Data Center Market Outlook:
Data Center Market size was over USD 432.64 billion in 2025 and is projected to reach USD 1.14 trillion by 2035, growing at around 10.2% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of data center is evaluated at USD 472.36 billion.
Growth in the data center market can be attributed to rising demand for cloud computing, big data analytics, and growing traction for AI technologies. Due to an increase in remote work, online learning, and virtual entertainment, companies are digitizing their operations, and the need for a robust data storage and processing environment is high. For example, in September 2023, Vantage Data Centers announced a USD 9.2 billion equity investment led by DigitalBridge Group and Silver Lake. This investment will help Vantage build more capacity to meet the increasing demand it faces because of the surge in cloud and AI services across the globe.
Policies from governments around the world toward enhancing digital infrastructure also contribute to the growth of data center demand. For example, the Government of India incentivizes the creation of data centers within the country through many policies and steps to maximize connectivity, as it ensures reliable power access. According to the Digital Personal Data Protection Act 2023, the establishment of local data centers creates a high demand in the data center market. The government’s commitment to enabling an environment for data centers to thrive is further manifested through acts like creating Data Center Economic Zones and facilitating investments in this vital infrastructure.
