Data Center Market Size, Share & Trends Analysis Report By Components (Hardware, Software, Services), By Power Capacity (Below 100 MegaWatts, 100-800 MegaWatts, Above 800 MegaWatts), By Data Center Type (Edge, Colocation, On-Premise, Hyperscale, HPC), By Data Center Design (Traditional, Modular, Containerized), By Data Center Tiers (Tier 1, Tier 2, Tier 3, Tier 4), By End Use (BFSI, Energy, Telecom, Healthcare, Retail and E-commerce, Entertainment, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Global Data Center Market Size and Trends

The Global Data Center Market achieved a valuation of USD 196.9 Billion in 2023. It is projected to exhibit steady growth, reaching USD 464.6 Billion by 2032, with a compound annual growth rate (CAGR) of 10.30% during the forecast period (2024– 2032).

The data center market is a vital sector that continues to experience substantial growth due to increasing demands for digital services, cloud computing, and data storage solutions across various industries. In recent years, the data center market has seen consistent expansion driven by escalating data generation, propelled by the proliferation of IoT devices, online services, and digital transformation initiatives across businesses worldwide. This surge in data creation has spurred the need for secure, efficient, and scalable data storage facilities, fueling the growth of the data center market. The emergence of edge computing, which processes data closer to the source to minimize latency and improve real-time applications, is one of the major trends influencing this sector.

Furthermore, with growing attempts to optimize energy use and lower carbon footprints within data center operations, sustainability has emerged as a major priority. The competitive landscape remains intense, characterized by several key players and many smaller providers catering to diverse market segments. Service offerings vary from colocation services to managed hosting, cloud services, and hyperscale data centers, accommodating different client requirements. Moreover, the data center market is positioned for long-term expansion, propelled by ongoing digital transformation trends, the emergence of 5G technology, and the ongoing evolution of cloud-based services. However, resolving security, operational efficiency, and environmental impact issues will be critical to continuing this growth trajectory.

Geographically, Asia and Europe are emerging as promising regions in the data center sector. Southeast Asia, encompassing countries like Singapore, Malaysia, and Indonesia, is experiencing rapid digital adoption and infrastructure development. Increasing internet penetration, expanding digital economies, and government initiatives to enhance connectivity and innovation contribute to the region's attractiveness for data center investments. Similarly, Europe prioritizes sustainability and efficiency in data center operations, with EU countries implementing stringent regulations and standards for eco-friendly practices. There's a growing demand for localized data centers to comply with data protection regulations like GDPR, shaping the market landscape in the region.

The number of Data Centers in the United States was estimated to be around 5530 in 2023. This number includes a mix of colocation facilities and dedicated data centers, with major clusters located in key cities like Northern Virginia, Dallas, Silicon Valley, Chicago, and New York. The industry is a significant part of the U.S. economy, with substantial contributions from sectors such as cloud computing, e-commerce, and artificial intelligence. The US data center market is expected to continue growing, driven by increasing demand for cloud services, artificial intelligence, the Internet of Things (IoT), and edge computing.

*The report includes Data Center Market Size by Value (USD) and Volume (Units) for all regions and countries profiled.

Data Center Market Growth Factors

Increasing Demand for Storage of Born-Digital and Digitized Archives

The surge in demand for born-digital and digitized archive storage is notably shaping the landscape of the data center market. The immense growth in digital content, born-digital materials, and digitized archives is fueling a critical need for secure, scalable, and easily accessible storage solutions. The need for data centers is further driven by industries adopting remote work and moving to digital operations. These cloud-based solutions offer both cost-effectiveness and flexibility in managing large volumes of digital content.

For instance, cloud adoption has seen a remarkable surge in the U.K.'s public sector over the past decade. As per the Cloud Industry Forum, the number of organizations embracing cloud services has soared from 38% in 2010 to an impressive 78% in 2023. This surge in adoption indicates an overall rate of 84%, showcasing a substantial portion utilizing multiple cloud services. This transformation signifies a significant shift towards cloud-based solutions, observed in the public sector and various private industries. It echoes the growing reliance on cloud storage for managing born-digital and digitized archives globally.

