Data Center Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Global Data Center Services Market Analysis and 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 size and forecasts are provided in terms of value (USD million) for all the above segments.

Data Center Service Market Size

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Data Center Services Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 19.80 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players


*Disclaimer: Major Players sorted in no particular order


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Data Center Service Market Analysis

The Data Center Services Market size is expected to grow from USD 98.52 billion in 2023 to USD 243.12 billion by 2028, at a CAGR of 19.80% during the forecast period (2023-2028).

  • Business leaders are facing an influx of data; thus, they are under pressure to manage all business-critical data, along with the constant need to outpace their competitors.
  • The emerging cloud technology in data centers is one of the key factors driving the demand for data center systems and technology, thereby fueling market growth. Cloud technology is more flexible because it can be accessed with different devices and easily recover lost data. At the same time, cloud computing offers high speed, which helps other businesses to grow.
  • The increase in demand for online retail or e-commerce has acted as a catalyst for the data center industry. Customers want more personalized data, and for this data center, services are beneficial. They help in storing and analyzing the data.
  • The data center workloads are also increasing due to increased demand for improving application performance, storage requirements, mobile data use due to increased apps, and growing internet usage. As a result, more and more organizations are shifting to cloud data storage throughout the world, thus bolstering the demand for data center services.
  • On the flip side, concerns relating to data privacy are a major concern nowadays, limiting this market's growth. As the data is not being hosted locally, there are high chances of data leakage. As a result, data center service providers have a challenge in terms of data security and availability, with backups, disaster recovery, and business continuity planning (BCP) services available with a single click.
  • Owing to the COVID-19 outbreak, data centers saw an increase in demand for Internet bandwidth as users either worked from home (WFH) or turned to video streaming for entertainment. Managed hosting and cloud computing expanded, and demand for colocation rose.
  • Since all major organizations began working from home (WFH), data centers, cloud services, and online backups are vital, and that is where data centers step in to help bridge the gap. Even during the pandemic, most data center owners expanded their capacity to accommodate increasing demand.

Data Center Service Market Trends

Cloud and Hosting is Expected to Capture a Major Share in the Data Center Services Market

  • There are currently billions of Internet-connected devices, and the number is growing. Many generate large amounts of data, which must be recorded, processed, stored, assessed, and retrieved. With the development of IoT and Industry 4.0, manufacturers rely on big data and data analytics to increase their operations' productivity, cost-effectiveness, security, and efficiency.
  • With fresh data being generated quickly over time, the intelligence from data becomes even harder to capture promptly. New digital landscapes, such as smart cities and intelligent buildings, offer more readily available data.
  • Moreover, the public cloud is increasing because of lower costs and low maintenance. The data can be accessed at any time and on any device. This is helping small- and medium-sized businesses grow tightly, controlling their costs by paying for the infrastructure based on their needs.
  • In October 2022, Intel Corp and Alphabet Inc's Google Cloud announced a co-designed chip that can improve the security and efficiency of data centers. The E2000 chip, code-named Mount Evans takes over the work of packaging data for networking from the expensive central processing units(CPU) that do the main computing. It also offers better security between different customers that may be sharing CPUs in the cloud.
  • For instance, in June 2022, Oracle Cloud Infrastructure (OCI) announced the expansion of its distributed cloud services with specialized regions and previewing the Compute Cloud@Customer. OCI Dedicated Regions provides the entire public cloud to more customers and client data centers with a new, smaller infrastructure footprint and lower pricing. On average, the new OCI Dedicated Region consumes 60-75% less data center space and electricity, with a typical customer paying roughly USD 1 million annually.
  • Owing to the abovementioned factors, the data center services market is expected to grow during the forecast period.
Data Center Services Market: Number of data centers in 2022, by country

North America holds the substantial share in the market

  • North America is home to many technological innovators. The region has a high demand for technologies like cloud computing and IoT. These technologies need robust data center facilities to handle the increasing complexities. This, in turn, is anticipated to increase the demand for data center services in the region.
  • Also, the United States is one of the largest-growing economies in the world, and it is likely to boost the growth of public cloud-based data centers. The IT industry dominates the United States market as the largest private sector employer in the country, where data centers are widely used, thereby propelling the market growth.
  • Moreover, the country has also witnessed a rise in its hyper-scale platforms, so providing data center services for the United States' hyper-scale platforms has become necessary.
  • Also, colocation data centers are becoming increasingly popular in the region as businesses realize the majority of benefits of leasing from a colocation building their own data center infrastructure. The complexities in the infrastructure facilities, owing to the integration of technologies like networks and connectivity devices, are increasing rapidly.
  • Large network operators such as Microsoft, Facebook, and Amazon Web Services (AWS) are large US investors, accounting for more than 50% of total investment in the last year. NTT Global Data Centers, Equinix, Digital Realty, QTS Realty Trust, Switch, Vantage Data Centers, and CyrusOne were among the colocation operators that invested in the United States in the last year.
Data Center Services Market - Growth Rate by Region

Data Center Service Industry Overview

The global data center service market is fragmented, and the competitive rivalry is high. The key players in this market are Fujitsu Ltd, Reliance Group, Capgemini, HCL Technologies Limited, etc. Sustainable competitive advantage can be attained through innovation in this market, owing to the growing need for differentiated products for various applications. 

