Leading players in data center as a service market set to transform the industry
The global data center as a service market is projected to reach $461.44 billion by 2030, expanding at a remarkable CAGR of 25.1% from 2023 to 2030. The market is estimated to reach $96.32 billion in 2023. The growth of the data center as a service (DCaaS) market can be attributed to increased government support and higher investments by key market players.
Additionally, the widespread adoption of advanced technologies such as cloud computing, artificial intelligence (AI), the Internet of Things (IoT), and machine learning in data centers offer numerous benefits to organizations and are likely to drive market growth.
Governments worldwide actively promote the establishment of data centers to facilitate energy-efficient and reliable data storage facilities. Leading players like Amazon, IBM, Microsoft, and Equinix are investing substantially in advanced data center infrastructure globally. For instance, in November 2022, Amazon Web Services, Inc. unveiled the AWS Europe (Spain) region, marking Europe’s eighth AWS infrastructure region. These factors are poised to create lucrative opportunities for the data center as a service market in the coming years.
Data center service providers offer data center services for rent or lease to clients. The increasing adoption of data center services by various end-use companies as an alternative to setting up expensive data centers is expected to drive market growth.
According to a new study by Grand View Research, the rising demand for data center solutions has prompted industry players to enhance their data center as a service offering, thereby improving their brand representation. In July 2022, Data Holdings acquired Stack41, a provider of data center management, cloud, cybersecurity, and hosting services. This acquisition will enable Data Holdings to offer its customers a comprehensive suite of fully outsourced data center services.
Key industry insights & findings from the report
- The storage segment will witness a CAGR of 28.0% from 2023 to 2030. The growing adoption of cloud platforms to simplify the management of expanding data sets and the proliferation of data centers are expected to drive the demand for system infrastructure storage software worldwide.
- The small and medium-sized enterprises (SMEs) segment is anticipated to expand at a CAGR of 27.3% from 2023 to 2030. Data center-as-a-service (DCaaS) offers SMEs a favorable option to reduce overhead costs by shifting their workloads to the cloud.
- The healthcare segment is expected to expand at a CAGR of 30.5% from 2023 to 2030. Ongoing advancements in the medical field, particularly accelerated by the COVID-19 pandemic, are driving the adoption of DCaaS in the healthcare industry.
- Asia Pacific is projected to grow at a CAGR of 30.2% from 2023 to 2030. The region is witnessing a surge in data center development and infrastructure demand due to the substantial data volumes generated by extensive telecom networks, a large e-commerce customer base, and numerous service providers, resulting in high traffic flows in servers.
List of key players in the data center as a service (DCaaS) market
- IBM Corporation
- Microsoft Corporation
- Hewlett Packard Enterprise Development LP
- Dell Inc.
- Alibaba
- AT&T
- Cloudian
- 365 Data Centers
- Digital Reality
- Cyxtera Technologies
- Digital Ocean, LLC
- Linode LLC
- Equinix, Inc.
- Huawei
- Amazon.com, Inc.
The data center as a service market will witness significant growth in the coming years, driven by the increasing demand for efficient and scalable data storage solutions. The market is poised for a prosperous future with governments supporting data center development and industry giants investing in advanced infrastructure.
