Expanding Role of Data Centers in Supporting the Digital Economy

According to Precedence Research, the global data center market size is estimated at USD 386.71 billion in 2025 and is predicted to increase from USD 430.18 billion in 2026 to approximately USD 1,103.70 billion by 2035, expanding at a CAGR of 11.06% from 2026 to 2035.

Ottawa, Feb. 05, 2026 (GLOBE NEWSWIRE) -- Data centers have evolved beyond traditional IT infrastructure to become a critical component of the global digital economy. They provide the foundation for industries like cloud computing, financial services, healthcare, and e-commerce, enabling real-time data storage, processing, and analytics at an unprecedented scale. The U.S. data center market size is exhibited at USD 134.77 billion in 2025 and is projected to be worth around USD 393.14 billion by 2035, poised to grow at a CAGR of 11.30% from 2026 to 2035.

Data centers have evolved from peripheral IT facilities into critical enablers of the global digital economy, underpinning cloud computing, artificial intelligence, digital platforms, financial systems, and emerging intelligent services. As demand accelerates and workloads become more complex, the challenge faced by enterprises and operators is no longer simple capacity expansion, but achieving balance across performance, cost, energy, sustainability, resilience, and regulatory compliance. The concept of the data center balance reflects the need to harmonize competing priorities in an environment of rapid technological and economic change.

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Key Trends Driving Data Center Growth

1. The Rise of Hyperscale Data Centers:
   Hyperscale data centers, which provide massive compute power and storage to support cloud and AI workloads, have become integral to the modern digital ecosystem. By 2024, the global number of hyperscale data centers is projected to exceed 1,000, a dramatic increase from the previous five years. These facilities support industries that require large-scale data processing, from AI research to enterprise applications.
2. Sustainability Challenges:
   With data centers consuming a significant amount of electricity, sustainability has become a critical issue. U.S. data centers alone account for over 4% of the nation’s electricity consumption, contributing to around 105 million tons of CO₂e annually. As the demand for data services grows, the sector must focus on energy-efficient solutions and renewable energy sources to minimize its environmental impact.
3. Government Initiatives and Infrastructure Investment:
   Governments around the world are increasingly investing in data center infrastructure to support the growing demand for digital services. In India, for instance, the government has committed to building a data center hub in Vizag, with an $11 billion investment to develop a 1GW data center cluster by 2030. These public-private initiatives are critical to ensuring that nations have the digital infrastructure necessary to thrive in the digital economy.

Leading Companies Powering the Data Center Industry

Several key players are leading the charge in the data center space, offering essential infrastructure for cloud, AI, and other digital services. These companies are at the forefront of providing reliable, scalable, and secure digital infrastructure to support the modern digital economy:

• Equinix: A global leader in data center services, Equinix operates a network of more than 260 data centers across 33 countries. Known for its colocation services, Equinix supports businesses in industries such as cloud computing, financial services, and telecommunications.
• Digital Realty Trust: With over 300 facilities in 50 metro markets, Digital Realty is a major player in the data center industry, focusing on colocation and cloud services. The company’s robust infrastructure is integral to supporting global enterprises and their increasing digital demands.
• Quality Technology Services (QTS): Operating in North America and Europe, QTS offers customizable colocation services and has developed a carrier-neutral model that supports a wide range of clients. QTS’s focus on flexible and scalable data center solutions has made it a significant player in the industry.
• CoreSite: A major U.S.-based provider, CoreSite operates 27 data center facilities that cater to both wholesale and retail colocation customers. Its data centers serve as key hubs for cloud service providers and large enterprises in major U.S. metro markets.
• Hyperscale Data Centers (Global): Hyperscale facilities are expected to grow rapidly, with more than 1,000 hyperscale data centers expected to be operational by 2024. These centers play a vital role in powering cloud, AI, and other large-scale computing workloads, contributing significantly to the global digital infrastructure.

Government and Public Sector Data

Governments around the world are increasingly focusing on infrastructure development and workforce initiatives to support the growing demand for data centers. Below are some key government-backed data on the data center industry:

These numbers emphasize the growing importance of data centers to global economies and the significant investment in infrastructure to support the digital transformation across industries.

• U.S. Data Centers:
  The U.S. hosts approximately 5,427 data centers, including 754 certified colocation facilities. This expansive infrastructure supports various sectors, including cloud computing, financial services, healthcare, and e-commerce.
• Global Hyperscale Growth:
  Hyperscale data centers are projected to grow rapidly, doubling in number from 2019 to 2024, reflecting the increasing need for large-scale data storage and processing capabilities required by cloud and AI workloads.
• Energy Consumption and Sustainability:
  As data centers consume more electricity, the industry faces increasing pressure to adopt energy-efficient technologies. U.S. data centers are responsible for over 4% of national electricity consumption, contributing to significant CO₂ emissions. The sector must prioritize sustainability as part of its growth strategy.
• India’s Data Center Infrastructure:
  India, ranked 13th globally in terms of data centers, is investing in the development of new infrastructure, including a $11 billion project in Vizag to create a 1GW data center hub by 2030. This initiative is part of India’s broader push to strengthen its digital infrastructure and workforce.

The global data center market size is estimated at USD 386.71 billion in 2025 and is predicted to increase from USD 430.18 billion in 2026 to approximately USD 1,103.70 billion by 2035, expanding at a CAGR of 11.06% from 2026 to 2035.

The data center industry is crucial to the ongoing digital transformation across industries. With major players like Equinix, Digital Realty , and CoreSite expanding their global footprints, the demand for data centers is only expected to grow. The increasing use of hyperscale facilities and the rising importance of cloud and AI workloads are defining the future of data centers. As the industry expands, governments are investing in infrastructure and workforce development to ensure that the digital economy continues to thrive.

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