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Data Center Market to Grow by USD 535.6 Billion from 2025-2029, Driven by Multi-Cloud Adoption and Network Upgrades, AI Redefining Market Landscape – Technavio

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NEW YORK, Feb. 10, 2025 /PRNewswire/ — Report with market evolution powered by AI – 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.

Market Driver

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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 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 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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Segment Overview 

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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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, 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.

Market Research Overview

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.

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 AfricaDesignTraditionalContainerizedModular

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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CM Global Services Announces Project Santos, a Planned 50-Megawatt AI Data Center Campus in ERCOT South

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20 minutes ago

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July 23, 2026

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CM Global Services targets a site and engages with strategic partners to become operational in the AI data center space.

DENVER, July 23, 2026 /PRNewswire/ — CM Global Services, LLC (CMGS) today announced Project Santos, its plan to develop a 50-megawatt AI data center campus for a site in the ERCOT South grid zone. CMGS is a long-standing strategic partner of Compass Mining, Inc. and is a global provider of logistics, hardware sales, and infrastructure services, with a growing focus on AI infrastructure and building site development. The announcement was made by Shanon Squires, Chief Mining Officer of Compass Mining, during a panel on bitcoin mining companies diversifying into AI infrastructure at the Energy Investors Forum.

CMGS intends to deliver Project Santos in two phases. The first phase, a 7-megawatt, 5 MW of IT Load Tier III facility purpose-built for AI inference workloads, is targeted for completion by the end of the first quarter of 2027. A subsequent 43-megawatt expansion, bringing the site to its fully planned 50-megawatt capacity

“This is a disciplined next step for CM Global Services, drawing upon its expertise in standing up infrastructure, while Compass Mining simultaneously continues to be the gold standard in Bitcoin mining-related services,” said Shanon Squires. “Bitcoin mining remains the core of Compass Mining. CMGS’ Project Santos reflects the power infrastructure and site development discipline CMGS built over years, and we’re pursuing this initiative on our own terms.”

“This is a new step forward for CMGS, as we continue building for the future,” said Vishnu Mackenchery, Managing Director at CMGS. “Project Santos marks our entry into AI infrastructure and inference, and we’re charting our own path, moving fast to get there.”

GPU-as-a-Service for Enterprise and Neocloud Customers

Project Santos is being developed as a GPU-as-a-Service (GPUaaS) platform. Rather than requiring customers to bring their own hardware, CMGS is securing NVIDIA GB300 Blackwell GPU capacity to offer directly to off-takers as dedicated, single-tenant or multi-tenant compute. The company’s ideal customer profile is AI enterprise organizations seeking dedicated capacity, and CMGS is also in active discussions with neocloud providers.

Project Status

Site: located in the ERCOT South grid zoneCompute: CMGS is securing NVIDIA GB300 Blackwell GPU capacity to offer as GPU-as-a-Service to off-takersTotal planned capacity: 50 megawatts, 35 MW of IT to be delivered in two phasesPhase 1: 7 megawatts, 5 MW of IT load Tier III, targeted for completion by end of Q1Phase 2: adding a 43-megawatt expansion, 30 MW of IT load with utility-supported expansionCustomer profile: AI enterprise companies are the ideal customer; CMGS is also in active discussions with neocloud providers

About CMGS

CM Global Services (CMGS) is a global provider of logistics, hardware sales, and infrastructure services, with a growing focus on AI infrastructure and building site development. CMGS supports clients with end-to-end logistics solutions, hardware procurement, and site-level execution for next-generation compute infrastructure.

About CMGS and Compass Mining Partnership

Compass Mining serves as a strategic partner and advisor to CM Global Services (CMGS), supporting its growth across global logistics, hardware sales, and infrastructure services. As CMGS expands its focus into AI infrastructure and site development, Compass Mining’s guidance helps shape its strategic direction and execution. Together, the two organizations continue to collaborate on delivering end-to-end solutions for clients building next-generation compute infrastructure.

Disclaimer

This communication contains forward-looking statements relating to a potential closing of a transaction. There can be no assurance that the proposed transaction will be completed on the terms described, or at all. Forward-looking statements are subject to significant business, economic, and competitive uncertainties, many of which are beyond our control. This communication is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any securities of the company. Furthermore, investing in or engaging with our company involves substantial risk, and past performance or previous communications are not indicative of future results. There is no guarantee, assurance, or warranty that any specific financial outcome, return on investment, or overall results will be achieved. Actual results may differ materially and adversely from those expressed, projected, or implied in any forward-looking statements. Investors and stakeholders should not rely solely on preliminary press releases regarding potential transactions or projected financial metrics when making investment decisions. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws. Prospective investors are strongly encouraged to conduct their own independent due diligence and consult with a qualified, independent financial or legal advisor prior to making any investment.

