The artificial intelligence (AI) datacenters market size has grown exponentially in recent years. It will grow from $16.57 billion in 2024 to $21.44 billion in 2025 at a compound annual growth rate (CAGR) of 29.4%. The growth in the historic period can be attributed to rising demand for high-performance computing, growing cloud service deployment, increasing investments in data center infrastructure, higher need for energy-efficient solutions, and growing demand for automated operations.
The artificial intelligence (AI) datacenters market size is expected to see exponential growth in the next few years. It will grow to $59.39 billion in 2029 at a compound annual growth rate (CAGR) of 29%. The growth in the forecast period can be attributed to rising deployment of edge and cloud AI services, expansion of enterprise AI workloads, increasing focus on energy-efficient AI infrastructure, and greater need for scalable computing solutions. Key trends in the forecast period include advancements in tensor processing units, innovations in AI hardware and software, developments in energy-efficient data center designs, research and development in AI workload optimization, and increasing automation of data center operations.
The increasing generation of data is expected to drive the growth of the artificial intelligence (AI) data center market in the coming years. Data generation involves creating new real or synthetic data for analysis, model development, or testing. Data generation is rising as organizations rely on large, diverse, and high-quality datasets to train advanced AI systems, improve predictive accuracy, address data scarcity, and simulate real-world scenarios without depending solely on sensitive or hard-to-obtain information. AI data centers support this process by providing high-performance computing, scalable storage, and fast processing to efficiently manage large volumes of data. For example, in February 2025, SOAX Ltd. reported that in 2024, approximately 402.89 million terabytes of data were created, captured, copied, or consumed each day, totaling 147 zettabytes annually, with expectations to reach 181 zettabytes by 2025. This rise in data generation is driving the growth of the AI data center market.
Major companies operating in the artificial intelligence (AI) datacenters market are developing advanced products, such as fifth-generation tensor processing units (TPUs), to increase computational efficiency, boost processing power, and reduce operational costs and energy use. Fifth-generation TPUs are integrated circuits designed to accelerate AI workloads, especially for training and running large machine learning models. In May 2024, Google LLC, a US-based technology company, launched the Trillium chip, a fifth-generation TPU that improves AI performance fivefold compared to its predecessor. The chip increases computational power and memory bandwidth for demanding AI models, optimizing performance in Google AI datacenters for both training and inference while improving energy efficiency.
In March 2025, Advanced Micro Devices Inc., a US-based semiconductor company, acquired ZT Systems for an undisclosed amount. The acquisition combines AMD’s AI and high-performance processors with ZT Systems’ data center expertise to enhance AI infrastructure solutions for cloud providers and enterprises. ZT Systems is a US-based hardware company providing AI-ready servers and infrastructure for artificial intelligence data centers.
Major companies operating in the ai datacenters market are Amazon Web Services Inc., Google LLC, Microsoft Corporation, Meta Platforms Inc., Alibaba Cloud Computing Co. Ltd., NTT Communications Corporation, Dell Technologies Inc., International Business Machines Corporation, NVIDIA Corporation, Cisco Systems Inc., Intel Corporation, Hewlett Packard Enterprise Development LP, Equinix Inc., Digital Realty Trust Inc., Arista Networks Inc., Stack Infrastructure Inc., QTS Realty Trust LLC, CyrusOne Inc., and G42 Holding Limited.
North America was the largest region in the artificial intelligence (AI) datacenters market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the urban landscaping market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (AI) datacenters market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.
The artificial intelligence (AI) datacenters market research report is one of a series of new reports that provides artificial intelligence (AI) datacenters market statistics, including artificial intelligence (AI) datacenters industry global market size, regional shares, competitors with an artificial intelligence (AI) datacenters market share, detailed artificial intelligence (AI) datacenters market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) datacenters industry. This artificial intelligence (AI) datacenters 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.
Artificial intelligence datacenters are specialized facilities designed to handle large-scale AI workloads, including machine learning, deep learning, and data analytics. They are equipped with high-performance computing resources to process massive datasets efficiently. These datacenters accelerate AI model training and inference, enabling faster insights, predictions, and automation for businesses and research.
The main components of artificial intelligence datacenters are hardware, software, and services. Hardware includes computing and networking components such as servers, storage, switches, and power/cooling infrastructure that support AI workloads. Datacenter types include hyperscale, colocation, edge, and others. These solutions serve industries including healthcare, retail, information technology, telecom, banking, financial services and insurance, automotive, media and entertainment, manufacturing, and others.
The artificial intelligence (AI) datacenters market consists of revenues earned by entities by providing services such as AI model training and inference services, data storage and processing, performance monitoring and analytics, and AI workload optimization solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) datacenters market also includes sales of high-performance servers, graphics processing units (GPUs), tensor processing units (TPUs), AI-optimized storage systems, networking equipment, cooling and power management solutions, and software platforms. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
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.
