Technology
Data Center Market to Grow by USD 535.6 Billion by 2029, Boosted by Multi-Cloud Adoption and Network Upgrades, Report on How AI is Driving Market Transformation – Technavio
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1 year agoon
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NEW YORK, Feb. 5, 2025 /PRNewswire/ — Report with the AI impact on market trends – 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..
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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.
Data Centers are at the heart of the digital economy, powering IT infrastructure for businesses, individuals, and government organizations. Trends like Artificial Intelligence, Machine Learning, IoT, and Cloud Computing are driving the need for more data processing power and real-time data analysis. Green Data Centers are becoming essential as businesses seek to reduce their carbon footprint and save costs. The Department of Energy and Enterprise Engineering Solutions are leading the charge towards energy-efficient and sustainable data center designs. Cloud computing and Edge Computing offer cost savings, scalability, and flexibility for businesses. Real-time data processing is crucial for industries like autonomous vehicles and smart cities. Decentralized Data Centers and local special circumstances are becoming more common due to data sovereignty regulations and macroeconomic factors. The digitalization of industries like online retail, e-commerce, and personalized data storage require massive data center workloads and application performance. Hardware-related expenses, data security, and backups are top concerns for customers. Internet bandwidth, managed hosting, and colocation are popular solutions for businesses seeking to optimize their IT infrastructure. Big data and data analytics are key drivers of growth, with hyper-scale platforms and colocation data centers leading the way. Business leaders must stay competitive by adapting to these trends and investing in the right data center solutions. Cloud technology, data center systems, and data security are critical areas of focus. The exponential trend of digitization, driven by the S-curve function and internet penetration, will continue to shape the data center market.
Data centers are enhancing energy efficiency through the implementation of Artificial Intelligence (AI). AI technology optimizes server, power, and cooling system performance, enabling quicker decisions and improved efficiency. Data center service providers utilize AI in automation software to reduce human intervention and promote energy-efficient operations. AI also facilitates effective cooling control, adjusting cooling processes and maximizing power usage in data centers. By implementing AI, data centers aim to boost performance, minimize downtime, and reduce human errors.
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• 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 support innovation. Enterprise Engineering Solutions and Software Testing Help ensure system reliability. Businesses and individuals generate vast amounts of data, driving the need for cost savings and real-time processing. Digitalization, IoT devices, and autonomous vehicles create latency issues. Decentralized Data Centers address local special circumstances and data sovereignty regulations. Macroeconomic factors, such as exchange rates and business leaders’ decisions, impact data center investments. Cloud technology, data center systems, and colocation offer solutions for B2B enterprises, while hardware-related expenses and data security concerns persist. National statistical offices track the level of digitization, and trends show an exponential increase. Big data and data analytics require specialized regions and hyper-scale platforms. Managed hosting, colocation, and public cloud offer options for application performance, storage requirements, and mobile data use. Data security, backups, and Internet bandwidth remain critical concerns. Online retail, e-commerce, and personalized data storing and analyzing drive cloud data storage demand. Application performance, storage requirements, and lost data are key concerns. The digital economy, internet penetration, and mobile usage continue to grow, increasing the importance of data centers. Cloud technology, data center workloads, and application performance are essential for business success. Competitors in various industries rely on data centers for their digital transformation.
• Enterprises heavily rely on data for generating revenue through trend analysis and informed decision-making. However, securing sensitive data, such as customer information, is a significant challenge. The increasing adoption of cloud services and IoT solutions heightens the risk of cyberattacks. Cybercriminals can exploit IT security vulnerabilities to gain unauthorized access to enterprise servers, potentially compromising valuable data and causing business disruption. This threat is particularly concerning for small enterprises, as a successful attack could lead to devastating consequences. It is crucial for businesses to prioritize data security measures to protect their digital assets and mitigate the risks associated with the evolving cyber threat landscape.
