Cloud Data Center Market Size

Cloud Data Center Market size was valued at USD 25.2 billion in 2023 and is anticipated to cross USD 80 billion by the end of 2036, expanding at more than 10.1% CAGR during the forecast period i.e., between 2024-2036. In 2024, the industry size of cloud data center is assessed at USD 27.7 billion.

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.