This product will be delivered within 3-5 business days.
The artificial intelligence (AI) datacenters market size is expected to see exponential growth in the next few years. It will grow to $59.39 billion in 2029 at a compound annual growth rate (CAGR) of 29%. The growth in the forecast period can be attributed to rising deployment of edge and cloud AI services, expansion of enterprise AI workloads, increasing focus on energy-efficient AI infrastructure, and greater need for scalable computing solutions. Key trends in the forecast period include advancements in tensor processing units, innovations in AI hardware and software, developments in energy-efficient data center designs, research and development in AI workload optimization, and increasing automation of data center operations.
The increasing generation of data is expected to drive the growth of the artificial intelligence (AI) data center market in the coming years. Data generation involves creating new real or synthetic data for analysis, model development, or testing. Data generation is rising as organizations rely on large, diverse, and high-quality datasets to train advanced AI systems, improve predictive accuracy, address data scarcity, and simulate real-world scenarios without depending solely on sensitive or hard-to-obtain information. AI data centers support this process by providing high-performance computing, scalable storage, and fast processing to efficiently manage large volumes of data. For example, in February 2025, SOAX Ltd. reported that in 2024, approximately 402.89 million terabytes of data were created, captured, copied, or consumed each day, totaling 147 zettabytes annually, with expectations to reach 181 zettabytes by 2025. This rise in data generation is driving the growth of the AI data center market.
Major companies operating in the artificial intelligence (AI) datacenters market are developing advanced products, such as fifth-generation tensor processing units (TPUs), to increase computational efficiency, boost processing power, and reduce operational costs and energy use. Fifth-generation TPUs are integrated circuits designed to accelerate AI workloads, especially for training and running large machine learning models. In May 2024, Google LLC, a US-based technology company, launched the Trillium chip, a fifth-generation TPU that improves AI performance fivefold compared to its predecessor. The chip increases computational power and memory bandwidth for demanding AI models, optimizing performance in Google AI datacenters for both training and inference while improving energy efficiency.
In March 2025, Advanced Micro Devices Inc., a US-based semiconductor company, acquired ZT Systems for an undisclosed amount. The acquisition combines AMD’s AI and high-performance processors with ZT Systems’ data center expertise to enhance AI infrastructure solutions for cloud providers and enterprises. ZT Systems is a US-based hardware company providing AI-ready servers and infrastructure for artificial intelligence data centers.
Major companies operating in the ai datacenters market are Amazon Web Services Inc., Google LLC, Microsoft Corporation, Meta Platforms Inc., Alibaba Cloud Computing Co. Ltd., NTT Communications Corporation, Dell Technologies Inc., International Business Machines Corporation, NVIDIA Corporation, Cisco Systems Inc., Intel Corporation, Hewlett Packard Enterprise Development LP, Equinix Inc., Digital Realty Trust Inc., Arista Networks Inc., Stack Infrastructure Inc., QTS Realty Trust LLC, CyrusOne Inc., and G42 Holding Limited.
North America was the largest region in the artificial intelligence (AI) datacenters market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the urban landscaping market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (AI) datacenters market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.
The artificial intelligence (AI) datacenters market research report is one of a series of new reports that provides artificial intelligence (AI) datacenters market statistics, including artificial intelligence (AI) datacenters industry global market size, regional shares, competitors with an artificial intelligence (AI) datacenters market share, detailed artificial intelligence (AI) datacenters market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) datacenters industry. This artificial intelligence (AI) datacenters 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.
Artificial intelligence datacenters are specialized facilities designed to handle large-scale AI workloads, including machine learning, deep learning, and data analytics. They are equipped with high-performance computing resources to process massive datasets efficiently. These datacenters accelerate AI model training and inference, enabling faster insights, predictions, and automation for businesses and research.
The main components of artificial intelligence datacenters are hardware, software, and services. Hardware includes computing and networking components such as servers, storage, switches, and power/cooling infrastructure that support AI workloads. Datacenter types include hyperscale, colocation, edge, and others. These solutions serve industries including healthcare, retail, information technology, telecom, banking, financial services and insurance, automotive, media and entertainment, manufacturing, and others.
