Data Center Market to Reach USD 712.00 Billion by 2033, Driven by Cloud Expansion and AI-Powered Infrastructure | SNS Insider

GlobeNewswire On October 31, 2025 13:58 IST

The data center industry is witnessing robust growth fueled by the rising adoption of cloud computing, digital transformation, and AI-driven operations, boosting demand for scalable, high-performance, and energy-efficient data infrastructure.

Austin, Oct. 31, 2025 (GLOBE NEWSWIRE) — The Data Center Market size was valued at USD 295.16 Billion in 2025E and is projected to reach USD 712.00 Billion by 2033, growing at a CAGR of 11.66% during 2026-2033.

The Center for Data The growing need for high-performance computing, cloud usage, and digital transformation across a variety of industries are the main drivers of market expansion. Real-time network management, AI-based analytics, and effective storage methods are all helping to meet the increasing need for high speed.

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The U.S. Data Center Market size was valued at USD 85.89 Billion in 2025E and is projected to reach USD 202.96 Billion by 2033, growing at a CAGR of 11.37% during 2026-2033.

The growing need for big data analytics, cloud computing, and high-performance storage will benefit the data center market. Growing interest in colocation and hyperscale centers is making it easier for businesses to scale their operations efficiently.

Key Players:

Amazon Web Services (AWS)
Microsoft (Azure)
Google Cloud
Equinix Inc.
Digital Realty
NTT Global Data Centers
CoreWeave
Meta (Facebook)
NetApp
NextDC
Flexential
DataBank Holdings
Lumen Technologies
CyrusOne
Iron Mountain Inc.
American Tower Corporation
Lunavi
World Wide Technology (WWT)
Supermicro
Hewlett Packard Enterprise (HPE)

Data Center Market Report Scope:

Report Attributes	Details
Market Size in 2025E	USD 295.16 Billion
Market Size by 2033	USD 712.00 Billion
CAGR	CAGR of 11.66% From 2026 to 2033
Base Year	2025E
Forecast Period	2026-2033
Historical Data	2022-2024
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments	• By Type (Enterprise Data Center, Colocation Data Center and Hyperscale Data Center) • By Component (Servers, Storage Devices, Networking Equipment and Cooling & Power Equipment) • By Deployment (On-Premises, Cloud and Hybrid) • By End-User (IT & Telecom, BFSI, Government & Public Sector, Healthcare and Retail & E-commerce)
Customization Scope	Available upon request
Pricing	Available upon request

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Segmentation Analysis:

By Type

Hyperscale Data Centers dominated the market, accounting for 46.5% share in 2025, driven by the rapid expansion of cloud services, AI, and big data analytics that demand massive computing capacity and scalability. Leading technology companies continue to invest in hyperscale facilities to meet global digital infrastructure needs. Meanwhile, Colocation Data Centers are the fastest-growing segment, projected to expand at a CAGR of 12.3% from 2026 to 2033, fueled by the rising preference of enterprises for cost-effective, flexible, and secure shared infrastructure that reduces capital expenditure and supports hybrid IT deployment models.

By Component

Servers led the market with a 38.6% share in 2025, as high-performance computing, AI workloads, and virtualization drive demand for efficient and powerful server systems across industries. Continuous hardware innovations and energy-efficient designs are further strengthening this segment. Conversely, Networking Equipment is the fastest-growing category, projected to grow at a CAGR of 11.4% from 2026 to 2033, owing to the surging need for advanced connectivity solutions, 5G integration, and software-defined networking that enhance data center agility and performance.

By Deployment

Cloud dominated the landscape with a 52.2% share in 2025, as organizations increasingly migrate workloads to cloud environments for scalability, cost optimization, and digital transformation initiatives. In contrast, the Hybrid segment is expected to grow at the fastest rate, registering a CAGR of 13.1% from 2026 to 2033, propelled by enterprises seeking to balance data security, compliance, and flexibility through a combination of on-premises and cloud-based systems.

By End-User

IT & Telecom sector accounted for the largest share of 41.8% in 2025, supported by growing data traffic, the expansion of 5G networks, and increasing adoption of cloud and edge computing by telecom providers and tech firms. Meanwhile, the Healthcare segment is poised for the fastest growth, projected to rise at a CAGR of 12.6% from 2026 to 2033, driven by digital health transformation, telemedicine expansion, and the need for secure data storage to manage electronic health records and AI-powered diagnostics.

Regional Insights:

The North America Data Center Market holds the largest share, accounting for approximately 41.50% of the market. North America is the world’s largest Cloud and Hyper-scale Technology Market, more popular in North American region for many large-scale companies that own their own data centers in this market.

The Asia Pacific Data Center Market is the fastest-growing region, projected to expand at a CAGR of 12.29%, due to digital transformation, increasing cloud adoption, and rising internet penetration.

Recent Developments:

In June 2025, AWS announced a USD 100 billion global data center expansion, aimed at strengthening its AI infrastructure and next-generation workloads. The initiative spans multiple regions including the U.S., Europe, Brazil, Singapore, Japan, and Australia, reinforcing AWS’s leadership in enterprise cloud computing, AI, machine learning, and big data analytics.
In September 2025, Microsoft unveiled plans to construct the world’s most powerful AI data center, named “Fairwater,” in Wisconsin, USA. The facility will cover 1.2 million square feet and be powered by cutting-edge Nvidia GPUs, enhancing Azure’s global cloud, AI, and hybrid capabilities while prioritizing energy efficiency and renewable energy use.

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Exclusive Sections of the Report (The USPs):

Market Share Dynamics By Type – helps you understand the dominance of Hyperscale Data Centers (46.5% share in 2025) and the rapid rise of Colocation facilities, projected to grow at a CAGR of 12.3% (2026–2033), driven by enterprise demand for scalable and cost-efficient infrastructure.
Component-Wise Growth Insights – highlights how Servers lead the market (38.6% share in 2025), while Networking Equipment emerges as the fastest-growing component (CAGR 11.4%), revealing shifting investment priorities toward high-performance connectivity and 5G readiness.
Deployment Model Analysis – provides a clear view of Cloud’s market leadership (52.2% share in 2025) and the strong growth of Hybrid models (CAGR 13.1%), helping stakeholders identify evolving enterprise preferences for flexible, secure, and scalable data environments.
End-User Sector Opportunity Matrix – helps you pinpoint key revenue zones, with IT & Telecom leading (41.8% share in 2025) and Healthcare as the fastest-expanding sector (CAGR 12.6%), fueled by digital health transformation and rising data security needs.
Technology Adoption & Infrastructure Innovation Index – helps assess how AI integration, edge computing, and software-defined architectures are reshaping performance standards and guiding next-generation data center investments.
Global Investment And Expansion Tracker – provides insights into regional hyperscale expansion, colocation facility investments, and emerging markets’ digital infrastructure build-up, helping investors and operators identify high-growth geographies.

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