Data Center Market Size, Share & Forecast to 2035

The Data Center Market is valued at USD 697.78 billion in 2026 and is projected to reach USD 2.16 trillion by 2035, up from USD 570.04 billion in 2025, a CAGR of 14.27% from 2025 to 2035 (DC Market Insights estimate). The Data Center Market covers spending on the physical data center: the IT infrastructure installed in data halls (servers, accelerators, storage and data center networking), the power solutions and cooling systems that keep it running, and the general construction of the shell and core. DC Market Insights builds the figure bottom-up: 12.0 GW of new IT capacity in 2025 at a shell-and-core cost of USD 10.7 million per MW, plus USD 35 million of IT fit-out for each new AI megawatt, plus refresh spending on a 104 GW installed base, gives USD 570.04 billion. IT Infrastructure is the fastest-growing component at a 15.12% CAGR because accelerated servers for artificial intelligence (AI) cost about USD 35 million per MW, and the Middle East and Africa is the fastest-growing region at 18.18%, led by sovereign AI campuses in Saudi Arabia and the United Arab Emirates (UAE).

Key Market Statistics: How Big Is the Data Center Market in 2026?

DC Market Insights values the Data Center Market at USD 697.78 billion in 2026, 22.41% above the USD 570.04 billion recorded in 2025.

• Market size 2025: USD 570.04 billion
• Market size 2026: USD 697.78 billion
• Market size 2030: USD 1.37 trillion
• Market size 2035: USD 2.16 trillion (low case USD 1.79 trillion, high case USD 2.33 trillion)
• CAGR 2025–2035: 14.27% (low case 12.12%, high case 15.10%)
• Largest component: IT Infrastructure, USD 430.94 billion in 2025 (75.6% share)
• Fastest-growing data center type: Cloud and Hyperscale, 15.64% CAGR
• Leading region: North America, 45.0% share and USD 256.52 billion in 2025
• Fastest-growing region: Middle East and Africa, 18.18% CAGR
• Largest country: United States, USD 233.72 billion in 2025 (41.0% share)
• Largest buyer group: Cloud and Hyperscale operators, USD 313.52 billion in 2025 (55.0% share)

Executive Summary: How Fast Is Global Data Center Spending Growing?

The Global Data Center Market size was valued at USD 220.83 billion in 2020, reached USD 570.04 billion in 2025, and is anticipated to reach USD 2,162.99 billion by 2035 (USD 2.16 trillion), at a CAGR of 14.27% during the forecast period. Growth from 2020 to 2025 ran at 20.88% a year as AI training clusters arrived on top of cloud migration, and DC Market Insights expects the pace to ease as the installed base grows larger.

Attribute	Detail
Historical period	2020–2024
Base year	2025
Forecast period	2026–2035
Market size 2025	USD 570.04 billion
Market size 2026	USD 697.78 billion
CAGR 2025–2035	14.27%
Market size 2035	USD 2.16 trillion

The growth comes from three numbers that move together. New IT capacity rises from 12.0 GW in 2025 to 22.0 GW in 2030 and 27.0 GW in 2035; the AI share of that new capacity rises from 35% to 66%; and each AI megawatt carries about seven times the IT spend of a conventional one. The International Energy Agency (IEA) expects data centre electricity use to rise from 415 TWh in 2024 to around 945 TWh by 2030, which is consistent with the capacity path in this model.

What Does the Data Center Market Include?

The Data Center Market includes USD 570.04 billion of 2025 spending on four components: IT Infrastructure, Power Solutions, Cooling Systems and General Construction inside purpose-built data centers.

