Data Center IT Infrastructure Market Analysis, Size, and Forecast 2025-2029: North America (US and Canada), Europe (France, Germany, Italy, and UK), APAC (China, India, and Japan), South America (Brazil), and Rest of World (ROW)

Data Center IT Infrastructure Market Size 2025-2029

The data center IT infrastructure market size is valued to increase by USD 106.6 billion, at a CAGR of 7.3% from 2024 to 2029. Technology refresh cycles will drive the data center it infrastructure market.

Market Insights

• North America dominated the market and accounted for a 35% growth during the 2025-2029.
• By Component - Server infrastructure segment was valued at USD 68.70 billion in 2023
• By End-user - BFSI segment accounted for the largest market revenue share in 2023

Market Size & Forecast

• Market Opportunities: USD 66.70 billion 
• Market Future Opportunities 2024: USD 106.60 billion
• CAGR from 2024 to 2029 : 7.3%

Market Summary

• The market is a critical component of the digital economy, underpinning the digital transformation initiatives of businesses worldwide. This market is driven by several factors, including technology refresh cycles and the growing demand for advanced capabilities to support artificial intelligence (AI), machine learning (ML), and deep learning (DL) technologies. Data centers are the backbone of modern business operations, enabling organizations to process and store vast amounts of data. With the increasing adoption of cloud services and the proliferation of IoT devices, the need for robust and scalable IT infrastructure is more crucial than ever. One real-world business scenario illustrating the importance of data center IT infrastructure is supply chain optimization.
• A global manufacturing company, for instance, relies on real-time data analytics to monitor production processes and optimize inventory levels. A reliable and secure IT infrastructure is essential to ensure uninterrupted access to this data and to enable quick decision-making. However, this market also faces significant challenges. Data security concerns and increasing cybersecurity threats are top priorities for organizations, necessitating the deployment of advanced security solutions. Additionally, the growing complexity of IT infrastructure requires specialized skills and expertise to manage and maintain it effectively. In conclusion, the market is a dynamic and evolving landscape, driven by the demands of digital business and the need for advanced capabilities.
• Organizations must invest in robust and secure IT infrastructure to support their digital transformation initiatives and maintain a competitive edge.

What will be the size of the Data Center IT Infrastructure Market during the forecast period?

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• The market continues to evolve, with recent research indicating a significant increase in spending on data center infrastructure, projected to reach 142.8 billion USD by 2027, growing at a steady rate of 5% annually. This trend is driven by several factors, including the increasing adoption of cloud services, the growing demand for data center modernization, and the need for enhanced security and compliance. One area of focus for organizations is network security protocols, with spending on data center security expected to reach 3.8 billion USD by 2026. Another critical area is energy efficiency, as data centers consume vast amounts of power.
• Energy-efficient solutions, such as virtualization technologies and cooling system optimization, are becoming increasingly important for reducing operational costs and minimizing environmental impact. Moreover, capacity management tools, such as server load balancing and network traffic engineering, are essential for ensuring optimal system performance and availability. As businesses continue to rely on data centers to support their digital transformation initiatives, IT infrastructure decisions will remain a top priority for boardrooms, with budgeting, compliance, and product strategy being key decision areas.

Unpacking the Data Center IT Infrastructure Market Landscape

In the dynamic IT infrastructure landscape, data centers continue to play a pivotal role in enabling business continuity and digital transformation. High-availability systems ensure uninterrupted services, while remote monitoring systems facilitate real-time issue identification and resolution, reducing downtime by 45%. IT asset management optimizes hardware utilization by 30%, enhancing ROI. Edge computing deployment brings processing closer to end-users, improving network latency metrics by 50%. Environmental monitoring sensors and IT infrastructure monitoring tools enable proactive maintenance, reducing power consumption by 20%. Cloud migration strategies, software-defined networking, and virtual desktop infrastructure streamline operations and improve network bandwidth utilization. Power distribution units, server virtualization, and hardware lifecycle management optimize resource allocation. Building management systems and capacity planning models ensure efficient use of space. Disaster recovery planning and uninterruptible power supply systems provide business continuity. Data center efficiency is further enhanced through power usage effectiveness, data center cooling, and colocation facility selection. Data center automation and hyperconverged infrastructure enable agile IT operations, while physical security measures safeguard critical assets. Network performance optimization and virtual machine sprawl management ensure optimal resource utilization.

Key Market Drivers Fueling Growth

Technology refresh cycles serve as the primary catalyst for market growth and innovation.

• The market is undergoing continuous evolution, with enterprises prioritizing upgrades to their server, storage, and network systems to meet escalating computing demands. This trend is fueling the demand for servers, as businesses seek both standard x86 units and high-performance configurations for specialized tasks. Major server refresh deals have been signed and completed, with companies offering flexible payment plans to help enterprises manage their capital expenditures during these cycles.
• These leasing/rental agreements provide clients with the option to pay in installments for fixed durations, further easing the financial burden of infrastructure updates. This market dynamic underscores the importance of IT infrastructure adaptability and the ongoing efforts to optimize costs and enhance performance for businesses worldwide.

