The global data center market is expected to grow by 30 percent and hit over $430 billion value by 2028, data presented by Stocklytics.com has shown.
The growth, according to Stocklytics.com is a result of the surging use of AI technologies, which require significant computing power and storage, which has only fuelled the data center boom.
Over the past decade, the once-niche piece of IT infrastructure- data centers- has become the talk of the investment world and a massive revenue driver for tech giants. Amazon Web Services generate almost 20% of the e-commerce giant`s revenue today. At the same time, Nvidia, the supplier of parts for modern cloud storage and processing data centers, has grown into the world`s third-largest tech company.
Cloud adoption spurs growth
The widespread adoption of cloud computing has significantly transformed the data center landscape. While it has reduced the number of organizations operating their own data centers, it has also spurred a surge in the global data center 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 centers.
The surging need for data center solutions and technology has helped the entire market grow revenues by almost 40% since 2016. However, the market projections for the following years are just as optimistic.
According to a Statista Market Insights survey, the global data centers 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% 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% more than this year. Data center servers follow with $120 billion in revenue and a 24% growth in this period. Although far behind in revenue, the data center storage segment will also see double-digit growth, with revenue rising by 22% to $62 billion in the next four years.