Included

• Servers, AI accelerators, storage arrays and data center switching installed in data halls (IT Infrastructure, USD 430.94 billion)
• Uninterruptible power supply (UPS), switchgear, generators, busway and power distribution (Power Solutions, USD 62.60 billion)
• Chillers, computer room air handlers, liquid cooling and heat rejection (Cooling Systems, USD 27.82 billion)
• Shell, structure, fit-out and site works (General Construction, USD 48.69 billion)

Excluded

• Land purchases, grid and transmission upgrades paid by utilities, and on-site power plants
• Colocation rents, cloud service revenue and managed services (covered in our Data Center Outsourcing Market report)
• Client devices, telecom access networks and enterprise IT kept in offices rather than data centers

Deployment spending, design and consulting services and DC-powered servers

Data center deployment spending is the same USD 570.04 billion measured here: what owners pay in 2025 to build, power, cool and fill new and existing halls. Data center design and consulting services, such as site selection, engineering design and commissioning, are billed inside General Construction (USD 48.69 billion) and are not counted as a separate line. DC-powered servers, which take direct current from the power train and skip one conversion step, sit inside IT Infrastructure, and the DC power distribution behind them sits inside Power Solutions (USD 62.60 billion).

Data center fabric switches from Cisco, Huawei Technologies, Brocade Communications Systems (now part of Broadcom) and Extreme Networks are counted in IT Infrastructure alongside servers from Dell Technologies, Hewlett Packard Enterprise and IBM Corporation. The buyers are cloud service providers, colocation and managed service providers, IT communication and telecom operators, banking financial services firms, governments and healthcare systems, which together make up the USD 570.04 billion of 2025 spending.

How the segments fit together

Every segment table in this report sums to the same USD 570.04 billion in 2025 and USD 2.16 trillion in 2035: by component, by data center type, by end user, by tier standard and by region.

Why Do Data Center Market Estimates Differ?

Estimates differ because publishers count different things: DC Market Insights puts the market at USD 697.78 billion in 2026 for data center infrastructure spending only.

Broader definitions add land and pre-build for sites that energise after 2027, grid connections, on-site generation, and cloud or colocation service revenue, which is a payment for the same assets counted again. Narrower definitions count only colocation and hosting revenue, or only facility equipment such as power and cooling, and land near USD 100–300 billion. Company capital-spending totals also run higher than this market: Alphabet and Meta alone guided 2026 capital expenditures to USD 290–320 billion combined (Alphabet, Meta), and those totals include land, offices, network and finance leases, which this report leaves out.

Element	In this report	Why
Servers, accelerators, storage, networking	Yes, USD 430.94 billion (2025)	Installed in the data hall
Power and cooling equipment	Yes, USD 90.42 billion (2025)	Part of the facility
Shell and core construction	Yes, USD 48.69 billion (2025)	Part of the facility
Land and grid connection	No	Not data center equipment
Colocation and cloud revenue	No	Service revenue on the same assets

Out of scope in this report: land banking, transmission upgrades, on-site gas turbines, colocation rent, cloud service revenue, managed hosting and edge devices outside data centers. In scope are all buyer groups that build or fit out data centers: hyperscale cloud operators, colocation providers, banks and other enterprises, governments, healthcare systems, and small and medium-sized enterprises (SMEs) that buy racks of servers into colocation halls.

What Is Driving Data Center Market Growth?

Hyperscale AI investment is the main driver: AI capacity drives USD 184.24 billion of 2025 IT spending, 32.3% of the Data Center Market.

Hyperscaler capital spending guidance for 2026

Meta reported 2025 capital expenditures of USD 72.22 billion and guided 2026 to USD 115–135 billion, according to its January 2026 results release. Alphabet guided 2026 capital expenditures to USD 175–185 billion in its February 2026 results message. Amazon’s purchases of property and equipment reached USD 131.82 billion in 2025, according to its fourth-quarter 2025 release. Microsoft’s additions to property and equipment were USD 115.95 billion in its fiscal year to June 2026, according to its July 2026 release. Amazon, Meta and Microsoft together spent USD 319.99 billion, which sets a floor under the 2025 market.

AI capacity and rack density

The AI share of new IT capacity rises from 35% in 2025 to 60% in 2030 in the DC Market Insights model, and each AI megawatt carries about USD 35 million of IT fit-out against about USD 5 million for conventional halls. The Uptime Institute’s Global Data Center Survey 2026 (July 2026) found the average of typical rack densities passed 11 kW, the highest on record. Higher density makes IT Infrastructure the fastest-growing component, at 15.12% a year.

