Healthcare Data Center Market Size, Share & Forecast to 2035

The Healthcare Data Center Market is valued at USD 17.34 billion in 2026 and is projected to reach USD 37.11 billion by 2035, up from USD 15.46 billion in 2025, a CAGR of 9.15% from 2025 to 2035 (DC Market Insights estimate). Money in this market moves on recovery time more than on floor space: the US Department of Health and Human Services (HHS) proposed in January 2025 that every covered entity must be able to restore critical electronic health information systems and data within 72 hours, after the Change Healthcare ransomware attack touched about 190 million people and cost UnitedHealth Group USD 2.2 billion in direct response costs in 2024 (UnitedHealth Group Form 10-K, February 2025). The second force sits in pharmaceutical research halls, where Eli Lilly switched on a 1,016-graphics processing unit (GPU) AI factory in Indianapolis in February 2026. The build receipt: 3,300 megawatts (MW) of IT load in use by hospitals, payers, drug makers and health IT vendors in 2025 x USD 4.69 million of spending per MW = USD 15.46 billion; the 2025 receipt splits into USD 10.93 billion of IT hardware, USD 3.14 billion of colocation and hosting fees and USD 1.40 billion of site works. AI genomics and research computing is the fastest healthcare data center workload at 16.71% a year, and Asia Pacific is the fastest region at 11.72% because India’s national health ID system had issued 84.5 crore (845 million) accounts by 2025.

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

DC Market Insights puts healthcare data center spending at USD 17.34 billion in 2026, 12.16% more than in 2025, as backup sites, AI clusters for drug discovery and leased halls for electronic health records (EHR) are added faster than hospital server rooms close.

• Healthcare data center market size 2025: USD 15.46 billion
• Market size 2026: USD 17.34 billion
• Market size 2030: USD 25.10 billion
• Market size 2035: USD 37.11 billion
• CAGR 2025-2035: 9.15% (low case 7.13%, high case 10.69%)
• Largest component: IT hardware, USD 10.93 billion or 70.7% of 2025 value
• Fastest workload: AI genomics and research computing, 16.71% a year to USD 10.78 billion by 2035
• Largest end user: hospitals and health systems, USD 7.27 billion in 2025
• Leading region: North America, USD 7.11 billion or 46.0% of 2025 value; fastest region: Asia Pacific at 11.72%
• Largest country: United States, USD 6.49 billion in 2025; fastest large country: India at 18.37%
• Market leader in leased healthcare capacity: Equinix, one of five colocation providers that hold about 31% of healthcare colocation and hosting spending (DC Market Insights estimate)

Executive Summary: Healthcare Data Center Market Size, 2020-2035

The Global Healthcare Data Center Market size was valued at USD 9.77 billion in 2020, reached USD 15.46 billion in 2025, and is anticipated to reach USD 37.11 billion by 2035, at a CAGR of 9.15% during the forecast period. From 2020 to 2025 healthcare data center spending rose 9.61% a year as hospitals finished EHR roll-outs, picture archives grew and ransomware forced second sites.

Attribute	Value
Historical period	2020-2024
Base year	2025
Forecast period	2026-2035
Market size 2025	USD 15.46 billion
Market size 2026	USD 17.34 billion
CAGR 2025-2035	9.15%
Market size 2035	USD 37.11 billion

Healthcare IT load in use doubles from 3,300 MW in 2025 to 6,600 MW in 2035 in the DC Market Insights model, and the share of it on accelerator racks climbs from 5% to 22%. Growth eases from 9.61% to 9.15% a year because health systems such as WellSpan Health and Baptist Memorial Health Care are moving EHR estates to public cloud, which this estimate leaves out. An AI MW carries about USD 8.3 million a year of hardware against USD 3.05 million for a conventional healthcare MW, so the AI share lifts value faster than load.

What Counts as Healthcare Data Center Spending?

The healthcare data center market covers USD 15.46 billion of 2025 spending by hospitals and health systems, payers, pharmaceutical and life-science firms, health IT and medical technology vendors and public health bodies on data center capacity they own or lease.