Contact
All inquiries can be made to: Santos@CMGlobalServices.io 

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Advantech Unveils Next-Gen AI Infrastructure Solutions Powered by AMD EPYC™ 9006 Series Processors

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July 23, 2026

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TAIPEI, July 23, 2026 /PRNewswire/ — Advantech, a global leader in industrial edge computing and edge AI solutions, today announced its next-generation server and network platforms powered by the latest AMD EPYC™ 9006 Series processors. Designed to accelerate AI infrastructure from the data center to the intelligent edge, Advantech’s 6th Gen AMD EPYC-powered servers deliver the performance, scalability, and reliability organizations need for AI, HPC, storage, networking, and mission-critical industrial workloads.

At AMD Advancing AI 2026, Advantech will showcase its latest 2U 4-node edge server and EATX server board, demonstrating how its workload-ready server solutions enable customers to build scalable, high-performance AI and edge computing infrastructure with greater deployment confidence.

Continuing Performance Leadership with AMD EPYC 9006 Series Processors

6th Gen AMD EPYC server CPUs bring continued leadership in performance, efficiency, memory bandwidth, and next-generation I/O. Featuring up to 128 cores and 256 threads, advanced 2nm process technology, “Zen 6” and “Zen 6c” architecture, up to 20% average generational performance uplift, and up to 20% performance-per-watt improvement, AMD EPYC 9006 Series processors are designed to support more virtual machines, higher throughput, and better system efficiency. With up to 128 PCIe Gen6 lanes per CPU, CXL™ 3.1 memory expansion, and support for DDR5 8000NHz and MRDIMM 12800MHz for high memory bandwidth, Advantech edge server solutions deliver balanced compute, memory, and I/O performance for next-generation AI, telco, edge, and storage infrastructure.

Key Features Include:

Up to 128 cores / 256 threads with “Zen 6” and “Zen 6c” architectureAdvanced 2nm process technology for improved performance and efficiencyUp to 20% average generational performance uplift and 20% performance-per-watt improvementDDR5-8000 and MRDIMM 12.8G support for higher memory bandwidth and capacityPCIe® Gen6 scalability: up to 128 lanes for 1 CPU and up to 196 lanes for 2 CPUsCXL™ 3.1 support for optimized memory expansion

Comprehensive Edge Server Solutions from Edge to Cloud

Advantech’s edge server portfolio powered by AMD EPYC™ 9006 Series processors delivers a complete board-to-system lineup for AI infrastructure, data centers, cloud, HCI, HPC, edge computing, industrial applications, and high-performance networking. The first-wave portfolio includes:
(1) The SKY-642E5, 4U MGX GPU server, for large-scale AI acceleration
(2) The SKY-722E5, 2U DC-MHS server with DC-SCM support, for modular data center and edge AI deployments
(3) The SKY-712E5, 1U DC-MHS server, supporting HHHL and FH-3/4L expansion cards for high-density enterprise edge and cloud workloads
(4) The SKY-822E5, 2U short-depth DC-SCM modular server, supporting 2–3 dual-slot GPU cards for space-constrained edge data centers
(5) The SKY-924E5F, 2U 4-node front-access server, for distributed edge computing,
(6) The ASMB-982 & ASMB-832 server boards for flexible, high-expandability system designs.

These new platforms also support PCIe Gen6 scalability, GPU-optimized architecture, advanced DDR5/MRDIMM memory, and AFA-ready high-density E1.S/E3.S NVMe SSD storage to meet low-latency data access, high-throughput storage performance, and scalable infrastructure for data-intensive AI and edge-cloud workloads.

Expanding the portfolio further, Advantech also introduces the FWA-6084, the 2U network appliance and is designed for demanding network security and edge AI workloads. It features DDR5/MRDIMM memory capability, eight Gen6 network module cards, and one PCIe Gen5 x16 slot for GPU or add-on card expansion. It is well positioned to support line-speed multiple 200G network workloads without compromise.

Together with Advantech’s unique service advantages—including 3-5-10 service guarantee, strict revision control, stable component supply, worldwide local support, and custom-ready integration—the new portfolio supports customers reduce deployment risk, secure long-term product roadmaps, and accelerate workload-ready AI and edge-cloud infrastructure from concept to deployment.

