Virtual Private Servers Market Size, Share & Forecast to 2035

The Virtual Private Servers Market is valued at USD 9.62 billion in 2026 and is projected to reach USD 21.53 billion by 2035, up from USD 8.71 billion in 2025, a CAGR of 9.47% from 2025 to 2035 (DC Market Insights estimate). The market covers the revenue that hosting and cloud providers earn from virtual private server (VPS) plans: a fixed bundle of virtual central processing units (vCPUs), memory, solid-state storage and network transfer, run as an isolated virtual machine on a shared physical server inside a data center, sold monthly or hourly in unmanaged, managed and graphics processing unit (GPU) versions. The build receipt: about 44.0 million active VPS instances in 2025 at an average of USD 16.50 per instance per month gives USD 8.71 billion a year. GPU VPS is the fastest-growing type at 22.18% a year because developers rent single GPUs by the hour for artificial intelligence (AI) inference and fine-tuning, and Asia Pacific is the fastest-growing region at 11.77% a year as India, China and Southeast Asia add small-business and developer demand.

Key Market Statistics: How Big Is the Virtual Private Servers Market in 2026?

DC Market Insights values the Virtual Private Servers Market at USD 9.62 billion in 2026, 10.4% above the USD 8.71 billion of 2025.

• Market size 2025: USD 8.71 billion
• Market size 2026: USD 9.62 billion
• Market size 2030: USD 14.26 billion
• Market size 2035: USD 21.53 billion
• CAGR 2025-2035: 9.47% in the base case, 7.09% in the low case and 11.64% in the high case
• Largest VPS type: unmanaged VPS, 64.0% of 2025 value (USD 5.58 billion)
• Fastest-growing VPS type: GPU VPS, 22.18% a year, from USD 348.48 million in 2025 to USD 2.58 billion in 2035
• Largest end user: small and medium-sized enterprises (SMEs), 46.0% of 2025 value
• Leading region: North America, 34.0% of 2025 value (USD 2.96 billion)
• Fastest-growing region: Asia Pacific, 11.77% a year
• Largest country: the United States, USD 2.66 billion in 2025 (30.5% of global value)
• Market leader: DigitalOcean, followed by OVHcloud, IONOS and Akamai Technologies (DC Market Insights assessment)

Executive Summary

The Global Virtual Private Servers Market size was valued at USD 4.68 billion in 2020, reached USD 8.71 billion in 2025, and is anticipated to reach USD 21.53 billion by 2035, at a CAGR of 9.47% during the forecast period.

Report attribute	Details
Historical Period	2020-2024
Base Year	2025
Forecast Period	2026-2035
Virtual Private Servers Market Size 2025	USD 8.71 Billion
Virtual Private Servers Market Size 2026	USD 9.62 Billion
Virtual Private Servers Market, CAGR	9.47%
Virtual Private Servers Market Size 2035	USD 21.53 Billion

The market grew at 13.23% a year between 2020 and 2025, and 2025 alone added 13.1% over the USD 7.70 billion of 2024, as active instances rose from 26.0 million in 2020 to 44.0 million in 2025 and average revenue per instance moved from USD 15.00 to USD 16.50 a month. Growth eases to 9.47% a year from 2025 to 2035 because entry plans at USD 4.54 to USD 12.00 a month keep prices low, while instances still more than double to 92.0 million and larger and GPU plans lift the average to USD 19.50 a month by 2035.

Market Scope: What Does the Virtual Private Servers Market Cover?

The Virtual Private Servers Market covers provider revenue from VPS plans sold to end customers, valued at list or contract prices in current US dollars; DC Market Insights sizes it at USD 8.71 billion in 2025 and USD 9.62 billion in 2026.