Included: servers, storage, network switches and GPU systems installed in healthcare-owned or colocated halls; colocation, wholesale and vendor-hosted private cloud fees (for example Epic Hosting); uninterruptible power supply (UPS) systems, switchgear, chillers and other electrical and mechanical equipment for owned sites; construction, renovation and tenant fit-out.

Excluded: public cloud services bought by health organisations, clinical and EHR software licences, IT staff and outsourcing labour, electricity bills, medical devices, and PCs and network gear outside the data center.

How the segments fit together: component, end user, workload and deployment model each split the same healthcare data center total. Region and country values are spending where the hall sits.

Why Do Healthcare Data Center Market Estimates Differ?

Healthcare data center estimates differ by more than 1.5 times because broader figures add cloud and software bills, while DC Market Insights counts USD 17.34 billion in 2026 of owned and leased capacity only.

Wider definitions fold in public cloud consumption by hospitals and drug makers, healthcare cloud computing software, health information exchange platforms, IT outsourcing contracts and even electricity for hospital server rooms. Those additions can more than double the headline. They describe health IT spending in general rather than data center capacity. Small and mid-size buyers are in scope: community hospitals, physician groups and regional payers that rent a few racks in retail colocation are counted in the USD 2.63 billion retail colocation segment.

Element	In this report	Why
IT hardware in owned and leased healthcare halls	Yes, USD 10.93 billion (2025)	Capacity the buyer controls
Colocation, wholesale and vendor-hosted private cloud fees	Yes, USD 3.14 billion	Rent for dedicated data center capacity
Electrical, mechanical and construction works	Yes, USD 1.40 billion	Site spending for owned halls
Public cloud services (AWS, Microsoft Azure, Google Cloud, OCI)	No	Shared hyperscale capacity, counted in cloud markets
EHR and clinical software licences	No	Software, not capacity
IT outsourcing labour and electricity	No	Operating costs, not capacity

Healthcare Data Center Market Drivers: What Pushes Spending Up?

Three healthcare-specific drivers add about USD 21.65 billion to annual healthcare data center spending between 2025 and 2035: a 72-hour recovery rule, drug-discovery AI factories and petabyte-scale research data.

HIPAA 72-Hour Restore Proposal After the Change Healthcare Attack

The HHS proposal to update the Health Insurance Portability and Accountability Act (HIPAA) Security Rule, published on 6 January 2025, requires written procedures to restore critical systems and data within 72 hours and verified backups (Federal Register, 6 January 2025). HHS estimated first-year compliance costs at about USD 9.3 billion and recorded more than 160 million people hit by large breaches in 2023. The Change Healthcare attack then cost UnitedHealth Group USD 2.2 billion in direct response and USD 867 million of business disruption in 2024, and the company lent more than USD 9 billion to providers. DC Market Insights expects healthcare backup and disaster recovery capacity to add USD 2.29 billion of yearly spending by 2035, reaching USD 4.45 billion.

Pharmaceutical AI Factories: LillyPod and Gefion

Eli Lilly’s AI factory, announced in October 2025 with 1,016 NVIDIA Blackwell Ultra GPUs and more than 9,000 petaflops, went live in Indianapolis in February 2026 (NVIDIA, February 2026). NVIDIA and Lilly then agreed in January 2026 to invest up to USD 1 billion over five years in a Bay Area co-innovation lab (NVIDIA, January 2026). In Denmark the Novo Nordisk Foundation funded the Gefion supercomputer (1,528 H100 GPUs, about DKK 600 million) inside a Digital Realty facility. These projects drive pharmaceutical and life-sciences spending from USD 3.09 billion in 2025 to USD 9.28 billion by 2035, 11.61% a year.

Petabyte Research Archives: NIH 363 PB and UK Biobank 30 PB

The National Institutes of Health (NIH) shares more than 363 petabytes (PB) of data across its clouds (NIH, December 2024), and UK Biobank holds about 30 PB, of which whole-genome data for 500,000 participants takes 27.5 PB (UK Biobank, 2023). Every copy kept for research or recovery needs storage racks, so medical imaging and picture archiving and communication system (PACS) workloads grow from USD 2.78 billion to USD 6.31 billion in healthcare data centers by 2035.

