Internet Data Center (IDC) Market Report 2026

The internet data centre market size has grown rapidly in recent years. It will grow from $77.98 billion in 2025 to $89.01 billion in 2026 at a compound annual growth rate (CAGR) of 14.1%. The growth in the historic period can be attributed to increasing data traffic, growing cloud adoption, rising digital transformation initiatives, expanding enterprise it infrastructure, and increasing demand for colocation facilities.

The internet data centre market size is expected to see rapid growth in the next few years. It will grow to $149.58 billion in 2030 at a compound annual growth rate (CAGR) of 13.9%. The growth in the forecast period can be attributed to growing hyperscale data centre investments, increasing adoption of ai and analytics workloads, rising demand for edge computing facilities, expanding multi-cloud deployment, and growing need for high-density computing. Major trends in the forecast period include technology advancements in cooling systems, innovations in energy-efficient architectures, developments in high-speed network interconnects, research and development in modular data centres, and advancements in ai-driven data centre automation.

The increasing adoption of cloud computing is expected to propel the growth of the internet data center market going forward. Cloud computing involves delivering computing resources such as servers, storage, databases, networking, software, and analytics over the internet to enable scalability, flexibility, and cost efficiency. Adoption of cloud computing continues to rise as organizations seek to scale resources on demand while reducing capital and operational expenditures. Internet data centers support cloud computing by providing the physical infrastructure required for data storage, processing, and management, ensuring high availability, scalability, and security for cloud-based applications and services. For instance, in December 2023, according to Eurostat, a Luxembourg-based European Union statistical authority, 45.2% of enterprises across the EU purchased cloud computing services, including 77.6% of large enterprises, 59% of medium-sized enterprises, and 41.7% of small enterprises. As a result, growing cloud adoption is contributing to the expansion of the internet data center market.

Leading companies in the internet data center market are focusing on developing advanced infrastructure solutions, such as multi-campus interconnected hubs, to improve operational efficiency, enhance reliability, and reduce latency for enterprise customers. Multi-campus interconnected hubs involve linking multiple data centers across strategic locations to form a unified ecosystem that supports high-speed data exchange and operational resilience. For example, in September 2025, Equinix, a US-based digital infrastructure provider, launched its first International Business Exchange data center, CN1, in Chennai, India. The facility is directly connected to the company’s existing multi-data center campus in Mumbai, creating an integrated interconnection hub that extends a highly connected ecosystem for cloud, carrier, content, and enterprise customers across regions. The project follows a phased investment strategy, with an initial $69 million phase delivering 800 cabinets and plans to scale up to 4,250 cabinets, supporting long-term growth while maintaining a focus on sustainability.

In September 2024, The Blackstone Group Inc., a US-based private equity firm, and CPP Investments, a Canada-based pension fund investor, acquired AirTrunk Pty Ltd. for A$24 billion (US$16.1 billion). Through this acquisition, Blackstone and CPP aim to strengthen their global digital infrastructure portfolios by securing a leading hyperscale data center platform across the Asia-Pacific region, expanding capacity to meet increasing demand from cloud and AI-driven workloads. AirTrunk Pty Ltd. is an Australia-based company specializing in hyperscale internet data center services.

Major companies operating in the internet data center (idc) market are Amazon Web Services Inc., Microsoft Corporation, Huawei Technologies Co. Ltd., Hitachi Ltd., Lenovo Group Ltd., Cisco Systems Inc., Oracle Corporation, Schneider Electric SE, Google LLC, NTT Ltd., Hewlett Packard Enterprise Company, Fujitsu Limited, Eaton Corporation plc, Inspur Information Industry Co. Ltd., Equinix Inc., Vertiv Holdings Co., CommScope Inc., Juniper Networks Inc., Digital Realty Trust Inc., Rittal GmbH And Co. KG, GDS Holdings Limited.

North America was the largest region in the internet data centermarket in 2025. Asia-Pasific is expected to be the fastest-growing region in the forecast period. The regions covered in the internet data center (idc) market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the internet data center (idc) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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.

Tariffs have affected the internet data center market by increasing costs for imported servers, power equipment, networking hardware, and cooling systems, raising overall capital expenditure. The impact is strongest in large scale data center projects and in regions such as Asia-Pacific and North America that depend on global supply chains. Operators are responding by diversifying suppliers and investing in local manufacturing partnerships. In some cases, tariffs have accelerated the shift toward modular and energy efficient data center designs.

An internet data center is a purpose-built facility designed to house computing, storage, and networking infrastructure that supports uninterrupted digital operations. These centers provide secure, climate-controlled environments equipped with high-performance servers and resilient connectivity to manage and process large volumes of data. They ensure high availability, efficient data processing, and robust security for mission-critical digital workloads.

The primary types of internet data centers include shared facility centers, stand-alone centers, modular centers, pre-built centers, mobile data centers, and managed services. Shared facility centers are centralized infrastructures that deliver scalable computing, storage, and networking resources to multiple organizations, enabling efficient utilization of resources and cost optimization. Internet data centers cater to both large enterprises and small and medium-sized enterprises and are deployed through private, public, and hybrid models. They serve a wide range of end-users, including retail and e-commerce, media and entertainment, banking, financial services, and insurance (BFSI), healthcare, government, information technology and telecommunications, and others.

The internet data center market consists of revenues earned by entities by providing services such as network management services, security monitoring services, and infrastructure management services. The market value includes the value of related goods sold by the service provider or included within the service offering. The internet data center market also includes sales of uninterruptible power supplies, network switches, storage arrays, fiber optic cables, routers, and fire suppression systems. 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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