Data Center Outsourcing Market Size

Data Center Outsourcing Market size is estimated at USD 134.6 billion in 2024 and is anticipated to exceed USD 255.9 billion by the end of 2037, witnessing over 5.5% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of data center outsourcing is evaluated at USD 142 billion.

The growing adoption of big data analytics and increasing demand for advanced data centers is fuelling the overall data center outsourcing market growth. For instance, as of 2023, 39.5% of businesses used big data to manage datasets as a business asset. The U.S. is home to 2,701 data centers alone. Across the world, 82% of businesses anticipate raising their data modernization spending. Following the industry's heightened recognition of the importance of big data and data modernization, this percentage rose from 41% in 2022.

Data center outsourcing refers to the practice where a third party offers management and operation of data center facilities rather than handling these functions in-house. This includes services such as infrastructure management, colocation, network services, and security. Scalability, flexibility, and cost efficiency are some of the prime factors driving the sales of data center outsourcing services across the world. Outsourcing reduces the capital expenditure of the organization related to the installation and maintenance of hardware infrastructure. This also reduces the operation cost and need for in-house IT support by shifting to a pay-as-you-go model.  Several end use organizations are widely adopting data center outsourcing services as it aids the companies to concentrate on their core business operations.