Included. Unmanaged VPS plans, where the customer runs the operating system and software; managed VPS plans, where the provider adds patching, backups, monitoring and a control panel; GPU VPS plans that attach a full or fractional GPU to a virtual machine; Linux and Windows VPS, including the operating-system licence fee charged with the plan; fixed-bundle virtual machine lines of developer clouds and hyperscale clouds, such as DigitalOcean Droplets, Akamai (Linode) shared and dedicated CPU plans, Vultr Cloud Compute and Amazon Lightsail; and VPS resold by hosting agencies under their own brand.

Excluded. Pay-as-you-go hyperscale infrastructure as a service (IaaS) virtual machines priced per component, dedicated (bare-metal) servers, shared web hosting, domains, colocation, platform and software services, managed Kubernetes, object storage sold separately, and the physical servers and data center buildings themselves. Related spending sits in other DC Market Insights reports, such as the Managed Data Center Services Market and the Data Center Server Market.

How the segments fit together. VPS type, operating system, plan size and end user each split the same total, so every dimension sums to USD 8.71 billion in 2025 and USD 21.53 billion in 2035. Regions and countries allocate the same total by the customer’s billing location.

Why Do Virtual Private Servers Market Estimates Differ?

Public estimates for the VPS market differ by more than 1.5 times because definitions differ; DC Market Insights counts only bundled VPS plans and values the market at USD 9.62 billion in 2026.

Broader definitions add all hyperscale cloud virtual machines, dedicated servers, shared hosting and sometimes the full revenue of web-hosting companies, which mixes VPS with domains, email and website builders. Each of those lifts the headline figure but counts products that customers buy for different reasons. Narrower definitions count only unmanaged Linux plans, which gives figures closer to USD 4.46 billion. Terms such as cloud VPS, virtual dedicated server (VDS), cloud server, KVM VPS, managed VPS hosting, Windows VPS and GPU VPS are covered here when the product is a fixed-bundle virtual machine; bare-metal servers, serverless functions, container platforms and per-component hyperscale instances are outside this report.

Element	In this report	Why
Unmanaged and managed VPS plans	Yes, USD 8.36 billion in 2025	Core VPS revenue
GPU VPS plans	Yes, USD 348.48 million in 2025	Fixed-bundle virtual machines with a GPU
Windows licence fees charged with a VPS	Yes, inside USD 1.74 billion Windows VPS in 2025	Billed as part of the plan
Per-component hyperscale IaaS virtual machines	No	Different pricing and buyer
Dedicated (bare-metal) servers	No	No virtualization layer sold
Shared web hosting, domains and email	No	Not an isolated virtual machine

Buyers inside the scope include SMEs running websites, shops and business applications, developers and startups, hosting resellers and digital agencies that build sites for clients, and large enterprises that use VPS for test environments, branch services and regional points of presence.

Market Drivers: What Drives the Virtual Private Servers Market?

Business cloud adoption, developer and AI workloads and cheaper processor cores drive a 9.47% annual rise in VPS revenue from 2025 to 2035.

Business Cloud Adoption: 52.7% of EU Enterprises Buy Cloud Services

Eurostat reported in February 2026 that 52.7% of EU enterprises used paid cloud computing services in 2025, 7.4 percentage points more than in 2023, and that 45.5% of cloud users rented cloud capacity to host their own database. Eurostat also counts 79.01% of EU enterprises with a website in 2025, and the US Small Business Administration (SBA) Office of Advocacy counts 36.2 million small businesses in the United States. DC Market Insights estimates that SMEs spend USD 4.01 billion on VPS plans in 2025, 46.0% of the market, rising to USD 9.04 billion in 2035.

Developer Clouds and AI Workloads: DigitalOcean Revenue Up 29%

DigitalOcean, whose core product is the Droplet virtual machine, reported revenue of USD 281 million for the second quarter of 2026, up 29%, with annual run-rate revenue (ARR) of USD 1,125 million and AI customer ARR of USD 234 million (company filing, August 2026). Akamai Technologies reported 2025 Cloud Infrastructure Services revenue of USD 314 million, up 36%. Eurostat found that 19.95% of EU enterprises used AI technologies in 2025. DC Market Insights estimates that developers and startups spend USD 2.09 billion on VPS in 2025 and that GPU VPS grows from USD 348.48 million to USD 2.58 billion by 2035.

