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Data Center Market to Grow by USD 535.6 Billion (2025-2029), Driven by Multi-Cloud Adoption and Network Upgrades, Report on AI’s Impact on Market Trends – Technavio

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NEW YORK, Jan. 27, 2025 /PRNewswire/ — Report on how AI is redefining market landscape – The global data center market size is estimated to grow by USD 535.6 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  15.6%  during the forecast period. Rise in adoption of multi-cloud and network upgrades is driving market growth, with a trend towards implementation of AI in data centers. However, cybersecurity issues poses a challenge. Key market players include 365 Data Centers, Amazon.com Inc., Apple Inc., China Telecom Corp. Ltd., Cisco Systems Inc., CyrusOne LLC, Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Google LLC, Hewlett Packard Enterprise Co., Intel Corp., International Business Machines Corp., KDDI Corp., Microsoft Corp., Nippon Telegraph and Telephone Corp., Oracle Corp., Salesforce Inc., SAP SE, and Verizon Communications Inc..

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF

Data Center Market Scope

Report Coverage

Details

Base year

2024

Historic period

2019 – 2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 15.6%

Market growth 2025-2029

USD 535.6 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

13.2

Regional analysis

North America, APAC, Europe, South America, and Middle East and Africa

Performing market contribution

North America at 35%

Key countries

US, China, UK, Canada, Japan, Germany, India, France, Italy, and Brazil

Key companies profiled

365 Data Centers, Amazon.com Inc., Apple Inc., China Telecom Corp. Ltd., Cisco Systems Inc., CyrusOne LLC, Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Google LLC, Hewlett Packard Enterprise Co., Intel Corp., International Business Machines Corp., KDDI Corp., Microsoft Corp., Nippon Telegraph and Telephone Corp., Oracle Corp., Salesforce Inc., SAP SE, and Verizon Communications Inc.

Market Driver

Data Centers are at the heart of the digital economy, powering businesses, individuals, and the Internet. Trends like Artificial Intelligence, Machine Learning, IoT, and Cloud Computing are driving the need for advanced IT infrastructure. The Department of Energy pushes for Green Data Centers, while Enterprise Engineering Solutions and Software Testing Help ensure optimal performance. Customers demand cost savings, scalability, and flexibility for real-time data processing. Macroeconomic factors, digitalization, and business leaders are embracing Cloud Technology to store and analyze data for applications like autonomous vehicles, smart cities, and e-commerce. Decentralized Data Centers address local special circumstances and data sovereignty regulations. B2B enterprises focus on hardware-related expenses, while National Statistical Offices track the level of digitization. The exponential trend smoothes the S-curve function of data center systems, balancing exchange rates and competition in the market. Data security, backups, and Internet bandwidth are crucial concerns for end-users. Managed hosting, colocation, and big data analytics are essential services for businesses, with public cloud, specialized regions, and hyper-scale platforms leading the way. IoT, mobile data use, and internet usage continue to increase, driving the need for cloud data storage and data center workloads. 

Data centers are enhancing energy efficiency through the application of Artificial Intelligence (AI). AI technology enables faster decision-making and optimization of server, power, and cooling systems. Data center service providers use AI in automation software to streamline operations, minimize human intervention, and promote energy-efficient cooling. Supervised control over mechanical cooling is facilitated by AI, allowing for effective power usage and improved performance. By implementing AI, data centers aim to reduce downtime, minimize errors, and boost overall efficiency. 

