Healthcare Data Center Market to Reach USD 37.11 Billion by 2035 as AI Genomics, EHR Resilience and Hosted Capacity Reshape Healthcare Infrastructure - DC Market Insights
Market grows at a 9.15% CAGR from USD 15.46 billion in 2025; AI genomics and research computing expands 16.71% a year, while North America holds 46.0% of spending
LONDON, Oct. 23, 2026 /PRNewswire/ -- The "Healthcare Data Center Market - Growth, Share, Opportunities & Competitive Analysis, 2026-2035" report has been added to the DC Market Insights offering. The global Healthcare Data Center Market was valued at USD 15.46 billion in 2025, is estimated at USD 17.34 billion in 2026, and is projected to reach USD 37.11 billion by 2035, growing at a CAGR of 9.15% from 2025 to 2035. DC Market Insights finds that healthcare infrastructure is splitting between general-purpose EHR workloads that increasingly move to hosted environments and higher-value AI, imaging, research and resilience workloads that require dedicated or colocated capacity.
Healthcare Data Center Market at a Glance
Metric | Value (DC Market Insights estimate) |
Market size, 2020 | USD 9.77 billion |
Market size, 2025 (base year) | USD 15.46 billion |
Market size, 2026 | USD 17.34 billion (+12.16% year on year) |
Market size, 2030 | USD 25.10 billion |
Market size, 2035 | USD 37.11 billion |
CAGR 2025-2035 | 9.15% (low case 7.13%, high case 10.69%) |
Largest component | IT hardware, 70.7% of 2025 value |
Fastest-growing workload | AI genomics and research computing, 16.71% CAGR |
Leading region | North America, 46.0% (USD 7.11 billion) |
Fastest-growing region | Asia Pacific, 11.72% CAGR |
Largest end user | Hospitals and health systems, 47.0% of 2025 value |
Key Takeaways
- IT hardware accounts for USD 10.93 billion, or 70.7% of 2025 market value, reflecting the high server, storage and accelerator content of clinical and research workloads.
- AI genomics and research computing is the fastest workload, rising 16.71% a year from USD 2.30 billion in 2025 to USD 10.78 billion by 2035.
- Hospitals and health systems remain the largest end user at USD 7.27 billion in 2025, while pharmaceutical and life sciences grows fastest among end users at 11.61% a year.
- On-premises owned sites hold 60.0% of 2025 value, but wholesale and build-to-suit grows 14.01% a year as research and AI clusters move into purpose-built capacity.
- North America leads with 46.0% of 2025 spending, while Asia Pacific grows fastest at 11.72%; India is the fastest-growing large country at 18.37% a year.
Scope & Segmentation - Healthcare Data Center Market
The report analyzes the market across the following segments:
- Component: IT Hardware; Colocation and Hosting Services; Electrical and Mechanical Infrastructure; Construction and Fit-Out
- End User: Hospitals and Health Systems; Pharmaceutical and Life Sciences; Payers and Health Insurers; Health IT and Medtech Vendors; Public Health and Research Institutes
- Workload: EHR and Clinical Applications; Medical Imaging and PACS; AI Genomics and Research Computing; Claims and Revenue Cycle; Backup and Disaster Recovery; Collaboration and Other Workloads
- Deployment Model: On-Premises Owned Sites; Retail Colocation; Wholesale and Build-to-Suit; Vendor-Hosted Private Cloud
- Geography: North America; Europe; Asia Pacific; Latin America; Middle East and Africa, with 12 country forecasts
Report Updated: Oct. 22, 2026
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"Healthcare data center demand is moving in two directions at once: hospitals are reducing general-purpose owned halls while AI, imaging, research and cyber-resilience requirements add denser, higher-value infrastructure. Our model shows AI genomics and research computing growing 16.71% a year and wholesale or build-to-suit capacity growing 14.01%, while the owned-site share falls from 60.0% in 2025 toward 45.0% by 2035. That makes compliant hosted capacity, AI-ready infrastructure and recoverability the strongest growth pools through the forecast period."
