# Data Center Renovation Market

> Data Center Renovation Market: USD 15.03 billion in 2026, USD 34.67 billion by 2035, 10.41% CAGR from 2025 as ageing sites retrofit for AI and efficiency.

Publisher: DC Market Insights  
Author: Amit Jain, DC Market Insights  
Published: 2026-10-13  
Last updated: 2026-10-13  
Next review: Apr 2027  
Page: https://www.dcmarketinsights.com/report/data-center-renovation-market

## Key takeaways

- Ageing Facilities: 27.5% of Operators Run Sites 16 Years or Older
- Liquid Cooling Moves into Existing Halls
- Live-Site Disruption Makes Upgrades Costly
- AI-Ready Retrofits Add USD 2.56 billion by 2030

**Frequently Asked Questions**

**What is the size of the Data Center Renovation Market in 2026?**

USD 15.03 billion in 2026, up from USD 12.88 billion in 2025, and DC Market Insights projects USD 34.67 billion by 2035, a CAGR of 10.41% from 2025 to 2035.

**How fast is the Data Center Renovation Market growing?**

10.41% a year from 2025 to 2035, after 17.24% a year between 2020 and 2025, when the ten-year-old installed base grew to 55.0 GW and AI retrofits began.

**What is data center renovation?**

USD 12.88 billion of 2025 spending went on renovating operating data centers: power and UPS upgrades, cooling and liquid-cooling retrofits, densification fit-out, shell works and fire, security and controls upgrades, excluding new builds and IT hardware.

**Which renovation type leads the Data Center Renovation Market?**

31.0% of 2025 value, or USD 3.99 billion, goes to power and electrical upgrades. Cooling retrofits grow fastest at 12.12% a year and lead by 2035 with 35.0%.

**How much does it cost to renovate a data center per MW?**

About USD 3.20 million per MW of IT capacity for a full power and cooling renovation in 2025, and USD 1.80 million per MW for a liquid-cooling retrofit of a younger hall (DC Market Insights estimates).

**Which region leads the Data Center Renovation Market?**

41.0% of 2025 value, or USD 5.28 billion, is spent in North America. Asia Pacific grows fastest at 12.44% a year, reaching USD 10.40 billion by 2035.

**Who are the leading companies in the Data Center Renovation Market?**

About 22% of 2025 value is held by Schneider Electric, Vertiv, Eaton, Johnson Controls and Legrand together (DC Market Insights estimate). ABB, Siemens, STULZ, technotrans, Comfort Systems USA, EMCOR Group, CBRE, Jacobs and Turner Construction also compete.

**Which data center type spends the most on renovation?**

USD 5.92 billion, or 46.0% of 2025 spending, comes from enterprise data centers. Hyperscale and cloud data centers grow fastest at 14.28% a year.

**Why do Data Center Renovation Market estimates differ?**

USD 15.03 billion in 2026 is the DC Market Insights figure for facility works in operating sites only. Broader estimates add IT hardware refresh, migration services, building conversions and maintenance contracts, so headline figures can differ by more than 1.5 times.

**How do efficiency rules drive data center renovation?**

PUE 1.5 from 1 July 2027 and 1.3 from 1 July 2030 apply to existing German data centers under the EnEfG; China targets an average PUE below 1.5 by end-2025 and Japan 1.4 by fiscal 2030, pushing retrofits of older sites.

## Market by region (USD million)

## Dataset

| Series | Value | Unit |
| --- | --- | --- |
| Market size 2025 | 12,880 | USD million |
| Revenue CAGR | 10.41 | % |
| Market size 2035 | 34,670 | USD million |

## Frequently asked questions

### What is the size of the Data Center Renovation Market in 2026?

USD 15.03 billion in 2026, up from USD 12.88 billion in 2025, and DC Market Insights projects USD 34.67 billion by 2035, a CAGR of 10.41% from 2025 to 2035.

### How fast is the Data Center Renovation Market growing?

10.41% a year from 2025 to 2035, after 17.24% a year between 2020 and 2025, when the ten-year-old installed base grew to 55.0 GW and AI retrofits began.

### What is data center renovation?

USD 12.88 billion of 2025 spending went on renovating operating data centers: power and UPS upgrades, cooling and liquid-cooling retrofits, densification fit-out, shell works and fire, security and controls upgrades, excluding new builds and IT hardware.

### Which renovation type leads the Data Center Renovation Market?

31.0% of 2025 value, or USD 3.99 billion, goes to power and electrical upgrades. Cooling retrofits grow fastest at 12.12% a year and lead by 2035 with 35.0%.

### How much does it cost to renovate a data center per MW?

About USD 3.20 million per MW of IT capacity for a full power and cooling renovation in 2025, and USD 1.80 million per MW for a liquid-cooling retrofit of a younger hall (DC Market Insights estimates).

### Which region leads the Data Center Renovation Market?

41.0% of 2025 value, or USD 5.28 billion, is spent in North America. Asia Pacific grows fastest at 12.44% a year, reaching USD 10.40 billion by 2035.

### Who are the leading companies in the Data Center Renovation Market?

About 22% of 2025 value is held by Schneider Electric, Vertiv, Eaton, Johnson Controls and Legrand together (DC Market Insights estimate). ABB, Siemens, STULZ, technotrans, Comfort Systems USA, EMCOR Group, CBRE, Jacobs and Turner Construction also compete.

### Which data center type spends the most on renovation?

USD 5.92 billion, or 46.0% of 2025 spending, comes from enterprise data centers. Hyperscale and cloud data centers grow fastest at 14.28% a year.

### Why do Data Center Renovation Market estimates differ?

USD 15.03 billion in 2026 is the DC Market Insights figure for facility works in operating sites only. Broader estimates add IT hardware refresh, migration services, building conversions and maintenance contracts, so headline figures can differ by more than 1.5 times.

### How do efficiency rules drive data center renovation?

PUE 1.5 from 1 July 2027 and 1.3 from 1 July 2030 apply to existing German data centers under the EnEfG; China targets an average PUE below 1.5 by end-2025 and Japan 1.4 by fiscal 2030, pushing retrofits of older sites.

## How to cite

Data Center Market Research & Consulting | DC Market Insights, "Data Center Renovation Market", updated 2026-10-13, https://www.dcmarketinsights.com/report/data-center-renovation-market
