Data Center Services Market Analysis - Industry Forecast, Size & Report (2025 - 2030)

The Data Center Services Market Report is Segmented by Service (Managed Hosting Service and Colocation Service), Data Center (Tier 1, Tier 2, Tier 3, and Tier 4), End-User Industry (BFSI, Healthcare, Retail, Manufacturing, IT and Telecom, and Other End-User Industries), 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 the Above Segments.

Data Center Services Market Analysis - Industry Forecast, Size & Report (2025 - 2030)

Data Center Services Market Size

Data Center Service Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 148.31 Billion
Market Size (2030) USD 316.65 Billion
CAGR (2025 - 2030) 16.38 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

Data Center Services Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Data Center Services Market Analysis

The Data Center Services Market size is estimated at USD 148.31 billion in 2025, and is expected to reach USD 316.65 billion by 2030, at a CAGR of 16.38% during the forecast period (2025-2030).

The primary driver behind the surge in demand for data center services is the widespread adoption of cloud computing. Businesses and firms are turning to cloud services for their storage, computing, and application requirements, leading to a surge in data volumes that necessitates expanded data center capacity.

The rising demand for digital transformation initiatives in multiple industries is driving the need for robust data center infrastructure. Firms are increasingly turning to digital technologies to boost operations, elevate customer experiences, and foster innovation. Organizations are progressively relying on big data and analytics, collecting and analyzing extensive data sets for decision-making. This trend underscores the growing need for robust data storage and processing infrastructure.

In January 2024, Digital Realty, a global provider of cloud- and carrier-neutral data center services, unveiled its inaugural data center in India. Situated in Chennai's industrial hub, the 10-acre campus boasts the capacity to support up to 100 megawatts of critical IT load. This marks a pivotal expansion for the company's global data center platform, addressing the escalating digital transformation demands in significant global markets.

Moreover, the increase of the Internet of Things (IoT) adds another layer of demand, with countless connected devices generating massive amounts of data that need to be stored, processed, and analyzed. The expanding sophistication of artificial intelligence and machine learning necessitates substantial computational power and storage, thereby driving up the demand for data center services.

The surge in remote work and digital services, catalyzed by the COVID-19 pandemic, underscored the importance of data centers. They now serve as crucial hubs for secure and reliable access to information and applications. Additionally, stringent data protection regulations are nudging businesses to bolster their investments in data center services to meet compliance standards. Technological advancements, including energy-efficient designs and enhanced cooling solutions, are enhancing the appeal and cost-effectiveness of data centers, thereby fuelling market growth.

In April 2024, CoreSite, a subsidiary of American Tower Corporation and a provider of hybrid IT solutions, revealed its certification under the NVIDIA DGX-Ready Data Center program. This certification equips CoreSite to offer scalable, high-performance infrastructure, catering specifically to organizations seeking to leverage the growing appetite for artificial intelligence (AI), machine learning (ML), and other high-density applications. Customers opting to host their NVIDIA DGX infrastructure with CoreSite can gain access to a network of high-density data center campuses in key locations, such as Los Angeles, Silicon Valley, Chicago, and Northern Virginia, tailored for NVIDIA AI and high-performance computing.

However, the growth of the market is restricted by high operational costs, energy consumption concerns, and limited availability of skilled professionals. Additionally, data security and privacy challenges, along with regulatory compliance requirements, pose significant barriers to expansion.

Data Center Services Industry Overview

The data center service market is highly fragmented, with high competitive rivalry. The major market players are Fujitsu Ltd, Cisco Systems Inc., Capgemini, HCL Technologies Limited, and Hewlett Packard Enterprise Company. Market players are bolstering their portfolios and pursuing enduring competitive edges through strategic partnerships and product innovations.

  • May 2024: Cologix, the network-neutral interconnection and hyperscale edge data center provider in North America, announced the successful launch of its fourth and most extensive data center in the region. This expansion signifies a pivotal step in Cologix's dedication to addressing the escalating need for colocation and interconnection services in Columbus, Ohio.
  • February 2024: Global infrastructure Platform-as-a-Service company MOD Mission Critical (MOD) announced an expansion of its partnership with 365 Data Centers (365), a provider of network-centric colocation, cloud, and managed services. Through this partnership, MOD can provide fractional colocation and connectivity solutions, allowing its clients to access the services and resources offered by 365's network-centric data centers across 20 markets, complemented by an additional 125 nationwide points of presence.

Data Center Services Market Leaders

  1. Fujitsu Ltd

  2. Capgemini

  3. HCL Technologies

  4. Cisco Systems Inc.

  5. Hewlett Packard Enterprise Company

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

  • May 2024: Microsoft unveiled its inaugural data center region in Mexico (Mexico Central data center region). This move opens the doors for global organizations, offering them local access to cloud services that are not just scalable but also highly available and resilient. Microsoft's initiative underscores its dedication to driving digital transformation and sustainable innovation in Mexico. Its provision of advanced technology to firms such as Binaria ID and DocSolutions is noteworthy.
  • March 2024: Eaton, an intelligent power management company, unveiled its latest modular data center solution in North America. This innovative offering targets organizations aiming to swiftly adapt to the escalating demands of edge computing, machine learning, and AI. Eaton's SmartRack modular data centers enable rapid deployment that finds applications in a range of facilities, from enterprise and colocation data centers to manufacturing plants and warehouses.