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This data center market report extensively covers market segmentation by
ComponentIT InfrastructurePower ManagementMechanical ConstructionGeneral ConstructionSecurity SolutionsEnd-userBFSIEnergyITOthersGeographyNorth AmericaAPACEuropeSouth AmericaMiddle East And AfricaDesignTraditionalContainerizedModular
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. The increasing demand for computing power and storage to support data traffic growth is driving the market. Enterprises are shifting from on-premises to cloud-based data centers, and hyperscale data centers (HDCs) are investing heavily, increasing the demand for servers, storage infrastructure, and other IT equipment. Server infrastructure processes data, runs applications, and stores data. Enterprises aim to shift investments from capital expenditure (CAPEX) to operational expenditure (OPEX) and consolidate, virtualize, and containerize computing needs. Rack servers are the most widely used due to their suitability for enterprises with fixed requirements. The server infrastructure segment is growing due to green, colocation, and HDC expansions and technology refresh cycles. Storage infrastructure includes direct-attached storage (DAS), network-attached storage (NAS), and storage area networks (SAN). The exponential growth in data drives the demand for storage infrastructure. Social media applications and IoT deployment are significant contributors to data volume growth. NVMe SSDs and high-speed networks like LTE and 5G are also driving the segment. SDDCs are virtualized data centers managed through software. They offer cost savings, efficiency, control, and flexibility. Software-defined computing, networking, and storage are SDDC components. The adoption of cloud solutions is driving the SDDC segment’s growth. Network infrastructure includes Ethernet switches, routers, application delivery controllers (ADCs), and SD-WAN appliances. Virtualization is a key factor driving the sale of data center Ethernet switches. High-capacity switches are needed to handle east-west and north-south traffic. Cloud service providers demand higher capacity switches. Converged infrastructure combines multiple IT components into a single integrated computing package. It reduces data center footprint, management complexity, and costs. Hyper-converged infrastructure (HCI) is gaining popularity due to its scalability and cost savings. Data center automation software enables centralized access to data center resources and automates routine tasks. It offers features like scheduling, monitoring, patching, updating, reporting, and compliance. Cloud-based data center automation software is driving adoption due to its low upfront cost. Data center backup and recovery software enables periodic backup and instantaneous recovery of data. Enterprises are adopting online backup solutions and cloud backup services due to the advantages associated with cloud storage. DCIM solutions facilitate data center administration with an overall integrated view for asset and capacity management, energy management, power and cooling, and network management. Enterprises, colocation providers, and hyperscalers focus on energy efficiency and green data centers, driving the DCIM solutions segment.
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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, Internet of Things (IoT) devices, 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 crucial for online retail and e-commerce businesses, making data centers an essential component of their operations. Data center systems enable businesses to store, analyze, and manage their data center workloads efficiently. However, the risk of lost data and the need for speed and security are major concerns. Cloud technology continues to disrupt the traditional on-premises infrastructure, offering benefits such as cost savings, scalability, and real-time data processing. AI and ML are also being integrated into data center management to optimize performance and reduce energy consumption.
The Data Center market is experiencing significant growth as businesses and individuals increasingly rely on IT infrastructure for digitalization. Artificial Intelligence and Machine Learning are driving the demand for real-time data processing and analysis in Cloud computing and Edge computing. The Internet of Things (IoT) is generating massive amounts of data, requiring Decentralized Data Centers for local processing and storage. Green Data Centers are becoming essential to reduce energy consumption and costs. Macroeconomic factors, digital economy, and internet penetration are key drivers, with B2B enterprises and national statistical offices leading the way. Hardware-related expenses, data security, and data sovereignty regulations are major concerns. The market is showing an exponential trend, with the S-curve function indicating continued growth. Cost savings, scalability, and flexibility are key benefits. Applications include autonomous vehicles, smart cities, and e-commerce. Data center workloads require application performance, storage requirements, and mobile data use considerations. Data security, backups, and internet bandwidth are critical components. Managed hosting, colocation, and public cloud solutions are available for various business needs. Hyper scale platforms and colocation data centers are popular choices for big data and data analytics. Amazon Web Services and other cloud technology providers offer intelligent buildings and specialized regions to meet diverse customer needs.
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 AfricaDesignTraditionalContainerizedModular
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
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.
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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Innowise Named to 2026 CRN Tech Elite 250 List By The Channel Company
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WARSAW, Poland, April 26, 2026 /PRNewswire-PRWeb/ — Innowise has officially secured a position on CRN’s 2026 Tech Elite 250. This annual ranking identifies IT solution providers across the US and Canada that have achieved top-tier status within the partner programs of the industry’s leading technology vendors. The inclusion follows a period of verified growth in technical proficiency and a focus on high-impact engineering.
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Neusoft Showcases Full-Stack & Global Innovations at Auto China 2026
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BEIJING, April 26, 2026 /PRNewswire/ — At Auto China 2026, Neusoft Corporation hosted a press conference on April 25th and announced three key strategic moves: the iteration of Neusoft OneCoreGo® Global In-Vehicle Intelligent Mobility Solution 7.0, the launch of Neusoft NAGIC.AI Cockpit Software Platform, and the strategic upgrade of its subsidiary, Neusoft Smart Go. By leveraging full-stack technology and a global ecosystem to drive innovation and empowerment, Neusoft is transforming vehicles into proactive, connected and collaborative mobile intelligent spaces.
