The global market for Data Center Renovation was estimated at US$24.8 Billion in 2024 and is projected to reach US$54.7 Billion by 2030, growing at a CAGR of 14.1% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Data Center Renovation market.
Aging infrastructure presents challenges such as inefficient cooling, excessive power consumption, and limited scalability. Renovation projects aim to improve space utilization, reduce carbon footprints, and implement next-generation automation solutions. Additionally, as sustainability becomes a top priority, retrofitting older data centers with energy-efficient cooling, power management, and renewable energy solutions is gaining traction.
Another major trend is the adoption of smart building technologies, including IoT-based environmental monitoring and predictive maintenance. These innovations enable data centers to optimize airflow, automate equipment diagnostics, and extend hardware lifespans. Additionally, the rise of carbon-neutral renovation strategies, such as integrating solar and wind energy with battery storage, is shaping the future of sustainable data center modernization.
Market trends indicate a growing preference for modular and scalable renovation approaches, allowing data centers to upgrade components without significant downtime. Additionally, the increasing adoption of AI-driven facility management is enabling more efficient use of power and space, reducing operational costs. Hybrid cloud adoption is also influencing renovation strategies, with organizations modernizing on-premise infrastructure to integrate seamlessly with public cloud services.
End-use expansion is another key factor, with colocation providers, enterprise data centers, and government IT facilities investing in modernization projects. The adoption of liquid cooling, AI-powered energy management, and renewable energy solutions is further accelerating renovation initiatives. Additionally, strategic partnerships between IT infrastructure providers and data center operators are fostering innovation, ensuring that renovated facilities meet the demands of emerging technologies.
Segments: Product Type (Networking Equipment, Cooling, Power, IT Racks and Enclosures, Other Product Types); Application (IT and Telecom Application, BFSI Application, Colocation Application, Healthcare Application, Government Application, Energy Application, Industrial Application, Other Applications)
Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
Global Data Center Renovation Market - Key Trends & Growth Drivers Summarized
Why Are Data Center Renovations Essential for Operational Efficiency?
As digital transformation accelerates, existing data centers face increasing pressure to modernize infrastructure, improve energy efficiency, and enhance security. Data center renovations involve upgrading IT equipment, optimizing cooling and power distribution, and retrofitting outdated facilities to align with evolving technological and regulatory standards. With the rise of high-density computing, legacy data centers must adapt to support AI workloads, edge computing, and hybrid cloud environments.Aging infrastructure presents challenges such as inefficient cooling, excessive power consumption, and limited scalability. Renovation projects aim to improve space utilization, reduce carbon footprints, and implement next-generation automation solutions. Additionally, as sustainability becomes a top priority, retrofitting older data centers with energy-efficient cooling, power management, and renewable energy solutions is gaining traction.
What Are the Latest Innovations in Data Center Renovation?
Innovations in modular infrastructure, prefabricated cooling systems, and AI-driven power optimization are revolutionizing data center renovations. One of the most significant advancements is the use of liquid cooling retrofits, which replace traditional air-cooled systems to improve efficiency and support high-performance workloads. Additionally, software-defined power management solutions are helping operators dynamically allocate energy resources based on real-time demand.Another major trend is the adoption of smart building technologies, including IoT-based environmental monitoring and predictive maintenance. These innovations enable data centers to optimize airflow, automate equipment diagnostics, and extend hardware lifespans. Additionally, the rise of carbon-neutral renovation strategies, such as integrating solar and wind energy with battery storage, is shaping the future of sustainable data center modernization.
How Are Market Trends and Regulations Impacting Data Center Renovations?
Regulatory policies focused on energy efficiency, such as the EU’s Energy Efficiency Directive and the U.S. Department of Energy’s sustainability initiatives, are driving investment in data center retrofits. Companies are required to reduce their power usage effectiveness (PUE) and carbon emissions, compelling operators to adopt renewable energy and advanced cooling solutions.Market trends indicate a growing preference for modular and scalable renovation approaches, allowing data centers to upgrade components without significant downtime. Additionally, the increasing adoption of AI-driven facility management is enabling more efficient use of power and space, reducing operational costs. Hybrid cloud adoption is also influencing renovation strategies, with organizations modernizing on-premise infrastructure to integrate seamlessly with public cloud services.