Data Center Service Market Report - Table of Contents

1. INTRODUCTION

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

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Overview
  • 4.2 Industry Value Chain Analysis
  • 4.3 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.3.1 Bargaining Power of Suppliers
    • 4.3.2 Bargaining Power of Consumers
    • 4.3.3 Threat of New Entrants
    • 4.3.4 Intensity of Competitive Rivalry
    • 4.3.5 Threat of Substitute Products
  • 4.4 Impact of COVID-19 on the Market
  • 4.5 Market Drivers
    • 4.5.1 Increase in the Expenditure on Data Center Technology
    • 4.5.2 Rising Data Center Complexities Due to Scalability
  • 4.6 Market Restraint
    • 4.6.1 Concerns Relating to Data Privacy

5. MARKET SEGMENTATION

  • 5.1 By Type of Service
    • 5.1.1 Managed Hosting Service
    • 5.1.2 Colocation Service
  • 5.2 By Data Center Type
    • 5.2.1 Tier-I and -II
    • 5.2.2 Tier-III
    • 5.2.3 Tier-IV
  • 5.3 By End-user Industry
    • 5.3.1 BFSI
    • 5.3.2 Healthcare
    • 5.3.3 Retail
    • 5.3.4 Manufacturing
    • 5.3.5 IT and Telecom
    • 5.3.6 Other End-user Industries
  • 5.4 By Geography
    • 5.4.1 North America
    • 5.4.2 Europe
    • 5.4.3 Asia-Pacific
    • 5.4.4 Latin America
    • 5.4.5 Middle East and Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Company Profiles
    • 6.1.1 Fujitsu Limited
    • 6.1.2 IBM Corporation
    • 6.1.3 Singapore Telecommunications Limited (Singtel)
    • 6.1.4 Digital Realty Trust Inc.
    • 6.1.5 Cisco Systems Inc.
    • 6.1.6 Equinix Inc.
    • 6.1.7 Hewlett Packard Enterprise Company
    • 6.1.8 Vertiv Co.
    • 6.1.9 Dell Inc.
    • 6.1.10 NTT Communications
    • 6.1.11 Capgemini SE
  • *List Not Exhaustive

7. INVESTMENT ANALYSIS

8. FUTURE OF THE MARKET

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Data Center Services Industry Segmentation

Data center service encompasses processing, networking, and data storage. With the increasing recognition of data as a valuable asset, the data services market is poised for robust growth. The rise of industry automation and the expansion of digital businesses are driving the demand for extensive data center services.

The data center services market is segmented by type of service (managed hosting service and colocation service), data center type (tier-i and -ii, tier-iii, and tier-iv), end-user industry (BFSI, healthcare, retail, manufacturing, IT and telecom, and other end-user industries), and geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa).

The market size and forecasts are provided in terms of value (USD) for all the above segments.

By Type of Service Managed Hosting Service
Colocation Service
By Data Center Type Tier-I and -II
Tier-III
Tier-IV
By End-user Industry BFSI
Healthcare
Retail
Manufacturing
IT and Telecom
Other End-user Industries
By Geography North America
Europe
Asia-Pacific
Latin America
Middle East and Africa
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Data Center Service Market Research FAQs

How big is the Data Center Services Market?

The Data Center Services Market size is expected to reach USD 148.31 billion in 2025 and grow at a CAGR of 16.38% to reach USD 316.65 billion by 2030.

What is the current Data Center Services Market size?

In 2025, the Data Center Services Market size is expected to reach USD 148.31 billion.

Who are the key players in Data Center Services Market?

Fujitsu Ltd, Capgemini, HCL Technologies, Cisco Systems Inc. and Hewlett Packard Enterprise Company are the major companies operating in the Data Center Services Market.

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

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

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

In 2025, the North America accounts for the largest market share in Data Center Services Market.

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

In 2024, the Data Center Services Market size was estimated at USD 124.02 billion. The report covers the Data Center Services Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Data Center Services Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Data Center Industry Report

The Data Center Services Market Report is segmented by service, data center, end-user industry, and geography, providing a comprehensive market analysis. This industry analysis highlights the significant growth driven by the escalating demand for advanced data storage and processing capabilities across various sectors, including BFSI, healthcare, IT & telecom, and manufacturing. The market report underscores the importance of digital transformation technologies such as cloud computing, IoT, and AI, which are fueling the need for high computing power and extensive storage capacities.

The shift towards green data centers emphasizes a commitment to energy efficiency and sustainability, reflecting global environmental conservation efforts. Additionally, the advent of micro data centers and the deployment of 5G technology are enhancing the infrastructure required for faster speeds and reduced latency. This market overview indicates that the data center services industry is a critical facilitator of modern digital economies, meeting increasing data processing and storage demands.

According to the market forecast, the industry is experiencing significant market growth, with a notable rise in market share, market size, and revenue growth rate. The industry outlook remains positive, supported by historical analyses and future predictions. For a detailed understanding, a free report PDF download offers a sample of this industry research, providing insights into the market forecast outlook and historical overview of data center services.

The industry reports reflect the industry's robust growth rate and market segmentation, with market leaders playing a pivotal role in shaping market trends. The market value is driven by the adoption of advanced technologies and the need for efficient data management solutions. This market review highlights the essential role of data center services in supporting various digital services and industries.

For further information, the report example and industry statistics offer valuable insights into the market data and industry size. The industry sales and market predictions indicate a continued upward trajectory, with research companies providing in-depth industry information and market segmentation analysis. This comprehensive report underscores the importance of data center services in the evolving digital landscape, supported by industry trends and market outlook.