- Amit Jain, Senior Consultant, ICT & Emerging Technologies, DC Market Insights, report author
Why This Report Matters
Healthcare data centers sit at the intersection of patient-data availability, clinical application performance, medical imaging, pharmaceutical research and cyber resilience. The report helps health systems, life sciences companies, colocation operators, cloud and hosting providers, equipment vendors and investors size infrastructure demand while separating public-cloud migrations that leave the market from leased and owned capacity that remains in scope.
Key Attributes
Report attribute | Details |
Historical Period | 2020-2024 |
Base Year | 2025 |
Forecast Period | 2026-2035 |
Market Size 2025 | USD 15.46 billion |
Market Size 2026 | USD 17.34 billion |
Market Size 2035 | USD 37.11 billion |
CAGR 2025-2035 | 9.15% (low 7.13%, high 10.69%) |
Leading Region | North America, 46.0% |
Report Format | PDF + Excel |
How Big Is the Healthcare Data Center Market in 2026?
DC Market Insights values the Healthcare Data Center Market at USD 17.34 billion in 2026, 12.16% above 2025, as backup sites, AI clusters for drug discovery and leased halls for electronic health records are added faster than hospital server rooms close. The model places healthcare IT load at 3,300 MW in 2025 and projects it to double to 6,600 MW by 2035, with accelerator racks taking a larger share of the mix.
Year | Market size |
2020 | USD 9.77 billion |
2025 | USD 15.46 billion |
2026 | USD 17.34 billion (+12.16% year on year) |
2030 | USD 25.10 billion |
2035 | USD 37.11 billion |
Source: DC Market Insights, Healthcare Data Center Market report, Oct. 22, 2026.
Why Do AI and Research Workloads Raise Healthcare Data Center Spend?
AI infrastructure changes the value of each megawatt. DC Market Insights estimates a conventional healthcare MW carries about USD 3.05 million a year of hardware, while an AI MW carries about USD 8.30 million. That premium comes from GPU systems, high-speed networking, large research datasets and the supporting power and cooling required for accelerated computing. The result is that market value grows faster than healthcare IT load as the accelerator share rises from about 5% in 2025 toward 22% by 2035.
Which Component Leads Healthcare Data Center Spending?
IT hardware remains the largest component, but colocation and hosting services grow faster as providers absorb EHR, imaging, backup and research workloads that institutions no longer want to operate in ageing hospital server rooms.
Component | 2025 value | Share 2025 | 2035 value | CAGR |
IT Hardware | USD 10,931.24M | 70.7 % | USD 24,479.40M | 8.40 % |
Colocation and Hosting Services | USD 3,136.32M | 20.3 % | USD 9,496.08M | 11.72 % |
Electrical and Mechanical Infrastructure | USD 967.87M | 6.3 % | USD 2,058.14M | 7.84 % |
Construction and Fit-Out | USD 427.77M | 2.8 % | USD 1,078.98M | 9.69 % |
DC Exclusive: Hospital Data Center Exit Tracker
DC Market Insights tracks 14 named healthcare infrastructure moves from 2014 through 2026. Ten moved workloads to public cloud, two went to colocation and two built new owned sites. The pattern explains why owned data centers can lose share even while the overall market expands: general-purpose EHR estates leave older halls, while AI and research clusters arrive as new owned, wholesale or colocated capacity. The model therefore takes the owned-site share from 60.0% in 2025 toward 45.0% by 2035.
Workload | 2025 value | Share 2025 | 2035 value | CAGR |
EHR and Clinical Applications | USD 4,638.95M | 30.0 % | USD 8,907.02M | 6.74 % |
Medical Imaging and PACS | USD 2,783.38M | 18.0 % | USD 6,309.14M | 8.53 % |
AI Genomics and Research Computing | USD 2,297.83M | 14.9 % | USD 10,777.50M | 16.71 % |
Claims and Revenue Cycle | USD 2,010.22M | 13.0 % | USD 4,082.39M | 7.34 % |
Backup and Disaster Recovery | USD 2,164.85M | 14.0 % | USD 4,453.51M | 7.48 % |
Collaboration and Other Workloads | USD 1,567.97M | 10.1 % | USD 2,583.04M | 5.12 % |
Which Region Leads the Healthcare Data Center Market?