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 Market Challenges

•         Data Centers face numerous challenges in today’s digital world. Artificial Intelligence and Machine Learning require massive computing power, driving the need for advanced IT infrastructure. The Internet of Things (IoT) and Cloud Computing increase data volumes, demanding scalability and flexibility. Green Data Centers address energy efficiency concerns, while Department of Energy grants aid in research. Enterprise Engineering Solutions and Software Testing Help ensure system reliability. Customers seek cost savings, real-time data processing, and local special circumstances considerations. Digitalization and businesses’ growing reliance on data necessitate decentralized Data Centers. Data sovereignty regulations and macroeconomic factors impact the digital economy and internet penetration. B2B enterprises grapple with hardware-related expenses and data center workloads. National statistical offices require high levels of digitization for accurate data analysis. Exponential trend smoothing and S-curve functions help predict growth. Exchange rates and business leaders’ decisions influence cloud technology adoption. Data security, backups, and internet bandwidth are crucial concerns. Managed hosting, colocation, and public cloud offerings cater to various needs. Hyper scale platforms and colocation data centers like Amazon Web Services address big data and IoT demands. Autonomous vehicles, smart cities, and mobile data use further increase the importance of Data Centers. Challenges include application performance, storage requirements, and data security. Online retail and e-commerce rely on data center systems for personalized data storing and analyzing. Data center systems must ensure speed, reliability, and data security to meet end-users’ expectations. In conclusion, Data Centers face a myriad of challenges, from technological advancements to regulatory requirements and customer expectations. Adapting to these challenges is crucial for businesses and individuals to thrive in the digital age.

•         Enterprises rely heavily on data for generating revenue and making informed business decisions. However, the security of this valuable asset is a significant concern. With the increasing adoption of cloud services and IoT solutions, the risk of cyberattacks is escalating. Cybercriminals can exploit IT security vulnerabilities to gain unauthorized access to enterprise servers, potentially compromising sensitive data such as customer information. Such attacks can lead to financial losses and even the closure of small businesses. It’s crucial for enterprises to prioritize IT security to protect their data and maintain business continuity.

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Segment Overview 

This data center market report extensively covers market segmentation by  

Component 1.1 IT infrastructure1.2 Power management1.3 Mechanical construction1.4 General construction1.5 Security solutionsEnd-user 2.1 BFSI2.2 Energy2.3 IT2.4 OthersGeography 3.1 North America3.2 APAC3.3 Europe3.4 South America3.5 Middle East and Africa

1.1 IT infrastructure-  The data center IT infrastructure market consists of server infrastructure, storage infrastructure, software-defined data centers (SDDC), network infrastructure, converged infrastructure, backup and recovery software, automation software, and data center infrastructure management (DCIM) solutions. Enterprises and data center service providers are shifting their investments from capital expenditure (CAPEX) to operational expenditure (OPEX) models to optimize server infrastructure usage and reduce costs. This trend is driving the demand for consolidation, virtualization, and containerization of computing needs. The server infrastructure segment includes rack servers, blade servers, tower servers, microservers, and Open Compute Project (OCP) servers. Rack servers are the most widely used data center servers due to their suitability for enterprises with fixed business requirements. The storage infrastructure segment includes direct-attached storage (DAS), network-attached storage (NAS), and storage area network (SAN). The exponential growth in data generated and transferred necessitates the demand for data storage infrastructure. The adoption of software-defined data centers (SDDCs) is increasing due to their cost savings, improved efficiency, control, and flexibility. SDDCs consist of software-defined computing (SDC), software-defined network (SDN), and software-defined storage (SDS). Network infrastructure includes devices such as Ethernet switches, routers, application delivery controllers (ADCs), Web optimizers (WOPTs), and SD-WAN appliances. Converged infrastructure is a data center management technique that combines multiple IT components into a single integrated computing package. Data center automation software enables the workflow management of a data center and automates servers, networks, storage, and other data center management tasks. Data center backup and recovery software ensures business continuity by enabling periodic backup and instantaneous recovery of data. DCIM solutions facilitate the administration of a data center with an overall integrated view for asset and capacity management, energy management, power and cooling, and network management. The increasing investments in data centers and the focus on improving operational efficiency are driving the growth of the global data center market.

