OVER the past decade, the once-niche piece of IT infrastructure — data centers — has become the talk of the investment world and a massive revenue driver for tech giants. Amazon Web Services generate almost 20 percent of the e-commerce giant’s revenue today. At the same time, Nvidia, the supplier of parts for modern cloud storage and processing data centers, has grown into the world’s third-largest tech company. The surging use of AI technologies, which require significant computing power and storage, has only fueled the data center boom, which is expected to continue in the following years.
According to data presented by Stocklytics.com, the global data center market is expected to grow by 30 percent and hit over $430 billion value by 2028.
Largest, fastest-growing segment
The widespread adoption of cloud computing has significantly transformed the data center landscape. While it has reduced the number of organizations operating their own data centers, it has also spurred a surge in the global data center count. This is largely due to the aggressive infrastructure expansion by major hyperscalers like Microsoft Azure, Google Cloud Platform and Amazon Web Services to cater to their growing customer base. Other tech giants, like Nvidia, have also reaped the benefits of this trend, with its GPUs becoming an integral part of modern data centers.
The surging need for data center solutions and technology has helped the entire market grow revenues by almost 40 percent since 2016. However, the market projections for the following years are just as optimistic.
According to a Statista Market Insights survey, the global data centers market is expected to gross over $344 billion in revenue this year, $15 billion more than in 2023. The entire market is projected to grow by a CAGR of 6.5 percent in the following years, resulting in a market volume of $438 billion by 2028.
Most of that value will come from network infrastructure, the market`s largest and fastest-growing segment. Statista expects the network infrastructure to bring in $256.1 billion in revenue in 2028, almost 30 percent more than this year. Data center servers follow with $120 billion in revenue and a 24 percent growth in this period. Although far behind in revenue, the data center storage segment will also see double-digit growth, with revenue rising by 22 percent to $62 billion in the next four years.
Highest revenue, top growth markets
The Statista data also gave an interesting insight into the biggest drivers of data center market growth and which countries have the highest share in total revenue. Statistics show that GDP growth was the single largest market driver, with a 3.2 percent share in total market growth last year. The impact of the Russia-Ukraine war, which led to increased demand for data center services due to geopolitical tensions and cybersecurity concerns, followed, with a 2.3 percent share in total market growth. Technology adoption and innovation also played a significant role, with a 1.9 percent share.
In global comparison, the United States will remain the single largest player in the global data center landscape, generating nearly $100 billion, roughly 30 percent of total market revenue in 2024. This figure is expected to grow by 25 percent and hit over $125 billion by 2028.
Although Chinese data center revenues are far from these figures, the Chinese market will see the biggest growth in the following years. Statista expects the Chinese data centers segment to increase by 33 percent and hit a $93 billion value by 2028. Other top markets, Japan, Germany, and the United Kingdom, will see similar growth rates, with their revenues growing by 32 percent, 27 percent, and 31 percent in this period, respectively.
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