Mega Data Center Global Market Report 2024

The mega data center market size has grown strongly in recent years. It will grow from $27.28 billion in 2023 to $28.98 billion in 2024 at a compound annual growth rate (CAGR) of 6.2%. Historical growth in mega data centers can be attributed to various factors, including a significant surge in data generation and storage needs, businesses undertaking digital transformation initiatives, the increased adoption of cloud computing and the demand for scalable solutions, the emergence of big data analytics leading to higher processing requirements, as well as the globalization of businesses, necessitating improved data accessibility.

The mega data center market size is expected to see strongly grown in the next few years. It will grow to $37.74 billion in 2028 at a compound annual growth rate (CAGR) of 6.8%. Anticipated growth in the upcoming period for mega data centers is linked to several factors, including a heightened focus on edge computing architecture, a rising demand for hybrid and multi-cloud deployments, an increased need for robust data security and compliance measures, the integration of artificial intelligence into data processing, and the rapid expansion of Internet of Things (IoT) applications.

The upward trajectory of the mega data center market is significantly propelled by the increasing adoption of cloud services. These services encompass a diverse array of IT resources and professional offerings delivered over the internet on demand. Crucially, mega data centers serve as foundational pillars for cloud computing, supplying the essential infrastructure and requisite services. The burgeoning digitalization trend further augments the demand for cloud services. Notably, statistics from October 2023, sourced from Exploding Topics, highlight the substantial annual revenue of $178 billion generated by cloud infrastructure services. This burgeoning adoption of cloud services serves as a pivotal driver behind the growth of the mega data center market.

The burgeoning adoption of IoT technology stands as a key driver propelling the growth of the mega data center market. IoT, an interconnected network of physical devices communicating and exchanging data via the internet, relies heavily on mega data centers for crucial support. These centers provide the fundamental infrastructure, scalability, connectivity, and data management capabilities essential for IoT's efficacy. Projections from March 2023, sourced from Exploding Topics, anticipate a surge to 25.4 billion IoT devices by 2030. This escalating adoption of IoT technology significantly contributes to the expansion of the mega data center market. Technological advancements represent a prominent trend gaining traction within the mega data center landscape. Companies operating in this sphere are embracing novel technologies to fortify their market standing. Notable among these advancements is the Arista Networks Inc.'s June 2022 launch of the 7130 series technology. The Arista 7130L series presents a potent networking solution tailored for applications necessitating low latency and high throughput. Specifically designed for high-performance computing and financial trading environments, these ultra-low-latency switches exemplify the technological strides in the mega data center domain.

Major players within the mega data center market are channeling their focus toward innovative products, notably prefabricated modular solutions, to augment their revenues. These solutions empower enterprises to swiftly deploy computing resources at local and regional edges, specially designed for AI and advanced cloud computing. LiquidStack Systems Inc.'s September 2023 launch of micromodular and megamodular systems exemplifies this trend. These liquid-cooled solutions, boasting industry-leading PUE of 1.02 and accommodating multiple 48U datatanks, cater to diverse applications requiring high power densities. The modules' water-saving benefits and efficacy in liquid immersion cooling make them particularly suitable for local and regional edge applications, underscoring their relevance in driving innovation within the mega data center market.

In September 2021, Equinix Inc., a US-based digital infrastructure provider, completed the acquisition of GPX Global Systems Inc. For $161 million. This strategic acquisition is expected to facilitate opportunities for Indian enterprises aiming to expand globally, as well as multinational corporations seeking growth and innovation within the Indian market. As India prepares for the rollout of 5G technology, companies can accelerate their digital transformation efforts by rapidly modernizing and scaling their infrastructure, swiftly adopting hybrid multi-cloud architectures, and establishing connections with over 350 international brands and local businesses in India. GPX Global Systems Inc., based in the US, specializes in building and operating advanced Tier 4, private, carrier-neutral data centers designed for critical corporate infrastructure needs. This acquisition by Equinix aims to leverage these capabilities to further enhance digital infrastructure services in India.

Major companies operating in the mega data center market report are International Business Machines Corporation, Cisco Systems Inc., Dell Technologies Inc., Fujitsu Ltd., Intel Corporation, Heweltt Packard Enterprise Company, Schneider Electric SE, Juniper Networks Inc., EMC Corporation, Apple Inc., Meta Platforms Inc., Google LLC, Amazon Inc., Microsoft Corporation, Oracle Corporation, Equinix Inc., NTT Ltd., Digital Realty Trust Inc., Huawei Technologies Co. Inc., Lenovo Group Limited, Siemens AG, NetApp Inc., Hitachi Vantara Corporation, Wistron Corporation, Quanta Computer Inc., ABB Ltd., Samsung Electronics Co. Ltd., Vantage Data Centers LLC, EdgeCore Networks Corp., Sentinel Data Centers, MegaPort Ltd., QTS Realty Trust Inc.

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

The main types of solutions of mega data centers are IT infrastructure solutions, support infrastructure solutions, power solutions, cooling solutions, security solutions, and management software. IT infrastructure solutions refer to the set of hardware, software, network, and other technological components and services that are necessary to create and maintain an organization's IT infrastructure. They provide various services, such as system integration, monitoring services, and professional services. They are used for various applications, such as cloud providers, colocation providers, and enterprises, and by various end-users, such as BFSI (banking, financial services, and insurance), banks, telecommunications and computing, government, media and entertainment, public, and others.

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

The mega data center market includes revenues earned by entities through cloud services, network infrastructure, and storage services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The mega data centers market consists of sales of computing equipment 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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