Data Center Infrastructure Market Analysis

Data Center Infrastructure Market Overview

The Data Center Infrastructure market size is projected to grow from USD 273880.1669 million in 2024 to USD 549991.4 million by 2032, exhibiting a compound annual growth rate (CAGR) of 9.11% during the forecast period (2024 - 2032). Additionally, the market size for Data Center Infrastructure was valued at USD 251035.9 million in 2023.

The Data Center Infrastructure Market is witnessing rapid growth driven by several key drivers. Firstly, the rapid adoption of cloud computing coupled with digital transformation initiatives has resulted in a surge in data center demands as businesses increasingly rely on cloud-based deployments. Additionally, the exponential growth in data generation and the heightened need for storage have led to increased investments in data center infrastructure to accommodate these massive data volumes. The rise of hyperscale data centers, known for their ability to handle large-scale data processing and storage requirements, has further boosted market expansion. Moreover, organizations are gaining better visibility into predicting data center capacity requirements, optimizing resource allocation.

Another significant opportunity lies in the construction of hyperscale data centers worldwide by tech companies, signaling increased investments in data center infrastructure. Furthermore, the surging demand for green data centers, with a focus on eco-friendly and energy-efficient solutions, presents an attractive prospect for sustainable growth. Lastly, the deployment of 5G networks drives the need for data centers capable of handling the increased data traffic, opening doors for further market expansion. However, the market faces certain restraints, including high energy consumption associated with data centers and complications in data center construction processes, which require innovative solutions to address sustainability and operational challenges. Despite these challenges, the Data Center Infrastructure Market holds tremendous potential for growth and advancement in the digital era.

Figure1: Data Center Infrastructure Market, 2018 - 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Data Center Infrastructure Market Opportunity

Construction of hyperscale data centers worldwide by the tech companies

The construction of hyperscale data centers worldwide by tech companies presents a significant opportunity for the Data Center Infrastructure Market. Hyperscale data centers are large-scale facilities designed to accommodate enormous amounts of computing, storage, and networking resources to support cloud computing, big data analytics, artificial intelligence, and other data-intensive applications. The construction of hyperscale data centers by tech companies creates opportunities for the data center infrastructure market as follows:

Increased Demand for Data Center Infrastructure

The construction of hyperscale data centers requires a vast amount of data center infrastructure, including servers, storage systems, networking equipment, cooling solutions, and power distribution systems. The growing number of hyperscale data centers worldwide drives the demand for advanced and high-performance infrastructure components.

Scale and Efficiency Requirements

Hyperscale data centers demand massive scale and efficiency to handle the high volumes of data and processing requirements. This creates opportunities for data center infrastructure providers to offer solutions that can scale horizontally and vertically while ensuring optimal energy efficiency.

Advanced Cooling Technologies

Hyperscale data centers generate significant heat due to the dense concentration of hardware. This drives the need for innovative and efficient cooling technologies. Data center infrastructure companies can capitalize on this opportunity by offering advanced cooling solutions that improve energy efficiency and reduce operational costs.

High-Density Server Solutions

Hyperscale data centers require high-density server solutions to maximize computing power within limited physical space. Data center infrastructure providers can develop and offer dense server designs that cater specifically to the needs of hyperscale deployments.

Global Data Center Expansion

Tech companies are expanding hyperscale data centers to various regions worldwide to cater to growing data demands and ensure low-latency services. This expansion presents opportunities for infrastructure providers to enter new markets and offer solutions tailored to local needs.

Innovative Storage Solutions

Hyperscale data centers require massive storage capacities to handle vast amounts of data. Data center infrastructure companies can offer innovative storage solutions, including high-capacity drives and efficient storage architectures.

Better services

Hyperscale data centers can help companies to provide better services to their customers by providing them with a reliable and secure platform for their applications. This can lead to improved customer satisfaction and increased sales.

Data Center Infrastructure Market Component Segment Insights

Data Center Infrastructure Market- Component Insights

Based on components, the Data Center Infrastructure Market segmentation includes hardware, software, and Services. The hardware segment held the majority share in 2022, contributing around ~ 73.31% to the market revenue. Data center infrastructure is made up of the physical elements present in a data center. In essence, data center physical infrastructure refers to the IT gear and supporting hardware (such as cooling and air quality systems) present within the facility's walls. These could include –

• Servers


• Computers


• Networking equipment, such as routers or switches


• Security, such as firewall or biometric security system


• Storage, such as storage area network (SAN) or backup/tape storage

It can also include non-computing resources, such as:

• Power and cooling devices, such as air conditioners or generators


• Physical server racks/chassis


• Cables


• Internet backbone


• Among others

Figure 2: Data Center Infrastructure Market, by Component, 2022 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Data Center Infrastructure Market- Data Center Type Insights

Based on components, the Data Center Infrastructure Market segmentation includes enterprise, colocation, Cloud Data Center, and edge data center. The enterprise data center segment held the majority share in 2022, contributing around ~ 44.1% to the market revenue.