Explore more product information, please contact us or visit the Advantech x AMD website.

About Advantech

Advantech is a global leader in IoT intelligent systems and embedded platforms, driven by its vision of “Enabling an Intelligent Planet.” To address the growth of edge computing and AI, Advantech focuses on five key markets: Edge Intelligence Systems, Manufacturing, Energy and Utilities, iHealthcare, and iCity Services & iRetail. By integrating edge computing hardware, WISE-IoT software, sector-specific AI solutions, and domain expertise, Advantech creates an orchestration model that connects industrial ecosystems and accelerates industrial intelligence with partners and customers.(www.advantech.com) 

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SOURCE Advantech Co., Ltd.

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MulticoreWare and AMD Collaborate to Advance Physical AI and Autonomous Robotics on AMD Platforms

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July 23, 2026

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Companies Demonstrated Real-Time Multimodal AI and Vision-Language-Action Workflows on AMD Ryzen™ AI Platforms at AMD Advancing AI 2026

SAN JOSE, Calif., July 23, 2026 /PRNewswire/ — MulticoreWare, Inc., a global technology company specializing in AI software solutions, physical AI, accelerated computing, and engineering services, today announced its ongoing collaboration with AMD to advance autonomous robotics and edge intelligence on AMD platforms.

As part of this collaboration, MulticoreWare joined AMD at AMD Advancing AI 2026 to present ‘Enabling Physical AI on AMD’, demonstrating how advanced vision, language, and action (VLA) models can drive real-time robotic intelligence on AMD Ryzen™ AI Embedded platforms.

As AI increasingly moves from the cloud into robots, autonomous systems, and intelligent edge devices, organizations need efficient ways to run sophisticated AI models closer to where decisions need to be made. Together, AMD and MulticoreWare are helping developers bring advanced perception, reasoning, and action capabilities to AMD-powered systems.

At AMD Advancing AI 2026, AMD and MulticoreWare demonstrated how multimodal VLA models run on AMD Ryzen™ AI Embedded integrated GPUs using AMD ROCm™, enabling robots to perceive, reason, and act in real time. The session showcased practical guidance for AI developers, robotics engineers, and innovators building next-generation intelligent machines on AMD Embedded platforms.

“Physical AI is reshaping how machines perceive, decide and act in the real world,” said Sumit Shah, Head of Product Management and Marketing, Adaptive and Embedded Computing Group, AMD. “AMD Ryzen™ AI Embedded X100 Series processors deliver a scalable, open x86 Embedded platform that unifies AI, real-time control and industrial reliability to enable the generation of autonomous systems without locking developers into a single compute architecture or software stack.”

“A Physical AI system depends on a tightly integrated loop between perception and actuation. It must operate in real time, on real hardware, and in environments that are inherently unpredictable,” said Vish Rajalingam, VP & GM, Mobility and Transportation BU at MulticoreWare. “That makes it a hardware-software co-design challenge, not simply an AI inference problem. Building on the open-source AMD Robotics Software Suite, we work closely with OEMs to optimize the entire stack so that latency, reliability and accuracy targets are consistently achieved in production environments. That’s the integration MulticoreWare and AMD deliver together to move intelligent robotic systems from prototype to deployment.”

This session builds on more than 15 years of collaboration, with MulticoreWare delivering software optimization, AI, and engineering expertise across the AMD ecosystem, including Ryzen™ AI, Ryzen™, AMD EPYC™, AMD Instinct™, AMD Radeon™, and adaptive computing technologies.

About MulticoreWare

MulticoreWare, Inc. is a global technology company delivering AI software solutions and engineering services that accelerate innovation in Physical AI, Agentic AI, Robotics, Edge Intelligence, and Accelerated Computing. With expertise in multimodal AI, Vision-Language-Action (VLA) models, sensor perception and fusion, AI optimization, embedded systems, and high-performance software, MulticoreWare helps customers transform advanced AI technologies into production-ready solutions. Its innovations power applications across automotive, robotics, industrial automation, smart cities, healthcare, defense, and intelligent edge devices, while its video codec technologies enable next-generation video experiences worldwide.
www.multicorewareinc.com

AMD, the AMD Arrow logo, EPYC, Instinct, Radeon, Ryzen and combinations thereof are trademarks of Advanced Micro Devices, Inc.

Contact:
Suchithra Thyagarajan
VP – Corporate Marketing
marcom@multicorewareinc.com 

 

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SOURCE MulticoreWare Inc.

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