Cheaper Processor Cores: Up to 192 and 288 Cores per Socket

AMD launched its 5th Gen EPYC processors in October 2024 with 8 to 192 cores per socket, and Intel’s Xeon 6+ line offers up to 288 efficient cores per socket from the second quarter of 2026. More cores per server lower the hardware cost of each vCPU, which lets providers hold entry plans at USD 4.54 to USD 12.00 a month while adding memory and storage. DC Market Insights estimates that each physical server hosts about 40 VPS instances in 2025, so 44.0 million instances need only about 1.1 million servers. Processor trends are covered in the DC Market Insights Data Center CPU Market report.

Market Trends: How Is the VPS Market Changing?

GPU plans, European switching rules and higher plan sizes move the average VPS bill from USD 16.50 a month in 2025 to USD 19.50 in 2035.

GPU VPS Plans Join the Catalogue

Developer clouds now sell GPU virtual machines next to CPU plans; DigitalOcean’s AI customer ARR reached USD 234 million in mid-2026, about 21% of its USD 1,125 million total. DC Market Insights estimates that GPU VPS rises from 4.0% of VPS value in 2025 to 12.0% in 2035, worth USD 2.58 billion.

Easier Switching Between Providers in Europe

The European Union (EU) Data Act has applied since 12 September 2025 and removes switching charges, including data egress fees, entirely from 12 January 2027. Lower exit costs help smaller VPS providers win workloads from larger clouds. DC Market Insights estimates that Europe spends USD 2.70 billion on VPS in 2025 and USD 5.90 billion in 2035.

Customers Move to Larger Plans

Entry plans with 1 to 2 vCPUs hold 42.0% of 2025 value, but plans with more than 8 vCPUs grow fastest at 12.38% a year as databases, ecommerce sites and AI inference move onto VPS. Hetzner Online adjusted its cloud prices from 15 June 2026, and its 2 vCPU, 4 gigabyte (GB) plan now lists at EUR 5.49 a month before VAT.

Market Challenges: What Holds the VPS Market Back?

Low entry prices and rising data center power demand squeeze VPS margins; DC Market Insights puts the low case at USD 17.28 billion in 2035.

Low Entry Prices Cap Revenue per Instance

Official price pages in October 2026 list entry plans at USD 4.54 a month at OVHcloud, USD 5.00 to USD 10.00 at Vultr, USD 6.00 to USD 12.00 at DigitalOcean and USD 12.00 at Amazon Lightsail and Akamai. With list prices that low, average revenue per instance rises only 1.7% a year, from USD 16.50 to USD 19.50 a month, so instance growth carries most of the market’s 9.47% growth.

Electricity and Hardware Costs Rise

The International Energy Agency (IEA) reports that data centers used about 415 terawatt-hours (TWh) in 2024, expects around 945 TWh by 2030, and found that data center electricity demand rose 17% in 2025. Power and server costs feed into VPS prices, as Hetzner’s June 2026 price adjustment shows. If providers cannot pass costs on and instances reach only 80 million in 2035 at USD 18.00 a month, the market would be USD 17.28 billion in 2035.

Market Opportunities: Where Are the New Revenue Pools?

GPU VPS and managed plans in Asia Pacific add about USD 6.86 billion of combined annual revenue growth between 2025 and 2035.

GPU VPS Adds USD 2.23 billion by 2035

Single-GPU and fractional-GPU plans let startups run inference without long contracts. DC Market Insights estimates that GPU VPS grows from USD 348.48 million in 2025 to USD 2.58 billion in 2035, an increase of USD 2.23 billion, with developers and startups taking 62.4% of GPU VPS value in 2025.

