The global data center services market grew from $59.53 billion in 2022 to $67.51 billion in 2023 at a compound annual growth rate (CAGR) of 13.4%. The data center services market is expected to grow to $116.43 billion in 2027 at a CAGR of 14.6%, according to Research and Markets
The growing adoption of digitalization is expected to be a significant driver for the growth of the data center services market. The adoption of digitalization is increasing due to the need for increased productivity, lowering operational costs, enabling faster decision-making, increasing efficiency, technological advancements, push towards digitalization from stakeholders, and others. The increasing adoption of digitalization will generate a huge amount of data that needs to be stored, driving the need for data centers.
This need for data centers will create a huge demand for data center services to set up, manage, and operate data centers. For instance, according to a survey conducted among 1,200 CXOs and decision-makers in 9 countries by Fujitsu and published in August 2021, during the pandemic, 82% of respondents from offline organizations had accelerated the digital transformation into their business.
During the pandemic, digital became the default mode of living and working, making the organizations adapt to digitalization by creating remote work environments and digitalizing customer services. Therefore, the growing adoption of digitalization will drive the data center services market.
Technological advancement is a key trend gaining popularity in the data center services market. The market is witnessing the implementation of next-generation technologies into data center services such as automation, block-chain technologies, the internet of things, 5G mobile broadband, cloud computing, artificial intelligence, data analytics, and others. These advancements offer advanced features, automation, efficiency, reliability, and reduced cost for data center service providers.
Major companies operating in the data center services market are focused on providing technologically advanced data center services to strengthen their market position. For instance, ABB, a Sweden-based automation company offers ABB Ability Data Center Automation systems for energy saving and sustainability. These are industrial automation systems for use in data centers. These run continuously and reliably, optimizing operational processes and lowering the risk of downtime, and eliminating waste caused by unnecessary or premature maintenance.
In September 2021, Equinix Inc., a US-based digital infrastructure company acquired the India operations of GPX Global Systems Inc., (GPX India), for an amount of $161 million. With the acquisition, Equinix expanded its presence in India, along with the addition of two fully integrated data centers, providing a platform for further expansion. GPX Global Systems Inc., is a US-based digital infrastructure company that offers carrier-neutral data center services to its clients worldwide.
North America was the largest region in the data center services market in 2022. Aisa-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. Research and Markets