Data center services market growth CAGR of 21.38% by 2029

The Global Data Center Services Market was valued at USD 67.72 Billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 21.38% through 2029, according to Research And Markets.

The Global Data Center Services Market is experiencing dynamic growth and transformation driven by key technological trends and evolving business needs. With a surge in digitalization across industries, there is an escalating demand for robust, scalable, and secure infrastructure, propelling the market’s expansion. The Managed Hosting Service segment is emerging as a frontrunner, providing comprehensive end-to-end management of IT infrastructure.

Furthermore, Tier 3 data centers are dominating, striking a balance between cost-effectiveness and operational excellence. The Information Technology and Telecommunications (IT Telecom) sector stands out as a dominant end-user, fueling demand for high-performance computing, storage, and networking capabilities.

The market is witnessing the integration of cutting-edge technologies like edge computing, artificial intelligence, and automation, emphasizing the need for adaptive and future-proof data center solutions. Security concerns and regulatory compliance remain pivotal, shaping data center service providers’ strategies. As the market continues to evolve, data center services are positioned as essential enablers of digital transformation, catering to the diverse requirements of businesses in an increasingly interconnected and data-centric landscape.

Service Insights

Managed Hosting Services:

• Dominated the market in 2023, allowing businesses to outsource infrastructure management.
• Helps organizations focus on core competencies while handling server maintenance, security, and performance optimization.
• Increasing complexity of IT environments and rapid technological changes drive demand for managed solutions.
• Emphasis on security and compliance encourages businesses to rely on service providers with specialized security measures.
• Addresses the complexities of hybrid and multi-cloud environments, ensuring seamless integration and optimal performance.

Research and Markets