Enterprise data centres are private facilities owned and maintained by a single company to satisfy its own IT infrastructure needs. These data centres are especially well-suited for organizations that require customized networks or can benefit from economies of scale as a result of large volumes of traffic or data handled and managed within their data centre. Enterprise data centres may be maintained by organizations for a variety of reasons, including regulatory compliance, privacy protection, greater performance, enhanced security, or cost-effectiveness. These data centres are particularly designed to be compatible with an organization's unique corporate applications and procedures, and they can be situated on or off-site, depending on considerations such as power availability, water accessibility, connectivity, and security.

Data Center Infrastructure Market- Tier Type Insights

Based on components, the Data Center Infrastructure Market segmentation includes tier 1, tier 2, tier 3, and tier 4 data centres. The Tier 3 segment held the majority share in 2022, contributing around ~ 58.0% to the market revenue. A tier 3 data centre is a facility that can be maintained in parallel and has various power and cooling distribution channels. Tier 3 data centres, unlike tier 1 and 2 facilities, do not require a complete shutdown for maintenance or equipment replacement. Tier 3 data centres must have all of the components found in tier 2 data centres, but they must additionally have N+1 availability:

• "N" denotes the amount of capacity required to sustain the entire IT load.


• "+1" denotes an additional component for backup reasons.

If the primary element fails or the staff removes the part for planned maintenance, N+1 redundancy assures that an alternate component begins running. Tier 3 data centres must also have a backup plan in place to keep operations going in the event of a local or regional power loss. The facility must ensure that equipment can be used for at least 72 hours after an outage. When compared to lesser grades, Tier 3 installations have a considerable increase in availability. Clients that use tier 3 data centres can expect up to 1.6 hours of outage per year.

Data Center Infrastructure Market- Vertical Insights

Based on Vertical, the Data Center Infrastructure Market segmentation includes IT & telecom, datacentres, healthcare, financial services, retail, industry (manufacturing), energy production & distribution, transportation infrastructure & operators, public services, and others.  The IT & telecom segment held the majority share in 2022, contributing around ~ 33.4% to the market revenue.

Telecom operators strive to manage legacy infrastructure and quickly implement innovative technology solutions and services to embrace the digital transformation that helps them sustain in the competitive market environment while improving the customer experience and gain a competitive edge over their competitors. However, the telecom operators lease services to the other organizations that challenge them to manage all the Offerings accurately. DCIM providers enable telecom operators to accurately monitor and manage their assets, energy consumption, and related workload through capacity management, power management & planning, cooling management & simulation, monitoring & alarming systems, cable management, integrated asset management, energy consumption analysis, and billing solutions.

With the introduction of new technologies such as 5G, IoT, virtual and augmented reality, and AI/ML, the telecommunications business is developing to meet large data processing and low latency requirements. Telecom data centres are also undergoing transition to meet the demands of large data volume and low latency. With smart cities, home and industry automation, over the top (OTT) services, and intelligent transportation, the consumer and corporate environments are fast altering. There is a recurring theme: data is everywhere and rising at an exponential rate. The first-generation networks were analogue and limited to voice communication; 2G introduced digital communication; 3G offered video and mobile data; 4G enabled high-speed access; and 5G promises tremendous bandwidth with reduced latency. Telecom businesses have engaged in several technological transitions throughout the years in order to expand network capacity, cut costs, and improve adaptability. The data centre revolution is important here because proprietary physical equipment are rapidly being replaced by virtualized and cloud-based systems.

For telecom carriers, data centres are a critical asset for continually processing massive amounts of data with minimal latency. To meet the growing demand for cloud services, hyperscale providers continue to invest billions of dollars each year on creating and expanding the footprint of their worldwide data centres. It would be impossible for telecom companies to avoid the public cloud. Many telecom players are discovering that, in many respects, adopting the public cloud delivers benefits to embrace while not posing a danger to their company.

Regional Analysis

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil. In terms of revenue, North America held the largest share of 41.9% in the data center infrastructure market in 2022 and is expected to maintain its dominance during the forecast period.

The North American data center infrastructure market area will dominate this market, The demand for new data center infrastructures in the area is being driven by the growth of mobile broadband, cloud computing, and big data analytics. Additionally, the growing popularity of cloud computing among businesses in North America due to falling server prices is anticipated to increase demand for DCIM during the forecast period. In the US, the market for data centers in the West is established and developed. The high connectivity and proximity to IT hubs in the area will benefit data center operators, making it a wise investment. The industry in California comprises about 90% of digital businesses, including cloud service providers and other IT and technology firms.

Europe’s data center infrastructure market accounts for the second-largest market share due to its importance as a global center for technology. A revolution is occurring in the local enterprise technology market due to the growing adoption of 5G, Virtual Reality, and Artificial Intelligence. Further, the German data center infrastructure market held the largest market share, and the UK data center infrastructure market was the fastest-growing market in the European region.

The Asia-Pacific Data Centre Infrastructure Market is expected to grow at the fastest CAGR from 2023 to 2032. Growing access to commercial digital solutions and rising internet usage have helped increase the number of SMEs in the Asia Pacific region. Big data and artificial intelligence are being used increasingly in this field, accelerating the growth of the data center industry. Moreover, China’s data center infrastructure market held the largest market share, and the Indian data center infrastructure market was the fastest-growing market in the Asia-Pacific region.