Healthcare Data Center Market Trends: Where Is Capacity Moving?

Healthcare data center capacity is moving out of hospital basements: owned sites fall from 60.0% of 2025 value to 45.0% by 2035 while vendor-hosted and wholesale capacity grows at 13.67% and 14.01% a year.

EHR Estates Leave Hospital-Owned Halls in Weeks, Not Years

WellSpan Health moved more than 300 applications and 7.5 PB of clinical data, including its Epic record, from its own data centers to AWS in 17 weeks (Amazon, July 2026). Baptist Memorial Health Care left its Memphis data center for AWS in 2023 instead of building a mirrored second site, and Oracle, which bought Cerner for about USD 28.3 billion in 2021, now moves Oracle Health customers onto OCI. Each such exit removes owned-site refresh and works from this market, which is why on-premises owned sites grow only 6.05% a year.

Health Data Must Stay in the Country

The United Arab Emirates (UAE) Federal Law No. 2 of 2019 bars storing health data related to services in the UAE outside the country, China’s 2018 National Health Commission measures require health big data on domestic servers, and Saudi Arabia’s Ministry of Health stores data in its own data centers or authorised clouds. Localisation keeps healthcare data center spending in the Middle East and Africa growing at 9.73% a year to USD 1.45 billion by 2035.

Federal EHR Infrastructure in US Veterans Hospitals

The US Department of Veterans Affairs (VA) asked for USD 3.495 billion for its EHR in fiscal 2026, including USD 660 million for infrastructure readiness, and USD 4.2 billion in fiscal 2027 with USD 745 million for infrastructure, to reach 45 live sites in 2027 (VA Budget in Brief, April 2026). Public health and research institutes hold USD 927.79 million of healthcare data center spending in 2025.

Healthcare Data Center Market Challenges: What Holds Spending Back?

Two constraints cut about 2.02 percentage points a year from the base healthcare data center growth path in the low case: data centers compete with hospital beds for capital, and public cloud takes EHR load out of scope.

Data Centers Compete With Beds and Seismic Work for Capital

HCA Healthcare guides 2026 capital spending at USD 5.0 billion to USD 5.5 billion across all assets, and Kaiser Permanente spent USD 4.8 billion in 2025, much of it on seismic compliance and facilities. US national health expenditure reached USD 5.3 trillion in 2024, 18.0% of gross domestic product (GDP), according to the Centers for Medicare and Medicaid Services (CMS, National Health Expenditure fact sheet). US healthcare data center spending of USD 6.49 billion is about 0.12% of that national bill, and hospital boards approve it only after clinical projects.

Public Cloud Takes EHR Load Out of the Healthcare Data Center Count

10 of the 14 named moves in the DC Market Insights tracker below went to public cloud. Each moves hardware and site spending out of this healthcare data center estimate, which is why EHR and clinical applications grow only 6.74% a year, the slowest workload apart from collaboration and other workloads.

Healthcare Data Center Market Opportunities: Where Is New Money?

The two largest healthcare data center openings are vendor-hosted private cloud, worth USD 6.68 billion by 2035, and India’s national health record build-out, which grows 18.37% a year.

Vendor-Hosted Private Cloud and Wholesale Halls

Epic runs Epic Hosting from a 100,000-square-foot, 3 MW primary data center on its Verona campus, and Iron Mountain markets its 40 MW underground campus near Pittsburgh to healthcare tenants. Vendor-hosted private cloud grows from USD 1.86 billion in 2025 to USD 6.68 billion in 2035, and wholesale and build-to-suit from USD 1.70 billion to USD 6.31 billion, adding USD 9.43 billion for providers that meet HIPAA and the 72-hour recovery test.

India’s Ayushman Bharat Digital Mission

India’s Ayushman Bharat Health Account (ABHA) count rose from 14.7 crore in 2021 to 84.5 crore in 2025 (Press Information Bureau, 2026), and the Digital Personal Data Protection (DPDP) Rules of November 2025 give organisations 18 months to comply. DC Market Insights expects India’s healthcare data center spending to rise from USD 247.41 million in 2025 to USD 1.34 billion in 2035.

