Datacenters Market Report 2025 (Global Edition)

Global Datacenters Market Report 2025 Market Size Split by Component (Solution, Services), by Type (Colocation, Hyperscale, Edge, Others), by Server Rack (<10kW, 10-19kW, 20-29kW, 30-39kW, 40-49kW, >5...

Datacenters Market Report Description

We have various report editions of Datacenters Market, hence please contact our sales team and author directly to obtain/purchase a desired Edition eg, Global Edition, Regional Edition, Country Specific Report Edition, Company Profiles, Forecast Edition, etc. Request for your Free Sample PDF/Online Access.

How 2025 Tariffs Are Reshaping the Consumer Goods Industry

In 2025, the global trade landscape has shifted dramatically following the U.S. introduction of sweeping tariffs under President Donald Trump’s administration. These "Liberation Day Tariffs," launched in April, aim to reduce trade deficits and boost domestic manufacturing. Tariffs range from 10% on imports from countries like the UK and Australia to 46% on Vietnamese goods, with a blanket 34% tariff on many Chinese imports and 25% on all steel, aluminum, and auto parts. This policy heavily impacts the consumer goods sector apparel, appliances, packaged foods, and personal care products due to their deep reliance on global supply chains, especially in Asia. U.S.–China trade tensions have intensified, with reciprocal tariffs reaching up to 145% on U.S. goods and 125% on Chinese exports, while China’s trade surplus with the U.S. hit USD 102.6 billion in March 2025. In response, the EU and Canada have implemented retaliatory measures, signaling a broader shift toward protectionism.

The consumer goods industry is feeling immediate effects: production costs are rising, sourcing is delayed, and inflation pressures are mounting. Apparel and footwear now face 25% tariffs, prompting brands to seek nearshoring options or raise prices. Household appliances incur 20% tariffs, complicating inventory and procurement strategies. Packaged foods and beverages are hit with 10–15% tariffs, impacting contracts and leading to supplier diversification and product reformulation. Personal care firms face higher costs for imported ingredients and packaging, leading to local sourcing efforts and delays in new product launches. Meanwhile, electronics, though temporarily exempt, are preparing for possible disruptions by diversifying suppliers and increasing inventories.

China remains the backbone of U.S. consumer goods sourcing, accounting for a large portion of imports either directly or through upstream components. This makes tariffs on Chinese goods especially disruptive. The rising input costs 15–30% in many categories combined with seasonal pressures and tight timelines, are causing delays and increased costs. Smaller brands, in particular, are struggling due to limited capital and reduced supplier leverage. Many are being forced to increase prices, cut product variety, or compromise on quality.

Market research is now critical to navigating this volatile environment. It supports supplier mapping and risk assessment, helping brands identify alternative sourcing countries with stable regulations and quality control. It also aids in cost and margin analysis, guiding decisions on pricing and sourcing changes. Optimization of product design and materials through research allows companies to reduce costs while maintaining consumer expectations. Additionally, research helps assess consumer price sensitivity, enabling strategic repositioning. Tracking regulatory changes and running scenario planning models allow firms to anticipate and adapt to future trade shifts.

To cope, companies are restructuring their global sourcing models. Major brands like Nike and IKEA are expanding operations in Vietnam, India, and Mexico, while embracing “in-market for market” strategies to reduce exposure to tariffs and logistics risks. Many are adopting AI-driven demand forecasting and automated procurement, and pushing suppliers for transparency. Product redesign and SKU rationalization are also common. The most successful firms are those using data-driven insights, operational flexibility, and strategic supplier partnerships to adapt not just survive in this new era of global trade.

Competitive Landscape of the Datacenters market 

In the competitive landscape of the data center market, major players like Equinix, Digital Realty, and Microsoft dominate, offering extensive global infrastructure and diverse service portfolios. Additionally, there's fierce competition from emerging players like EdgeConneX and CyrusOne, as well as cloud giants such as Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure, driving innovation and market differentiation.