Capacity doubling by 2030

JLL expects global data center capacity to add 97 GW between 2025 and 2030 and reach 200 GW, a 14% CAGR, according to its 2026 Global Data Center Outlook (January 2026). The same outlook puts shell-and-core cost at USD 10.7 million per MW in 2025 and USD 11.3 million in 2026. At those costs, facility spending comes to USD 139.10 billion in 2025.

Which Trends Are Reshaping the Data Center Market?

Three trends move USD 1.59 trillion of new spending into the market between 2025 and 2035: gigawatt campuses, liquid cooling and new ownership models.

Gigawatt-scale AI campuses

In January 2026, OpenAI and SoftBank invested USD 1 billion in SB Energy, which will build and operate the 1.2 GW Stargate site in Milam County, Texas, according to OpenAI. Sites of 1 GW or more concentrate General Construction and Power Solutions spending, which grow 9.85% and 11.19% a year respectively.

Liquid cooling moves into the base design

Cooling Systems grow at 13.24% a year, faster than Power Solutions at 11.19%, because the cooling share of facility spend rises from 20% in 2025 to 24% in 2035 in the DC Market Insights model. Vertiv reported 2025 net sales of USD 10.23 billion and a backlog of USD 15.0 billion, up 109%, according to its February 2026 results. Our Data Center Thermal Management Market report covers this segment in detail.

Infrastructure funds buy platforms

In July 2026, AIP, MGX and BlackRock’s Global Infrastructure Partners (GIP) closed the acquisition of Aligned Data Centers, covering more than 6.4 GW across 51 campuses, according to Aligned. Fund-owned platforms add colocation capacity, which DC Market Insights values at USD 142.51 billion of 2025 spending.

What Holds Back the Data Center Market?

Power availability and construction cost are the two main limits, and together they cut the 2035 market by USD 372.83 billion in the low case.

Grid access and electricity

Data centres used 415 TWh of electricity in 2024, about 1.5% of the world total, according to the IEA. In North America, primary-market vacancy held at 1.4% in the first half of 2026 while a record 7,481 MW was under construction, according to CBRE (September 2026). Delayed energisation pushes spending into later years; the low case assumes the AI share of new capacity reaches only 50% by 2035.

Rising cost per megawatt

Shell-and-core cost rose from USD 7.7 million per MW in 2020 to USD 10.7 million in 2025, a 39% increase, according to JLL. DC Market Insights carries a 3% yearly increase after 2026, reaching USD 14.74 million per MW in 2035, which lifts the market value but also raises the hurdle for enterprise projects, where spending grows only 8.58% a year.

Where Are the Biggest Data Center Market Opportunities?

The two largest opportunities are AI IT refresh, worth USD 703.92 billion a year at the end of the forecast, and sovereign AI capacity in the Middle East, Africa and India.

Refresh of the AI installed base

Refresh of installed AI systems is the largest new spending line: DC Market Insights puts it at USD 37.24 billion in 2025 and USD 703.92 billion at the end of the forecast, as accelerator fleets bought from 2023 onwards reach replacement at about 20% a year. Server makers and integrators gain the most, since refresh needs no new building.

Sovereign and emerging-region capacity

Middle East and Africa spending rises 18.18% a year from a USD 28.50 billion base, and India spending rises 21.18% a year from a USD 14.25 billion base. Saudi Arabia grows at 20.25% a year, to USD 43.26 billion at the end of the forecast. Our Asia Pacific AI Data Center Market report gives the AI facility view for India and the rest of the region.

How Much Does a Data Center Cost per Megawatt?

A conventional data center costs about USD 10.7 million per MW for shell and core in 2025, and an AI data center about USD 45.7 million per MW once USD 35 million of IT fit-out is added.

Cost item (USD million per MW)	2020	2025	2030	2035
Shell and core (facility)	7.70	10.70	12.72	14.74
AI IT fit-out	35.00	35.00	32.50	30.00
AI data center, all-in	42.70	45.70	45.22	44.74
Conventional IT spend per installed MW per year	2.50	2.50	2.65	2.80

Public price anchors confirm the range. CBRE’s Global Data Center Trends 2026 (June 2026) put colocation asking rents at USD 190–235 per kW per month in Northern Virginia and USD 235–265 in Frankfurt, while Singapore averaged USD 403. At USD 210 per kW per month, a 1 MW hall earns about USD 2.52 million a year in rent, which repays a USD 10.7 million shell in roughly four years before operating costs.