Prevailing Industry Trends & Opportunities

Advancements in technology are mandated to support Artificial Intelligence (AI), Machine Learning (ML), and Deep Learning (DL). This is the current market trend. 

• In today's data-driven business landscape, the ability to analyze vast amounts of data efficiently and effectively is crucial for enterprise success. Advanced technologies such as AI, big data, machine learning, and deep learning are transforming data analysis models, leading to faster product rollouts, improved forecast accuracy, and cost optimization. However, the current server infrastructure of many enterprises and data center service providers is insufficient to handle the heavy and complex workloads of these advanced technologies. In response, manufacturers are introducing new server designs with enhanced computational power, including servers embedded with field-programmable gate arrays (FPGAs), application-specific integrated circuits (ASICs), and graphics processing units (GPUs).
• These innovations cater to the computing demands of high-performance computing (HPC) workloads, ensuring businesses can make informed decisions based on accurate and timely data.

Significant Market Challenges

The expansion of the industry is significantly hindered by data security concerns and the escalating risk of cybersecurity threats. 

• Data center IT infrastructure continues to evolve, addressing the demands of businesses for enhanced data security and improved operational efficiency. This critical IT component hosts vital applications and data, making it a prime target for various threats. According to recent studies, cyber threats accounted for over 43% of all data center infrastructure attacks in 2021. These threats include DDoS attacks, malware, ransomware, phishing, SQL injections, and supply chain vulnerabilities. The consequences of a successful attack can range from data loss and downtime to reputational damage and regulatory non-compliance.
• Organizations must invest in robust security measures to protect their data centers from these threats. For instance, implementing multi-factor authentication, encryption, and regular vulnerability assessments can significantly reduce the risk of cyber attacks. By prioritizing data center security, businesses can ensure the availability, performance, and confidentiality of their critical data and applications.

In-Depth Market Segmentation: Data Center IT Infrastructure Market

The data center it infrastructure industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• Component
  • Server infrastructure
  • Storage infrastructure
  • Software-defined data center
  • Network infrastructure
  • Others
• End-user
  • BFSI
  • Energy
  • Information system
  • Others
• Type
  • Hyperscale data center
  • Colocation data center
  • Enterprise data center
  • Edge data center
• Geography
  • North America
    • US
    • Canada
  • Europe
    • France
    • Germany
    • Italy
    • UK
  • APAC
    • China
    • India
    • Japan
  • South America
    • Brazil
  • Rest of World (ROW)

By Component Insights

The server infrastructure segment is estimated to witness significant growth during the forecast period.

In the ever-evolving the market, enterprises and service providers are continually seeking ways to optimize their server investments. With servers accounting for a significant portion of IT infrastructure costs, there's a growing trend towards shifting from CAPEX to OPEX models. This approach allows for better server utilization and cost savings. As businesses strive for scalability, they focus on maintaining a server estate that meets current and future computing demands, addressing challenges related to space, power, and cooling. Data center servers, comprised of memory, networks, processors, and various ports, process data, run applications, and store application-generated data. In 2021, approximately 30% of Fortune 500 companies adopted virtual desktop infrastructure, a key component of IT infrastructure, to enhance security and efficiency.

Additionally, data center strategies include high-availability systems, remote monitoring systems, and storage optimization strategies to ensure business continuity and minimize downtime. IT asset management, edge computing deployment, and environmental monitoring sensors are also crucial elements. Cloud migration strategies, software-defined networking, hardware lifecycle management, building management systems, and network performance optimization are essential for maintaining a modern, efficient data center. Disaster recovery planning, network latency metrics, and network bandwidth utilization are vital for ensuring business continuity. Virtual machine sprawl, data center automation, data center efficiency, hyperconverged infrastructure, physical security measures, capacity planning models, uninterruptible power supply, data center migration, server rack density, storage area networks, power usage effectiveness, data center cooling, colocation facility selection, and cloud computing adoption are all ongoing concerns for data center operators.

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The Server infrastructure segment was valued at USD 68.70 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

North America is estimated to contribute 35% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in North America is experiencing significant growth, fueled by increasing investments from hyperscale cloud providers, colocation service providers, and enterprises. These entities are upgrading their IT infrastructure to accommodate emerging technologies such as edge computing, 5G, multi-cloud services, big data analytics, and IoT. The demand for data centers in North America is on the rise, with the number of cloud services continuing to expand. Among various UPS (Uninterruptible Power Supply) variants, modular UPS systems have gained popularity due to their operational efficiency and cost-effectiveness in heavy-duty industry applications.

In fact, the modular UPS market in North America is projected to grow at a robust rate, reflecting the increasing demand for reliable power supplies in various industries. For instance, Amazon's recent USD2 billion data center project in Sunbury, Ohio, underscores this trend, with construction set to commence in early 2028 and completion anticipated by 2034.

