The worldwide data center market is in the process of growing in value from a starting point of $187.35 billion in 2020 to an eventual value of $517.17 billion by 2030, according to a report from Allied Market Research (AMR). The sector is experiencing a compound annual growth rate (CAGR) of 10.5% during that period.
AMR characterizes the growth as “extraordinary” and says that demand is surging.
AMR says that North America is central to the growth and is the market leader. The report, entitled “Data Center Market Size Projected to Reach USD 517.17 Billion by 2030, at a CAGR 10.5%,” says that North America “accounted for nearly two-fifths of global data center market revenues and has retained its lead. The region enjoys an unparalleled density of mega-scale facilities owned by some of the largest global technology companies, extensive cloud computing infrastructure and a matured digital ecosystem.
“The United States, in particular, has the most data centers globally due to its favorable regulatory environment and reliable power infrastructure coupled with steady enterprise IT investment.”
The report points to five dynamics in the data center sector: The proliferation of cloud computing, the explosion of IoT and big data, the accelerated transformation to digital enterprises, the centrality of energy efficiency and sustainability, and the impact of market restraints.
Trends identified in AMR’s research include the expectation that the services segment is expected to have the largest CAGR — 12.4% — during the period from 2023 to 2030. The analysts found that edge data centers are an emerging high growth category and that the small- and medium-sized businesses are a growing market. Key end user verticals are banking, financial services, and insurance (BFSI), IT and telecom, government, and energy and utilities.
The key players are Google Cloud (Alphabet Inc.), Amazon.com Inc. (AWS), Microsoft Corporation (Microsoft Azure), IBM Corporation, Oracle Corporation, Digital Realty, Equinix Inc., Hewlett Packard Enterprise, NTT Communications Corp., and SAP SE.