Rise of Multi-Cloud and Hybrid Solutions for Next-Gen Data Centers

The evolving landscape of cloud storage, marked by increased adoption of multi-cloud and hybrid cloud solutions, reflects a broader trend shaping the global data center market. The increased multi-cloud adoption signifies a growing preference among organizations to utilize multiple cloud service providers for their data storage needs. This approach allows businesses to diversify their cloud infrastructure, mitigate risks associated with reliance on a single provider, and optimize performance by leveraging the strengths of different cloud platforms.

Moreover, the surge in multi-cloud adoption reflects a strategic response to enhance flexibility, scalability, and resilience in managing data, ultimately contributing to improved overall operational efficiency for businesses. For instance, multiple public cloud providers, such as AWS, Azure, Google Cloud, and IBM Cloud, aim to maximize each provider's strengths while minimizing the risks associated with vendor lock-in.

Concurrently, hybrid cloud adoption has a notable surge, emphasizing a blend of on-premises infrastructure and cloud services to ensure flexibility, scalability, and data control. For instance, the U.S. Department of Defense (DoD) adopts a hybrid cloud strategy to modernize its IT infrastructure and enhance mission capabilities. The DoD relies on its data centers to store and process classified information while tapping into commercial cloud providers such as Microsoft Azure and AWS to access advanced technologies like artificial intelligence, machine learning, and analytics.

Hence, adopting multi-cloud and hybrid cloud solutions represents a significant shift in global data center strategies, emphasizing flexibility, optimization, and risk mitigation within the evolving cloud storage landscape.

*Each Segment and Region will have its own driving factors in the full report

Opportunities in the Data Center Market

Retail and E-Commerce

The retail and e-commerce sector stands out as one of the most rapidly growing and substantial contributors to the data center market. This industry heavily relies on a spectrum of data center services, including colocation, cloud infrastructure, data protection, and professional services. These services enable critical functions such as online shopping platforms, payment systems, inventory management, customer service, and data analytics. The ongoing digital transformation and cloud migration within the retail and e-commerce sector are notable, driven by a desire to enhance customer experiences, operational efficiency, and competitive positioning.

Moreover, the COVID-19 pandemic accelerated the already burgeoning growth of online shopping and e-commerce, prompting a surge in demand for data center services. The adoption of advanced technologies such as artificial intelligence, machine learning, and blockchain in this sector is a testament to the industry's commitment to staying at the forefront of innovation.

Furthermore, the role of data centers in e-commerce, as highlighted by Kayla Mathews, is crucial. Walmart's substantial increase in e-commerce orders, a 74% rise in the first quarter of fiscal year 2021, underscores the significance of data centers in meeting the escalating demands of online retail. Successful retailers understand the value of providing exceptional customer service, and data centers are essential to accomplishing this objective and encouraging the search for novel approaches to satisfy customers.

Big data analytics, a central force in the technology sector, also plays a vital role in the growth of modern companies, particularly in e-commerce. The detailed information collected and analyzed through big data analytics forms the foundation for solving myriad problems in the e-commerce industry. Detailed data is becoming essential for long-term growth and the main inspiration for the creation and introduction of new services and goods as industry leaders such as Amazon continue to establish new benchmarks.

*We have identified more such key revenue opportunities across the value chain, elaborated in the full report.

Data Center Market Insights

Data Center Market Size by Components:

Segment:

1. Hardware
2. Software
3. Services

Highest Market Share in2023: Data Center Hardware Market with USD 105.4 Billion Market Size

CAGR (Forecast Period): Software (10.8%)

Hardware constitutes the physical infrastructure within data centers, encompassing servers, storage devices, networking equipment, and other tangible assets. Hardware segment growth is driven by the increasing demand for high-performance computing, storage solutions, and networking gear.

Software in data centers includes operating systems, management tools, virtualization software, and applications that facilitate data processing, management, and security. The key driver is the rise of software-defined infrastructure and automation tools to optimize resource utilization and enhance operational efficiency.

Data Center Market Size by Types:

Segment:

1. Edge
2. Colocation
3. Enterprise
4. Hyperscale
5. HPC

Highest Market Share in 2023: Hyperscale Data Center Market with USD 69.2 Billion Market Size

Highest CAGR (Forecast Period): Hyperscale Data Centers (7.2%)

Edge data centers focus on decentralizing data processing and storage, positioning infrastructure closer to end-users or data sources. They reduce latency for real-time applications like IoT devices, streaming services, and edge analytics. These centers often operate in distributed or remote locations, supporting emerging technologies reliant on immediate data processing.