What Is Driving the Growth of the Data Center Renovation Market?
The growth in the data center renovation market is driven by increasing demand for energy efficiency, advancements in automation, and the need for scalable infrastructure. Retrofitting older facilities with next-generation cooling, power, and security systems ensures long-term sustainability and regulatory compliance.End-use expansion is another key factor, with colocation providers, enterprise data centers, and government IT facilities investing in modernization projects. The adoption of liquid cooling, AI-powered energy management, and renewable energy solutions is further accelerating renovation initiatives. Additionally, strategic partnerships between IT infrastructure providers and data center operators are fostering innovation, ensuring that renovated facilities meet the demands of emerging technologies.
Report Scope
The report analyzes the Data Center Renovation market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.Segments: Product Type (Networking Equipment, Cooling, Power, IT Racks and Enclosures, Other Product Types); Application (IT and Telecom Application, BFSI Application, Colocation Application, Healthcare Application, Government Application, Energy Application, Industrial Application, Other Applications)
Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Networking Equipment segment, which is expected to reach US$28.1 Billion by 2030 with a CAGR of a 15.7%. The Cooling segment is also set to grow at 14.0% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, estimated at $6.7 Billion in 2024, and China, forecasted to grow at an impressive 19.1% CAGR to reach $11.9 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Why You Should Buy This Report:
- Detailed Market Analysis: Access a thorough analysis of the Global Data Center Renovation Market, covering all major geographic regions and market segments.
- Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
- Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Data Center Renovation Market.
- Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.
Key Questions Answered:
- How is the Global Data Center Renovation Market expected to evolve by 2030?
- What are the main drivers and restraints affecting the market?
- Which market segments will grow the most over the forecast period?
- How will market shares for different regions and segments change by 2030?
- Who are the leading players in the market, and what are their prospects?
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Company Profiles: Coverage of players such as AECOM, Corgan, Cupertino Electric, Inc., DPR Construction, Fortis Construction and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Select Competitors (Total 32 Featured):
- AECOM
- Corgan
- Cupertino Electric, Inc.
- DPR Construction
- Fortis Construction
- Gray Construction
- Hanley Energy
- HITT Contracting
- Holder Construction
- Jones Engineering
- Legrand SA
- Mortenson
- Rittal GmbH & Co. KG
- Schneider Electric SE
- Sundt Construction
- Tripp Lite
- Turner Construction Company
- U.S. Engineering Company
- Vertiv Group Corporation
- WZMH Architects
Tariff Impact Analysis: Key Insights for 2025
Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
What’s Included in This Edition:
- Tariff-adjusted market forecasts by region and segment
- Analysis of cost and supply chain implications by sourcing and trade exposure
- Strategic insights into geographic shifts
Buyers receive a free July 2025 update with:
- Finalized tariff impacts and new trade agreement effects
- Updated projections reflecting global sourcing and cost shifts
- Expanded country-specific coverage across the industry
Table of Contents
I. METHODOLOGYII. EXECUTIVE SUMMARY2. FOCUS ON SELECT PLAYERSIV. COMPETITION
1. MARKET OVERVIEW
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
III. MARKET ANALYSIS
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- AECOM
- Corgan
- Cupertino Electric, Inc.
- DPR Construction
- Fortis Construction
- Gray Construction
- Hanley Energy
- HITT Contracting
- Holder Construction
- Jones Engineering
- Legrand SA
- Mortenson
- Rittal GmbH & Co. KG
- Schneider Electric SE
- Sundt Construction
- Tripp Lite
- Turner Construction Company
- U.S. Engineering Company
- Vertiv Group Corporation
- WZMH Architects
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 214 |
| Published | April 2025 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 24.8 Billion |
| Forecasted Market Value ( USD | $ 54.7 Billion |
| Compound Annual Growth Rate | 14.1% |
| Regions Covered | Global |