Datacenters Industry News

In March 2022, Elea Digital and Vertiv joined together to provide edge data center services in Brazil. Vertiv will operate and maintain Elea Digital data centers in many Brazilian cities, including Curitiba, Porto Alegre, and Brasilia. Collaborating with Vertiv provides crucial accountability, automation, and real-time administration of critical infrastructure. It will also use software solutions to ensure Elea Digital's six data centers' energy efficiency and cost control. Through this collaboration, Vertiv will get access to a wider and broader market to help the Brazilian data center sector.

(Source: https://www.prnewswire.com/news-releases/elea-digital-and-vertiv-announce-strategic-alliance-to-deliver-edge-data-center-services-in-brazil-301500928.html)

Top Companies Market Share in Datacenters Industry: (In no particular order of Rank)

• Amazon Web Services Inc
• AT&T Intellectual Property
• Lumen Technologies (CenturyLink)
• China Telecom Americas Inc
• CoreSite
• CyrusOne
• Digital Realty
• Equinix Inc
• Google Cloud
• IBM
• Microsoft
• NTT Communications Corporation
• Oracle
• Tencent Cloud
• Confidential Data
• Access The Paid Version
• Data Hidden

*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the Datacenters market

Which Region will dominate the Datacenters Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024 and accounted for around 40% of the global revenue. The North American data centers market showcases robust growth, driven by factors such as increasing demand for cloud services, digital transformation initiatives, and the proliferation of IoT devices. Major players like Microsoft, Amazon, and Google dominate the region with extensive infrastructure investments. The United States leads in market share, with key hubs in Silicon Valley, Northern Virginia, and Texas, while Canada experiences steady growth, particularly in Toronto and Montreal. Regulatory changes and sustainability concerns also influence market dynamics.

Which Region is Expanding at the Fastest CAGR?

The European region is witnessing an increase in the sales of reagents. In Europe, the data center market exhibits regional variations driven by factors such as infrastructure development, energy costs, and regulatory environments. Western Europe, including major hubs like London, Frankfurt, and Amsterdam, leads in data center investment and adoption due to established digital economies and connectivity. Meanwhile, Eastern Europe, with emerging markets like Poland and Romania, shows potential for growth, driven by improving infrastructure and favorable business climates. These regional dynamics shape the overall landscape of the European data center market.

The current report Scope analyzes Datacenters Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Datacenters Market

According to Cognitive Market Research, the global data centers market size was estimated at USD 195245.2 Million, out of which North America held the major market of more than 40% of the global revenue with a market size of USD 78098.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.5% from 2024 to 2031. In North America, the data center market is primarily propelled by several key drivers. One significant factor is the increasing demand for cloud services, driven by the rapid expansion of digital transformation initiatives across various industries. Additionally, the proliferation of data-intensive technologies such as IoT, AI, and big data analytics fuels the need for robust data center infrastructure. Furthermore, favorable government policies, technological innovation, and growing investments in edge computing contribute to the continuous growth and evolution of the North American data center market.

Country Analysis

• According to Cognitive Market Research, the US had a major share in the data centers market with a market size of USD 61619.39 million in 2024 and is projected to grow at a CAGR of 9.3% during the forecast period. Factors such as the need for enhanced cybersecurity measures, growing reliance on digital services across various industries, and favorable tax incentives in certain regions contribute to the growth of the data center market.
• The Canada data centers market had a market share of USD 9371.77 million in 2024 and is projected to grow at a CAGR of 10.3% during the forecast period. Canada's political stability, favorable business environment, and strong connectivity infrastructure contribute to its appeal as a data center location.
• The Mexico data centers market is projected to witness growth at a CAGR of 10.0% during the forecast period, with a market size of USD 7106.93 million in 2024.

 

Europe Datacenters Market

According to Cognitive Market Research, with a market value of USD 195245.2 million in 2024, it is projected to expand at a compound annual growth rate (CAGR) of 9.8% from 2024 to 2031. Europe accounted for a share of over 30% of the global market size of USD 58573.56 million. Several data centers influence the European data center market. Rapid digital transformation across industries fuels demand for data storage and processing facilities. Government initiatives promoting cloud adoption and data localization regulations also stimulate market growth.