Colocation centers offer shared infrastructure and facilities for multiple tenants. They provide cost-effective solutions for businesses to house their servers and IT equipment while benefiting from shared resources, security, and connectivity.

Enterprise data centers are in-house facilities owned and operated by organizations to manage their internal IT infrastructure and support business operations. They provide dedicated control over data and applications, ensuring security and compliance with specific organizational requirements.

Hyperscale data centers are vast facilities designed to accommodate the massive scale of cloud services and global internet platforms. They offer extensive computing and storage capabilities to handle large volumes of data and support the scalability needs of cloud-based applications and services.

Data Center Market Size by End-Use:

Segment:

1. BFSI
2. Energy
3. Telecom
4. Healthcare
5. Retail & E-commerce
6. Entertainment
7. Others

Highest Market Share (2023): Data Centers Market Size in BFSI with USD 11.6 Billion

Highest CAGR (Forecast Period): BFSI (11.1%)

The Banking, Financial Services, and Insurance (BFSI) sector emphasizes security, compliance, and high availability in their data center requirements. The sector demands robust infrastructure to safeguard sensitive financial data, support high-frequency transactions, and ensure regulatory compliance.

Energy companies rely on data centers to efficiently manage complex operations, including grid management, energy trading, and resource optimization. Data centers support analytics for improving energy efficiency and driving innovation in renewable energy sources.

Retail and e-commerce rely on data centers for managing online transactions, inventory management, customer relationship management, and personalized marketing. These centers support high-volume, real-time transactions and ensure a seamless online shopping experience.

Data Center Market Size by Power Capacity:

Segment: Below 100 MW, 100-800 MW, Above 800 MW

Highest Market Share (2023): Data Center Market for 100-800MW Power Capacity with USD 80.4 Billion Market Size

Highest CAGR (Forecast Period): 100-800 MW (10.7%)

Below 100 MW segment typically serves smaller-scale data centers or facilities with limited computational needs. It caters to local businesses, small enterprises, or applications requiring relatively lower power capacities.

Medium-sized data centers cater to a broader range of businesses and enterprises with moderate to high computing and storage requirements. These data centers handle large workloads but are not at hyperscale levels.

Above 800 MegaWatt data centers operate at massive power capacities, addressing the needs of large-scale cloud service providers, tech giants, and enterprises with extensive computational demands. These facilities handle workloads, manage global data storage, and provide infrastructure for extensive cloud services.

Data Center Market Size by Design

Segment: Traditional, Modular, Containerized

Highest Market Share (2023): Traditional Data Center Market Size with USD 158.3 Billion

Highest CAGR (Forecast Period): Modular Data Center Market (11.4%)

Traditional data centers follow a fixed design layout with dedicated servers, networking, and storage equipment spaces. They often involve custom-built infrastructure and fixed configurations, lacking the flexibility for rapid scalability.

Modular data centers utilize prefabricated modules or containers that can be rapidly deployed and scaled. They offer flexibility in design, allowing for quick expansion or contraction based on changing demands. The modular approach accelerates deployment times and offers efficient space utilization.

Containerized data centers leverage shipping container-like structures to house IT equipment. They provide mobility and ease of deployment in diverse environments, suitable for temporary or remote setups. This design promotes agility and facilitates quick deployment of computing infrastructure.

Data Center Market Size by Tier

Segment: Tier 1, Tier 2, Tier 3, Tier 4

Highest Market Share (2023): Tier 3 Data Center Market with USD 127 Billion Market Size

Highest CAGR (Forecast Period): Tier 3 Data Center Market (10.9%)

Tier 1 facilities offer basic infrastructure with minimal redundancy. They provide a single path for power and cooling, offering 99.671% availability annually. These data centers are suitable for small businesses or non-critical applications where downtime can be tolerated for maintenance without significantly impacting operations. They lack redundant components and systems, making them more susceptible to disruptions during maintenance or equipment failures.

Tier 2 data centers have some redundant components, offering increased reliability compared to Tier 1. They provide 99.741% availability annually and feature redundant power and cooling systems but may still experience occasional downtime for maintenance or equipment upgrades. These facilities cater to small to medium-sized businesses with slightly higher uptime requirements.

