NEW YORK, July 25, 2025 /PRNewswire/ -- According to a new comprehensive report from The Insight Partners, the global data center infrastructure market is observing significant growth owing to the explosive growth in data generation, growing adoption of the Internet of Things (IoT), and expansion of cloud computing.
The data center infrastructure size was valued at USD 4.17 billion in 2024 and is expected to reach USD 10.20 billion by 2031; it is estimated to register a CAGR of 16.1% from 2025 to 2031. The Data Center Infrastructure Market is witnessing significant growth, fueled by the exponential rise in data generation, cloud computing adoption, and the increasing reliance on digital services.
This market encompasses the physical components required to support data center operations, including power and cooling systems, IT hardware, networking equipment, and monitoring tools. With enterprises and hyperscale cloud providers expanding their data capabilities, the demand for scalable, high-performance, and energy-efficient infrastructure has surged. The rise of technologies like artificial intelligence, 5G, and IoT further accelerates infrastructure upgrades and pushes data centers toward edge deployments to reduce latency.
Additionally, sustainability is becoming a central focus, prompting investments in green technologies such as renewable energy integration, liquid cooling, and carbon-neutral designs.
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The report runs an in-depth analysis of market trends, key players, and future opportunities. In general, the data center infrastructure market comprises a vast array of offering, data center type, tier type, and industry verticals, which are expected to register strength during the coming years.
Data Center Infrastructure Market Report Findings
1. Explosive Growth In Data Generation: The explosive growth in data generation is a primary driver behind the rapid expansion of the global data center infrastructure market. According to the International Data Corporation (IDC), worldwide data creation is projected to reach 175 zettabytes (ZB) by 2025, up from 33 ZB in 2018, fueled by the proliferation of IoT devices, AI applications, and 5G networks.
The Cisco Annual Internet Report estimates that by 2023, there will be 29.3 billion networked devices, generating unprecedented data volumes. This surge necessitates robust data center infrastructure to store, process, and manage information efficiently. Additionally, the rise of cloud computing, with giants like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud reporting combined revenues exceeding $150 billion in 2021, underscores the need for scalable data center solutions.
2. Growing Internet Of Things (IoT) Adoption: The Internet of Things (IoT) describes an extensively broad network of interconnected devices and technologies that enable communications between these devices and the cloud. Recently, there has been a huge surge in the adoption of IoT technologies due to advancements in mobile and wireless connectivity technologies, and a gradual drop in the cost of sensors and other components.
Several industries are using IoT to improve efficiency and reduce the costs of their operations. According to Finance Online, there were approximately 14.76 billion connected IoT devices as of November 2023, and this figure is expected to rise to ~25.44 billion by 2030. As per a forecast by IoT Analytics, 75% of the total devices in use will be IoT by 2030. Furthermore, FinleyUSA estimated the global IoT spending at USD 1.1 trillion in 2023. This evolving landscape compels data center operators to meet high bandwidth, lower latency, and real-time analytics demands by integrating edge nodes, optimizing network fabrics, and scaling storage systems.
3. Geographical Insights: In 2024, North America led the market with a substantial revenue share, followed by Europe and Asia Pacific.
Data Center Infrastructure Market Segmentation
- Based on offering, the global data center infrastructure market is segmented into IT, power, and cooling infrastructure. The segment dominated the market in 2024.
- Based on data center type, the global data center infrastructure market is segmented into enterprise data centers, colocation data centers, hyperscale data centers, and others. The S segment dominated the market in 2024.
- Based on tier type, the global data center infrastructure market is segmented into tier 1, tier 2, tier 3, and tier 4. The tier 3 segment dominated the market in 2024.
- Regarding industry verticals, the global data center infrastructure market is segmented into IT & telecom, BFSI, healthcare, government & defense, retail & e-commerce, manufacturing, and others. The IT and telecom segment dominated the market in 2024.
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Competitive Strategy and Development
- Key Players: Schneider Electric; Eaton; Mitsubishi Electric; Legrand, Delta Electronics; DELL; HPE; Cisco; IBM, and ABB are among the key players profiled in the data center infrastructure market report.
- Trending Topics: Data Center Cooling, Edge Data Centers, Artificial Intelligence, among others
Global Headlines
- " RackBank Datacenters Pvt. Ltd., a provider of carbon-neutral data center infrastructure, cloud computing, and Artificial Intelligence (AI) services, has launched an AI data center park in Nava Raipur, in the central Indian state of Chhattisgarh. The project will come up on 13.5 acres of land, and its construction will be completed in 4 phases with an initial capacity of 80MW in Phase 1, which will be scalable to 160MW in Phase 4."
- "Vertiv announced the global launch of Vertiv SmartRun, a modular prefabricated overhead infrastructure system designed to integrate high-density power distribution busbar, liquid cooling piping network, hot-aisle containment, and network infrastructure into a single, scalable solution, supporting an accelerated data center fit-out. This all-in-one solution reduces complexity and accelerates cloud and AI training application deployment times for greenfield and retrofit colocation and hyperscale data centers."
- "STULZ has launched the STULZ Micro DC - a single rack, all-in-one micro data center solution. Featuring a standardized and modular design, with preconfigured options that are fully tested for assured performance, the STULZ Micro DC combines power protection and distribution, cooling, monitoring, and management with fire protection and security."
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Conclusion
The data center infrastructure market is undergoing a transformative phase, driven by relentless growth in data generation, rising cloud adoption, and the proliferation of technologies like IoT, AI, and 5G. As the digital economy expands, businesses and service providers are investing heavily in scalable, efficient, and sustainable infrastructure to meet real-time processing demands, high availability, and data-intensive applications. The shift toward edge computing, green energy solutions, and modular deployments reflects a broader trend toward decentralized, resilient, and future-ready data environments. Moreover, increasing focus on ESG standards and energy efficiency influences design and operational strategies across the industry. With global data volumes projected to grow exponentially, the demand for robust and intelligent infrastructure will only intensify.
The report from The Insight Partners provides several stakeholders-including data center infrastructure providers, service providers, system integrators, and end users -with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.
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