Datacenters Market Report 2026

The datacenters market size has grown rapidly in recent years. It will grow from $375.56 billion in 2025 to $429.23 billion in 2026 at a compound annual growth rate (CAGR) of 14.3%. The growth in the historic period can be attributed to rapid growth of internet and cloud services, enterprise shift toward virtualization and consolidation, increase in data storage and compute requirements, expansion of hyperscale data center operators, need for high availability and disaster recovery.

The datacenters market size is expected to see rapid growth in the next few years. It will grow to $724.78 billion in 2030 at a compound annual growth rate (CAGR) of 14%. The growth in the forecast period can be attributed to rising demand from AI training and inference workloads, increasing focus on renewable energy sourcing, higher adoption of liquid cooling technologies, growth of modular and prefabricated data centers, greater investment in automation and remote monitoring. Major trends in the forecast period include AI-optimized data center infrastructure, energy-efficient cooling and power systems, DCIM software adoption for automation, edge data center expansion, hybrid cloud and colocation growth.

The rising demand for cloud services is expected to propel the growth of the data center market going forward. Cloud services refer to on-demand computing resources, including storage, servers, databases, networking, and software, delivered over the internet to support digital business operations. The growing demand for cloud services is driven by organizations seeking enhanced scalability and flexibility to quickly adapt to changing workloads and accelerate digital transformation initiatives. The increasing adoption of cloud services supports datacenters by driving the development and expansion of high-performance data storage and processing facilities required to efficiently host and manage cloud workloads. For example, in April 2023, according to a report published by Microsoft Corporation, a US-based technology company, public cloud spending in Australia was projected to increase from $7.95 billion in 2022 (A$12.2 billion) to $14.56 billion by 2026 (A$22.4 billion). Therefore, the rising demand for cloud services is driving the growth of the data center market.

Leading companies operating in the data center market are focusing on technological advancements, such as data center building block solutions, to simplify deployment, reduce risk, and accelerate time-to-online for large-scale infrastructure projects. Data center building block solutions refer to modular, pre-engineered components that enable organizations to rapidly build, scale, or upgrade data centers with consistent performance and streamlined deployment. For example, in October 2025, Supermicro, a US-based provider of application-optimized total information technology (IT) solutions, launched its data center building block solutions (DCBBS) portfolio, delivering complete data center infrastructure - including servers, storage, management software, liquid cooling, networking, and electrical components - pre-integrated and validated within Supermicro’s manufacturing facilities. The data center building block solutions support modular packaging at system, rack, and full data center levels, utilizing pre-configured building blocks that have undergone rigorous L11/L12 testing to ensure rapid and reliable deployment. The offering also includes Supermicro’s SuperCloud Composer software suite, which delivers unified infrastructure management across compute, network, cooling, and power, providing full-stack visibility and control through a single portal.

In December 2024, Blackstone, a US-based provider of alternative asset management and investment services, acquired AirTrunk for $16.1 billion. Through this acquisition, Blackstone aims to expand its digital infrastructure footprint and hyperscale data center capabilities across the Asia-Pacific region to capture accelerating cloud- and AI-driven demand, while scaling market share and operational capacity. AirTrunk is an Australia-based provider of hyperscale data centers, cloud infrastructure, and colocation design, build, and operations across Asia Pacific and Japan.

Major companies operating in the datacenters market are Amazon Web Services Inc., Google LLC, Microsoft Corporation, Alibaba Cloud Computing Co. Ltd., Dell Technologies Inc., Huawei Technologies Co. Ltd., Tencent Cloud Computing (Beijing) Company Limited, Hitachi Ltd, IBM Corporation, Cisco Systems Inc., Oracle Corporation, Schneider Electric SE, ABB Ltd., Hewlett Packard Enterprise Development LP, NTT Communications Corporation, Equinix Inc., Digital Realty Trust Inc., Comarch SA, Sify Technologies Limited, CoreSite Realty Corporation, China Telecom Americas Inc., CyrusOne Inc., Yotta Infrastructure Private Limited, and Lumen Technologies Inc.

North America was the largest region in the datacenters market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the datacenters market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the datacenters market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Tariffs have created both challenges and opportunities for the datacenters market by increasing the cost of imported servers, storage systems, networking equipment, and power and cooling components used in new builds and expansion projects. The resulting capital expenditure pressure is most significant for hyperscale and colocation operators in North America and Asia-Pacific, where global sourcing of IT and electrical equipment is common. Tariff-driven cost increases can delay capacity expansion, slow hardware refresh cycles, and raise service pricing for cloud providers and enterprise customers. At the same time, tariffs are encouraging regional manufacturing, localized supply chain strategies, and greater use of refurbished or modular infrastructure approaches. This shift is supporting innovation in energy-efficient designs, software-driven optimization through DCIM platforms, and diversified procurement strategies that improve resilience and reduce long-term operating costs.

The datacenters market research report is one of a series of new reports that provides datacenters market statistics, including datacenters industry global market size, regional shares, competitors with a datacenters market share, detailed datacenters market segments, market trends and opportunities, and any further data you may need to thrive in the datacenters industry. This 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.

Datacenters are purpose-built facilities that accommodate computer systems, servers, storage equipment, and networking infrastructure. They are utilized to securely and reliably store, manage, and process large volumes of data, ensuring continuous access to applications and digital services. Datacenters also offer power backup systems, cooling mechanisms, and physical security measures to maintain the optimal functioning of IT infrastructure.

The primary components of datacenters include hardware, data center infrastructure management (DCIM) software, and services. Hardware comprises physical assets such as servers, storage systems, networking equipment, racks, power units, and cooling solutions that enable data processing, storage, and connectivity. Datacenter services include managed infrastructure services, hosting services, support services, and professional services, and they cater to organizations of varying enterprise sizes, including large enterprises as well as small and medium enterprises (SMEs). These solutions serve a wide range of end-use industries, such as cloud service providers, technology companies, telecommunications, healthcare, banking, financial services and insurance (BFSI), retail and e-commerce, entertainment and media, energy, and others.

The datacenters market consists of revenues earned by entities by providing services such as colocation hosting, cloud hosting, data backup and recovery, network management, infrastructure monitoring, disaster recovery services, and managed information technology (IT) services. The market value includes the value of related goods sold by the service provider or included within the service offering. The datacenters market also includes sales of servers, storage devices, networking equipment, power distribution units, cooling systems, racks, uninterruptible power supplies, generators, cabling systems, industrial gateways, and on-premise cloud appliances. 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.

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