps
    • 4.3.3 Cyber and physical security risks
    • 4.3.4 Skilled-labor shortage in tier-2/3 cities
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces
    • 4.7.1 Bargaining Power of Suppliers
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Threat of New Entrants
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Competitive Rivalry
  • 4.8 Assessment of the Macroeconomic Factors on the Market

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Component
    • 5.1.1 Solution
    • 5.1.2 Services
  • 5.2 By Data Center Size
    • 5.2.1 Small
    • 5.2.2 Medium
    • 5.2.3 Large
    • 5.2.4 Massive
    • 5.2.5 Mega
  • 5.3 By Tier Type
    • 5.3.1 Tier 1 and 2
    • 5.3.2 Tier 3
    • 5.3.3 Tier 4
  • 5.4 By End-user
    • 5.4.1 IT and Telecom
    • 5.4.2 BFSI
    • 5.4.3 Government
    • 5.4.4 Healthcare
    • 5.4.5 Manufacturing
    • 5.4.6 Others
  • 5.5 By Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.1.3 Mexico
    • 5.5.2 South America
    • 5.5.2.1 Brazil
    • 5.5.2.2 Argentina
    • 5.5.2.3 Rest of South America
    • 5.5.3 Europe
    • 5.5.3.1 Germany
    • 5.5.3.2 United Kingdom
    • 5.5.3.3 France
    • 5.5.3.4 Netherlands
    • 5.5.3.5 Rest of Europe
    • 5.5.4 Asia-Pacific
    • 5.5.4.1 China
    • 5.5.4.2 Japan
    • 5.5.4.3 India
    • 5.5.4.4 South Korea
    • 5.5.4.5 Australia and New Zealand
    • 5.5.4.6 Rest of Asia-Pacific
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Middle East
    • 5.5.5.1.1 United Arab Emirates
    • 5.5.5.1.2 Saudi Arabia
    • 5.5.5.1.3 Turkey
    • 5.5.5.1.4 Rest of Middle East
    • 5.5.5.2 Africa
    • 5.5.5.2.1 South Africa
    • 5.5.5.2.2 Egypt
    • 5.5.5.2.3 Nigeria
    • 5.5.5.2.4 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 American Tower Corporation
    • 6.4.2 DartPoints
    • 6.4.3 Digital Realty Trust
    • 6.4.4 EdgeConneX
    • 6.4.5 H5 Data Centers
    • 6.4.6 SBA Communications Corporation
    • 6.4.7 Iron Mountain Inc.
    • 6.4.8 Aligned Data Centers
    • 6.4.9 Microsoft Corporation
    • 6.4.10 Oracle Corporation
    • 6.4.11 Equinix
    • 6.4.12 Vertiv
    • 6.4.13 Schneider Electric
    • 6.4.14 Vapor IO
    • 6.4.15 Cyxtera Technologies
    • 6.4.16 EdgeMicro
    • 6.4.17 StackPath
    • 6.4.18 Compass Datacenters
    • 6.4.19 Switch Inc.
    • 6.4.20 Rackspace Technology
    • 6.4.21 Hewlett Packard Enterprise
    • 6.4.22 QTS Realty Trust

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-Need Assessment
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Global Edge Data Center Market Report Scope

An edge data center is a small data center that is located close to the edge of a network. It provides the same device found in traditional data centers but is contained in a smaller footprint, closer to end users and devices.

The edge data center market is segmented by component (solution, services), by facility (small and medium facility, large facility), by end-user (IT and telecom, BFSI, government, healthcare, manufacturing, other end-users), by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Component Solution
Services
By Data Center Size Small
Medium
Large
Massive
Mega
By Tier Type Tier 1 and 2
Tier 3
Tier 4
By End-user IT and Telecom
BFSI
Government
Healthcare
Manufacturing
Others
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Netherlands
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia and New Zealand
Rest of Asia-Pacific
Middle East and Africa Middle East United Arab Emirates
Saudi Arabia
Turkey
Rest of Middle East
Africa South Africa
Egypt
Nigeria
Rest of Africa
By Component
Solution
Services
By Data Center Size
Small
Medium
Large
Massive
Mega
By Tier Type
Tier 1 and 2
Tier 3
Tier 4
By End-user
IT and Telecom
BFSI
Government
Healthcare
Manufacturing
Others
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Netherlands
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia and New Zealand
Rest of Asia-Pacific
Middle East and Africa Middle East United Arab Emirates
Saudi Arabia
Turkey
Rest of Middle East
Africa South Africa
Egypt
Nigeria
Rest of Africa
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Key Questions Answered in the Report

What is the current value of the edge data center market?

The edge data center market size stands at USD 18.08 billion in 2025 and is projected to reach USD 52.11 billion by 2030.

Which component segment is growing fastest?

Services are expanding at a 24.7% CAGR as enterprises lean on managed offerings to offset talent shortages in distributed operations.

Why are Mega facilities gaining traction?

Mega sites deliver economies of scale that cut cooling and power costs up to 25% while still sitting close enough to users for sub-10 ms latency.

Which region will add the most capacity by 2030?

Asia-Pacific, supported by China’s “New Infrastructure” and India’s Digital India programs, is forecast to grow at a 25.1% CAGR, outpacing all other regions.

Page last updated on: July 3, 2025