Tier 3 facilities offer a higher level of redundancy and availability. They provide 99.982% availability annually, featuring multiple power and cooling distribution paths with concurrent maintenance capabilities. Tier 3 data centers allow for planned maintenance without disrupting operations and are suitable for businesses requiring continuous uptime for critical applications or services.

Tier 4 data centers are the most robust and resilient. They guarantee 99.995% availability annually, featuring fully redundant components and systems with no single points of failure. These facilities offer the highest level of fault tolerance, allowing for concurrent maintainability and ensuring continuous operations even during maintenance or equipment failures. Tier 4 data centers are typically used by large enterprises, financial institutions, or organizations with mission-critical applications where downtime is not an option.

Emerging Regions and Countries for Data Centers

Asia-Pacific

The Asia-Pacific region is witnessing a surge in prominence within the global data center market, fueled by diverse factors that collectively contribute to its emergence as a key player in this industry. This analysis explores the overarching trends shaping the data center landscape in the region, with a particular focus on the dynamic developments in China and India.

Demand Dynamics:

The increasing demand for data center services across various sectors, including e-commerce, gaming, streaming, cloud computing, artificial intelligence, and 5G, is a central driver of growth in the Asia-Pacific data center market. This demand emanates from enterprises and governments undergoing digital transformation and cloud migration, necessitating higher data center capacity and connectivity to sustain online services and operations.

Technological Advancements:

In tandem with the surge in demand, the rapid development and innovation of data center technologies and solutions are shaping the landscape. Modular, edge, and green data centers are gaining traction, offering enhanced efficiency, flexibility, and sustainability in deployment and operation.

Policy and Incentives:

Favorable policies and incentives in countries like China, India, Singapore, and Australia further bolster the data center market. These initiatives encourage and support investment, development, and integration of renewable energy sources and energy efficiency measures.

China: The Fastest Emerging Country:

China stands out as the fastest-emerging country within the Asia-Pacific data center market, driven by strategic policy initiatives.

Policy Landscape: 

China's "Eastern Data, Western Computing" plan, introduced in 2020, set the foundation for a nationwide integrated data center system. Subsequent policy documents, including the implementation and three-year action plans, outline specific targets for data center development across key clusters such as Jing-Jin-Ji, YRD, GBA, and Chengdu-Chongqing. Recent NDRC approvals solidify the construction of the first four regional hubs.

India: Second-most potential for Data Centers in APAC:

India emerges as the second most promising country in the Asia Pacific data center market, marked by noteworthy government initiatives.

Key Policy Areas: 

The Draft of Data Centre Policy 2020 outlines priorities such as consistent, affordable, and clean electricity. Collaborative efforts between MeitY and DoT aim to ensure reliable and affordable connectivity. Other initiatives include listing data centers as essential services, recognition under the National Building Code, and the establishment of economic zones for data centers.

Digital Infrastructure Initiatives: 

The MSDE and NSDC are building a digital infrastructure for training and education under DESH. Initiatives like VPMDP, Arogya seva, mSevanam, Jagruti, and Ente ration card demonstrate a multifaceted approach to digital services, healthcare, and administrative efficiency, contributing to India's emerging role in the data center market. 

The Asia-Pacific region is becoming key in the global data center industry, led by China and India. These developing economies, which are being propelled forward by technical advancements, favorable regulations, and consumer demand, provide significant prospects for industry participants looking to form strategic alliances and investments in the changing data center scene.

Investment Trends in Data Center Market

The global data center market has been experiencing rapid growth, driven by the increasing demand for cloud services, digital transformation, and the rise of technologies like IoT and AI. Investments in this sector have been substantial, led by major companies aiming to expand their infrastructure to meet escalating data needs.

Here's a model outlining some of the investments in thes data center market:

• Factors Driving Growth: Increased internet penetration, the surge in data traffic, remote work trends, and the expansion of cloud-based services are key factors propelling market growth.
• Regional Expansion: Investments are diverse and expansive across regions, with Asia-Pacific, North America, and Europe being the primary regions witnessing significant investments.