Which Rules and Standards Shape the Data Center Market?

Efficiency reporting is now law in the European Union (EU), and the industry average power usage effectiveness (PUE) of 1.52 in 2026 is the baseline those rules measure against.

• EU Delegated Regulation (EU) 2024/1364 of 14 March 2024 sets up the EU data centre reporting scheme under the Energy Efficiency Directive (EUR-Lex).
• EU data centre rating scheme, C(2026) 3472, adopted on 21 September 2026, amends 2024/1364 and requires an electronic label by 15 August 2027 and every year after (European Commission).
• Singapore Green Data Centre Roadmap (May 2024) aims to provide at least 300 MW of additional capacity in the near term for efficient operators (Infocomm Media Development Authority (IMDA)).
• Uptime Institute Tier Standard: Tier III facilities take USD 376.23 billion of 2025 spending and Tier IV USD 114.01 billion.
• Power usage effectiveness: the 2026 industry average is 1.52 (Uptime Institute).

Which Segment Leads the Data Center Market?

IT Infrastructure leads the Data Center Market with USD 430.94 billion in 2025, a 75.6% share, and grows fastest at 15.12% a year.

By Component

Component	2025 (USD million)	Share 2025	2035 (USD million)	CAGR
IT Infrastructure	430,940.00	75.6%	1,761,224.00	15.12%
Power Solutions	62,595.00	11.0%	180,795.85	11.19%
Cooling Systems	27,820.00	4.9%	96,424.45	13.24%
General Construction	48,685.00	8.5%	124,548.25	9.85%

By Data Center Type

Type	2025 (USD million)	Share 2025	2035 (USD million)	CAGR
Cloud and Hyperscale	313,522.00	55.0%	1,341,055.38	15.64%
Colocation	142,510.00	25.0%	562,378.06	14.71%
Enterprise	114,008.00	20.0%	259,559.11	8.58%

By End User

End user	2025 (USD million)	Share 2025	2035 (USD million)	CAGR
IT and Telecom	353,424.80	62.0%	1,470,834.93	15.33%
Banking, Financial Services and Insurance (BFSI)	68,404.80	12.0%	216,299.26	12.20%
Government	51,303.60	9.0%	173,039.40	12.93%
Healthcare	28,502.00	5.0%	108,149.63	14.27%
Others	68,404.80	12.0%	194,669.33	11.03%

By Tier Standard

Tier	2025 (USD million)	Share 2025	2035 (USD million)	CAGR
Tier I and II	79,805.60	14.0%	173,039.40	8.05%
Tier III	376,226.40	66.0%	1,384,315.23	13.91%
Tier IV	114,008.00	20.0%	605,637.91	18.18%

DC Exclusive: The AI Build-Out Spend Matrix — Where Does the Money Land?

The AI Build-Out Spend Matrix is a DC Market Insights model built from 40 inputs (12 cost and capacity inputs, 11 segment shares, 5 regional shares and 12 country shares), and it shows that North America’s IT Infrastructure alone takes USD 193.92 billion, 34.0% of the 2025 Data Center Market.

Region (2025, USD million)	IT Infrastructure	Power Solutions	Cooling Systems	General Construction
North America	193,923.00	28,167.75	12,519.00	21,908.25
Europe	73,259.80	10,641.15	4,729.40	8,276.45
Asia Pacific	129,282.00	18,778.50	8,346.00	14,605.50
Latin America	12,928.20	1,877.85	834.60	1,460.55
Middle East and Africa	21,547.00	3,129.75	1,391.00	2,434.25

Analyst takeaways:

• Every USD 1 of facility spending in 2025 pulled in USD 3.10 of IT spending; by 2035 the ratio rises to USD 4.38.
• AI refresh, not new buildings, becomes the largest single spending line after 2032 in the DC Market Insights model.
• Enterprise data centers fall from 20.0% to 12.0% of spending by 2035 as workloads move to cloud and colocation.
• Cooling Systems take 20.0% of facility spending in 2025 and 24.0% in 2035, the only facility line that gains share.
• North America, Asia Pacific and Europe hold 92.0% of 2025 spending; the Middle East and Africa and Latin America double their combined share from 8.0% to 11.0% by 2035.

