Mega data center market to reach $33.75Bn by 2028

DUBLIN, IRELAND — The global market for mega data centers is forecast to reach $33.75 billion by 2028, climbing at a 5.6% compound annual growth rate (CAGR) between 2023 and 2028.

According to a report by ResearchAndMarkets.com, the market’s key growth drivers include the rising demand for cloud computing, the need for enhanced disaster recovery and data security, and the emergence of Industry 4.0.

Mega facilities offer massive storage and computing capabilities to support data-heavy applications like the cloud, Internet of Things (IoT), and big data analytics. Their scale delivers advantages in energy efficiency, security and cost savings.

All major industry verticals also deploy mega data centers to meet surging data processing and storage needs spurred by digitization trends. Favorable regulations around data privacy and security are also catalyzing investment.

By region, the North American market has held the largest market share since 2022 due to the rising adoption of cloud computing, the growing demand for data storage and processing, and the increasing investments in cybersecurity. 

Meanwhile, major players operating in this rapidly expanding market include Cisco, Dell, EMC, Emerson Network Power, Fujitsu, HP, IBM, Intel, and Juniper Networks. Significant investments in research and development and new product launches are key strategic initiatives these companies undertake to consolidate their positions.