Ventures worldwide progressively hope to arrange information, store data, and benefit from cloud specialists. This move and interest in storing media and other information represent gigantic development in the market for cloud benefits. Moreover, the steady increase in the number of new data center establishments throughout the globe would also boost demand for data center services that allow maximum throughput from facilities.

In October 2022, the Euronext Proximity Service was launched by Euronext Technology Solutions. Euronext Proximity Service is a high-end hosting and cloud capability in the Aruba IT3 data center.

In August 2022, Microsoft announced the establishment of a new data center area in Qatar. The data center area will be crucial in offering Qatar's companies, consumers, and partners access to robust, high availability, and reliable cloud services, driving digital transformation and promoting more cloud adoption.

Data Center Service Market Leaders

  1. Fujitsu Ltd

  2. Capgemini

  3. HCL Technologies

  4. Cisco Systems Inc.

  5. Hewlett Packard Enterprise Company

*Disclaimer: Major Players sorted in no particular order

Data Center Services Market Concentration
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Data Center Service Market News

  • November 2022: Equinix, Inc., a global provider of digital infrastructure, and VMware, Inc. announced an extended global partnership to provide innovative digital infrastructure and multi-cloud services. The companies collaborated to launch VMware Cloud on Equinix Metal, a new distributed cloud service providing a more performant, secure, and cost-effective cloud solution for enterprise applications.
  • September 2022: Arm Ltd, a British chip technology company owned by SoftBank Group Corp, announced Neoverse V2, its next generation of data center chip technology, to address the increasing data surge from 5G and Internet-connected devices.
  • March 2022: Elea Digital and Vertiv joined together to provide edge data center services in Brazil. Vertiv will operate and maintain Elea Digital data centers in many Brazilian cities, that include Curitiba, Porto Alegre, and Brasilia. Collaborating with Vertiv provides crucial accountability, automation, and real-time administration of critical infrastructure. It will also use software solutions to ensure Elea Digital's six data centers' energy efficiency and cost control. Through this collaboration, Vertiv will get access to a wider and broader market to help the Brazilian data center sector.

Data Center Service Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Intensity of Competitive Rivalry

      5. 4.3.5 Threat of Substitute Products

    4. 4.4 Impact of COVID-19 on the Market

    5. 4.5 Market Drivers

      1. 4.5.1 Increase in the Expenditure on Data Center Technology

      2. 4.5.2 Rising Data Center Complexities Due to Scalability

    6. 4.6 Market Restraint

      1. 4.6.1 Concerns Relating to Data Privacy


    1. 5.1 By Type of Service

      1. 5.1.1 Managed Hosting Service

      2. 5.1.2 Colocation Service

    2. 5.2 By Data Center Type

      1. 5.2.1 Tier-I and -II

      2. 5.2.2 Tier-III

      3. 5.2.3 Tier-IV

    3. 5.3 By End-user Industry

      1. 5.3.1 BFSI

      2. 5.3.2 Healthcare

      3. 5.3.3 Retail

      4. 5.3.4 Manufacturing

      5. 5.3.5 IT and Telecom

      6. 5.3.6 Other End-user Industries

    4. 5.4 By Geography

      1. 5.4.1 North America

      2. 5.4.2 Europe

      3. 5.4.3 Asia-Pacific

      4. 5.4.4 Latin America

      5. 5.4.5 Middle East & Africa


    1. 6.1 Company Profiles

      1. 6.1.1 Fujitsu Limited

      2. 6.1.2 IBM Corporation

      3. 6.1.3 Singapore Telecommunications Limited(Singtel)

      4. 6.1.4 Digital Realty Trust Inc.

      5. 6.1.5 Cisco Systems Inc.

      6. 6.1.6 Equinix Inc.

      7. 6.1.7 Hewlett Packard Enterprise Company

      8. 6.1.8 Vertiv Co.

      9. 6.1.9 Dell Inc.

      10. 6.1.10 NTT Communications

      11. 6.1.11 Capgemini SE

    2. *List Not Exhaustive


**Subject to Availability
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Data Center Service Industry Segmentation

A data center service is an environment that provides processing, networking, and data storage. The data services market is expected to see healthy growth with the move to treat data as an asset. Industry automation and digital businesses are expanding, which may need huge data.

The data center services market is segmented by service (managed to host 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 million) for all the above segments.

By Type of Service
Managed Hosting Service
Colocation Service
By Data Center Type
Tier-I and -II
By End-user Industry
IT and Telecom
Other End-user Industries
By Geography
North America
Latin America
Middle East & Africa
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Data Center Service Market Research FAQs

The Data Center Services Market is projected to register a CAGR of 19.80% during the forecast period (2024-2029)

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

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Data Center Services Market.

The report covers the Data Center Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Data Center Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Data Center Industry Report

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

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Data Center Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)