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Research Analysis

The Data Center market is experiencing significant growth due to the increasing demand for IT infrastructure to support Artificial Intelligence (AI) and Machine Learning (ML) applications, the Internet of Things (IoT), and the digitalization of businesses and individual lives. Cloud computing and edge computing are driving this trend, allowing for cost savings, scalability, and flexibility. Real-time data processing is essential for online retail and e-commerce businesses, making data centers a crucial component of their operations. Data center systems enable businesses to store, analyze, and manage their data center workloads efficiently. The loss of data can result in significant financial and reputational damage, making data center security a top priority. Cloud technology is revolutionizing the data center landscape, providing faster access to personalized data for businesses and individuals alike.

Market Research Overview

The Data Center market is experiencing significant growth due to the increasing adoption of Artificial Intelligence (AI) and Machine Learning (ML) technologies, IoT devices, and Cloud computing. Green Data Centers are becoming increasingly popular as businesses and individuals prioritize cost savings, scalability, and flexibility. The Digitalization of industries and economies is driving the demand for real-time data processing and reducing latency. Decentralized Data Centers are gaining traction in response to local special circumstances, data sovereignty regulations, and macroeconomic factors. The market is also influenced by the level of digitization, business leaders’ decisions, and competition in cloud technology. Hardware-related expenses, data security, and backups are key concerns for end-users. The market includes various data center systems, such as managed hosting, colocation, and public cloud, catering to the needs of B2B enterprises, online retail, e-commerce, and intelligent buildings. Big data and data analytics are essential for application performance and storage requirements. Mobile data use and internet usage continue to increase, leading to a growing demand for cloud data storage. The market is expected to follow an S-curve function with exponential trend smoothing, influenced by exchange rates and the growth of hyper-scale platforms.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ComponentIT InfrastructurePower ManagementMechanical ConstructionGeneral ConstructionSecurity SolutionsEnd-userBFSIEnergyITOthersGeographyNorth AmericaAPACEuropeSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio

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Chief Futurist Ian Beacraft to Keynote at Info-Tech LIVE 2026 in Las Vegas on Designing AI-Ready Organizations

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AI is reshaping how value is created across the enterprise, but many organizations are still operating with models built for a pre-AI world. As a result, technology adoption alone is not translating into sustained impact. At the highly anticipated IT conference Info-Tech LIVE 2026 in Las Vegas, June 9–11 at the Bellagio, Info-Tech Research Group will feature keynote insights from Ian Beacraft, CEO and Chief Futurist at Signal and Cipher. Beacraft will share with thousands of CIOs, industry experts, and analysts in attendance how IT leaders can redesign work to better align with the demands of AI-driven change.

At Info-Tech LIVE 2026 in Las Vegas, Attendees Will Explore:

Why AI initiatives often fail to deliver value when applied to outdated ways of workingHow operating models, workflows, and decision-making must change to support AI at scaleWhere AI is being misapplied and limiting its impactWhat it takes to design organizations that can adapt alongside AI

LAS VEGAS, April 24, 2026 /PRNewswire/ – Info-Tech Research Group is set to bring together thousands of CIOs, CTOs, CISOs, and IT leaders at its upcoming flagship annual IT conference, Info-Tech LIVE 2026 in Las Vegas. Taking place June 9–11 at the Bellagio, the 2026 program will guide attendees on how they can adapt their design and execution models to fully realize value from AI. As part of the agenda, the global research and advisory firm has announced that Ian Beacraft, CEO and Chief Futurist at Signal and Cipher, will deliver a mainstage keynote on how leaders can redesign workflows, team structures, and value creation models to better align with the demands of AI-driven change.

Known for making emerging technologies understandable and actionable, Beacraft has advised global enterprises, including Nike, Google, and Microsoft, on how to turn AI from a technical capability into a driver of performance, reimagine how work is designed, and prepare teams for the future of work.

