Data Center Services Global Market Report 2024

The data center services market size has grown rapidly in recent years. It will grow from $68.44 billion in 2023 to $78.51 billion in 2024 at a compound annual growth rate (CAGR) of 14.7%. The expansion witnessed in the historical period can be attributed to several factors, including the increasing adoption of digitalization, a rise in the establishment of data centers, robust economic growth in emerging markets, and an escalating demand for cloud computing services.

The data center services market size is expected to see rapid growth in the next few years. It will grow to $131.45 billion in 2028 at a compound annual growth rate (CAGR) of 13.8%. Forecasted growth is due to increased OTT service usage, rising internet penetration, a surge in structured and unstructured data, and growing 5G subscriptions. Key trends include technological advancements, micro data center services, clean energy-powered hyper-scale data centers, off-grid data center-as-a-service focus, and industry partnerships.

The data center services market is anticipated to experience significant growth, primarily driven by the increasing adoption of digitalization. This adoption is fueled by various factors such as the pursuit of enhanced productivity, cost reduction in operations, faster decision-making processes, improved efficiency, technological advancements, and a general push towards digitalization from stakeholders. As organizations embrace digital transformation, a substantial amount of data is generated, necessitating robust storage solutions. This, in turn, fuels the demand for data centers. Consequently, there is a surge in the requirement for data center services to establish, manage, and operate these data centers effectively. A survey conducted by Fujitsu among 1,200 CXOs and decision-makers across nine countries revealed that 82% of respondents from offline organizations accelerated their digital transformation during the pandemic. The shift to digital modes of living and working prompted organizations to adapt, creating a higher demand for digital services, including data center solutions.

The rise in the usage of Over-The-Top (OTT) services is poised to contribute significantly to the growth of the data center services market. Leading OTT service providers leverage global data center services, particularly for data storage, to deliver content to users from secure and controlled data center environments. The increasing reliance on diverse OTT services is expected to drive demand for data center services as these providers expand their offerings. For instance, statistics from Demand Sage indicate that the global OTT user base reached 3.26 billion in 2022, with projections estimating an increase to 3.5 billion users in 2023. Additionally, OTT revenue is anticipated to grow from $272.70 billion in 2022 to $316.10 billion in 2023. This surge in OTT services is poised to be a key factor propelling the growth of the data center services market in the foreseeable future.

The data center services market is witnessing a significant trend driven by technological advancements. This trend involves the integration of next-generation technologies into data center services, encompassing automation, blockchain, the Internet of Things (IoT), 5G mobile broadband, cloud computing, artificial intelligence (AI), data analytics, and others. These technological advancements bring forth advanced features, automation capabilities, enhanced efficiency, improved reliability, and cost reduction for providers of data center services. Major companies operating in this market are strategically focused on offering technologically advanced data center services to fortify their positions. For example, ABB, a Sweden-based automation company, provides ABB Ability Data Center Automation systems designed for energy conservation and sustainability. These industrial automation systems operate continuously, optimizing operational processes, minimizing the risk of downtime, and reducing waste caused by unnecessary or premature maintenance.

Companies within the data center services market are prioritizing the delivery of technologically advanced solutions to enhance their services and fortify their market positions. The integration of next-generation technologies into data center services, including automation, blockchain, IoT, 5G mobile broadband, cloud computing, AI, and data analytics, is a notable industry trend. As an illustration, in February 2023, Amazon Web Services Inc., a subsidiary of Amazon specializing in on-demand cloud computing platforms, introduced the Amazon Web Service Modular Data Center (AWS MDC) as part of the $9 billion Joint Warfighting Cloud Capability (JWCC) contract with the U.S. Department of Defense. The AWS MDC serves as an edge-computing service, offering secure access to AWS Outposts technology for government agencies. The Department of Defense leverages this solution to ensure reliable network connectivity and military-grade security in Disconnected, Disrupted, Intermittent, or Limited (DDIL) situations, addressing data processing needs with low latency.

In September 2021, Equinix Inc., a US-based digital infrastructure company, acquired GPX India, the India operations of GPX Global Systems Inc., for $161 million. This acquisition significantly broadened Equinix's footprint in India, incorporating two fully integrated data centers into its portfolio, setting the stage for future expansion in the region. GPX Global Systems Inc., headquartered in the US, specializes in providing carrier-neutral data center services to clients across the globe.

Major companies operating in the data center services market report are Fujitsu Ltd., Equinix Inc., Cisco Systems Inc., Huawei Technologies Co. Ltd., Capgemini SE, Hewlett Packard Enterprise Company, NTT Communications, Dell Technologies, IBM Corporation, HCL Technologies Limited, CtrlS, ESDS, GPX devlopes, sify technologies, Nxtra data limited, Alibaba Group, Chayora, China Mobile International, Chindata Group, GDS Services, Haoyun Changsheng, Keppel Data Centres, Shanghai Atrium, Tencent, Tenglong Holding Group, ABB Ltd., Interxion, Euclyde Data Centers, STT GDC, Echelon Data Center, NDC Data Centers GmbH, Broadcom Inc., Arista Networks, 4D Data Center, ClusterPower, Linxdatacenter, Infosys Poland, CoreSite LA1 Data Center, Zenlayer, Cyxtera, Systems-X, ISK Global, Quanam, Ithreex Global, Systemico, Zimmic, Andes Digital, Nournet, Detasad, Mobily, STC, Salam, Gulf Data Hub, Go DC, Gateway Gulf, Nashirnet, MainOne, PCCW Global, Databridge, ONIX Data Centre, IXAfrica, ST Digital, Raxio, N+One, Africa Data Centres, Teraco, Rack Centre Africa.

North America was the largest region in the 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 data center services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the data center services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Key services provided within the data center services market include installation and integration, training, consulting, maintenance and support, among others. Installation and integration services involve setting up and consolidating data center management processes into a unified, user-friendly, and highly efficient platform. Data centers vary in size - small, medium, and large - providing services such as servers, storage, and networking solutions. These services find applications across various sectors such as BFSI, colocation, energy, government, healthcare, IT and telecom, manufacturing, and other industries.

The data center services market research report is one of a series of new reports that provides data center services market statistics, including data center services industry global market size, regional shares, competitors with a data center services market share, detailed data center services market segments, market trends and opportunities, and any further data you may need to thrive in the data center services industry. This 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 data center services market includes revenues earned by entities by providing access to applications and data. 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.