Additionally, the rise of IoT, AI, and big data analytics amplifies the need for robust data infrastructure. Factors such as renewable energy integration, connectivity advancements, and cybersecurity concerns further shape the market landscape. Collectively, these drivers contribute to the evolving dynamics of the data center market in Europe.

• The United Kingdom's data centers market had a market share of USD 9840.36 million in 2024 and is projected to grow at a CAGR of 10.6% during the forecast period. The UK's strategic location, favorable business environment, and robust telecommunications infrastructure further stimulate investment in data centers.
• The French data centers market is projected to witness growth at a CAGR of 9.0% during the forecast period, with a market size of USD 5388.77 million in 2024.
• According to Cognitive Market Research, the German data centers market size was valued at USD 11597.56 million in 2024 and is projected to grow at a CAGR of 10.0% during the forecast period. Germany's strategic geographical location in Europe enhances its attractiveness as a data hub, fostering connectivity and international data traffic.
• The Italian data centers market is projected to witness growth at a CAGR of 9.2% during the forecast period, with a market size of USD 5037.33 million in 2024.
• The Russian data centers market is projected to witness growth at a CAGR of 8.8% during the forecast period, with a market size of USD 9078.90 million in 2024.
• The Spanish data centers market is projected to witness growth at a CAGR of 8.9% during the forecast period, with a market size of USD 4803.03 million in 2024.
• The Luxembourg data centers market is projected to witness growth at a CAGR of 9.9% during the forecast period, with a market size of USD 1815.78 million in 2024.
• The Portuguese data centers market is projected to witness growth at a CAGR of 9.6% during the forecast period, with a market size of USD 1230.04 million in 2024.
• The Greece data centers market is projected to witness growth at a CAGR of 10.1% during the forecast period, with a market size of USD 702.88 million in 2024.
• The rest of Europe's data centers market is projected to witness growth at a CAGR of 8.5% during the forecast period, with a market size of USD 9078.90 million in 2024.

 

Asia Pacific Datacenters Market

According to Cognitive Market Research, the global data centers market size was estimated at USD 195245.2 Million, out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 44906.40 million in 2024 and will grow at a compound annual growth rate (CAGR) of 13.3% from 2024 to 2031. In their key drivers, primarily data center Asia-Pacific region, the data center market. Rapid urbanization, expanding digital economies, and the proliferation of cloud computing services stimulate demand for data storage and processing infrastructure. Additionally, increasing internet penetration and the adoption of emerging technologies such as IoT and AI fuel the need for robust data center facilities. Moreover, supportive government initiatives, favorable regulatory frameworks, and investments in connectivity infrastructure further accelerate the growth of the data center market across the Asia-Pacific region.

• According to Cognitive Market Research, the China data centers market size was valued at USD 20207.88 million in 2024 and is projected to grow at a CAGR of 12.8% during the forecast period: rapid urbanization and the growth of digital services fuel demand for data storage and processing capabilities.
• The Japan data centers market is projected to witness growth at a CAGR of 11.8% during the forecast period, with a market size of USD 6197.08/ million in 2024.
• The India data centers market had a market share of USD 5388.77 million in 2024 and is projected to grow at a CAGR of 15.01% during the forecast period. The Government initiatives promoting data localization and cybersecurity measures further stimulate demand for data center infrastructure.
• The South Korean data centers market is projected to witness growth at a CAGR of 12.4% during the forecast period, with a market size of USD 4490.64 million in 2024.
• The Australian data centers market is projected to witness growth at a CAGR of 13.0% during the forecast period, with a market size of USD 2335.13 million in 2024.
• The Southeast Asia data centers market is projected to witness growth at a CAGR of 14.3% during the forecast period, with a market size of USD 3098.54 million in 2024.
• The Rest of the Asia Pacific data centers market is projected to witness growth at a CAGR of 13.01% during the forecast period, with a market size of USD 3188.35 million in 2024.

