The global data center services market is forecast to grow from USD 71.8 billion in 2024 to USD 279.4 billion by 2030, delivering a strong 25.4% CAGR over 2026–2030 as organizations deepen their reliance on scalable, high-performance digital infrastructure.
Data center services encompass the full range of activities required to design, deploy, operate, manage, and optimize facilities that provide processing, storage, networking, and data distribution for enterprises and digital platforms. Market expansion is underpinned by rapid cloud adoption, explosive growth in data volumes across all industries, and the acceleration of digital transformation initiatives that shift workloads from on?premises environments to colocation, managed, and hyperscale data centers.
A fundamental growth driver is the surge in global data creation and consumption, which demands ever-greater capacity for storage, processing, and analytics. The rise of streaming, e?commerce, IoT, and connected devices contributes to a massive, continuously expanding datasphere, pushing enterprises and cloud providers to build and upgrade data centers to handle higher throughput, resilience, and availability requirements.
In parallel, artificial intelligence and machine learning workloads are dramatically increasing the need for specialized, high-density compute infrastructure. Training and running large models require powerful GPUs, high-speed interconnects, and advanced cooling systems, leading to significant investments in AI-optimized facilities and services by hyperscalers and enterprises. This AI-driven demand has become one of the most influential forces shaping capacity planning, design, and service offerings in the data center sector.
Despite the strong growth outlook, power infrastructure bottlenecks pose a major challenge to market expansion. Modern data centers require substantial and stable electricity supplies, often in regions where grid capacity is already strained or permitting and grid-connection processes are slow and complex.
These power constraints delay new builds and expansions, increase project risk, and in some cases force operators to consider alternative locations or on-site generation. As a result, a significant share of planned facilities faces schedule slippage, leading to deferred revenue, higher development costs, and slower capacity growth relative to demand.
One key trend reshaping the market is the rise of decentralized edge computing deployments, which place smaller data centers closer to end users and data sources. This distributed architecture reduces latency and improves real-time processing for applications such as IoT, autonomous systems, AR/VR, and 5G services, and is driving investment in modular, scalable edge sites that complement core hyperscale campuses.
Another pivotal trend is the strong focus on green data centers and sustainable infrastructure, reflecting regulatory pressure, ESG commitments, and the cost benefits of energy-efficient operations. Operators are increasingly adopting renewable power, advanced cooling technologies, water-reuse systems, and circular-economy practices, aiming to reduce carbon footprints while maintaining competitive operating costs and meeting customer sustainability requirements.
Within the overall market, the IT and telecom segment is experiencing especially rapid growth. The rollout of 5G networks, expanding cloud and SaaS adoption, and the integration of AI and ML into telecom and IT services all demand high-capacity, low-latency data processing and storage.
Telecom operators and IT service providers are therefore investing heavily in data center services—including colocation, interconnection, and edge facilities—to support network virtualization, cloud-native workloads, and digital services, cementing their role as major contributors to ongoing market expansion.
By Service
Managed Hosting Service
Colocation Service
By Data Center
Tier 1
Tier 2
Tier 3
Tier 4
By End User Industry
BFSI
Healthcare
Retail
Manufacturing
IT & Telecom
Others
Key Companies
Fujitsu Limited
IBM Corporation
Singapore Telecommunications Limited
Digital Realty Trust Inc.
Cisco Systems Inc.
Equinix Inc.
Hewlett Packard Enterprise Company
Vertiv Group Corp.
Dell Inc.
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USD 71.8 Billion
North America
IT & Telecom
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