Healthcare Data Center Pricing: What Does One MW Cost a Health System?

Healthcare data center spending averaged USD 4.69 million per MW of IT load in 2025, up from USD 3.91 million in 2020, because AI racks and leased capacity carry higher yearly costs than an owned hospital hall.

Year	Healthcare IT load (MW)	Leased share	Colocation and hosting rate per kW-month	IT hardware per conventional MW-year	IT hardware per AI MW-year	Total spending per MW
2020	2,500	30%	USD 180	USD 2.80 million	USD 6.80 million	USD 3.91 million
2025	3,300	40%	USD 198	USD 3.05 million	USD 8.30 million	USD 4.69 million
2030	4,700	49%	USD 210	USD 3.00 million	USD 7.30 million	USD 5.34 million
2035	6,600	55%	USD 218	USD 2.95 million	USD 6.40 million	USD 5.62 million

Public price and size anchors: Mackenzie Health’s prefabricated Tier 3 site holds 500 kilowatts (kW) for 45 racks (Schneider Electric case study, 2020), about 11 kW per rack. Epic’s Verona hosting site is 3 MW. HHS put first-year HIPAA Security Rule compliance at about USD 9.3 billion across all covered entities. Rates rise from USD 198 to USD 218 per kW-month by 2035 in the DC Market Insights model as AI racks need liquid cooling.

Standards and Regulation for Healthcare Data Centers

Eight rules shape where healthcare data center capacity sits and how fast it must recover, and they govern all USD 15.46 billion of 2025 spending.

HIPAA Security Rule Proposal, January 2025

HHS proposed the 72-hour restore requirement, verified backups and asset inventories on 6 January 2025, with comments due by 7 March 2025.

CMS Interoperability and Prior Authorization Final Rule (CMS-0057-F)

According to the CMS fact sheet, payers must meet operational provisions from 1 January 2026 and application programming interface (API) requirements from 1 January 2027, adding always-on data services for payers and health insurers, worth USD 2.47 billion of healthcare data center spending in 2025.

European Health Data Space Regulation (EHDS)

The EHDS entered into force on 26 March 2025, and key parts apply from March 2029 (European Commission, EHDS page).

NIS2 Directive

EU member states had until 17 October 2024 to transpose the Network and Information Security Directive (NIS2), which covers hospitals as essential entities.

UAE Federal Law No. 2 of 2019 and Saudi Data Rules

The UAE law on information and communication technology in health fields bars storing health data outside the UAE; Saudi Arabia’s National Data Management Office (NDMO) rules of 2020 require personal data to be stored and processed in the Kingdom.

China Health Big Data Measures, 2018

Article 30 requires health big data to be kept on secure servers inside China, with a security review before any transfer abroad.

India DPDP Rules, November 2025

The rules were notified on 14 November 2025 with an 18-month phased timeline.

ANSI/TIA-942 Data Center Standard

Hospital owners use the ANSI/TIA-942 rating levels to specify redundancy; Mackenzie Health’s 2N power and N+1 cooling design is a typical Tier 3 build.

Healthcare Data Center Market Segmentation: Which Segment Is Largest?

IT hardware is the largest healthcare data center component at USD 10.93 billion in 2025, and AI genomics and research computing is the fastest workload at 16.71% a year.

By Component

Colocation and hosting services grow fastest among components, at 11.72% a year to USD 9.50 billion.

Component	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
IT Hardware	USD 10,931.24 million	70.7%	USD 24,479.40 million	8.40%
Colocation and Hosting Services	USD 3,136.32 million	20.3%	USD 9,496.08 million	11.72%
Electrical and Mechanical Infrastructure	USD 967.87 million	6.3%	USD 2,058.14 million	7.84%
Construction and Fit-Out	USD 427.77 million	2.8%	USD 1,078.98 million	9.69%

By End User

Hospitals and health systems hold 47.0% of 2025 healthcare data center spending; pharmaceutical and life sciences grow fastest at 11.61%.