South America Datacenters Market

According to Cognitive Market Research, the global Data centers market size was estimated at USD 195245.2 Million, out of which the Latin America market has more than 5% of the global revenue with a market size of USD 9762.26 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.7% from 2024 to 2031. In Latin America, the data center market is influenced by several key drivers. Rapid digitization efforts across industries, increasing internet penetration rates, and growing demand for cloud services are primary factors propelling market growth. Additionally, government initiatives to promote technology infrastructure development and attract foreign investment play a crucial role. Brazil, Mexico, and Colombia stand out as key markets due to their large economies and expanding digital ecosystems. These drivers collectively fuel the expansion and evolution of the data center market in Latin America.

• According to Cognitive Market Research, Brazil's data centers market size was valued at USD 4178.25 million in 2024 and is projected to grow at a CAGR of 11.3% during the forecast period. Government initiatives to improve internet infrastructure and promote digital inclusion further stimulate market growth.
• The Argentina data centers market had a market share of USD 1640.06 million in 2024 and is projected to grow at a CAGR of 11.6% during the forecast period. The improving internet connectivity and efforts to enhance cybersecurity bolster the attractiveness of Argentina as a data center destination, driving growth in the market.
• The Colombia data centers market is projected to witness growth at a CAGR of 10.5% during the forecast period, with a market size of USD 868.84 million in 2024.
• The Peru data centers market is projected to witness growth at a CAGR of 10.9% during the forecast period, with a market size of USD 800.51 million in 2024.
• The Chile data centers market is projected to witness growth at a CAGR of 11.0% during the forecast period, with a market size of USD 702.88 million in 2024.
• The Rest of the Latin American data centers market is projected to witness growth at a CAGR of 9.8% during the forecast period, with a market size of USD 1571.72 million in 2024.

Middle East Datacenters Market

According to Cognitive Market Research, the global data centers market size was estimated at USD 195245.2 Million, out of which the Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 3904.90 million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.0% from 2024 to 2031. In the Middle East and Africa, the data center market is propelled by several drivers. Rapid urbanization, expanding digital transformation initiatives, and increasing demand for cloud services are key factors fostering growth. Additionally, government initiatives promoting technology infrastructure development, coupled with rising internet penetration rates, are fueling demand for data center services. Moreover, the region's strategic location for global connectivity and emerging economies with burgeoning tech sectors contribute to the attractiveness of the Middle East and Africa as a growing market for data center investment and expansion.

• According to Cognitive Market Research, the GCC Countries' data centers market size was valued at USD 1671.30 million in 2024 and is projected to grow at a CAGR of 11.8% during the forecast period. The region's strategic location between East and West enhances its appeal as a connectivity hub.
• The Egypt data centers market is projected to witness growth at a CAGR of 11.3% during the forecast period, with a market size of USD 410.01 million in 2024.
• The South African data centers market is projected to witness growth at a CAGR of 12.0% during the forecast period, with a market size of USD 616.97 million in 2024. South Africa's growing economy and investment in telecommunications infrastructure contribute to market expansion.
• The Turkish data centers market is projected to witness growth at a CAGR of 10.5% during the forecast period, with a market size of USD 335.82 million in 2024.
• The Nigeria data centers market is projected to witness growth at a CAGR of 10.1% during the forecast period, with a market size of USD 410.01 million in 2024.
• The Rest of the MEA data centers market is projected to witness growth at a CAGR of 10.0% during the forecast period, with a market size of USD 460.78 million in 2024.

 

Datacenters Market Analysis

Datacenters market Components Segment Analysis

Solutions refer to the physical infrastructure and technological components necessary for operating a data center, such as servers, storage systems, networking equipment, and cooling systems. These elements are essential for building and maintaining the core infrastructure of a data center.

Services in the data center market segment involve a range of offerings aimed at supporting the operation, management, and optimization of data center environments. This includes services like consulting, installation, maintenance, monitoring, and managed hosting. Service providers may also offer additional value-added services such as data migration, disaster recovery, and cybersecurity solutions to meet the evolving needs of businesses relying on data centers.