As AI capabilities continue to expand, Info-Tech has been highlighting in its recent research and reports that expectations around how work is executed and how value is delivered are shifting just as quickly. Existing processes, team structures, and decision models were not designed for continuous, technology-driven change, creating friction as leaders attempt to scale AI effectively.

“Many organizations are trying to apply AI within working models where it isn’t well suited,” says Info-Tech Research Group’s Chief Research Officer, Gord Harrison. “Through Ian Beacraft’s keynote and the broader agenda at Info-Tech LIVE 2026 in Las Vegas, leaders will better understand how rethinking decision-making and execution can help them truly get value from AI.”

By bringing together research, external perspectives, and peer dialogue, Info-Tech LIVE 2026 in Las Vegas will help IT leaders understand what it takes to apply AI more effectively across the enterprise. Attendees will leave with a stronger sense of how to support meaningful change in the way work is led, managed, and delivered.

Further updates on Info-Tech LIVE will be announced in the coming weeks. Follow Info-Tech Research Group on LinkedIn and X for more event-related news from the firm.

Media Passes for Info-Tech LIVE 2026 in Las Vegas
Journalists, podcasters, and influencers are invited to attend Info-Tech LIVE 2026 in Las Vegas. The event provides access to forward-looking research, exclusive interviews with Info-Tech’s analysts and executives, and on-the-ground perspectives from CIOs responding to emerging priorities.

Media professionals interested in applying for complimentary media passes can contact pr@infotech.com to request access and cover the latest IT leadership and strategy discussions from the event.

Exhibitor Opportunities at Info-Tech LIVE 2026 in Las Vegas
Exhibitors are also invited to be part of Info-Tech LIVE and showcase their products and services to thousands of highly engaged technology executives. With 70% of attendees identified as decision makers and 1 in 3 at the C-level, the event offers an all-access pass and opportunities to meaningfully connect with senior technology leaders.

For more information about becoming an Info-Tech LIVE exhibitor, please contact exhibitorservices@infotech.com

About Info-Tech Research Group
Info-Tech Research Group is the “get things done” partner for over 30,000 IT, HR, and marketing leaders worldwide. The fastest growing research and advisory firm, Info-Tech enables leaders to make well-informed decisions and transform their organizations through AI, strategic foresight, step-by-step methodologies, practical tools, industry-leading advisory, and training programs. For nearly 30 years, tens of thousands of private and public organizations have trusted Info-Tech to lead their most important initiatives through periods of change and deliver outcomes that truly matter.

To learn more about Info-Tech’s HR research and advisory services, visit McLean & Company, and for data-driven software buying insights and vendor evaluations, visit the firm’s SoftwareReviews platform.

Media professionals can register for unrestricted access to research across IT, HR, and software and hundreds of industry analysts through the firm’s Media Insiders program. To gain access, contact pr@infotech.com.

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SOURCE Info-Tech Research Group

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Trace Systems Wins $64,000,000 U.S Army Follow-On Contract to Deliver Enhanced Deployable Communications Capabilities

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TAMPA, Fla., April 24, 2026 /PRNewswire/ — Trace Systems Inc. (Trace) has been awarded a five‑year, $64,000,000 follow‑on task order under the U.S. Army’s Global Tactical Advanced Communications Systems and Services (GTACS II) contract vehicle to continue delivering critical deployable communications capabilities and services support for U.S. Northern Command (USNORTHCOM) and Western Hemisphere Command-Forward (WHC-FORWARD).

This award extends Trace’s longstanding support for USNORTHCOM’s Deployable Communications Capabilities Systems (DCCS) program, which provides the deployable communications backbone required for disaster response, and mission partner coordination across the USNORTHCOM area of responsibility (AOR). Trace continues to support this vital effort by providing technical support and integration for vehicle mounted mobile command platforms and SATCOM, radio, and other deployable communications systems.

