Cloud Data Center Market Size

Cloud Data Center Market in 2025 is assessed at USD 31.49 billion. The global Market size was worth over USD 29.14 billion in 2024 and is poised to grow at a CAGR of more than 10.1%, reaching USD 101.79 billion revenue by 2037. North America is anticipated to attain USD 41.73 billion by 2037, driven by rising investments in data center development and advancements in cloud technology.

The cloud data center market growth is driven by the rising adoption of digital transformation across several sectors including IT and telecom, BFSI, energy, healthcare and pharmaceuticals, manufacturing, and governments. Organizations and businesses in these sectors are rapidly adopting advanced digital technologies to streamline and automate operations and improve consumer experience. There has been a significant increase in the adoption of data centers, including cloud services to store, process, and manage the large volume of data generated by businesses, digital services, IoT, and connected devices. Cloud data centers offer enhanced flexibility, scalability, cost-effectiveness, better collaboration, and disaster recovery.

Leading players are focused on developing new products and applications to support market growth. For instance, Google invested USD 1 billion in 2024 to develop new data centers to power its cloud and AI applications in the U.S. and abroad. The company is currently developing a cloud data center in Kansas City and plans to build a USD 576 million data center in Cedar Rapids.