Investments from Major Companies:

Amazon Web Services (AWS):

AWS has invested significantly in expanding its data center infrastructure in recent years. AWS announced the launch of new data centers in regions like Spain, Indonesia, and Japan to cater to the increasing demand for cloud services in these areas. Moreover, AWS continually invests in renewable energy projects to power its data centers, aiming to achieve sustainability goals.

Microsoft Azure:

Microsoft has made substantial investments in data center expansion. Microsoft announced plans to build a new data center region in Denmark, which involves investing heavily in the construction of hyperscale data centers and leveraging sustainable energy sources like wind power to run these facilities. This investment aligns with Microsoft's commitment to achieving carbon-negative status by 2030.

Equinix:

Equinix focuses on strategic acquisitions and expanding its global platform. Equinix's acquisition of various data center businesses, such as the acquisition of Packet, a bare metal cloud provider, to strengthen its edge computing capabilities. Equinix continually invests in building new data centers in key metropolitan areas to enhance interconnection services.

These examples highlight how major companies in the data center market invest in expanding their infrastructure, embracing sustainability, and catering to the increasing demand for cloud services in various regions globally.

Data Center Construction Trends

Data center construction is a complex and costly process that involves building the physical infrastructure, such as space, power, and cooling, to support the critical technology inside these specialized facilities. Data centers are essential for storing and processing large amounts of data, especially for cloud computing, artificial intelligence, and the Internet of Things.

1. The United States remains the largest and most mature market for data center construction, with 2,308 projects completed, 1,287 projects in progress, and 1,024 projects planned as of September 2023.
2. China continues to be the fastest-growing market for data center construction, with 541 projects completed, 648 projects in progress, and 224 projects planned as of September 2023.
3. The top five players in data center construction are AECOM, DPR Construction, Fluor Corporation, Jacobs Engineering Group, and Turner Construction, accounting over 37.2% of the global market share in 2023.
4. The most common type of data center construction project is greenfield, which involves building a new data center from scratch, followed by brownfield, which involves renovating or expanding an existing data center.

The average cost of data center construction varies by region, with North America being the most expensive ($9.6 per watt), followed by Europe ($8.8 per watt), Asia-Pacific ($8.0 per watt), Latin America ($7.1 per watt), and Middle East and Africa ($6.6 per watt).

Key Players in Data Center Construction:

1. AECOM, which is a global engineering and construction firm that provides design, build, and operation services for data centers, as well as consulting, project management, and sustainability solutions.
2. DPR Construction, which is a US-based general contractor that specializes in building data centers, as well as other complex and technical facilities, such as healthcare, biopharmaceutical, and education.
3. Fluor Corporation, which is a US-based engineering and construction company that offers design, engineering, procurement, construction, and maintenance services for data centers, as well as other industrial and infrastructure projects.
4. Jacobs Engineering Group, which is a US-based engineering and construction firm that delivers design, engineering, construction, and operation services for data centers, as well as consulting, project management, and digital solutions.
5. Turner Construction, which is a US-based general contractor that builds data centers, as well as other commercial and institutional facilities, such as offices, hotels, and stadiums.

Country-wise Investment Trends in Data Center Market

The data center power market is geographically segmented into North America, Europe, Asia-Pacific, and Rest of the World. Some of the geographical hotspots for investments in the data center power market include:

China: China is the largest and the most dynamic market for data center power in Asia-Pacific, driven by the rapid growth of cloud computing, e-commerce, gaming, and artificial intelligence industries, as well as the government's initiatives to promote digital transformation and green development.

USA: The US is the largest and the most mature market for data center power in North America, driven by the presence of leading co-location and cloud service providers, such as Equinix, Digital Realty, Amazon Web Services, and Google Cloud, as well as the increasing demand for edge computing, 5G, and Internet of Things applications.

Germany: Germany is the largest and the most advanced market for data center power in Europe, driven by the high adoption of cloud services, especially among small and medium-sized enterprises, as well as the government's policies to support renewable energy sources and energy efficiency.

*In-depth analysis and data points will be provided in the full report

Data Center Market Regional Trends

Data Center Market Trends in North America

North America dominates the data center market, driven by extensive adoption of cloud computing, streaming services, and digitalization across various sectors. This region houses major data center operators like Equinix, Digital Realty, IBM, and Microsoft. There is a growing demand for edge and hyperscale data centers and a focus on green data centers to improve performance and sustainability.

