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Data Center Market Worth $289.66 Billion in 2028, Explore More About Top Prominent Players, Business Outlook & Forecasts - Arizton

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Arizton Advisory & Intelligence

21 Jun, 2023, 17:45 GMT

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CHICAGO, June 21, 2023 /PRNewswire/ -- According to Arizton's latest research report, the data center market will grow at a CAGR of 5.03% during 2022-2028.

To Know More, Download the Free Sample Report: https://www.arizton.com/request-sample/3893

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Data Center Market Report by Arizton

Browse In-Depth TOC of the Data Center Market          

192 - Tables           
550 - Charts           
1234 – Pages    

The data center market is attractive, with data centers offering higher returns on investment (ROI) than other commercial and industrial properties. In 2022, owing to increased digitalization because of the pandemic, several initiatives taken by different countries in that direction, the deployment of technology such as IoT, big data, 5G, and edge, and increased investments by cloud service providers across various geographies, the colocation market witnessed significant growth.

The market also witnessed supply chain-related challenges in 2022 for IT and support infrastructure providers. This recovered to an extent in the latter half of 2022; however, raw materials prices have since risen, leading to higher costs for data center investors. The market growth in 2022 was aided by previously announced projects and expansions of facilities in a few locations where data centers were deemed essential services. Most of the demand for colocation data center services is contributed by cloud-based service providers.

The data center market in the Americas is a developed market with an increasing presence of local and global data center operators, especially in countries such as the US, Canada, Brazil, Mexico, Chile, and Colombia. Other emerging markets in 2022 included Argentina, Peru, and others. The demand for data centers grew significantly due to the pandemic, with the major workforce shifting to remote working.

Global Data Center Market Report Scope

Report Attributes

Details

Market Size (2028)

USD 289.66 Billion

Market Size (2022)

USD 215.73 Billion

CAGR By Revenue (2022-2028)

5.03 %

Market Size - Area (2028)

58.15 Million Square Feet

Power Capacity (2028)

9,778.6 Mw

Base Year

2022

Forecast Year

2023-2028

MARKET Segmentation

Facility, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Technique, General Construction, Tier Standards, And Geography

Geographic Analysis

North America, Latin America, Western Europe, Nordics, Central & Eastern Europe, Middle East, Africa, Apac, And Southeast Asia

Market Dynamics

  •  Growth in Submarine & Inland Connectivity
  •  Increasing M&As and JVs Across the Industry
  •  Big Data & IoT Fueling Data Center Investments
  •  Government Support for Data Center Investments
  •  Increasing Demand for Cloud-Based Services

 

Looking for More Information? Download the Free Sample Report: https://www.arizton.com/request-sample/3893

Key Insights

  • In data centers, the top of rack switches comprising 10/25 GbE ports will continue to grow, and the growing network traffic will increase the penetration of 25/40/100 GbE ports in the aggregation layer and 100/200/400 GbE in hyperscale facilities.
  • Hyperconverged platforms will overcome the complexity of data center operations and enable faster deployment of infrastructure compared to traditional integration of independent infrastructure silo.
  • The cost of Lithium-ion batteries is almost 3X more than VRLA UPS. However, lithium-ion batteries will provide more efficiency over five years compared to VRLA battery-based UPS systems.
  • Mega data center projects are facing difficult-to-get approvals for the use of water to cool down facilities. This prompts operators and vendors to collaborate and develop systems that can save up to 50% of water consumption in data centers.
  • Free cooling techniques will continue to dominate the market for evaporative coolers, free cooling chillers, air-side economizers, and water-side economizers in North America, Europe, Japan, and Northern China. The adoption of these systems is also growing in Australia and New Zealand.
  • The government's interest in promoting data center investments through land for development, reducing electricity tariffs, and renewable energy procurement will drive the market during the forecast period.
  • Data center construction in terms of investment, square feet area, and power (MW) continues to grow in the UK, Germany, Italy, France, Belgium, Spain, and the Netherlands.
  • Almost all European countries will facilitate free cooling for over 5,000 hours a year, whereas Asia Pacific countries will still depend on water-based cooling.
  • The Nordic region will attract more hyperscale projects over the next three years. However, colocation investments in hyperscale facilities will mostly depend on service demand. Iceland will be a sought-after location for bitcoin mining operations and is likely to have a major impact on other Nordic regions in the upcoming years.
  • In Central & Eastern Europe, Poland, Austria, the Czech Republic, and Russia are dominant countries attracting data center investments.

