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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..

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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 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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Greater San Diego Science and Engineering Fair Students Win Big at the 75th California Science and Engineering Fair

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SAN DIEGO, April 26, 2026 /PRNewswire/ — The 75th California Science and Engineering Fair (CSEF) took place April 11–12 at California Lutheran University in Thousand Oaks, bringing together 900 of the best of 1st place winners from regional competitions covering 58 counties across the state, including the Greater San Diego Science and Engineering Fair (GSDSEF). GSDSEF students earned 40 awards at the event, including two of only six highly coveted spots to the prestigious Regeneron International Science and Engineering Fair (ISEF). Seven students earned 1st Place awards in the categories of Biochemistry and Molecular Biology, Chemistry, Cognitive Science, Microbiology, Physics and Astronomy, and Zoology. In addition, one student won the Saban Family Foundation Scholar Prize, while another won the South Coast AQMD Air Quality Award and A&WMA Environmental Leadership Award. CSEF is the oldest science fair west of the Mississippi River and the highest level competition in the state.

Top winners were:

Arya Bhatt, Grade 7, Oak Valley Middle School, South Coast AQMD Air Quality Award, A&WMA Environmental Leadership Award, “Context Aware Real Time Air Quality Prediction Using Machine Learning”.

Joie Green, Grade 8, Muirlands Middle School, 1st Place, “Soon I will be Invisible: How to Direct Energy with Topological Metamaterials”.

Maggie Hao, Grade 10, The Bishop’s School, 1st Place, “Harnessing Tardigrade Genes to Enhance Bacterial Biosensors for Heavy Metal Pollutant Detection”.

Uma Kattamuri, Grade 7, Oak Valley Middle School, 1st Place, “Elevated CO2 During Kalanchoe pinnata Growth Reveals Enhanced Antiproliferative and Synergistic Therapies”.

Sonika Dhenuva Konda, Grade 11, Del Norte High School, Saban Family Foundation Scholar Prize, “Adaptive Swarm Coordination for Wildfire Control via Q-Learning Tuned PSO with Quantum-Inspired Coupling”.

Emma Liu, Grade 11, The Bishop’s School, ISEF Finalist, 1st Place, “Defining 3D Phenotypic Cell States of Polymorphonuclear Neutrophils via Novel Computational Pipeline”.

Sharvi Mahajan, Grade 8, Bernardo Heights Middle School, 1st Place, “Evaluating Predictive EEG Theta/Beta Features in Adult ADHD via Machine Learning”.

Sydney O’Donnell, Grade 8, The Rhoades School, 1st Place, TFJIC, “Effects of Marigold Versus Chlorella Supplementation on Yolk Lutein Content”.

Ihan Sung, Grade 11, Eastlake High School, ISEF Finalist, 1st Place, “Renewable Ammonia Electrochemical Synthesis by Glow Discharge with an Iron Based Catalyst”.

Full results and project showcase available online.

About the GSDSEF

Since 1955, the Greater San Diego Science and Engineering Fair (GSDSEF) has provided an inspiring experience in science and engineering for tens of thousands of San Diego and Imperial County students, motivating them to pursue careers in science, technology, engineering, and mathematics. This regional competition challenges students to go beyond classroom studies to do independent research – to ask compelling questions, to design and implement innovative solutions, and to present and defend results to judges who are professionals in their fields. The GSDSEF brings together 800 of the best middle and high school students, 400+ judges who are professionals in their fields and over 60 professional societies and organizations, with $40k in prizes awarded.

The GSDSEF fosters creativity and innovation through inquiry, celebrates students’ STEM achievements, and showcases how young minds can make an impact in the present and future. Many of these student scientists are conducting world-class research and conducting groundbreaking experiments in fields ranging from Astronomy to Zoology, such as the discovery of cures for diseases, formulations of new vaccines, cancer research, applying AI to enhance medical diagnoses, using biomimicry for water conservation, novel drone technology, advances in micro robotics and autonomous driving technology. The GSDSEF is the highest-level STEM competition in the region and one of the oldest, most respected and competitive in the world. The GSDSEF is a 501(c)(3) organization. Learn more at gsdsef.org and follow us on LinkedIn and Instagram.

Copyright © 2026 Greater San Diego Science and Engineering Fair. All rights reserved.

Media Contact:
Sany Zakharia
sany.zakharia@gsdsef.org

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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.

“Innowise concentrates on creating scalable, resilient architectures that produce measurable benefits for our clients. The honor of being recognized by CRN highlights the commitment of our experts to maintain high standards in highly competitive markets,” said Dmitry Nazarevich, CTO at Innowise.

About the Tech Elite 250

The Tech Elite 250 is a directory of companies recognized as having the highest level of partnership and certifications within the global IT ecosystem. In order to reach the final list, the provider must hold the most advanced technical credentials from vendors like AWS, Cisco, Dell, HPE, IBM, Intel, Nutanix, and Nvidia.

This directory serves as a verified ledger for enterprise clients who need to orchestrate complex hardware and software stacks without letting legacy environments rot. Holding these certifications is mandatory to stop the cash bleed caused by inefficient infrastructure and unoptimized cloud usage.

About Innowise

Founded in 2007, Innowise is a global software engineering and IT consulting center. The company is focused on developing high-value technologies, including artificial intelligence, data engineering, and cloud computing. Innowise crafts technological solutions for companies across 40+ domains in order to assist them in updating, creating, and modernizing their digital ecosystems.

Innowise specializes in using established technologies and modular approaches to enable organizations to expand or shift their operations while retaining complete control over all their physical and intangible assets.

Media Contact

Lizaveta Piaskova, Innowise, 48 48 787 027 706, lizaveta.piaskova@innowise.com, innowise.com

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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.

Neusoft’s President, Mr.Gai Longjia stated, “In the future, Neusoft Smart Go will create stronger synergy with Neusoft Corporation by sharing internal technologies and capabilities while responding jointly to external demands. This specialized yet collaborative model will preserve business unit’s agility and expertise while enhancing Neusoft’s full-stack technological advantages.”

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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