Asia Pacific Adds USD 4.62 billion by 2035

India’s data center capacity grew from about 375 megawatts (MW) in 2020 to about 1,500 MW in 2025 (Press Information Bureau, March 2026), and the Union Budget 2026-27 proposes a tax holiday until 2047 for eligible foreign cloud providers using Indian data centers. DC Market Insights estimates that Asia Pacific grows from USD 2.27 billion in 2025 to USD 6.89 billion in 2035, with India the fastest large country at 15.77% a year.

Pricing: How Much Does a VPS Cost per Month?

Average revenue per VPS instance is USD 16.50 a month in 2025, against entry list prices of USD 4.54 to USD 12.00 a month (DC Market Insights estimates and provider price pages).

Year	Average revenue per instance, USD per month	Active instances (million)	Market size
2020	15.00	26.0	USD 4.68 billion
2025	16.50	44.0	USD 8.71 billion
2030	18.00	66.0	USD 14.26 billion
2035	19.50	92.0	USD 21.53 billion

Public anchors from official price pages in October 2026: DigitalOcean Basic Droplet with 1 vCPU and 2 GB at USD 12.00 a month (USD 6.00 with 1 GB); Vultr Cloud Compute with 1 vCPU and 2 GB at USD 10.00 (USD 5.00 with 1 GB); Akamai Linode 2 GB at USD 12.00 (Nanode 1 GB at USD 5.00); Amazon Lightsail Linux with 2 vCPUs and 2 GB at USD 12.00 with an IPv4 address; OVHcloud VPS-1 with 2 vCores and 4 GB from USD 4.54; IONOS VPS S+ with 1 vCore and 2 GB at USD 6.00; and Hetzner CX23 with 2 vCPUs and 4 GB at EUR 5.49 before VAT. The average of USD 16.50 sits above these entry prices because managed plans, Windows licences, larger plans and GPU plans raise the bill.

Standards and Regulation: Which Rules Shape the VPS Market?

Data-switching, cybersecurity and data-protection rules in the EU, India, China and the United States set how VPS providers sell into a USD 8.71 billion market.

• EU Data Act (Regulation (EU) 2023/2854): applies since 12 September 2025; switching charges, including data egress fees, end entirely on 12 January 2027.
• EU Network and Information Security Directive (NIS2): member states had until 17 October 2024 to transpose it; cloud computing and data center service providers fall under its digital infrastructure sector.
• EU Energy Efficiency Directive (EED) and Delegated Regulation (EU) 2024/1364: data center operators report energy indicators; on 21 September 2026 the European Commission proposed a common EU rating scheme, with minimum performance standards planned for the second quarter of 2027.
• ISO/IEC 27001:2022 and ISO/IEC 27017: the International Organization for Standardization (ISO) information security management standard, published in October 2022, and its cloud-services control set, whose second edition reached publication in July 2026.
• System and Organization Controls 2 (SOC 2): the AICPA (American Institute of Certified Public Accountants) examination of controls for security, availability, processing integrity, confidentiality and privacy that business VPS buyers ask for.
• India Digital Personal Data Protection (DPDP) Rules 2025: notified on 14 November 2025 with an 18-month phased compliance timeline.
• US Clarifying Lawful Overseas Use of Data (CLOUD) Act: enacted in March 2018, with executive agreements with the United Kingdom (3 October 2019) and Australia (15 December 2021).
• China Ministry of Industry and Information Technology (MIIT): a January 2017 notice required data center licence holders that sell cloud services to hold the matching telecom licence.
• Saudi Arabia Communications, Space and Technology Commission (CST): updated its Cloud Computing Regulatory Framework in December 2020, setting registration categories and data classification rules.
• Indonesia Government Regulation 71 of 2019: lets private-sector electronic system operators store data inside or outside Indonesia.

Market Segmentation: Which Segment Leads the Virtual Private Servers Market?

Unmanaged VPS leads the Virtual Private Servers Market with USD 5.58 billion, or 64.0% of 2025 value, while GPU VPS grows fastest at 22.18% a year.

