Data Center Real Estate Market Global Report 2026

The data center real estate market size has grown rapidly in recent years. It will grow from $77.27 billion in 2025 to $87.88 billion in 2026 at a compound annual growth rate (CAGR) of 13.7%. The growth in the historic period can be attributed to increasing demand for cloud services, rising hyperscale data center expansion, growing digital transformation, increasing data generation, and rising investor interest.

The data center real estate market size is expected to see rapid growth in the next few years. It will grow to $145.1 billion in 2030 at a compound annual growth rate (CAGR) of 13.4%. The growth in the forecast period can be attributed to growing adoption of edge computing technologies, increasing demand for colocation services, rising emphasis on data center sustainability, continued expansion of data center infrastructure, and increasing interconnectivity among data centers. Major trends in the forecast period include continued advancement of AI-driven infrastructure, development of innovative liquid cooling systems, increasing investment in sustainable energy research and development, advancement of modular data center designs, and growing use of AI-optimized approaches for data center site selection.

The increasing adoption of Internet of Things (IoT) devices is expected to drive the growth of the data center real estate market. Internet of Things (IoT) devices comprise interconnected technologies such as smartphones, sensors, wearable devices, smart home equipment, and security cameras that communicate and exchange information through the internet with limited or no direct human intervention. The demand for IoT-connected devices is increasing because they provide real-time data, improve operational efficiency, enable remote monitoring, and facilitate more informed decision-making across various industries. Data center real estate supports the expansion of IoT adoption by providing the physical facilities required to store, process, and manage the substantial amounts of data produced by IoT devices. These facilities provide low-latency connectivity, scalability, and dependable infrastructure for large-scale IoT deployments. For instance, in September 2024, according to IoT Analytics, a Germany-based research firm specializing in IoT market intelligence, the number of connected IoT devices reached 16.6 billion in 2023, increasing by 15% from 14.4 billion in 2022. Therefore, the increasing adoption of IoT devices is contributing to the growth of the data center real estate market.

Key companies operating in the data center real estate market are focusing on developing advanced infrastructure, such as multi-campus interconnected hubs, to improve efficiency, enhance reliability, and reduce latency for enterprises. Multi-campus interconnected hubs refer to a network strategy in which multiple data centers located in strategic locations are seamlessly interconnected to form a unified ecosystem, enabling high-speed data exchange and operational resilience. For example, in September 2025, Equinix, a US-based digital infrastructure company, launched its first International Business Exchange (IBX) data center, CN1, in Chennai, India. The facility is a high-performance data center that will be directly connected to the company’s existing multi-data center campus in Mumbai. This interconnection creates a powerful, integrated hub that extends a highly interconnected ecosystem for cloud, carrier, content, and enterprise customers from Mumbai to the Tamil Nadu region. It incorporates a phased investment approach, with an initial $69 million phase delivering 800 cabinets, and is designed for future scalability to support 4,250 cabinets, enabling it to grow alongside India's digitalization journey while maintaining a focus on sustainability.

In July 2024, Keppel DC REIT, a Singapore-based data center real estate investment trust, completed the acquisition of Tokyo Data Centre 1 for JPY 23.4 billion ($145 million). Through this transaction, Keppel DC REIT seeks to increase its presence in the Japanese market and reinforce its data center portfolio by incorporating a high-quality, shell-and-core hyperscale facility supported by a long-term master lease. The acquisition is expected to strengthen recurring income, diversify tenant exposure, and contribute to sustainable long-term portfolio expansion. Tokyo Data Centre 1 is a purpose-built data center property in Japan that functions as a data center real estate asset leased to enterprise and hyperscale customers.

Major companies operating in the data center real estate market are Equinix Inc., Iron Mountain Incorporated, Digital Realty Trust Inc., GDS Holdings Limited, Global Switch Limited, Sify Technologies Limited, NTT Global Data Centers, CtrlS Datacenters Ltd., Vantage Data Centers LLC, 11:11 Systems Inc., STACK Infrastructure Inc., EdgeConneX Inc., Flexential Corp., DataBank Holdings Ltd., STT GDC Pte. Ltd., Digital Edge DC Pte. Ltd., Colt Data Centre Services (Colt DCS), DATA4 Group S.A., Keppel Data Centres Holding Pte. Ltd., NorthC Group B.V., Kao Data Ltd.

North America was the largest region in the data center real estate market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center real estate market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the data center real estate market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The data center real estate market includes revenues earned by entities through leasing services, real estate consulting, infrastructure planning, site assessment, construction management, energy management services, and security services. 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.

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