OneCoreGo® Global In-Vehicle Intelligent Mobility Solution 7.0: An Evolved AI Companion for Global Intelligent Mobility
Intelligent mobility requires proactive perception, scenario integration, and global connectivity to meet personalized user needs and complex driving scenarios. Neusoft, whose products cover over 130 countries and regions worldwide, addresses these challenges with its OneCoreGo® Global In-Vehicle Intelligent Mobility Solution 7.0 through AI-driven innovation and global ecosystem collaboration. Powered by One Mate’s cross-agent collaboration and a sub-product matrix including One Map, One Sight, One Cloud, One Pay, One Store, One Link, and One Guard, the solution delivers full-link global mobility services spanning navigation, in-cabin AR, payment, app ecosystem services, connectivity and security. By breaking down functional silos, it streamlines multi-step operations into a single “depart” command, leveraging full-stack AI technology across perception, decision-making, interaction, and execution processes.
Guan Xin, Vice President of Neusoft and General Manager of Neusoft Automotive Innovative Solutions Division, said, “Adhering to the core principles of AI and globalization, OneCoreGo® 7.0 keeps innovating, evolving into a globally intelligent mobility companion that truly understands user needs.”
To enhance driving safety and mobility efficiency, OneCoreGo® 7.0 has also comprehensively upgraded its sub-products: One Map Global Navigation newly introduces 3D city effects, 3D lane-level maps, and traffic light guidance, offering dedicated solutions for two-wheelers and commercial vehicles as well. One Sight AR For Car improves navigation display effects, reducing instances of taking wrong routes. One Pay In-Vehicle Payment achieves over 90% payment coverage for parking services across core European cities. Combined with One Cloud’s global compliance cloud monitoring platform and One Guard’s full-stack vehicle networking security services, it creates a truly comprehensive OneCoreGo® Global In-Vehicle Intelligent Mobility Solution.
Neusoft NAGIC.AI Cockpit Software Platform: Dual-track Architecture for AI Integration in Every Vehicle
Amid the AI-driven transformation of the automotive industry, the market faces two challenges: limited computing power in legacy vehicles and high adaptation difficulties for next-gen models. Neusoft’s NAGIC.AI Cockpit Software Platform adopts a flexible “distributed + centralized” dual-track architecture approach. For existing vehicle models, it introduces the AI BOX solution, rapidly boosting computing power via external AI computing units, significantly reducing upgrade costs and timelines. For new vehicle models built on next-gen central computing platforms, Neusoft provides a full-stack AI cockpit software product suite, meeting automakers’ stringent requirements for system stability, reliability, and full-domain control.
Pang Hongyan, Vice President of Neusoft and General Manager of the Automotive Intelligent Software Division, said, “Our dual-track architecture enables every vehicle to embrace AI and enjoy an intelligent future. Both existing models and new-generation vehicles can find the most suitable path to intelligentization.”
Moreover, Neusoft’s NAGIC.AI Cockpit Software Platform features scenario-based, human-centric AI Agents seamlessly integrating driving safety, occupant care services, intelligent assisted driving and in-cabin entertainment. Neusoft also collaborates with global ecosystem partners to drive intelligent upgrades of in-cabin interaction products, fostering a more open and dynamic intelligent cockpit ecosystem.
Strategic Upgrade of Neusoft Smart Go: A World-leading Provider of Full-Domain Upper-Body Electronics Solutions for Intelligent Vehicles
Aligning with the trend of E/E architecture evolution from distributed control to “central computing + zonal control”, Neusoft Smart Go, a subsidiary of Neusoft in the field of intelligent vehicle connectivity, has completed a strategic upgrade, aiming to become a global leader in full-domain upper-body electronics solutions for intelligent vehicles.
This strategic upgrade positions Neusoft Smart Go to focus on full-domain scenarios in upper-body electronics, building a product matrix covering full-category in-vehicle electronics solutions, including central computing platforms, cockpit-driving-parking integration, intelligent cockpits, intelligent communications, intelligent audio systems, and zonal control units, and pioneering the integration of large model algorithms.
Jian Guodong, Senior Vice President of Neusoft and CEO of Neusoft Smart Go, said, “This strategic upgrade represents a significant leap from partial focus to comprehensive layout. Through our dual-track strategy of high-end cutting-edge solutions and mature standardized products, we can flexibly meet the mass production needs of vehicle models across different regions and price segments worldwide.” Neusoft Smart Go will provide mass-producible, adaptable hardware-software integrated solutions, empowering global automakers in achieving intelligent transformation.
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As a trusted partner in a smarter world, Neusoft is committed to collaborating with global automakers and ecosystem partners to build an open and inclusive intelligent automotive community together for the future of global mobility.
For more information about Neusoft, please visit www.neusoft.com.