By VPS Type: Unmanaged VPS Leads with 64.0%

Unmanaged plans are the cheapest entry point for developers and resellers; managed VPS takes USD 2.79 billion in 2025 and grows 9.12% a year as SMEs pay for patching and backups, and GPU VPS reaches USD 2.58 billion by 2035.

VPS type	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
Unmanaged VPS	5,575.68	64.0%	12,270.96	8.21%
Managed VPS	2,787.84	32.0%	6,673.68	9.12%
GPU VPS	348.48	4.0%	2,583.36	22.18%

By Operating System: Linux VPS Leads with 80.0%

Linux VPS earns USD 6.97 billion in 2025 and grows 9.74% a year; Windows VPS earns USD 1.74 billion, including licence fees, and grows 8.32% a year as fewer new workloads need Windows Server.

Operating system	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
Linux VPS	6,969.60	80.0%	17,652.96	9.74%
Windows VPS	1,742.40	20.0%	3,875.04	8.32%

By Plan Size: Entry Plans Lead with 42.0%

Entry plans with 1 to 2 vCPUs earn USD 3.66 billion in 2025; plans with more than 8 vCPUs grow fastest at 12.38% a year, and mid-range plans with 4 to 8 vCPUs lead by 2035 with 40.0% of value.

Plan size	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
Entry Plans up to 2 vCPU	3,659.04	42.0%	7,319.52	7.18%
Mid-Range Plans 4 to 8 vCPU	3,310.56	38.0%	8,611.20	10.03%
High-End Plans Above 8 vCPU	1,742.40	20.0%	5,597.28	12.38%

By End User: SMEs Lead with 46.0%

SMEs spend USD 4.01 billion in 2025; large enterprises grow fastest at 11.17% a year as they use VPS for regional points of presence and test environments, and hosting resellers and agencies grow 10.63% a year.

End user	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
Small and Medium-Sized Enterprises	4,007.52	46.0%	9,041.76	8.48%
Developers and Startups	2,090.88	24.0%	5,166.72	9.47%
Hosting Resellers and Agencies	1,568.16	18.0%	4,305.60	10.63%
Large Enterprises	1,045.44	12.0%	3,013.92	11.17%

DC Exclusive: The VPS Instance Revenue Model and VPS Type × End User Matrix

The DC Market Insights VPS Instance Revenue Model is a modelled estimate built from 8 inputs: active instances and average revenue per instance at four anchor years (2020, 2025, 2030 and 2035); it gives USD 8.71 billion in 2025.

The matrix below splits estimated 2025 value by VPS type and end user (USD million). Unmanaged VPS bought by SMEs is the largest single cell at USD 2.47 billion, and developers and startups buy USD 217.45 million of the USD 348.48 million GPU VPS total.

VPS type	Small and Medium-Sized Enterprises	Developers and Startups	Hosting Resellers and Agencies	Large Enterprises	Total
Unmanaged VPS	2,470.94	1,428.78	1,014.10	661.86	5,575.68
Managed VPS	1,473.90	444.65	526.00	343.29	2,787.84
GPU VPS	62.68	217.45	28.06	40.29	348.48
Total	4,007.52	2,090.88	1,568.16	1,045.44	8,712.00

Regional Insights: Which Region Leads the Virtual Private Servers Market?

North America leads with USD 2.96 billion, or 34.0% of 2025 value, and Asia Pacific is the fastest-growing region at 11.77% a year to USD 6.89 billion by 2035.

North America Leads with 34.0% Share

North America spends USD 2.96 billion in 2025, rising to USD 6.46 billion by 2035 at 8.11% a year. DigitalOcean, Akamai, Vultr, GoDaddy and Amazon Lightsail sell from the United States, where 36.2 million small businesses form the core buyer base (SBA, June 2025). Hetzner Online also runs cloud locations in Ashburn, Virginia and Hillsboro, Oregon.