For instance, 

• Equinix announced a USD 1.9 billion investment in expanding its Canadian data center footprint in June 2023.
• In October 2023, QTS Data Centers announced its plans to invest around USD 1.5 billion in four facilities in New Albany, Ohio.

Tier 3 data centers have been the largest type in the North American data center market, demonstrating their dominance in the region's infrastructure landscape. Tier 1 and Tier 2 facilities may see a gradual drop in demand, but long outages are still a major factor in their expansion. Large-scale projects catering to hyperscale cloud requirements further contribute to the overall market growth, propelled by the necessity for reduced latency and enhanced efficiency.

Additionally, most clients are expected to shift towards Tier 3 and Tier 4 facilities due to escalating data processing, storage, and analysis demands. Tier 3 centers, offering high redundancy and an uptime of about 99.982%, are prevalent in North America due to their strong features and infrastructure. Tier 3 data center expansion is expected to continue as the utilization of cloud and edge connections continues to rise.

In contrast, Tier 4 facilities, aiming for total fault tolerance and component redundancy, are witnessing a rise in adoption across industrialized nations. North America, in particular, had 81 Tier 4 data centers in 2022, with projections indicating significant growth in the coming years. This upsurge is attributed to the increasing provision of cloud-based services, prompting the establishment of colocation spaces integrating cutting-edge technology.

The United States is the largest country driving the North American data center market. The country's escalating demand for data centers is fueled by the growing adoption of cloud technologies, IoT, 5G networks, and the pandemic-induced demand for high-speed online content streaming. Hyper-scale colocation data centers in the region are expected to grow substantially, with the total IT load capacity projected to reach 12047.5 MW by 2029, driven by an expanding capacity under development. Numerous tax breaks and financial incentives have accelerated the development of hyperscale data centers in the United States.

Moreover, Canada's data center industry is growing steadily, supported by a favorable regulatory environment and a climate conducive to operations. The country's demand for data storage and processing capabilities, driven by IoT, cloud computing, and Big Data, is leading to the construction of new facilities and the expansion of existing ones.

Asia-Pacific Data Center Market: Growth Drivers and Trends

The Asia-Pacific region is expected to grow fastest due to rapid urbanization, industrialization, and digitalization, particularly in countries like China, India, and Southeast Asia. The demand for data center services is rising in the e-commerce, gaming, entertainment, and education sectors. There is a substantial market for hyperscale data centers as cloud services and data storage needs increase. For instance, AdaniConneX secured a USD 213 million financing deal to expand its data center portfolio in India in June 2023.

In the Asia-Pacific (APAC) data center market, Tier 3 facilities have held a dominant position due to their dependable features, boasting high redundancy and multiple power and cooling pathways. These centers are the foundation for edge and cloud connectivity, driving the region's innovation and digital transformation, as evidenced by Australia's Smart City Strategy and Malaysia's emphasis on cloud computing during the COVID-19 pandemic. Moreover, Tier 4 facilities for fault tolerance and redundancy are expected to grow notably, exemplified by Supernap Thailand's status as the sole Tier 4 facility in the country. However, segments like Tier 1 and 2 demonstrate limited growth due to modern applications' need for faster data transmission and reduced latency within data centers.

China emerged as a significant force, driven by its expansive optical fiber and 5G networks, facilitating substantial data consumption via OTT services and local streaming platforms. In contrast, Australia is witnessing increased decentralized data processing, bolstered by increased data processing outside centralized centers. Efforts under the National Broadband Network (NBN) project signify the country's focus on extensive fiber network expansions to elevate connectivity.

Moreover, the Asia-Pacific data center industry sees noteworthy developments, including collaborations between HGC Global Communications and Digital Realty to fortify edge connectivity in Singapore, Equinix's investments in a new Tokyo data center, and the launch of BDx Indonesia through a joint venture. These activities underline the region's dynamic growth trajectory, fueled by heightened demands for data center services and infrastructure expansion to meet evolving digital requirements.