End User	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
Hospitals and Health Systems	USD 7,267.71 million	47.0%	USD 15,587.29 million	7.93%
Pharmaceutical and Life Sciences	USD 3,092.64 million	20.0%	USD 9,278.15 million	11.61%
Payers and Health Insurers	USD 2,474.11 million	16.0%	USD 5,195.76 million	7.70%
Health IT and Medtech Vendors	USD 1,700.95 million	11.0%	USD 4,824.64 million	10.99%
Public Health and Research Institutes	USD 927.79 million	6.0%	USD 2,226.76 million	9.15%

By Workload

EHR and clinical applications are the largest workload at USD 4.64 billion, but AI genomics and research computing overtakes them before 2035.

Workload	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
EHR and Clinical Applications	USD 4,638.95 million	30.0%	USD 8,907.02 million	6.74%
Medical Imaging and PACS	USD 2,783.38 million	18.0%	USD 6,309.14 million	8.53%
AI Genomics and Research Computing	USD 2,297.83 million	14.9%	USD 10,777.50 million	16.71%
Claims and Revenue Cycle	USD 2,010.22 million	13.0%	USD 4,082.39 million	7.34%
Backup and Disaster Recovery	USD 2,164.85 million	14.0%	USD 4,453.51 million	7.48%
Collaboration and Other Workloads	USD 1,567.97 million	10.1%	USD 2,583.04 million	5.12%

By Deployment Model

On-premises owned sites still hold 60.0% of healthcare data center value in 2025; wholesale and build-to-suit grows fastest at 14.01%.

Deployment Model	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
On-Premises Owned Sites	USD 9,277.93 million	60.0%	USD 16,700.67 million	6.05%
Retail Colocation	USD 2,628.74 million	17.0%	USD 7,422.52 million	10.94%
Wholesale and Build-to-Suit	USD 1,700.95 million	11.0%	USD 6,309.14 million	14.01%
Vendor-Hosted Private Cloud	USD 1,855.58 million	12.0%	USD 6,680.27 million	13.67%

DC Exclusive: Hospital Data Center Exit Tracker, 14 Named Moves, 2014-2026

The DC Market Insights Hospital Data Center Exit Tracker is a DC Market Insights model built on 14 inputs, one per named move from company and government sources: 10 went to public cloud, 2 to colocation and 2 to new owned sites.

The pattern explains the deployment split: core EHR estates leave owned halls for public cloud and drop out of the healthcare data center count, while AI and research clusters arrive as new owned or colocated capacity. DC Market Insights reads this as the owned-site share falling from 60.0% to 45.0% by 2035.

Organisation	Scale	Date	From	To	Destination type
Englewood Hospital and Medical Center	1 hospital, New Jersey	Oct 2014	Internal hospital data center	Iron Mountain colocation	Colocation
Mackenzie Health	Ontario, Canada	Nov 2019	Ageing server room	New 500 kW, 45-rack prefabricated Tier 3 site	Owned site
HCA Healthcare	186 hospitals	May 2021	Own data centers	Google Cloud partnership	Public cloud
Wellforce (Tufts Medicine)	Epic plus 300+ applications	Jul 2021	Own data centers	Amazon Web Services (AWS)	Public cloud
Hackensack Meridian Health	Epic workloads	Nov 2022	Own data centers	Google Cloud	Public cloud
Baptist Memorial Health Care	22 hospitals	Jun-Oct 2023	On-premises data center in Memphis	AWS, instead of a mirrored second site	Public cloud
Southeast Georgia Health System	2 acute-care hospitals	Jan 2024	On-premises Oracle Health EHR	Oracle Cloud Infrastructure (OCI)	Public cloud
Community Health Systems	71 hospitals in 15 states	Jan 2024	Data spread over many sites	Google Cloud FHIR platform	Public cloud
Novo Nordisk Foundation (Gefion)	1,528 NVIDIA H100 GPUs	Oct 2024	New capacity	Digital Realty colocation, Denmark	Colocation
Montefiore Health System	Most applications incl. Epic	Feb 2025	Own data centers	AWS	Public cloud
North York General Hospital	First Canadian hospital on OCI	Apr 2025	On-premises Oracle Health EHR	OCI	Public cloud
Eli Lilly (LillyPod)	1,016 NVIDIA Blackwell Ultra GPUs	Feb 2026	New capacity	Own AI factory, Indianapolis	Owned site
Transform Shared Service Organization	5 Ontario hospitals	Feb 2026	Hosted Oracle Health EHR	OCI	Public cloud
WellSpan Health	300+ applications, 7.5 PB	Jul 2026	Own data centers	AWS, in 17 weeks	Public cloud

