Source: Fortune Business Insights
The global data center infrastructure market has emerged as one of the fastest-growing sectors in the information technology landscape. According to Fortune Business Insights, the global market size stood at USD 94.56 billion in 2019 and is projected to reach USD 142.31 billion by 2027, growing at a CAGR of 5.5% during the forecast period. This robust growth is driven by rising digital transformation efforts, cloud adoption, and increasing demand for modern, efficient IT infrastructure worldwide.
The primary driver behind market growth is the increasing investment in both traditional and modular data center infrastructure. As small and medium enterprises (SMEs), startups, and large corporations ramp up data consumption, demand for scalable infrastructure solutions continues to intensify.
Major investments by global tech giants further amplify this trend. Amazon Web Services (AWS) invested USD 2.8 billion to establish a new cloud region in Telangana, India. Microsoft Corporation announced plans to boost Sweden's digital transformation through a dedicated data center. Equinix also acquired two data centers in Mumbai from GPX Global Systems for $161 million, expanding its footprint in the Asia Pacific region.
The COVID-19 pandemic also unexpectedly accelerated market growth. As organizations across industries — including BFSI, IT, telecommunications, and retail — shifted to remote working models, demand for cloud-based solutions and reliable data center infrastructure soared. Companies such as Google LLC, Oracle Corporation, and IBM Corporation relied heavily on data center infrastructure to sustain digital operations during this period.
Hyperscale Data Centers represent the most prominent trend shaping the market. These large-scale facilities offer greater data and server capacity than conventional centers and are becoming indispensable as cloud adoption surges. According to a Cisco report, hyperscale data center network traffic was expected to account for 55% of total data center traffic by 2021. NTT Communications launched a 38MW hyperscale facility in Mumbai with 375,000 sq. ft. capacity to meet growing regional demand.
The market is segmented by component into Solutions and Services.
Leading companies profiled in the market include:
These players are focused on innovative product launches, strategic partnerships, and geographic expansion to strengthen their market positions.
Q1. What is the size and share of the Data Center Infrastructure Market? According to Fortune Business Insights, the global data center infrastructure market was valued at USD 94.56 billion in 2019 and is projected to reach USD 142.31 billion by 2027 at a CAGR of 5.5%. North America led the market with a dominant share of 37.9% in 2019, followed by Europe and Asia Pacific.
Q2. What are the key factors restraining market growth? High initial capital expenditure, long construction cycles of 2–3 years, and rising energy consumption are the primary restraining factors. According to Stanford University's Engineering Department, U.S. data center power consumption increased by 36%, highlighting energy sustainability as a critical concern.
Q3. Which segment leads the Data Center Infrastructure Market? The Solutions segment holds the leading position in the market, particularly driven by demand for thermal management modules. The Services segment, however, is anticipated to grow at the highest CAGR, reflecting increased reliance on professional and consulting services by data center operators globally.
Source: Fortune Business Insights – Data Center Infrastructure Market Report