Competitive Landscape in the Data Center Market

The data center market is experiencing rapid growth, with leading providers like Equinix, Digital Realty, AWS, Microsoft Azure, and Google Cloud expanding their global footprint to meet increasing demand for cloud computing, storage, and networking. As businesses and organizations continue to digitize their operations, these companies are investing in cutting-edge data center technologies to deliver scalable, secure, and efficient solutions for data storage, processing, and management.

Emerging Companies in Data Center Market

AdaniConneX: Recognized as an emerging player in the data center market

AdaniConneX is a prominent player in the data center market, capitalizing on the synergies between Adani Enterprises' strengths in energy management and infrastructure and EdgeConneX's global data center capabilities. The company's focus on hyperscale and hyperlocal data centers powered by renewable energy establishes it as a notable player in India's digital infrastructure sector. AdaniConneX's commitment to sustainability is exemplified by subsidiaries like Chennai 1, showcasing eco-friendly data center operations aligned with global environmental standards.

Recent milestones highlight the company's financial strength and expansion plans. Securing a substantial USD 213 million senior debt facility from international banks underscores AdaniConneX's dedication to significant growth. This financial support reaffirms their ambitious goal of building a 67 M.W. data center portfolio in Noida and Chennai, aiming to achieve 1 G.W. of data center capacity by 2030. This growth trajectory positions AdaniConneX as a key contributor to India's digital evolution.

Furthermore, the recognition as the South Asian Company of the Year 2023 by Frost & Sullivan validates their emergence, acknowledging outstanding performance, innovation, and customer-focused operations in the data center industry. The company's diverse solution portfolio, encompassing colocation, connectivity, and managed services, reflects its commitment to providing comprehensive and tailored solutions to meet evolving market demands. Offerings like Bare Metal-as-a-service (BMaaS) and Managed Network Services highlight their adaptability and focus on staying abreast of technological advancements.

In summary, AdaniConneX's recent achievements, sustainability efforts, diversified offerings, and industry recognition position it as a promising player in the data center market, poised to play a significant role in India's digital infrastructure landscape.

Global Switch: Coming up strong in Europe and APAC

The company has a strong presence and reputation in the data center market, with a portfolio of thirteen data centers across Europe and Asia-Pacific, providing a total of 428,000 sq m of top-tier technical space. Ongoing developments, such as the final stage of its Hong Kong data center, with an additional 35,000 sq m of space and 100 MW of power, signify its commitment to expanding capacity and reach.

Global Switch offers diverse data center solutions and services, catering to the evolving needs of a diverse customer base across various industries, including retail, BFSI, IT and telecom, government and defense, manufacturing, media, and entertainment. The company sets itself apart by providing large-scale, carrier, and cloud-neutral data centers, enabling customers to access a wide array of telecoms, internet, and cloud providers. This approach emphasizes flexibility, choice, and reliable service for clients.

Global Switch has the capacity to create income, control debt, and maintain development in the cutthroat data center industry thanks to its solid financial performance and stability, as demonstrated by credit ratings from respectable organizations like Fitch, Moody's, and S&P Global Ratings. A commitment to sustainability is evident in the company's efforts to reduce carbon emissions and environmental impact, integrating renewable energy sources and energy efficiency measures into data center operations. The issuance of a EUR 700 million Green Bond further aligns with Green Bond Principles and the EU Taxonomy Regulation, earmarking proceeds for eligible green projects.

This report provides a detailed examination of the top companies in the data center market, including:

• Financial Performance: In-depth financial analysis, including revenue, profitability, and growth trends
• Product and Solutions Portfolio: Detailed overview of each company's product and solutions offerings, including data center power solutions, UPS systems, and energy-efficient technologies
• Key Developments: Insights into recent developments, such as mergers and acquisitions, partnerships, and product launches
• SWOT Analysis: Comprehensive SWOT analysis, highlighting each company's strengths, weaknesses, opportunities, and threats

Recent Developments

• January 2024 - Digital Realty (NYSE: DLR), the largest global provider of carrier- and cloud-neutral data center, colocation, and interconnection solutions, announced the opening of its first data center in India. Situated in the center of Chennai's manufacturing and industrial district, the 10-acre campus can accommodate up to 100 megawatts of critical IT load capacity.
• July 2024 - Equans declared the successful completion of Digital Realty's PAR13 data center's second phase in Paris, France. In a recent LinkedIn post, the data center construction company revealed that the facility has 20MW of IT capacity.