North America leads because the United States combines a large installed hospital base, near-universal certified EHR adoption and significant pharmaceutical research infrastructure. Asia Pacific grows fastest as India, China and other markets add local capacity under health-data localization and digital-health programs.
Indicator | 2025 / Base | Outlook |
Leading region | North America, 46.0% (USD 7.11B) | USD 15.77B by 2035; remains the largest regional spending pool |
Fastest-growing region | Asia Pacific, 11.72% CAGR | Reaches USD 9.83B by 2035 as India and China add domestic health-data capacity |
Fastest large country | India, 18.37% CAGR | USD 247.41M in 2025 to USD 1.34B by 2035 |
Largest country | United States, USD 6.49B in 2025 | Remains the largest national market through the forecast |
How Could the 2035 Forecast Change?
The 2035 outcome depends on how quickly hospital EHR estates move to public cloud, how much pharmaceutical AI is purchased as cloud capacity rather than dedicated infrastructure, and how strongly resilience rules push institutions to maintain recoverable private or colocated capacity.
Scenario | Assumption | 2035 value | CAGR 2025-2035 |
Low | Faster EHR migration to public cloud; more pharma AI bought as cloud capacity | USD 30.80B | 7.13 % |
Base | Healthcare IT load reaches 6,600 MW; 22% on AI racks; 55% leased | USD 37.11B | 9.15 % |
High | Stricter 72-hour restore requirements and more drug makers build owned AI factories | USD 42.68B | 10.69 % |
Competitive Landscape and Recent Developments
The five largest colocation providers account for about 31% of the USD 3.14 billion healthcare colocation and hosting market in 2025, leaving the sector fragmented. Competition spans colocation, EHR hosting, cloud services, AI hardware and the power and cooling systems required for hospital and life-sciences infrastructure.
Companies profiled include:
Equinix; Digital Realty; Iron Mountain Data Centers; CyrusOne; NTT DATA; Epic Systems (Epic Hosting); Oracle (Oracle Health); Microsoft (Nuance); Amazon Web Services; Google Cloud; Dell Technologies; Hewlett Packard Enterprise; NVIDIA; Cisco Systems; Schneider Electric; Vertiv.
- In July 2026, WellSpan Health completed the move of more than 300 applications and 7.5 PB of data to AWS in 17 weeks.
- In April 2026, the U.S. Department of Veterans Affairs requested USD 4.2 billion for its EHR in fiscal 2027, including USD 745 million for infrastructure readiness.
- In February 2026, Eli Lilly's LillyPod AI factory with more than 9,000 petaflops went live in Indianapolis.
- In February 2026, five Ontario hospitals in Transform Shared Service Organization moved their EHR to Oracle Cloud Infrastructure, cutting page-load time by 71%.
- In January 2026, NVIDIA and Eli Lilly agreed to invest up to USD 1 billion over five years in an AI co-innovation lab.
- In November 2025, India notified the DPDP Rules with an 18-month phased timeline.
Frequently Asked Questions
What is the size of the Healthcare Data Center Market?
USD 15.46 billion in 2025 and USD 17.34 billion in 2026, projected to reach USD 37.11 billion by 2035 at a 9.15% CAGR.
Which component leads the market?
IT hardware, with USD 10.93 billion or 70.7% of 2025 spending.
Which workload grows fastest?
AI genomics and research computing, at 16.71% a year through 2035.
Which healthcare end user spends the most?
Hospitals and health systems, with USD 7.27 billion or 47.0% of 2025 market value.
Which region leads?
North America with USD 7.11 billion or 46.0% of 2025 value; Asia Pacific grows fastest at 11.72% a year.
Who are the leading suppliers?
Equinix, Digital Realty, Iron Mountain Data Centers, CyrusOne and NTT DATA are among the leading colocation providers, alongside major healthcare hosting, cloud, hardware and infrastructure vendors.
Methodology
DC Market Insights builds the healthcare data center market bottom-up from 3,300 MW of healthcare IT load in 2025 and spending per MW for hardware, colocation and hosting, electrical and mechanical infrastructure, and construction and fit-out. The model separates conventional and AI MW, applies leased-capacity economics, and reconciles end-user, workload, deployment, regional and country splits to the total market before applying forecast assumptions.
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About DC Market Insights
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