According to data presented by Stocklytics.com, the global data centre market is expected to grow by 30 per cent and reach a value of over $430 billion by 2028.
The report says that the widespread adoption of cloud computing has significantly transformed the data centre landscape. While it has reduced the number of organisations operating their own data centres, it has also spurred a surge in the global data centre 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 centres.
The surging need for data centre solutions and technology has helped the entire market grow revenues by almost 40 per cent since 2016. However, the market projections for the following years are just as optimistic.
The report cites a Statista Market Insights survey and says the global data centres 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 per cent 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 per cent more than this year. Data centre servers follow with $120 billion in revenue and a 24 per cent growth in this period. Although far behind in revenue, the data centre storage segment will also see double-digit growth, with revenue rising by 22 per cent to $62 billion in the next four years.
The Statista data showed that GDP growth was the single largest market driver, with a 3.2 per cent share in total market growth last year. The impact of the Russia-Ukraine war, which led to increased demand for data centre services due to geopolitical tensions and cybersecurity concerns, followed, with 2.3 per cent share in total market growth. Technology adoption and innovation also played a significant role, with a 1.9 per cent share.
The United States will remain the single largest player in the global data centre landscape, generating nearly $100 billion, or roughly 30 per cent of total market revenue in 2024. This figure is expected to grow by 25 per cent and hit over $125 billion by 2028.
Although Chinese data centre revenues are far from these figures, the Chinese market will see the biggest growth in the following years. Statista expects the Chinese data centres segment to increase by 33 per cent 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 per cent, 27 per cent, and 31 per cent in this period, respectively.