Figure3: GLOBAL DATA CENTRE INFRASTRUCTURE MARKET SIZE BY REGION 2022&2032

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Data Center Infrastructure Key Market Players & Competitive Insights

The data center infrastructure market is characterized by the presence of many global, regional, and local players. The market is competitive, with all the players competing to gain maximum market share. Rapid adoption of cloud computing coupled with digital transformation, exponential growth in data generation coupled with surged in storage demand, rise of hyperscale data centers, visibility to predict data center capacity requirements, and inclination of organizations for cloud-based deployments are key factors that drive the market growth. High energy consumption associated with data centers, complications associated with data center construction, and cybersecurity and physical security restraints the growth of Data Center Infrastructure Market. However, construction of hyperscale data centers worldwide by the tech companies, surging demand for green data centers, and deployment of 5G network will create opportunity for the market’s growth.

According to MRFR analysis, the growth of the Data Center Infrastructure Market is dependent on market conditions. The key vendors in the market are Hewlett Packard Enterprise Development LP (HPE), Dell Inc., IBM Corporation, Fujitsu, Huawei Technologies Co. Ltd, Cisco Systems, Inc., Super Micro Computer, Inc., Lenovo, Vertiv Group Corp, ABB Group, IEIT (Inspur Electronic Information Industry Co Ltd), MST (Multi-System Technologies), Schneider Electric SA, ASETEK A/S, Johnson Controls, Inc., Wiwynn Corporation, MiTAC Computing Technology Corporation, Quanta Computer Inc., Inventec Corporation, Wistron Corporation, Foxconn, ASRock Rack Inc., and Giga-Byte Technology Co., Ltd..

These companies are focusing on enhancing their products with the integration of improved technologies. Moreover, these companies are prominent providers of Data Center Infrastructure and compete in the Data Center Infrastructure Market to increase their geographic presence, expand their customer base, and form strategic partnerships.

Cisco aims to expand its geographic presence, customer base, and product portfolio through collaborations and partnerships. Cisco focuses on forming partnerships and product development to strengthen its position in the global operational technology security market. The company primarily follows organic strategies to ensure growth in the global market. It strategizes to invest in innovations and R&D to ensure a strong market presence and an enhanced product portfolio. Cisco aims to expand its geographic presence and customer base through collaborations and partnerships to remain relevant in the competitive market.

Key Companies in the market include

• Hewlett Packard Enterprise Development LP (HPE)


• Dell Inc. (Dell)


• IBM Corporation


• Fujitsu


• Huawei Technologies Co. Ltd (Huawei)


• Cisco Systems, Inc


• Super Micro Computer, Inc.


• Lenovo


• Vertiv Group Corp


• ABB


• IEIT (INSPUR ELECTRONIC INFORMATION INDUSTRY CO LTD)


• MST (Multi-System Technologies)


• Schneider Electric S.E.


• ASETEK A/S


• Johnson Controls International PLC

Data Center Infrastructure Industry Developments

In November 2022, Dell Technologies enhances its high-performance computing (HPC) portfolio (PowerEdge XE9680, PowerEdge XE9640, and PowerEdge XE8640), providing strong solutions to assist organizations in quickly and confidently innovating. Dell's new offerings include technologies and services that assist clients' power-demanding applications while making HPC capabilities more accessible to companies.

In July 2021, HPE expanded its hybrid cloud leadership with extensive innovations to the HPE GreenLake edge-to-cloud platform for cloud services in the data center, colocation center, and at the edge. Application, security, silicon, and software innovations include automated, cloud-native capabilities that can be executed in just a few steps and controlled in this integrated platform.

Data Center Infrastructure Market Segmentation

Data Center Infrastructure Component Outlook

• Hardware


• Software


• Services

Data Center Infrastructure Data center type Outlook

• Cloud Data Center


• Enterprise Data Center


• Co-locations Data Center


• Edge & Micro Data Center

Data Center Infrastructure Tier Type Outlook

• Tier 1


• Tier 2


• Tier 3


• tier 4

Data Center Infrastructure Vertical Outlook

• IT & Telecom


• Healthcare


• BFSI


• Retail


• Manufacturing


• Energy


• Government


• Others

Data Center Infrastructure Regional Outlook

• 
  

  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  

  Europe

  
  
  
  
  • Germany
  
  
  • UK
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Netherlands
  
  
  • Rest of Europe
  
  
  
  


• 
  

  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • Singapore
  
  
  • Australia
  
  
  • India
  
  
  • Malaysia
  
  
  • Rest of APAC
  
  
  
  


• 
  

  Middle East & Africa

  
  
  
  
  • UAE
  
  
  • Qatar
  
  
  • Saudi Arabia
  
  
  • Rest of MEA
  
  
  
  


• 
  

  South America

  
  
  
  
  • Argentina
  
  
  • Brazil
  
  
  • Rest of South America