Regional Insights: Which Region Leads the Healthcare Data Center Market?

North America leads the healthcare data center market with USD 7.11 billion or 46.0% of 2025 value, and Asia Pacific grows fastest at 11.72% a year to USD 9.83 billion.

North America

The United States has 6,100 hospitals with 907,216 staffed beds (American Hospital Association, 2026), and more than 99% of non-federal acute care hospitals use a certified EHR (Assistant Secretary for Technology Policy, 2024). North American healthcare data center spending rises from USD 7.11 billion to USD 15.77 billion.

Europe

NHS England awarded the Federated Data Platform to Palantir in November 2023 at GBP 182.2 million, with a forecast ceiling of GBP 330 million. European healthcare data center spending grows 8.01% a year to USD 8.35 billion, with Denmark’s Gefion showing how pharma research capacity lands in colocation.

Asia Pacific

Asia Pacific is the fastest region at 11.72%, led by India at 18.37% and China at 11.56%, where health big data must stay on domestic servers.

Latin America

Latin America’s healthcare data center spending rises from USD 664.92 million in 2025 to USD 1.71 billion by 2035, 9.89% a year, with Brazil at USD 231.95 million in 2025.

Middle East and Africa

The UAE and Saudi Arabia keep health data in-country, lifting Middle East and Africa healthcare data center spending from USD 572.14 million to USD 1.45 billion.

Country Analysis: Top 12 Countries in the Healthcare Data Center Market

The United States accounts for USD 6.49 billion of 2025 healthcare data center spending, more than the next eleven countries combined, while India is the fastest large country at 18.37% a year.

Rank	Country	Region	2025 (USD million)	2035 (USD million)	CAGR 2025-2035
1	United States	North America	USD 6,494.54 million	USD 14,288.35 million	8.20%
2	Japan	Asia Pacific	USD 742.23 million	USD 1,632.95 million	8.20%
3	Germany	Europe	USD 711.31 million	USD 1,521.62 million	7.90%
4	China	Asia Pacific	USD 695.84 million	USD 2,078.31 million	11.56%
5	United Kingdom	Europe	USD 680.38 million	USD 1,447.39 million	7.84%
6	Canada	North America	USD 494.82 million	USD 1,187.60 million	9.15%
7	France	Europe	USD 417.51 million	USD 927.82 million	8.31%
8	Australia	Asia Pacific	USD 262.87 million	USD 668.03 million	9.78%
9	India	Asia Pacific	USD 247.41 million	USD 1,336.05 million	18.37%
10	Brazil	Latin America	USD 231.95 million	USD 630.91 million	10.52%
11	Switzerland	Europe	USD 231.95 million	USD 519.58 million	8.40%
12	South Korea	Asia Pacific	USD 216.48 million	USD 593.80 million	10.62%

Japan (USD 742.23 million) and Germany (USD 711.31 million) follow the United States; Switzerland’s USD 231.95 million reflects pharmaceutical research capacity rather than hospital load.

Forecast Scenario Analysis: Healthcare Data Center Market in 2035

The 2035 healthcare data center market ranges from USD 30.80 billion in the low scenario to USD 42.68 billion in the high scenario, around a base of USD 37.11 billion.

