Managed Data Center Services Global Market Report 2024

The managed data center services market size has grown rapidly in recent years. It will grow from $366.52 billion in 2023 to $422.41 billion in 2024 at a compound annual growth rate (CAGR) of 15.2%. The growth observed in the historical period can be attributed to the growing demand for data storage, the expansion of digitalization, increased reliance on data-driven processes, the rising complexity of IT infrastructure, and the globalization of businesses.

The managed data center services market size is expected to see rapid growth in the next few years. It will grow to $750.55 billion in 2028 at a compound annual growth rate (CAGR) of 15.5%. The anticipated growth in the forecast period can be attributed to the adoption of cloud computing, a surge in data generation, the need for scalable and flexible infrastructure, rising cybersecurity concerns, and the globalization of businesses. Major trends expected in the forecast period include the adoption of artificial intelligence in data center management, a focus on sustainable and green data centers, integration of edge computing solutions, rising demand for modular data centers, and increased use of software-defined data center (SDDC) solutions.

The continued growth of data centers is anticipated to drive the expansion of the managed data center services market in the future. A data center serves as a physical space dedicated to storing and managing data for various purposes. Managed data center services offer comprehensive functionality, maintenance, and monitoring of systems, alleviating the burden of deployment, management, and monitoring. For example, according to Savills Korea in August 2021, the total commercial data center IT load in Korea is projected to increase by 700 MW from 2021 to 2023, constituting 15% of the entire Asia-Pacific (APAC) capacity. Additionally, data from the United States International Trade Commission in January 2021 indicated the presence of 2,600 data centers in the US, with nearly 8,000 new data centers established globally in 2021. The growing number of data centers is thus a key factor propelling the managed data center services market.

The expanding realm of e-commerce is expected to contribute significantly to the growth of managed data center services. E-commerce involves the online buying and selling of goods and services, relying on managed data center services for processing online transactions, ensuring secure and swift payment processing, and leveraging content delivery networks (CDNs) for efficient content distribution across different geographic locations. Data from the United States Census Bureau in August 2023 revealed a 7.5% increase in e-commerce estimates for the second quarter of 2023 compared to the same period in 2022. E-commerce sales accounted for 15.4% of all sales in the second quarter of 2023. This surge in e-commerce expansion is a significant driver for the managed data center service market.

Technological advancements represent a prominent trend in the managed data center services market, with major companies incorporating new technologies to maintain their market positions. In June 2022, Cisco Umbrella, a US-based cloud-based security provider, introduced Secure Access Service Edge (SASE) data centers for enhanced security. This integrated system combines various security components into a single cloud service, including firewalls, secure web gateways (SWGs), DNS-layer security, cloud access security brokers (CASBs), and threat intelligence. These data centers are strategically positioned near Internet exchange points (IXPs) to ensure faster and more reliable services.

Key companies in the managed data center services market are actively introducing advanced solutions such as hyperscale data centers to enhance market profitability. Hyperscale data centers are large, mission-critical facilities designed to efficiently support scalable workloads for large-scale enterprises. For instance, Yotta Infrastructure, an Indian-based company, launched Yotta D1 in October 2023, offering services such as public cloud, cybersecurity, and disaster recovery. This hyperscale data center is equipped with internet peering exchanges and direct fiber connectivity to and from global networks, making it ideal for global connectivity.

In August 2021, Blackstone Inc., a US-based alternative investment management company, acquired QTS Realty Trust Inc. for $10 billion. This strategic move is expected to expand Blackstone's portfolio in the digital infrastructure sector, aligning with the increasing theme of data proliferation. QTS Realty Trust Inc. is a US-based carrier-neutral data center provider.

Major companies operating in the managed data center services market report are Microsoft Corporation, Verizon Communications Inc., AT&T Inc., Deutsche Telekom AG, Dell Inc., Accenture plc, International Business Machines Corporation, Cisco Systems Inc., Orange S.A., Fujitsu Limited, Hewlett Packard Enterprise Development LP, Tata Consultancy Services Ltd., Telefonaktiebolaget LM Ericsson, Capgemini SE, NTT Data Inc., Cognizant Technology Solutions U.S. Corporation, Infosys Limited, ZTE Corporation, Lumen Technologies Inc., DXC Technology, CGI Inc., Atos SE, Wipro Ltd., HCL Technologies Limited, Equinix Inc., Rackspace Inc., Hitachi Vantara Corporation, LTIMindtree Limited, Unisys Corporation, Cyxtera Technologies Inc.

North America was the largest region in the managed data center services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the managed data center services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the managed data center services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The main types of managed data center services include managed storage, managed hosting, managed colocation, and others. Managed storage refers to a service where the management of an organization's data storage requirements is outsourced to a third-party provider. These services can be deployed through cloud or on-premises solutions and cater to various enterprise sizes, including small enterprises, medium enterprises, and large enterprises. Managed data center services find applications across diverse industries such as BFSI (banking, financial services, and insurance), energy, retail, healthcare, manufacturing, and others.

The managed data center services market research report is one of a series of new reports that provides managed data center services market statistics, including managed data center services industry global market size, regional shares, competitors with managed data center services market share, detailed managed data center services market segments, market trends and opportunities, and any further data you may need to thrive in the managed data center services industry. This managed data center services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The managed data center service market includes revenues earned by entities by providing services such as data center infrastructure management, related data backups, and disaster recovery. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).


The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.