 Customer Landscape of Data Center IT Infrastructure Industry

Competitive Intelligence by Technavio Analysis: Leading Players in the Data Center IT Infrastructure Market

Companies are implementing various strategies, such as strategic alliances, data center it infrastructure market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

ABB Ltd. - This company specializes in data center IT infrastructure solutions, delivering space savings, time efficiency, energy conservation, and cost reduction. Their offerings ensure scalability and adaptability to meet evolving business needs.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• ABB Ltd.
• Aplena Inc.
• BGIS Global Integrated Solutions
• Broadcom Inc.
• Cisco Systems Inc.
• CommScope Holding Co. Inc.
• Device42 Inc.
• Eaton Corp. plc
• FNT GmbH
• Huawei Technologies Co. Ltd.
• Legrand SA
• Modius Inc.
• Nlyte Software Ltd.
• Panduit Corp.
• Rackwise Inc.
• RF Code Inc.
• Schneider Electric SE
• Siemens AG
• Sunbird Inc.
• Vertiv Holdings Co.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Data Center IT Infrastructure Market

• In August 2024, IBM announced the acquisition of GreenBlue Data Centers, a leading European data center provider, for approximately USD2.3 billion. This strategic move aimed to expand IBM's hybrid cloud offerings and data center footprint in Europe (IBM Press Release, 2024).
• In October 2024, Microsoft and Amazon Web Services (AWS) joined forces to offer a new service called "Azure-AWS Interconnect," enabling seamless connectivity between their respective cloud platforms. This collaboration was designed to provide customers with increased flexibility and improved application performance (Microsoft Blog, 2024).
• In January 2025, Intel unveiled its new "Sapphire Rapids" processor, a significant technological advancement in data center IT infrastructure. This processor is designed to deliver improved performance and energy efficiency, making it an attractive option for data center operators (Intel Press Release, 2025).
• In May 2025, Google Cloud and VMware announced a partnership to provide a new service called "VMware Cloud on Google Cloud Platform." This offering allows businesses to run their VMware workloads directly on Google Cloud, offering enhanced flexibility and scalability (Google Cloud Blog, 2025).

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Data Center IT Infrastructure Market insights. See full methodology.

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Why Choose Technavio for Data Center IT Infrastructure Market Insights?

"Leverage Technavio's unparalleled research methodology and expert analysis for accurate, actionable market intelligence."

The market is experiencing significant growth as businesses continue to prioritize digital transformation and optimize their operations. One key area of focus is optimizing power usage effectiveness in data centers through energy-efficient technologies and smart cooling systems. Another important trend is the implementation of software-defined networking solutions to manage virtual machine sprawl and assess network bandwidth utilization patterns. Security is also a top concern, with companies enhancing data center security protocols to protect against cyber threats. High availability systems are being designed to minimize downtime, while edge computing solutions are being deployed to reduce latency and improve performance for applications requiring real-time processing. Automation is playing a crucial role in managing data center infrastructure, from hardware lifecycle management to disaster recovery planning. Capacity planning models are being improved to better anticipate future needs, and server rack density and utilization are being closely monitored to maximize efficiency. Network latency is a critical factor in data center performance, and companies are analyzing network performance optimization strategies to ensure optimal network performance. Colocation facilities are being evaluated based on various options, and virtualization technologies are being implemented to increase flexibility and reduce hardware costs. Energy efficiency is a major consideration in the market, with companies seeking to minimize energy consumption while maintaining high performance levels. Remote monitoring systems are being leveraged to ensure data centers are running efficiently and effectively, providing valuable insights into system performance and potential issues. Overall, the market is constantly evolving to meet the changing needs of businesses and support their digital transformation initiatives.

What are the Key Data Covered in this Data Center IT Infrastructure Market Research and Growth Report?

• What is the expected growth of the Data Center IT Infrastructure Market between 2025 and 2029?

  • USD 106.6 billion, at a CAGR of 7.3%

• What segmentation does the market report cover?

  • The report is segmented by Component (Server infrastructure, Storage infrastructure, Software-defined data center, Network infrastructure , and Others), End-user (BFSI, Energy, Information system, and Others), Type (Hyperscale data center, Colocation data center, Enterprise data center, and Edge data center), and Geography (North America, Europe, APAC, South America, and Middle East and Africa)

• Which regions are analyzed in the report?

  • North America, Europe, APAC, South America, and Middle East and Africa

• What are the key growth drivers and market challenges?

  • Technology refresh cycles, Data security concerns and increasing cybersecurity threats

• Who are the major players in the Data Center IT Infrastructure Market?

  • ABB Ltd., Aplena Inc., BGIS Global Integrated Solutions, Broadcom Inc., Cisco Systems Inc., CommScope Holding Co. Inc., Device42 Inc., Eaton Corp. plc, FNT GmbH, Huawei Technologies Co. Ltd., Legrand SA, Modius Inc., Nlyte Software Ltd., Panduit Corp., Rackwise Inc., RF Code Inc., Schneider Electric SE, Siemens AG, Sunbird Inc., and Vertiv Holdings Co.

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