Data Center Growth Driven by Multi-Cloud Adoption and More

The global data center market 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 are driving market growth, with a trend towards implementation of AI in data centers.

The growing data center world

Data Centers are having a moment right now. Trends like AI, Machine Learning, IoT, and Cloud Computing are driving the need for more data processing power and real-time data analysis.

Green Data Centers are also part of the conversation as businesses seek to reduce their carbon footprint and save costs. 

Cloud computing and Edge Computing is hoped to offer cost savings, scalability, and flexibility for businesses. Real-time data processing could also help 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 seem to be popular choices for businesses seeking to optimize their IT infrastructure. Big data and data analytics are assumed to be key drivers of growth, with hyper-scale platforms and colocation data centers leading the way. 

Data centers are hoping enhancing energy efficiency through the implementation of AI. AI technology could optimize server, power, and cooling system performance, and 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.