Data center market to reach $413Bn by 2029
BANGALORE, INDIA — The global data center market is forecasted to grow 16.8% annually from $163 billion in 2023 to $413 billion in 2029.
According to market research firm Valuates Reports, the market’s key growth drivers include surging data from digital apps, cloud computing adoption, data management needs, and emerging technologies like 5G, IoT, and edge computing.
Other trends boosting growth are companies rapidly digitizing and using more data-intensive apps, requiring data centers for storage, handling, and analysis.
The digital revolution has also led to the proliferation of online services, e-commerce, and remote work, increasing internet usage and demand for data centers to enable smooth access, lower latency, and better network stability.
Increasing use of virtualization and cloud technologies is another driver as businesses shift IT infrastructure to cloud platforms hosted by data centers.
Edge computing is also gaining popularity, processing data near the source to cut latency and allow real-time analytics, relying on edge data centers.
Regionally, Asia Pacific holds the largest data center market share at over 65%, followed by North America and Europe.
Major data center operators currently competing in the market include NTT Communications and Amazon Web Services, with the top 5 companies owning around 45% of the global market.