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Lianlian DigiTech Returns to Money20/20 Asia to Expand Partnerships, Share Industry Trends, and Explore AI-Enabled Global Financial Infrastructure
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April 26, 2026By
BANGKOK, April 26, 2026 /PRNewswire/ — Lianlian DigiTech, a leading global provider of digital payment services, was once again invited to participate in Money20/20 Asia, one of the world’s most influential fintech gatherings, held in Bangkok, Thailand from April 21 to 23. At the event, the company presented its latest developments in cross-border payment infrastructure, technology innovation, and ecosystem collaboration, offering a comprehensive view of its work enhancing global cross-border payment capabilities.
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At the event, Lianlian DigiTech formalized a strategic collaboration with London-headquartered USI Money to further develop its global payment infrastructure.
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Syed Bukhari, Group Chief Business and Operating Officer at USI Money, said: “Our partnership with Lianlian will strengthen our remittance capabilities, creating greater value for our customers through broader network coverage and improved transaction performance.”
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Founded in 2009 and listed on the Main Board of the Hong Kong Stock Exchange in 2024 (2598.HK), Lianlian DigiTech is a China-based, globally focused digital payment company with increasingly integrated AI capabilities across its platform. Guided by its mission of “Connecting the world, Empowering global commerce,” the company focuses on developing a trusted and scalable financial infrastructure. As of the end of 2025, Lianlian DigiTech has built a cross-border payment network covering more than 100 countries and regions, serving over 10.4 million customers worldwide.
USI Money is a foreign exchange and international remittance service provider offering tailored cross-border financial solutions for businesses and individuals. With competitive real-time exchange rates and efficient execution as its core strengths, the company delivers fast, secure, and reliable global fund transfers.
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Industry Roundtables: Unlocking Layered Collaboration in AI-Driven Cross-Border Payments and Advancing Financial Inclusion in Emerging Markets
At the same time, Mark Ma and Bryan Jiang were invited to the themed roundtable discussions, where they shared insights drawn from industry practice and outlined new approaches to aligning fintech innovation with the global financial system.
At the roundtable on “Fintech and Banks,” Mark Ma noted that the global payment system is rapidly shifting from isolated capabilities to a layered, collaborative model. Banks continue to serve as the foundational infrastructure, responsible for clearing networks and liquidity management. Fintech firms like Lianlian, meanwhile, build on top of this foundation to deliver application-layer services for businesses, transforming complex cross-border payment channels into more accessible solutions that support a wider range of practical business scenarios. He also emphasized fintech’s growing role in compliance and value creation. By embedding risk controls and verification processes into technology workflows, fintech companies can act as compliance intermediaries, improving efficiency while filtering risk and enabling banks to operate more effectively at scale. Meanwhile, insights derived from transaction data and business flows allow for more precise evaluation of small and medium-sized businesses, shifting capital allocation from experience-based decisions to data-driven approaches and improving access to financial services.
At the roundtable titled “Different Worlds, Shared Challenges: Bridging Emerging Markets,” Bryan Jiang pointed out that the core of financial inclusion is shifting from scale of coverage to practical usability in everyday financial activity. The ability to serve underserved segments such as small and micro merchants and overseas workers in a sustained and reliable manner ultimately depends on continuous improvements in product design and operational capabilities. Using emerging markets as an example, Jiang explained that small and medium-sized businesses in these regions often face challenges such as difficult account setup, complex cross-border collections, high foreign exchange costs, and multi-layered tax requirements. Many existing solutions still follow traditional business-focused models, resulting in cumbersome KYB processes and lengthy review cycles that are misaligned with the asset-light, high-frequency, fast-turnover nature of these businesses. In response, Lianlian has lowered barriers to fund flows by offering local collection accounts, optimizing foreign exchange mechanisms, and improving settlement efficiency. The company has also restructured account architecture, streamlined review processes, and enhanced fund visibility, creating a more seamless and intuitive user experience that better aligns financial services with its clients’ business operations and day-to-day activities.
As digital technologies increasingly integrate with the real economy, innovations in AI and blockchain are reshaping the foundations of global financial services. Lianlian DigiTech has long invested in AI capabilities, global compliance, and the growth of its international service network. Its broad licensing coverage, regulatory track record, localized service capabilities, and technical reliability have earned the trust of regulators, customers, and partners worldwide.
Looking ahead, Lianlian DigiTech will continue to build on its cross-border expertise and compliance experience to further develop its AI capabilities and deepen collaboration with global partners. The company aims to extend its role beyond payment network services into more integrated financial infrastructure solutions. Lianlian DigiTech remains committed to serving as a trusted platform for global financial transactions in an increasingly digital environment, enabling businesses and individuals worldwide to access faster, more efficient, and more seamless cross-border financial services.
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