• Solution
• Services

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Datacenters Industry. Request a Free Sample PDF!

Datacenters market Type Segment Analysis

Colocation data centers provide space, power, and cooling for businesses to house their servers and IT infrastructure. These facilities offer flexibility, allowing multiple organizations to share space and resources while maintaining control over their hardware and software. Colocation services are often chosen by small to medium-sized enterprises seeking cost-effective solutions without the burden of managing a dedicated data center.

Hyperscale data centers are massive facilities built and operated by tech giants like Google, Amazon, and Microsoft. These facilities are designed to handle enormous amounts of data and computing power, catering to the needs of cloud services, social media platforms, and large-scale enterprises. Hyperscale data centers are characterized by their scalability, efficiency, and ability to support the rapidly growing demands of modern digital services.

• Colocation
• Hyperscale
• Edge
• Others

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Datacenters Server Rack Segment Analysis

These are smaller-scale data centers suitable for small to medium-sized businesses or specific applications. They typically cater to localized needs, offering basic computing and storage capabilities. 10kW datacenters are often used for edge computing or as supplementary facilities for larger operations. They provide a cost-effective solution for organizations with modest IT requirements.

This segment represents a slightly larger capacity range, accommodating medium-sized enterprises with more substantial computing needs. These data centers offer enhanced performance and scalability compared to their 10kW counterparts. They are capable of supporting a wider range of applications and workloads, making them suitable for growing businesses or those with moderate to high computational demands. This segment often incorporates advanced cooling and power distribution systems to maintain optimal performance levels.

• <10kW
• 10-19kW
• 20-29kW
• 30-39kW
• 40-49kW
• >50kW

Datacenters Datacenter Redundancy Segment Analysis

A 1N+1 setup features redundant components, ensuring that if one component fails, another immediately takes over to maintain operations. This configuration offers a balance between reliability and cost-effectiveness, making it suitable for many businesses with moderate uptime requirements.

2N configuration provides full redundancy, with each component having an independent backup. This setup offers the highest level of fault tolerance, as it can withstand the failure of any single component without disruption. However, it typically comes with higher upfront costs due to duplicated infrastructure. Organizations with critical operations, such as financial institutions or healthcare providers, often opt for 2N setups to ensure uninterrupted service.

• N+1
• 2N
• N+2
• N

Datacenters Design Segment Analysis

Traditional data centers are characterized by physical servers, storage, networking hardware, and infrastructure managed on-site or through third-party providers. They offer a well-established approach to data management and have long been the standard for many organizations.

Containerized data centers are a more modern approach, leveraging virtualization and containerization technologies to encapsulate applications and their dependencies into standardized units called containers. These containers can be easily deployed, scaled, and managed across various environments, providing greater flexibility and efficiency in resource utilization.

• Traditional
• Containerized
• Modular

Datacenters Enterprise Size Segment Analysis

Large enterprises typically require extensive computing resources to manage vast amounts of data and complex operations. They often opt for customized, high-capacity data center solutions to meet their specific needs for scalability, security, and reliability.

SMEs may have more modest requirements but still rely on data centers for essential IT infrastructure, storage, and processing capabilities. They often seek cost-effective solutions that can scale with their growth and offer flexibility in terms of services and pricing. Understanding the distinct needs and preferences of these two segments is crucial for data center providers to tailor their offerings and effectively target their marketing and operational strategies.

• Large Enterprises
• Small & Medium Enterprises (SMEs)

Author's Detail

Sneha Mali

Research Analyst at Cognitive Market Research

LinkedIn

Profile

I am a research analyst working in various domains including the Consumer Goods domain, and my primary responsibility is to conduct thorough research on various subjects and provide valuable insights to support client requirements. I have knowledge of research methodologies, and data mining which enables me to analyze large data sets, draw meaningful conclusions, and communicate them effectively. I stay up-to-date with the latest research trends, methodologies, and technologies to ensure that my research is accurate, relevant, and impactful.

Author's Conclusion