Buy the Report Now: https://www.arizton.com/market-reports/global-data-center-market-report-2025

Post-Purchase Benefit           

  • 1hr of free analyst discussion
  • 10% of customization

Sustainable Innovations in Data Center Power Technology Leveraging the Market Growth

The scalability of a data center is related to its power system capability to support the required additional loads. If the utility power is readily available, operators can maintain scalability to suit increasing demand while operating efficiency can be improved and maintained at a lower cost.

As digital transformation, technological innovation, and remote working continue to grow, data centers are integral in supporting businesses and organizations across all industries. With investment in power forming a significant portion of the CAPEX and OPEX for data center operators, innovations in power infrastructure will continue.

  • In January 2022, Microsoft announced its plan to invest around $50 million in LanzaJet's sustainable fuel plant in Georgia. The fuel company will provide sustainable renewable diesel to Microsoft made of ethanol. The fuel will be a replacement for the diesel fuel that can be used by the operator for its data center generator sets and for some other uses that require fuel.
  • Mitsubishi Electric offers the Mitsubishi Power SOFC system that can provide electricity and heat in a single system. Hydrogen, natural gas, biofuel, or a mixture of any hydrogen ratio can power the Solid Oxide Fuel Cell (SOFC).
  • General Electric's gas generators also run on natural or other gases such as biogas, landfill, sewage, and combustible industrial waste gases.
  • Bloom Energy, a major provider of fuel cells, has also installed natural gas-powered fuel cells in data centers worldwide.
  • In September 2022, Equinix, in partnership with the National University of Singapore, announced its plan to test hydrogen-powered fuel cells as a power source for its data centers in Singapore.
  • In September 2022, Nxtra (Airtel) announced its plan to deploy hydrogen fuel cells, which will be provided by Bloom Energy, in one of its data center facilities in Karnataka, India.
  • In August 2022, the US Department of Energy's National Renewable Energy Laboratory (NREL) worked with Toyota to evaluate and install a 1 MW fuel-cell power generation system, proton exchange membrane (PEM) fuel cell at NREL's Flatirons Campus.
  • The UK data center service provider Kao Data has partnered with Crown Oil to replace its diesel backup generator with hydrotreated vegetable oil (HVO) fuel generators. The company plans to replace the 45,000 liters of diesel with more than 750,000 liters of HVO fuel in its Harlow data center campus on full build.
  • In addition, Ark Data Centers is replacing the diesel in the fuel tanks of their generators with HVO. The company believes using HVO will reduce fossil emissions by 90%, particulate emissions by >25%, and NOx emissions by >15. In addition, the company believes that the use of natural gas generators provides significant reductions in NOx and SOx emissions than the equivalent diesel generators running on HVO.

Adoption of AI-Based Infrastructure Driving Liquid Immersion & Direct-to-Chip Cooling Booming the Market Growth

The data center market is witnessing substantial growth in advanced technology adoption, such as AI & ML. Countries across the globe have substantially started adopting AI for several operations. In January 2019, the US Federal government launched the American AI initiative to encourage investments in AI in the country, which was later codified under the National AI Initiative Act of 2020. The act includes increasing investment in AI research, implementing Federal AI computing and data resources, setting AI technical standards, upskilling Americans on skills in AI, and reinforcing international cooperation on AI.

Liquid cooling is the most popular cooling technology used in High-Performance Computing (HPC) in data centers to support AI and ML workloads. These technologies require powerful computing capabilities for TPU, where the heat generated exceeds the cooling limit and thus demands superior efficiency to keep the chips working optimally.

