Datacenters Market Projected to Expand at a 14.1% CAGR Until 2029: Industry Analysis
The Business Research Company
The Business Research Company’s Datacenters Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034
LONDON, GREATER LONDON, UNITED KINGDOM, December 12, 2025 /EINPresswire.com/ -- The datacenters market is experiencing rapid expansion, driven by technological advancements and increasing data demands across various industries. As reliance on digital infrastructure grows, the market is set for substantial growth in the coming years. Let’s explore the current market size, key drivers, major regional players, and future opportunities within this critical sector.
Datacenters Market Size and Expected Growth by 2025
The datacenters market has seen significant growth recently, with its size increasing from $328.11 billion in 2024 to $375.56 billion in 2025. This represents a compound annual growth rate (CAGR) of 14.5%. Historical growth has been fueled by the surge in enterprise data creation, widespread adoption of cloud services, expansion of colocation data facilities, rising digital data traffic, and the growing use of digital banking platforms.
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Looking ahead, the datacenters market is projected to expand even faster, reaching $636.50 billion by 2029, with a CAGR of 14.1%. Factors driving this forecast include the growth of edge computing, increasing integration of artificial intelligence (AI) workloads, the rise of remote working models, heightened focus on sustainable green data centers, and the rapid deployment of 5G networks. Key trends shaping the future of this market involve breakthroughs in modular datacenter designs, advances in liquid cooling technologies, research into energy-efficient server architectures, automation improvements for workload management, and innovations in optical interconnect systems.
Understanding Datacenters and Their Role in Data Management
Datacenters are highly specialized facilities designed to house critical IT infrastructure such as servers, storage devices, networking hardware, and computer systems. Their primary function is to securely store, manage, and process vast amounts of data while ensuring continuous availability of applications and services. To maintain optimal operations, datacenters also provide power backup systems, efficient cooling mechanisms, and robust physical security measures to protect sensitive equipment.
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Cloud Services as a Major Catalyst for Datacenters Market Growth
The growing demand for cloud services is a significant factor propelling the datacenters market forward. Cloud computing offers scalable, on-demand access to resources like storage, servers, databases, networking, and software through the internet, supporting businesses in their digital operations. As companies seek more flexible and scalable solutions to handle fluctuating workloads and accelerate their digital transformation efforts, the demand for cloud services increases.
Consequently, this surge in cloud usage drives the need for advanced and high-performance data storage and processing facilities within datacenters. For instance, a report released in April 2023 by Microsoft Corporation highlighted that public cloud spending in Australia is forecasted to grow from $7.95 billion in 2022 (A$12.2 billion) to $14.56 billion by 2026 (A$22.4 billion), showcasing an accelerating trend in cloud adoption that supports datacenter expansion.
Regional Highlights and Market Leadership Expectations by 2025
In 2024, North America held the largest share of the datacenters market, reflecting the region’s mature infrastructure and extensive digital economy. Meanwhile, Asia-Pacific is anticipated to emerge as the fastest-growing market over the forecast period, driven by increasing digitalization, expanding cloud adoption, and rapid technology deployment. The comprehensive market assessment includes other key regions such as Western Europe, Eastern Europe, South America, the Middle East, and Africa, providing a global perspective on datacenter growth trends.
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Oliver Guirdham
The Business Research Company
+44 7882 955267
info@tbrc.info
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