Global Data Center Market Size, Share, Trends and Forecast 2026-2031 | AI, Hyperscale, and Green Infrastructure Drive 10.95% CAGR Toward $959.19 Billion

AI-ready infrastructure, liquid cooling and renewable energy are reshaping data centers, while hyperscale expansion and emerging hubs unlock investment opportunities

Dublin, Sept. 29, 2026 (GLOBE NEWSWIRE) -- "Global Data Center Market Landscape 2026-2031" has been added to ResearchAndMarkets.com's offering.

The global data center market was valued at USD 514.26 billion in 2025 and is projected to reach USD 959.19 billion by 2031, expanding at a CAGR of 10.95%. Market growth is being driven by artificial intelligence, cloud computing, enterprise digital transformation, hyperscale investment, rising data volumes, and demand for high-performance computing infrastructure. Operators are simultaneously increasing renewable energy procurement, deploying advanced cooling systems, and upgrading electrical infrastructure to support higher rack densities.

Data Center Market Key Trends

Sustainability and Renewable Energy

• Data center operators are expanding the use of renewable and green energy to reduce emissions and support long-term capacity requirements. Latin America is gaining momentum as a sustainable development hub, supported by clean energy targets in Argentina, Chile, Colombia, and Mexico.
• US operators continue to secure long-term renewable power agreements. TotalEnergies signed a 15-year agreement to provide Alphabet with 1.5 TWh of solar energy from Ohio, while Meta secured a 385 MW solar PPA in Louisiana. Digital Realty reached 1.5 GW of renewable energy capacity and 75% renewable electricity usage across its global operations.
• District heating and heat recovery are becoming increasingly important in Denmark and other Nordic markets. Microsoft , Meta, Apple , atNorth, and Penta Infra are integrating recovered data center heat into community energy networks through partnerships with local utilities.
• Hydrotreated Vegetable Oil (HVO) is expected to gain adoption as a low-carbon backup fuel. Vantage Data Centers, Compass Data Centers, Digital Realty , and other colocation providers are supporting the development of larger HVO supply chains.

Artificial Intelligence Infrastructure

• AI, cloud services, and data-driven applications are accelerating data center construction across Europe. Germany, the UK, and Italy Benefit from high digital connectivity and strong enterprise technology adoption.
• US facilities are being redesigned for GPU-intensive computing, liquid cooling, and higher rack power densities. NTT DATA added more than 370 MW of capacity in 2025, including support for over 200 MW of AI workloads. Lambda's Missouri AI Factory plans to deploy more than 10,000 Nvidia Blackwell Ultra GPUs.
• The Nordics are attracting sustainable AI infrastructure investments due to renewable power availability. Verne and Nscale are developing a 15 MW liquid-cooled Nvidia GB300 deployment in Iceland powered entirely by renewable energy.
• South Africa is emerging as a regional AI hub. Cassava Technologies is planning Nvidia -powered infrastructure, while the government allocated $28.4 million to AI, blockchain, and digital capability research.

Data Center Infrastructure and Segmentation Insights

The global data center market covers hyperscale, colocation, and enterprise facilities. Investment is analyzed across IT infrastructure, electrical infrastructure, mechanical infrastructure, and general construction. IT infrastructure includes servers, storage, and networking, while electrical systems include UPS systems, generators, transfer switches, switchgear, and PDUs. Mechanical infrastructure includes cooling systems, racks, and related equipment.

• Direct-to-Chip cooling currently leads liquid cooling adoption, while liquid Immersion cooling is expanding rapidly due to AI and high-performance computing workloads.
• VRLA batteries retain the largest installed base across enterprise and colocation facilities. Lithium-ion batteries are increasingly preferred for new hyperscale developments, while Nickel-Zinc and Sodium-Ion technologies are gaining market attention.
• The 42U rack remains the most widely deployed format. Larger 45U, 47U, and 48U racks are commonly installed in major data center environments.
• Generators remain essential for operational resilience. Africa Data Centres' Lagos facility maintains 48 hours of diesel backup at full load through agreements with approved fuel suppliers.
• Tier I & II, Tier III, and Tier IV facilities are included in the market analysis, alongside air-based and liquid-based cooling techniques.