The report includes the investment in the following areas: 

Facility Type

  • Hyperscale Data Centers
  • Colocation Data Centers
  • Enterprise Data Centers

Infrastructure

  • IT Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Construction

IT Infrastructure

  • Server Infrastructure
  • Storage Infrastructure
  • Network Infrastructure

Electrical Infrastructure

  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure

Mechanical Infrastructure

  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure

Cooling Systems

  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers, & Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units

Cooling Technique

  • Air-based Cooling
  • Liquid-based Cooling

General Construction

  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • DCIM/BMS Solutions

Tier Standards

  • Tier I & Tier II
  • Tier III
  • Tier IV

Geography

  • North America
    • The US
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Chile
    • Colombia
    • Rest of Latin America
  • Western Europe
    • Germany
    • Ireland
    • The UK
    • France
    • Belgium
    • Switzerland
    • Italy
    • Spain
    • Netherlands
    • Portugal
    • Other Western European Countries
  • Nordics
    • Norway
    • Sweden
    • Denmark
    • Finland & Iceland
  • Central & Eastern Europe
    • Russia
    • Poland
    • Austria
    • Czech Republic
    • Other CEE Countries
  • Middle East
    • UAE
    • Saudi Arabia
    • Bahrain
    • Oman
    • Kuwait
    • Qatar
    • Israel
    • Jordan
    • Other Middle East Countries
  • Africa
    • South Africa
    • Kenya
    • Nigeria
    • Egypt
    • Ethiopia
    • Other African Countries
  • APAC
    • China
    • Hong Kong
    • Australia
    • New Zealand
    • Japan
    • India
    • South Korea
    • Taiwan
    • Rest of APAC
  • Southeast Asia
    • Singapore
    • Indonesia
    • Malaysia
    • Thailand
    • Philippines
    • Vietnam
    • Other Southeast Asia Countries

Vendor Landscape

Key Data Center IT Infrastructure Providers

  • Arista Networks
  • Atos
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Hewlett Packard Enterprise (HPE)
  • Huawei Technologies
  • IBM
  • Juniper Networks
  • Lenovo
  • NetApp

Other Data Center IT Infrastructure Providers

  • DataDirect Networks (DDN
  • Extreme Networks
  • Fujitsu
  • Hitachi Vantara
  • Infortrend Technology
  • Inspur
  • Intel
  • Micron Technology
  • MiTAC Holdings
  • NEC
  • Nimbus Data
  • Oracle
  • Pure Storage
  • Seagate Technology
  • Silk (Kaminario)
  • Supermicro
  • Synology
  • Toshiba
  • StorCentric
  • QNAP Systems
  • Quanta Cloud Technology
  • Quantum (Pivot3)
  • Western Digital
  • Wistron (Wiwynn)

Key Data Center Support Infrastructure Providers

  • ABB
  • Caterpillar
  • Cummins
  • Delta Electronics
  • Eaton
  • Legrand
  • Rolls-Royce
  • Schneider Electric
  • STULZ
  • Vertiv

Other Data Center Support Infrastructure Providers

  • 3M
  • Airedale
  • Alfa Laval
  • Asetek
  • Assa Abloy
  • Bloom Energy
  • Carrier
  • Condair
  • Cormant
  • Cyber Power Systems
  • Daikin Applied
  • Data Aire
  • Enlogic
  • FNT Software
  • Generac Power Systems
  • Green Revolution Cooling (GRC)
  • HITEC Power Protection
  • Honeywell
  • Johnson Controls
  • KOHLER
  • KyotoCooling
  • Mitsubishi Electric
  • Munters
  • Natron Energy
  • NetZoom
  • Nlyte Software
  • Panduit
  • Piller Power Systems
  • Rittal
  • Siemens
  • Trane (Ingersoll Rand)
  • Tripp Lite
  • Yanmar (HIMOINSA)
  • ZincFive

Key Data Center Contractors

  • AECOM
  • Arup
  • Corgan
  • DPR Construction
  • Fortis Construction
  • Holder Construction
  • Jacobs
  • Mercury
  • Red Engineering
  • Rogers-O'Brien Construction
  • Syska Hennessy Group
  • Turner Construction
  • Turner & Townsend