The artificial intelligence (AI) datacenters market consists of revenues earned by entities by providing services such as AI model training and inference services, data storage and processing, performance monitoring and analytics, and AI workload optimization solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) datacenters market also includes sales of high-performance servers, graphics processing units (GPUs), tensor processing units (TPUs), AI-optimized storage systems, networking equipment, cooling and power management solutions, and software platforms. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
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.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. AI Datacenters Market Characteristics3. AI Datacenters Market Trends and Strategies32. Global AI Datacenters Market Competitive Benchmarking and Dashboard33. Key Mergers and Acquisitions in the AI Datacenters Market34. Recent Developments in the AI Datacenters Market
4. AI Datacenters Market - Macro Economic Scenario Including the Impact of Interest Rates, Inflation, Geopolitics, Trade Wars and Tariffs, and Covid and Recovery on the Market
5. Global AI Datacenters Growth Analysis and Strategic Analysis Framework
6. AI Datacenters Market Segmentation
7. AI Datacenters Market Regional and Country Analysis
8. Asia-Pacific AI Datacenters Market
9. China AI Datacenters Market
10. India AI Datacenters Market
11. Japan AI Datacenters Market
12. Australia AI Datacenters Market
13. Indonesia AI Datacenters Market
14. South Korea AI Datacenters Market
15. Western Europe AI Datacenters Market
16. UK AI Datacenters Market
17. Germany AI Datacenters Market
18. France AI Datacenters Market
19. Italy AI Datacenters Market
20. Spain AI Datacenters Market
21. Eastern Europe AI Datacenters Market
22. Russia AI Datacenters Market
23. North America AI Datacenters Market
24. USA AI Datacenters Market
25. Canada AI Datacenters Market
26. South America AI Datacenters Market
27. Brazil AI Datacenters Market
28. Middle East AI Datacenters Market
29. Africa AI Datacenters Market
30. AI Datacenters Market Competitive Landscape and Company Profiles
31. AI Datacenters Market Other Major and Innovative Companies
35. AI Datacenters Market High Potential Countries, Segments and Strategies
36. Appendix
Executive Summary
AI Datacenters Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on ai datacenters market which is experiencing strong growth. the report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Reasons to Purchase:
- Gain a truly global perspective with the most comprehensive report available on this market covering 15 geographies.
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- Create regional and country strategies on the basis of local data and analysis.
- Identify growth segments for investment.
- Outperform competitors using forecast data and the drivers and trends shaping the market.
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- Benchmark performance against key competitors.
- Suitable for supporting your internal and external presentations with reliable high quality data and analysis
- Report will be updated with the latest data and delivered to you along with an Excel data sheet for easy data extraction and analysis.
- All data from the report will also be delivered in an excel dashboard format.
Description
Where is the largest and fastest growing market for ai datacenters? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The ai datacenters market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include: the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Report Scope
Markets Covered:
1) By Component Type: Hardware; Software; Services2) By Data Center Type: Hyperscale Data Center; Colocation Data Center; Edge Data Center; Other Data Centers
3) By Industry Type: Healthcare; Retail; Information Technology (IT); Telecom; Banking, Financial Services and Insurance (BFSI); Automotive; Media and Entertainment; Manufacturing; Other Industries
Subsegments:
1) By Hardware: Servers; Graphics Processing Units; Storage Systems; Networking Equipment; Power and Cooling Equipment; Racks and Enclosures; Security and Monitoring Devices2) By Software: Data Center Infrastructure Management Software; Artificial Intelligence Management Software; Analytics and Monitoring Software; Workflow and Automation Software; Security and Compliance Software
3) By Services: Consulting Services; Integration and Deployment Services; Managed Services; Maintenance and Support Services; Training and Advisory Services
Companies Mentioned: Amazon Web Services Inc.; Google LLC; Microsoft Corporation; Meta Platforms Inc.; Alibaba Cloud Computing Co. Ltd.; NTT Communications Corporation; Dell Technologies Inc.; International Business Machines Corporation; NVIDIA Corporation; Cisco Systems Inc.; Intel Corporation; Hewlett Packard Enterprise Development LP; Equinix Inc.; Digital Realty Trust Inc.; Arista Networks Inc.; Stack Infrastructure Inc.; QTS Realty Trust LLC; CyrusOne Inc.; and G42 Holding Limited.
Companies Mentioned
The companies profiled in this AI Datacenters market report include:- Amazon Web Services Inc.
- Google LLC
- Microsoft Corporation
- Meta Platforms Inc.
- Alibaba Cloud Computing Co. Ltd.
- NTT Communications Corporation
- Dell Technologies Inc.
- International Business Machines Corporation
- NVIDIA Corporation
- Cisco Systems Inc.
- Intel Corporation
- Hewlett Packard Enterprise Development LP
- Equinix Inc.
- Digital Realty Trust Inc.
- Arista Networks Inc.
- Stack Infrastructure Inc.
- QTS Realty Trust LLC
- CyrusOne Inc.
- and G42 Holding Limited.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 250 |
| Published | December 2025 |
| Forecast Period | 2025 - 2029 |
| Estimated Market Value ( USD | $ 21.44 Billion |
| Forecasted Market Value ( USD | $ 59.39 Billion |
| Compound Annual Growth Rate | 29.0% |
| Regions Covered | Global |
| No. of Companies Mentioned | 20 |