Europe Holds 31.0% Share

Europe spends USD 2.70 billion in 2025 and USD 5.90 billion in 2035, growing 8.13% a year. Europe is home to large VPS providers: OVHcloud reported FY2025 revenue of EUR 1,084.6 million from more than 500,000 servers in 44 data centers, IONOS reported 2025 revenue of EUR 1,316.9 million from 6.63 million customers, and Hostinger reported 2025 revenue of EUR 275.4 million, up 51%. Eurostat’s 52.7% cloud adoption figure and the Data Act’s 2027 end of switching charges support demand.

Asia Pacific Holds 26.0% Share

Asia Pacific spends USD 2.27 billion in 2025 and grows fastest at 11.77% a year to USD 6.89 billion. In Japan, Sakura Internet reported cloud services sales of JPY 15,324 million for the year to March 2026, and GMO Internet Group’s cloud and rental server business, which includes ConoHa VPS, reported JPY 23,345 million for 2025. India’s capacity reached about 1,500 MW in 2025, and Hetzner Online serves the region from Singapore.

Latin America Holds 5.0% Share

Latin America spends USD 435.60 million in 2025 and USD 1.25 billion in 2035, growing 11.11% a year, led by Brazil at USD 226.51 million in 2025 and by Mexico.

Middle East and Africa Holds 4.0% Share

The Middle East and Africa spends USD 348.48 million in 2025, rising to USD 1.03 billion at 11.48% a year. Saudi Arabia’s CST cloud framework sets registration and data classification rules for cloud providers, which sets the terms on which local and foreign VPS providers serve customers in the kingdom.

Country Analysis: Which Countries Spend the Most on VPS?

The United States spends the most, USD 2.66 billion in 2025 or 30.5% of global value, followed by Germany at USD 784.08 million.

Rank	Country	Region	2025 (USD million)	2035 (USD million)	CAGR 2025-2035
1	United States	North America	2,657.16	5,726.45	7.98%
2	Germany	Europe	784.08	1,636.13	7.63%
3	China	Asia Pacific	696.96	2,066.69	11.48%
4	United Kingdom	Europe	392.04	839.59	7.91%
5	France	Europe	365.90	775.01	7.79%
6	Japan	Asia Pacific	348.48	818.06	8.91%
7	India	Asia Pacific	278.78	1,205.57	15.77%
8	Netherlands	Europe	243.94	516.67	7.79%
9	Canada	North America	235.22	602.78	9.87%
10	Brazil	Latin America	226.51	645.84	11.05%
11	Singapore	Asia Pacific	156.82	430.56	10.63%
12	Australia	Asia Pacific	148.10	387.50	10.10%

India is the fastest-growing of the top 12 at 15.77% a year, from USD 278.78 million in 2025 to USD 1.21 billion in 2035, because Indian data center capacity quadrupled between 2020 and 2025 and the Union Budget 2026-27 proposes a tax holiday for cloud providers using Indian data centers. China grows 11.48% a year on domestic cloud servers sold under MIIT licences. Germany ranks second because Hetzner Online, IONOS and Contabo run large VPS fleets there.

Forecast Scenarios: How Could the 2035 Forecast Change?

The 2035 market ranges from USD 17.28 billion in the low case to USD 26.21 billion in the high case, around a base case of USD 21.53 billion.

Scenario	Assumptions	2035 size	CAGR 2025-2035
Low	80 million instances at USD 18.00 a month; price pressure from larger clouds	USD 17.28 billion	7.09%
Base	92 million instances at USD 19.50 a month	USD 21.53 billion	9.47%
High	104 million instances at USD 21.00 a month; faster GPU VPS adoption	USD 26.21 billion	11.64%

Competitive Insights: Who Leads the Virtual Private Servers Market?

The market is fragmented: DC Market Insights estimates that DigitalOcean, OVHcloud, IONOS, Akamai Technologies and Hostinger together hold about 15% of 2025 VPS value, based on the VPS share of their published cloud and hosting revenue.