Key Data Center Operators

  • 21Vianet Group (VNET)
  • Amazon Web Services
  • Apple
  • China Telecom
  • Colt Data Centre Services (Colt DCS)
  • Compass Datacenters
  • CyrusOne
  • Digital Realty
  • EdgeConneX (EQT Infrastructure)
  • Equinix
  • GDS Services
  • Global Switch
  • Google
  • Iron Mountain
  • Meta (Facebook)
  • Microsoft
  • NTT Global Data Centers
  • QTS Realty Trust
  • STACK Infrastructure
  • ST Telemedia Global Data Centres
  • Vantage Data Centers

Other Data Center Operators

  • 3data
  • Africa Data Centres
  • AirTrunk
  • Aligned
  • American Tower
  • AQ Compute
  • Aruba
  • AtlasEdge
  • atNorth
  • AT TOKYO
  • BDx (Big Data Exchange)
  • Bulk Infrastructure
  • Bridge Data Centres
  • CDC Data Centres
  • Chayora
  • China Mobile
  • Chindata
  • CloudHQ
  • Cologix
  • COPT Data Center Solutions
  • CtrlS Datacenters
  • Cyxtera Technologies
  • Data4
  • DataBank
  • DC BLOX
  • Digital Edge
  • Digital Parks Africa
  • Element Critical
  • ePLDT
  • eStruxture Data Centers
  • fifteenfortyseven Critical Systems Realty (1547)
  • Flexential
  • Green Mountain
  • Gulf Data Hub
  • H5 Data Centers
  • HostDime
  • KDDI
  • Keppel Data Centres
  • Khazna Data Centers (G42 & Etisalat)
  • LG Uplus
  • Lumen Technologies
  • maincubes one
  • MainOne (Equinix)
  • MEEZA
  • Millicom (Tigo)
  • Mobily
  • Moro Hub
  • NEXTDC
  • Nxtra by Airtel
  • ODATA
  • Orange Business Services
  • Ooredoo
  • Prime Data Centers
  • Princeton Digital Group (PDG)
  • Proximity Data Centres
  • Rack Centre
  • Raxio Group
  • Rostelecom Data Centers
  • Sabey Data Centers
  • Saudi Telecom Company (stc)
  • Scala Data Centers
  • Sify Technologies
  • Skybox Datacenters
  • Stream Data Centers
  • SUNeVision (iAdvantage)
  • Switch
  • T5 Data Centers
  • Tenglong Holdings Group
  • Teraco (Digital Realty)
  • TierPoint
  • Turkcell
  • Urbacon Data Centre Solutions
  • Wingu
  • Yondr
  • Yotta Infrastructure (Hiranandani Group)

New Entrants

  • AdaniConneX
  • AUBix
  • Cloudoon
  • ClusterPower
  • Corscale Data Centers
  • Damac Data Centres (EDGNEX)
  • Data Center First
  • DHAmericas
  • Edge Centres
  • Evolution Data Centres
  • Global Technical Realty
  • Hickory
  • iMCritical
  • Infinity
  • Kasi Cloud
  • MettaDC
  • Open Access Data Centres
  • PowerHouse Data Centers
  • Pure Data Centres Group
  • Quantum Loophole
  • Quantum Switch Tamasuk (QST)
  • Stratus DC Management
  • YCO Cloud
  • YTL Data Center
  • ZeroPoint DC

Key Questions Answered in the Report:

  • How big is the global data center market?
  • What is the growth rate of the global data center market?
  • What is the estimated market size in terms of area in the global data center market by 2028?
  • What are the key trends in the data center market?
  • How many MW of power capacity is expected to reach the global data center market by 2028?

Get Detailed TOC Now: https://www.arizton.com/market-reports/global-data-center-market-report-2025?details=tableOfContents

Check Out Some of the Top-Selling Research Reports:    

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Green Data Center Market - Global Outlook & Forecast 2022-2027

About Us:       

Arizton Advisory and Intelligence is an innovative and quality-driven firm that offers cutting-edge research solutions to clients worldwide. We excel in providing comprehensive market intelligence reports and advisory and consulting services.      

We offer comprehensive market research reports on consumer goods & retail technology, automotive and mobility, smart tech, healthcare, life sciences, industrial machinery, chemicals, materials, I.T. and media, logistics, and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.      

Arizton comprises a team of exuberant and well-experienced analysts who have mastered generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.     

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