Regional Data Center Market Analysis

• Sweden accounted for approximately 38.38% of European hyperscale data center investment, followed by the UK at 23.41% and Spain at 17.19%. By 2031, the UK is expected to lead Europe with approximately 21.31% of hyperscale investment, followed by Germany, Norway, and France.
• Canada continues to support advanced technology development. In January 2025, the government announced a $52 million fund expected to support approximately 107 quantum technology projects.
• The UAE remains one of the Middle East's most advanced data center markets, supported by government initiatives, digitalization, extensive terrestrial and submarine connectivity, and an established regulatory environment.
• Colombia strengthened its digital infrastructure ecosystem through the launch of the Colombian Association of Data Centers and Data Technology in August 2025.
• The APAC data center colocation market by area was valued at 17.36 million sq ft in 2025 and is forecast to reach 23.80 million sq ft by 2031, growing at a CAGR of 5.39%. Singapore remains a high-cost market with limited land availability.
• South Africa had approximately 11 operational submarine cables as of November 2025. Nvidia and Cassava Technologies also announced a partnership supporting AI-ready data centers across Egypt, Nigeria, Kenya, and Morocco, representing an investment of approximately $700 million.
• Egypt is attracting foreign operators through partnerships with local companies as demand for data center capacity increases.

Global Data Center Competitive Landscape

Leading data center investors include AirTrunk, Aligned Data Centers, Amazon Web Services (AWS), Apple , CDC Data Centres, CloudHQ, Compass Datacenters, CyrusOne, DataBank, Digital Realty , EdgeConneX, Equinix, Global Switch, Alphabet , Iron Mountain , Meta, Microsoft , NTT DATA, QTS Realty Trust, STACK Infrastructure, ST Telemedia Global Data Centres (STT GDC), Switch, and Vantage Data Centers.

• Alphabet announced a $500 million investment in February 2026 to develop an international "Digital Port" in the Dominican Republic, supported by new submarine cable connections to the US.
• Microsoft partnered with Powertrust in November 2025 to support 270 MW of solar power across Brazil and Mexico, complementing its cloud, AI, and clean energy investments.
• DataVolt announced plans for an AI-ready facility in Riyadh and a 1.5 GW IT capacity development in Neom, Saudi Arabia.
• Open Access Data Centres plans to invest approximately $240 million in a 24 MW Lagos facility. The initial 12 MW phase is expected to become operational in 2026.

Prominent IT infrastructure providers include Arista Networks , Broadcom , Cisco Systems , Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM , Intel , Lenovo, NetApp , Nvidia , Oracle , Seagate, Supermicro, and Western Digital . Major support infrastructure providers include ABB , Caterpillar , Cummins , Eaton , Honeywell , Johnson Controls , Legrand , Mitsubishi Electric, Schneider Electric , Siemens , Stulz, and Vertiv. The contractor landscape includes AECOM, Arup, AtkinsRealis, Black & Veatch, DPR Construction, Fluor Corporation, Jacobs, Mace, Skanska , Turner Construction, and Turner & Townsend.

Report Coverage

The global data center market report evaluates investment by facility type, infrastructure category, IT systems, electrical systems, mechanical systems, cooling technology, construction services, and tier standard. Geographic coverage includes North America, Latin America, Western Europe, the Nordics, Central & Eastern Europe, the Middle East, Africa, APAC, and Southeast Asia.

Key Questions Addressed

1. What is the growth rate of the global data center market?
2. How large is the global data center market through 2031?
3. What data center area is expected to be available globally by 2031?
4. Which sustainability, AI, cooling, and infrastructure trends are shaping market growth?
5. How much data center power capacity is expected to be operational by 2031?

Key Attributes

For more information about this report visit https://www.researchandmarkets.com/r/d75vil

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