Which Region Leads the Data Center Market?

North America leads with USD 256.52 billion in 2025, a 45.0% share, and the fastest-growing region is the Middle East and Africa at an 18.18% CAGR from 2025 to 2035, because Gulf sovereign funds are financing AI campuses from a small installed base.

Region	2025 (USD million)	Share 2025	2035 (USD million)	CAGR
North America	256,518.00	45.0%	930,086.80	13.75%
Europe	96,906.80	17.0%	302,818.96	12.07%
Asia Pacific	171,012.00	30.0%	692,157.62	15.01%
Latin America	17,101.20	3.0%	86,519.70	17.60%
Middle East and Africa	28,502.00	5.0%	151,409.48	18.18%

North America

North American spending of USD 256.52 billion in 2025 rests on hyperscale campuses; CBRE counted a record 7,481 MW under construction in primary markets in the first half of 2026, with vacancy at 1.4% and Northern Virginia at 0.2% (CBRE). Our U.S. AI Data Center Market report gives the US AI view.

Europe

European data center spending rises 12.07% a year from a USD 96.91 billion base, the slowest regional rate, as grid limits and the EU rating scheme adopted in September 2026 shape new builds; CBRE put European vacancy at 7.3% in early 2026 (CBRE).

Asia Pacific

Asia Pacific spending rises 15.01% a year, with India the fastest large market at 21.18%; Singapore has the region’s highest rents at USD 403 per kW per month (CBRE).

Latin America

Latin American spending rises 17.60% a year from a USD 17.10 billion base, led by Brazil at USD 7.41 billion, as cloud regions in São Paulo and Querétaro add capacity.

Middle East and Africa

Middle East and Africa spending rises fastest, at 18.18% a year; Abu Dhabi’s MGX is a co-owner of the 6.4 GW Aligned platform acquired in July 2026 (Aligned), showing Gulf capital moving into data center ownership.

Which Countries Spend the Most on Data Centers?

The United States spends the most, USD 233.72 billion in 2025 or 41.0% of the Data Center Market, and India grows fastest among large countries at 21.18% a year.

China is the second-largest country at USD 74.11 billion in 2025, rising 13.82% a year, followed by Japan at USD 22.80 billion (12.75%), Germany at USD 19.95 billion (12.52%) and the United Kingdom at USD 19.95 billion (11.74%). Canada spends USD 17.10 billion and grows 16.04% a year, and France spends USD 11.40 billion, rising 12.42% a year. Mexico, outside the top 12, takes about USD 2.91 billion in 2025, a DC Market Insights allocation of 17% of Latin American spending, led by cloud regions in Querétaro.

Rank	Country	Region	2025 (USD million)	2035 (USD million)	CAGR
1	United States	North America	233,716.40	832,752.13	13.55%
2	China	Asia Pacific	74,105.20	270,374.07	13.82%
3	Japan	Asia Pacific	22,801.60	75,704.74	12.75%
4	Germany	Europe	19,951.40	64,889.78	12.52%
5	United Kingdom	Europe	19,951.40	60,563.79	11.74%
6	Canada	North America	17,101.20	75,704.74	16.04%
7	India	Asia Pacific	14,251.00	97,334.66	21.18%
8	Australia	Asia Pacific	11,400.80	43,259.85	14.27%
9	France	Europe	11,400.80	36,770.87	12.42%
10	Singapore	Asia Pacific	8,550.60	25,955.91	11.74%
11	Brazil	Latin America	7,410.52	36,770.87	17.37%
12	Saudi Arabia	Middle East and Africa	6,840.48	43,259.85	20.25%

What Could the Data Center Market Be Worth in 2035 Under Different Scenarios?

The Data Center Market reaches USD 2.16 trillion in 2035 in the base case, within a range of USD 1.79 trillion to USD 2.33 trillion.

