Data Center Migration Global Market Report 2025

The data center migration market size has grown rapidly in recent years. It will grow from $12.26 billion in 2024 to $14.36 billion in 2025 at a compound annual growth rate (CAGR) of 17.2%. The growth during the historic period can be attributed to increasing regulatory compliance requirements and data protection laws, rising mergers and acquisitions necessitating platform consolidation, expansion of remote and distributed work requiring centralized access, escalating energy and real estate costs for owned facilities, and a heightened focus on business continuity following disruptive incidents.

The data center migration market size is expected to see rapid growth in the next few years. It will grow to $26.77 billion in 2029 at a compound annual growth rate (CAGR) of 16.8%. The growth during the forecast period can be attributed to rising demand for workload consolidation and footprint rationalization, increasing need for cost predictability and operating expenditure control, growing demand for regulatory compliance and data residency assurance, heightened focus on business continuity and disaster resilience, and accelerating requirements for faster mergers and acquisitions integration. Key trends in the forecast period include agentic artificial intelligence-driven migration orchestration, graph neural network-assisted discovery and dependency mapping, infrastructure as code standardized landing zone blueprints, zero trust architecture-aligned network segmentation patterns, and confidential computing-enabled isolation of sensitive workloads during transition.

The rising adoption of cloud-based solutions is expected to drive the growth of the data center migration market in the coming years. Cloud-based solutions refer to information technology (IT) services, storage, and applications hosted on remote servers and accessed via the internet, offering scalability, flexibility, and cost efficiency. The increase in adoption is driven by scalability and flexibility, as these solutions allow businesses to adjust resources on demand without significant upfront infrastructure costs. Data center migration facilitates this shift by enabling organizations to move key systems, workloads, and applications from on-premises infrastructure to cloud environments, optimizing performance, reducing costs, and enhancing business continuity. For example, in September 2025, IT Desk UK Ltd., a UK-based IT support provider, reported that 96% of enterprises use some form of cloud service, and global cloud infrastructure spending is projected to reach $912 billion by the end of 2025. Therefore, the rising adoption of cloud-based solutions is fueling the growth of the data center migration market.

Key companies in the data center migration market are focusing on developing technologically advanced solutions, such as agentic artificial intelligence (AI)-driven migration orchestration, to accelerate large-scale transitions from legacy systems to cloud landing zones. Agentic AI-driven migration orchestration uses autonomous software agents to discover applications and dependencies, generate migration plans, convert networks, and optimize target instances, reducing manual effort and cutover risk across hybrid environments. For instance, in May 2025, Amazon Web Services (AWS), a US-based cloud computing company, launched AWS Transform (GA), a service that applies agentic AI to modernize and migrate VMware, mainframe, and.NET workloads by automating discovery, dependency mapping, migration planning, network conversion, and EC2 optimization for complex data center migrations. The solution automates end-to-end discovery, assessment, and conversion workflows through specialized AI agents, significantly shortening migration timelines. Its purpose is to provide a unified, AI-assisted path for moving enterprise data center workloads into AWS, accelerating modernization in cloud migration initiatives.

In May 2024, Kyndryl Holdings Inc., a US-based IT infrastructure services company, acquired Skytap for an undisclosed amount. Through this acquisition, Kyndryl aims to strengthen its hybrid cloud and data center migration services, enabling clients to run traditional on-premises systems in public cloud environments such as Microsoft Azure and IBM Cloud. Skytap is a US-based cloud services company specializing in data center migration and modernization.

Major players in the data center migration market are Amazon Web Services Inc., Google LLC, Microsoft Corporation, Dell Technologies Inc., International Business Machines Corporation (IBM), Cisco Systems Inc., Oracle Corporation, NTT Communications Corporation, Fujitsu Limited, DXC Technology Company, Atos SE, Equinix Inc., Veritis Group Inc., Unity Group Sp. z o.o., SoftwareONE Holding AG, Nous Infosystems Pvt. Ltd., ELEKS Ltd., Trigent Software Inc., N-iX LLC, and Scalefocus AD.

North America was the largest region in the data center migration market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in data center migration report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the data center migration 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 data center migration market research report is one of a series of new reports that provides data center migration market statistics, including data center migration industry global market size, regional shares, competitors with a data center migration market share, detailed data center migration market segments, market trends and opportunities, and any further data you may need to thrive in the data center migration industry. This data center migration 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.

Data center migration is the process of relocating an organization’s applications, data, and workloads from one data center environment to another, encompassing planning, transfer, testing, and cutover. Its purpose is to enhance reliability and performance, reduce costs, address security or compliance requirements, and better align the infrastructure with current business objectives.

The key service types of data center migration include cloud migration, application migration, database migration, storage migration, and others. Cloud migration involves moving data, applications, and workloads from on-premises infrastructure to cloud environments to improve scalability, efficiency, and cost-effectiveness. It is implemented through both on-premises and cloud models and serves small, medium, and large enterprises. Key applications include data storage, management, backup, recovery, and others, supporting end-user industries such as banking, financial services, and insurance (BFSI), information technology and telecommunications, healthcare, retail, government, and more.

The data center migration market includes revenues earned by entities through ssessment and discovery, migration planning and design, application or data or workload migration, infrastructure relocation and consolidation, and post-migration validation and cutover management, and related cloud readiness and strategy, refactoring and modernization, data center decommissioning, managed operations or support, and compliance and security remediation. 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.

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