• DigitalOcean
• Akamai Technologies (Linode)
• OVHcloud
• IONOS
• Hetzner Online
• Hostinger
• Vultr
• GoDaddy
• Amazon Web Services (Lightsail)
• Alibaba Cloud
• Tencent Cloud
• Contabo
• Sakura Internet
• GMO Internet Group (ConoHa)
• Scaleway
• Kamatera

DigitalOcean reported FY2025 revenue of USD 901 million, up 15%, ARR of USD 970 million at the end of 2025 and more than 640,000 customers; in August 2026 it reported second-quarter revenue of USD 281 million, up 29%, and more than 680,000 customers. Akamai Technologies reported 2025 Cloud Infrastructure Services revenue of USD 314 million, up 36%, with fourth-quarter revenue of USD 94 million, up 45%. OVHcloud reported FY2025 Public Cloud revenue of EUR 219.2 million, up 17.5%, and Web Cloud revenue of EUR 193.8 million. IONOS grew revenue 5.5% to EUR 1,316.9 million in 2025.

Hosting-led providers carry much of the SME and reseller business. Hostinger reported 2025 revenue of EUR 275.4 million from 4.6 million customers, GoDaddy reported Core Platform revenue of USD 3.06 billion with 20.4 million customers, and Vultr reports more than 1.5 million customers served across 32 cloud regions. In Japan, Sakura Internet and GMO Internet Group (ConoHa) lead local VPS sales. Hetzner Online, Contabo, Scaleway and Kamatera compete on price, and Alibaba Cloud and Tencent Cloud sell lightweight application servers in China and Southeast Asia.

Recent Developments

• In September 2026, the European Commission proposed a common EU rating scheme for data centers, with minimum performance standards planned for the second quarter of 2027 (Source: European Commission).
• In August 2026, DigitalOcean reported second-quarter revenue of USD 281 million, up 29%, and AI customer ARR of USD 234 million (Source: DigitalOcean filing).
• In June 2026, Hetzner Online adjusted its cloud prices; its CX23 plan lists at EUR 5.49 a month before VAT (Source: Hetzner Online).
• In April 2026, the IEA reported that data center electricity demand rose 17% in 2025 (Source: IEA).
• In February 2026, Hostinger reported 2025 revenue of EUR 275.4 million, up 51% (Source: Hostinger).
• In February 2026, Eurostat reported that 52.7% of EU enterprises used paid cloud computing services in 2025 (Source: Eurostat).

Methodology: How We Built the Virtual Private Servers Market Model

DC Market Insights built the Virtual Private Servers Market bottom-up from active instances and revenue per instance, giving USD 8.71 billion in 2025 and USD 21.53 billion in 2035.

The model in numbers. Active VPS instances of 26.0 million in 2020, 44.0 million in 2025, 66.0 million in 2030 and 92.0 million in 2035 (geometric between anchor years) multiply average revenue per instance of USD 15.00, USD 16.50, USD 18.00 and USD 19.50 a month (linear between anchor years) and 12 months. Instance counts are DC Market Insights estimates cross-checked with published customer counts: DigitalOcean more than 640,000, Vultr more than 1.5 million, Hostinger 4.6 million and IONOS 6.63 million customers. Segment, regional and country splits are DC Market Insights allocations that sum to the total every year.

Bound checks. (1) Ceiling: at about 40 instances per server and 0.5 kilowatts (kW) per server, 44.0 million instances use about 0.55 gigawatts (GW) of IT capacity, under 0.5% of the roughly 116 GW installed worldwide in 2025. (2) Ceiling: USD 8.71 billion is about 1.5% of the USD 570.04 billion that DC Market Insights estimates for the global data center market in 2025. (3) Floor: the VPS share of revenue at DigitalOcean, OVHcloud, IONOS, Akamai and Hostinger adds up to about USD 1.30 billion, below the model’s USD 8.71 billion.

Full details of the approach are on the DC Market Insights research methodology page.