Data Center Market Global Report 2026

The data center market size has grown exponentially in recent years. It will grow from $464.28 billion in 2025 to $583.44 billion in 2026 at a compound annual growth rate (CAGR) of 25.7%. The growth in the historic period can be attributed to growth in enterprise digital transformation, expansion of cloud computing adoption, increasing data storage requirements, growth of internet and mobile usage, and rising enterprise IT modernization.

The data center market size is expected to see exponential growth in the next few years. It will grow to $1.32 trillion in 2030 at a compound annual growth rate (CAGR) of 22.7%. The growth in the forecast period can be attributed to increasing deployment of AI workloads, expansion of edge computing applications, rising demand for sustainable data center infrastructure, growing investments in digital infrastructure, and increasing regulatory attention toward data sovereignty. Major trends in the forecast period include continued expansion of hyperscale data center facilities, increasing deployment of edge data centers, wider adoption of modular data center architectures, greater emphasis on energy-efficient infrastructure, and enhanced integration of AI-powered data center management systems.

The growing number of IoT-connected devices is expected to support the expansion of the data center market going forward. IoT-connected devices are nontraditional computing devices that establish wireless network connections and are capable of transmitting data. The rising deployment of IoT devices is increasing demand for advanced data center solutions capable of addressing the large volumes of data generated, supporting real-time processing, providing scalability, and maintaining security across the expanding IoT ecosystem. For instance, in November 2022, according to a report published by Ericsson, a Sweden-based telecommunications company, broadband IoT technologies using 4G and 5G, which connect most cellular IoT devices, reached 1.3 billion connections in 2022. By the end of 2028, broadband IoT connections are projected to account for nearly 60% of cellular IoT connections, with 4G expected to represent the majority. Therefore, the increasing number of IoT-connected devices is driving demand for the data center market.

Key companies operating in the data centre market are focusing on developing modular, liquid-cooled prefabricated data centre units to meet the rising demand for rapid deployment, high-density compute, energy efficiency, and edge infrastructure. A modular, liquid-cooled prefabricated data centre unit is a factory-assembled building block that integrates power, cooling, racks, and monitoring systems, delivered as a complete module rather than built on-site from scratch. For example, in November 2023, Vertiv Group Corp., a US-based provider of critical digital infrastructure, launched its SmartMod Max CW modular data centre unit. It supports up to 200 kW of IT load in a single unit, uses chilled-water cooling to improve energy efficiency, and is factory-assembled and tested to reduce on-site build time and cost. It also offers customizable power and cooling configurations and enables rapid deployment across edge and mid-sized enterprise settings.

In February 2024, Marubeni Corporation, a Japan-based provider of trading, infrastructure, and renewable energy solutions, partnered with Yondr Group to develop hyperscale data centers in the West Tokyo region. Through this partnership, Marubeni aimed to utilize its renewable energy network and local market expertise to accelerate the deployment of large-scale hyperscale data centers and support its expansion into the digital infrastructure sector. Yondr Group is a UK-based developer, owner, and operator of hyperscale data centers.

Major companies operating in the data center market are Caterpillar Inc., Cummins Inc., ABB Ltd., Generac Power System Inc., KOHLER Group, Hitech Power Protection, Rolls Royce Power Systems AG, Aggreko Company, Eaton Corporation, F.G. Wilson, Atlas Copco, Himoinsa SL, MTU Friedrichshafen GmbH, Wärtsilä Corporation, Schneider Electric SE, Siemens AG, Emerson Electric Co., Socomec Group, Riello UPS, Vertiv Co., Delta Electronics Inc., Toshiba Corporation, Fuji Electric Co.Ltd., Kirloskar Electric Company, Yanmar Co. Ltd.

North America was the largest region in the data center market in 2025. The regions covered in the data center market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the data center market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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