Scenario	2035 (USD million)	CAGR 2025-2035	Assumption
Low	USD 30,803.46 million	7.13%	Faster EHR moves to public cloud; pharma AI clusters bought as cloud capacity
Base	USD 37,112.60 million	9.15%	Healthcare IT load 6,600 MW in 2035, 22% on AI racks, 55% leased
High	USD 42,679.49 million	10.69%	Final HIPAA rule enforces 72-hour restore; more drug makers build own AI factories

Competitive Insights: Key Players in the Healthcare Data Center Market

The five largest colocation providers hold about 31% of the USD 3.14 billion healthcare colocation and hosting spending in 2025 (DC Market Insights estimate, based on named healthcare deals and campus capacity), so the healthcare data center market is fragmented.

• Equinix
• Digital Realty
• Iron Mountain Data Centers
• CyrusOne
• NTT DATA
• Epic Systems (Epic Hosting)
• Oracle (Oracle Health)
• Microsoft (Nuance)
• Amazon Web Services
• Google Cloud
• Dell Technologies
• Hewlett Packard Enterprise
• NVIDIA
• Cisco Systems
• Schneider Electric
• Vertiv

Equinix named healthcare and life sciences a key vertical in its third-quarter 2025 results and cited Bristol Myers Squibb using its platform for AI workloads. Iron Mountain has hosted Englewood Hospital’s data center since 2014. Oracle paid about USD 28.3 billion for Cerner and Microsoft USD 19.7 billion for Nuance, which gives both a healthcare base for their own capacity. NVIDIA supplies the GPU systems inside LillyPod and Gefion; Dell Technologies, Hewlett Packard Enterprise and Cisco Systems supply servers, storage and networks to hospital halls, and Schneider Electric and Vertiv supply power and cooling.

Recent Developments in the Healthcare Data Center Market

Six dated events from 2025 and 2026 show healthcare data center demand moving toward AI capacity and hosted EHR.

• In July 2026, WellSpan Health completed the move of more than 300 applications and 7.5 PB of data to AWS in 17 weeks (Source: Amazon).
• In April 2026, the VA requested USD 4.2 billion for its EHR in fiscal 2027, including USD 745 million for infrastructure readiness (Source: VA Budget in Brief).
• In February 2026, Eli Lilly’s LillyPod AI factory with more than 9,000 petaflops went live in Indianapolis (Source: NVIDIA).
• In February 2026, five Ontario hospitals of Transform Shared Service Organization moved their EHR to OCI, cutting page-load time by 71% (Source: Oracle).
• In January 2026, NVIDIA and Lilly agreed to invest up to USD 1 billion over five years in an AI co-innovation lab (Source: NVIDIA).
• In November 2025, India notified the DPDP Rules with an 18-month phased timeline (Source: Press Information Bureau).

Research Methodology: How DC Market Insights Sized the Healthcare Data Center Market

The healthcare data center model multiplies 3,300 MW of healthcare IT load in 2025 by spending per MW for each component, giving USD 15.46 billion.

Healthcare IT load is about 7.2% of the roughly 46 gigawatts (GW) of enterprise and colocation capacity inside the 116 GW installed worldwide in 2025 (DC Market Insights capacity base). IT hardware = conventional MW x USD 3.05 million + AI MW (165) x USD 8.30 million = USD 10.93 billion. Colocation and hosting = 1,320 leased MW x USD 198 per kW-month x 12 = USD 3.14 billion. Owned sites add USD 967.87 million of electrical and mechanical work and USD 427.77 million of construction and fit-out. Splits by end user, workload, deployment model, region and country are DC Market Insights shares; every split sums to the total each year.

Bound checks: (1) the healthcare data center market is 2.7% of the USD 570.04 billion 2025 data center market in DC Market Insights’ global model, below the BFSI vertical’s 5.9% in the BFSI Data Center Market; (2) healthcare colocation and hosting of USD 3.14 billion is 4.2% of the USD 74.46 billion Data Center Colocation Market in 2025; (3) as a floor, 6,100 US hospitals x USD 0.5 million a year of minimum server refresh and site upkeep = USD 3.05 billion, below the USD 7.27 billion hospital segment. Outsourced operation of hospital halls is covered in the Data Center Outsourcing Market, and GPU halls in the AI Data Center Market. Full method: DC Market Insights research methodology.