Under the new task order, Trace will continue providing comprehensive services, including system design and modifications, technical refresh, unified communications, satellite and terrestrial transport support, cybersecurity compliance, vehicle integration, and full lifecycle sustainment of DCCS assets. This award highlights Trace’s expertise in modernizing, integrating, and maintaining deployable communications solutions, and supporting operational readiness and mission response for military operations, civil support operations, and exercises.

“USNORTHCOM and WHC-FORWARD’s missions demand a rapid response team capable of delivering mobile, interoperable communications between military forces and civilian response organizations for any mission or disaster relief effort,” said Kenneth Hilton, COO of Trace Systems. “Trace Systems is resolute in supporting a true ‘no fail’ mission and is honored to have supported the DCCS program over the past four years. We look forward to continuing to deliver mission critical communications and emergency response capabilities for USNORTHCOM and WHC-FORWARD.”

#TraceSystems #NORTHCOM #DeployableCommunications #MissionModernization #SATCOM

About Trace Systems
Trace Systems delivers technology-enabled, integrated multi-domain mission solutions, combining secure satellite communications, edge computing, digital modernization, and cyber-resilient architectures worldwide. From orbit to edge, Trace builds the backbone for tomorrow’s defense enterprise.

For more information, visit www.tracesystems.com/

For media inquiries, please contact:
Email: mediarelations@tracesystems.com
Phone: 813-793-7101

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SOURCE Trace Systems Inc

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Driving the Future of Mobility with Technology: Chery at Beijing Auto Show 2026

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WUHU, China, April 24, 2026 /PRNewswire/ — Beijing Auto Show 2026 opened on April 24, bringing together global automotive brands and advanced technologies. As a key barometer of the industry, the show serves as a platform for innovation and exchange. Chery Group appeared with its full brand lineup, including CHERY, EXEED, iCAUR, OMODA & JAECOO, and LEPAS. A total of 15 models made their global debut. The event welcomed over 4,000 guests from more than 100 countries, setting a new record for Chery in both scale and international reach.

At the show, Chery presented breakthrough technologies and a forward-looking strategy. Built on a global brand ecosystem, core technology development, and new energy innovation, the company demonstrated capabilities reshaping industry competition and setting new benchmarks for value creation.

Deepening Global Layout: A Multi-Brand Portfolio Reshaping the Industry Landscape

With a five-brand portfolio developed through years of overseas experience, Chery has formed a multi-scenario ecosystem. Each brand targets specific segments, shifting from broad coverage to precise positioning. Key debuts included Tiggo V, ES GT, EX8, OMODA 4, right-hand-drive V27, and L6 BEV, covering family, premium, and youth mobility needs. The brands operate in synergy, sharing resources and technologies to drive Chery’s shift from scale expansion to value upgrading.

Advanced Architecture Redefines the Upper Limit of Experience: Digital Chassis Breaks the Boundaries of Smart Mobility

Chery showcased next-generation architecture innovations. The Feiyu Digital Intelligent Chassis i integrates steer-by-wire and brake-by-wire, enabling 90 km/h moose test performance and zero-radius tank turns. The GAIA All-Domain System combines amphibious mobility with satellite communication, redefining the vehicle as an all-scenario mobility terminal. The industry-first full-domain 48V system improves efficiency by 15% and meets ASIL D safety standards.

Through continuous breakthroughs, Chery is evolving from a technology follower into a standards setter in global smart mobility.

Full-Chain Energy Efficiency Management Enables Technology Accessibility: System Innovation Addressing Global Mobility Challenges

Chery introduced a full life-cycle energy efficiency system. The KunPeng High Efficiency Engine achieves 48.57% thermal efficiency and 4.0 kWh/L conversion. The DHT360 hybrid system delivers up to 360 kW, enabling full-speed electric driving. The Rhino Battery offers high safety and fast charging, reaching 80% in 12 minutes. The system supports a more efficient and sustainable mobility future.

Website: https://www.cheryinternational.com

Photo – https://mma.prnewswire.com/media/2965344/Image1.jpg

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