Cloud Data Center Global Market Report 2024

The cloud data center market size has grown rapidly in recent years. It will grow from $23.8 billion in 2023 to $27.22 billion in 2024 at a compound annual growth rate (CAGR) of 14.4%. The growth observed in the historic period can be attributed to several factors, including increased scalability, enhanced cost efficiency, improved agility and flexibility, strengthened security posture, and the implementation of green initiatives.

The cloud data center market size is expected to see rapid growth in the next few years. It will grow to $46.04 billion in 2028 at a compound annual growth rate (CAGR) of 14%. The anticipated growth in the forecast period can be attributed to various factors, including edge-to-cloud orchestration, the escalating threat landscape of cybersecurity, ongoing developments in quantum computing, the proliferation of containerization, tightening data privacy regulations, the increasing demand for AI (artificial intelligence) and machine learning workloads, and the deployment of 5G technology. Key trends expected during this period include a focus on data sovereignty and compliance, the continued adoption of containerization, the implementation of hybrid and multi-cloud strategies, the optimization of infrastructure for AI, and the adoption of serverless computing architectures.

The surge in demand for cloud services is anticipated to drive the expansion of the cloud data center market. Cloud services encompass a broad spectrum of computing resources and applications that are readily accessible, scalable, and delivered via the Internet. This increasing demand is propelled by the scalability, accessibility, and security advantages offered by cloud services. A cloud data center forms the backbone of cloud services, providing the necessary infrastructure and resources for hosting, processing, and delivering on-demand computing capabilities over the Internet. For instance, as per a report by the European Commission (EC) in December 2023, 42.5% of enterprises in the European Union (EU) availed cloud computing services. This represented a 4.2% upsurge compared to 2021, primarily for email, file storage, and office software, indicating a growing reliance on cloud services. Consequently, the burgeoning demand for cloud services is fueling the growth of the cloud data center market.

Leading companies in the cloud data center sector are concentrating on introducing novel data center facilities such as cyber cloud data centers to bolster their revenues in the market. Cyber cloud data centers integrate cloud computing services while prioritizing robust cybersecurity measures. For instance, in March 2023, Acronis International GmbH, a Switzerland-based software company, inaugurated a new cyber cloud data center in Toronto, Canada. This facility is one among over fifty cyber cloud data centers in Acronis' global network. The Toronto data center offers Acronis partners access to a wide array of cyber protection solutions, enabling them to develop new services and offerings that can efficiently manage their clients' data protection needs with faster access, continuous data availability, and the added advantage of data sovereignty.

In January 2023, DIF Capital Partners, a Netherlands-based private equity company, successfully acquired Tonaquint Data Centers LLC for an undisclosed amount. This strategic acquisition is anticipated to facilitate DIF Capital Partners' expansion in the digital infrastructure space in North America. Tonaquint Data Centers LLC, based in the US, is a cloud data center company that offers services including cloud hosting, colocation, disaster recovery, and backup services. The acquisition aligns with DIF Capital Partners' strategic goals and strengthens its position in the growing digital infrastructure sector.

Major companies operating in the cloud data center market are Alphabet Inc., Microsoft Corporation, Verizon Corporation, Reliance Group, Amazon Web Services Inc., International Business Machines Corporation (IBM), Oracle Corporation, KDDI Telehouse, Fujitsu Limited, Eaton Corporation plc, Tencent Cloud, Lumen Technologies, HCL Technologies Limited, Alibaba Cloud, Schneider Electric SE, Google Cloud, Equinix Inc., General Electric Company, China Unicom, Capgemini SE, China Telecom Americas Inc., Cyxtera Technologies Inc., QTS Realty Trust Inc., Flexential Corp., AT&T Inc.

North America was the largest region in the cloud data center market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cloud data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cloud data center market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Cloud data centers are centralized facilities equipped with a network of servers, storage, and computing resources accessible remotely over the Internet. They offer scalable and on-demand computing services, enabling users to store, process, and manage data and applications without the need for physical infrastructure on-site.

The primary types of cloud data centers include the infrastructure as a service (IaaS) model, platform as a service (PaaS) model, and software as a service (SaaS) model. Infrastructure as a Service delivers virtualized computing resources via the Internet, available in public, private, and hybrid deployment models. These services cater to organizations of various sizes, including small and medium enterprises and large enterprises, serving diverse industries such as banking, financial services and insurance (BFSI), colocation, energy, government, healthcare, manufacturing, information technology (IT), telecommunications, and others.

The cloud data center market research report is one of a series of new reports that provides cloud data center market statistics, including cloud data center industry global market size, regional shares, competitors with a cloud data center market share, detailed cloud data center market segments, market trends and opportunities, and any further data you may need to thrive in the cloud data center industry. This cloud data center market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The cloud data center market consists of revenues earned by entities by providing services such as database services, networking services, and security services. The market value includes the value of related goods sold by the service provider or included within the service offering. The cloud data center market also includes sales of virtual machines, storage solutions, and servers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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