Scenario	2035 (USD million)	CAGR 2025–2035	Key assumption
Low	1,790,162.55	12.12%	AI share of new capacity 50% by 2035; AI IT cost falls to USD 25 million per MW
Base	2,162,992.55	14.27%	AI share 66% by 2035; AI IT cost USD 30 million per MW
High	2,325,522.55	15.10%	AI share 72% by 2035; AI IT cost holds near USD 33 million per MW

Who Are the Leading Companies in the Data Center Market?

The top five cloud buyers (Amazon Web Services, Microsoft, Alphabet, Meta and Oracle) direct about 55% of 2025 spending, which DC Market Insights bases on the USD 313.52 billion Cloud and Hyperscale segment.

• Amazon Web Services (AWS)
• Microsoft
• Alphabet (Google)
• Meta
• Oracle
• Equinix
• Digital Realty
• NTT DATA
• Aligned Data Centers
• Vertiv
• Schneider Electric
• Eaton
• NVIDIA
• Dell Technologies
• Hewlett Packard Enterprise (HPE)
• Cisco
• Super Micro Computer

Equinix reported 2025 revenue of USD 9.217 billion, up 5%, and guided 2026 to USD 10.123–10.223 billion (Equinix). Digital Realty reported 2025 total operating revenues of USD 6.11 billion (Digital Realty). Oracle ended its fiscal year in May 2026 with remaining performance obligations of USD 638 billion, up 363% (Oracle), a backlog that turns into data center orders over the next five years. Among equipment suppliers, Vertiv’s USD 10.23 billion of 2025 sales equal 11.3% of the USD 90.42 billion Power Solutions and Cooling Systems total.

What Has Changed in the Data Center Market in 2026?

Six dated events in 2026 point to USD 1 trillion-plus annual spending by the end of the decade.

• In January 2026, OpenAI and SoftBank invested USD 1 billion in SB Energy to build the 1.2 GW Stargate site in Milam County, Texas (Source: OpenAI).
• In January 2026, Meta guided 2026 capital expenditures to USD 115–135 billion (Source: Meta).
• In February 2026, Alphabet guided 2026 capital expenditures to USD 175–185 billion (Source: Alphabet).
• In July 2026, AIP, MGX and GIP closed the acquisition of Aligned Data Centers, more than 6.4 GW across 51 campuses (Source: Aligned).
• In September 2026, CBRE reported a record 7,481 MW under construction in North American primary markets (Source: CBRE).
• In September 2026, the European Commission adopted the EU data centre rating scheme, C(2026) 3472 (Source: European Commission).

More data center reports are listed under DC Market Insights industries; for the largest campuses see our Mega Data Center Market report.

Methodology: How the Model Sizes the Data Center Market at USD 570.04 Billion

DC Market Insights built the model from 40 inputs across 16 years (2020–2035), 5 regions and 12 countries, and checked it against three public bounds.

The 2025 receipt: facility spending of USD 139.10 billion (USD 10.7 million per MW × the average of 12.0 GW new in 2025 and 13.9 GW in 2026), plus AI IT fit-out of USD 147.00 billion (4.2 GW × USD 35 million per MW), plus AI refresh of USD 37.24 billion (20% of a 5.3 GW installed AI base), plus conventional IT of USD 246.70 billion (98.7 GW × USD 2.5 million per MW per year), gives USD 570.04 billion. Installed IT capacity grows from 116 GW at the end of 2025 to 331 GW by 2035 before retirements, or about 311 GW after them.

• Ceiling 1: the IEA put data centre investment at about USD 0.5 trillion in 2024; the model gives USD 446.29 billion for 2024 on a narrower scope.
• Ceiling 2: Dell’Oro Group expects data center capex above USD 1 trillion in 2026, including land and pre-build; the model gives USD 697.78 billion.
• Floor: Amazon, Meta and Microsoft alone reported USD 319.99 billion of property and equipment spending in their latest fiscal years; the model’s USD 570.04 billion sits above it.

Every segment, region and country table sums to the total in every year. The full approach is described on our research methodology page.