Data Center Services Market Size, Share, and Industry Analysis, By Type (Colocation Services, Managed Hosting Services, Disaster Recovery and Business Continuity Services, Storage Services, and Networking Services), By Data Center Size (Small & Medium Sized Data Center and Large Sized Data Center), By Industry (BFSI, Healthcare, Retail & E-commerce, Manufacturing, IT & Telecom, Transportation, and Others), and Regional Forecast, 2024-2032

Data center services refer to a broad range of services provided for the security & efficient operation management of data centers. These services are critical for businesses that rely on IT infrastructure to process and manage vast volumes of data. The data center services mainly include colocation, cloud computing, data storage, network management, disaster recovery, and business continuity services to carry out seamless data center operations.

According to Apricum, in 2022, there will be 2,701 data centers in the U.S., 328 in Canada, 456 in the U.K., 138 in India, 487 in Germany, 207 in Japan, and 443 in China. These centers significantly require a large amount of data storage and networking services. Hence, the adoption of data center services is growing among these countries during the forecast period.

Rising government investments in building advanced hyperscale data centers bring digital transformation among multiple data center service providers across different regions. An increasing number of data centers and the growing adoption of cloud computing due to advanced infrastructure among different industries boost the demand for the adoption of data center services, which drives the growth of the market.

During COVID-19, increased adoption of a work-from-home culture by different businesses accelerated their digital transformation activities, apparently boosting the demand for data center services to keep data safe and secure. For instance, during the pandemic, Microsoft recorded a 775% increase in monthly users of its Microsoft Teams cloud collaboration service to deliver the best customer experience.

Impact of Generative AI on the Data Center Services Market

The penetration of generative AI in the deployment of data centers has a huge impact on the adoption of network and cloud computing data center services, which significantly helps to influence the growth of the market over the forecast period. Gen AI has a significant impact on the development of the data center services market in many different ways. They are as follows-

• Predictive Maintenance- Increased usage of Gen AI models helps to analyze sensor data collected from data center equipment to predict potential failures or performance degradation before they occur. By addressing issues, data center operators can reduce downtime and help to enhance the reliability of critical infrastructure components.


• Security and Identification of Threats- The implementation of gen AI algorithms can analyze the network traffic and system performance to detect anonymous and potential security threats in real time. Thus, by leveraging generative AI applications with data center security systems, it is easy to detect security incidents and mitigate risks by securing sensitive data from unauthorized access.

Thus, integrating generative AI with data center services helps to improve the efficiency and performance of data centers while reducing costs.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by the Key Players


• Impact of Generative AI on the Global Data Center Services Market


• Consolidated SWOT Analysis of Key Players

Analysis by Industry

By industry, the market is divided into BFSI, healthcare, retail & e-commerce, manufacturing, IT & telecom, transportation, and others.

Many IT & telecom companies are dependent on data centers and services provided by them to deliver efficient operational output and boost the growth of their businesses. The high dependency of IT companies on data centers helps to ensure data redundancy, disaster recovery, and backup solutions by using various data center services. These are the key factors that increase the adoption of data center services by the IT and telecom industry during the forecast period.

Similarly, increasing digital transformation among healthcare and BFSI industry verticals propels the demand for data centers with ample data storage and management capabilities to manage their core business operations.

Regional Analysis

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The global data center services market is distributed into five regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

Growing penetration of advanced technologies, such as artificial intelligence (AI), big data analytics, and the Internet of Things (IoT) among colocation data centers present across countries, such as the U.S. and Canada, drive the growth of the market in North America in the next few years. Similarly, the presence of a large number of data center service providers, such as Midco, NTT Corporation, Equinix, and Hypertec Group Inc., across various countries of the region drives the growth of the market.

Furthermore, increasing investments by the governments of China, India, and Japan in public and private sectors to deliver advanced data center services propel the growth of the data center services market in Asia Pacific. For instance, in July 2023, Chayora Limited, a key operator and provider of hyperscale data centers, expanded its business operations in China by launching a new office in Beijing to fulfil the users' demand for managing critical IT infrastructure.

The distribution of the global data center services market by region of origin is as follows:

• North America – 42%


• South America – 6%


• Europe – 23%


• Middle East & Africa – 10%


• Asia Pacific – 19%

Key Players Covered

The key players in this market include Kyndryl, Equinix, Inc., NTT Corporation, Comarch SA., HCL Technologies Limited, Hypertec Group Inc., Cisco Systems, Inc., Dell Inc., Vertiv Co, and Amazon Web Services.

Key Industry Developments

• February 2024: NTT Data formed a partnership with Schneider Electric and brought innovation to reduce the power consumption of edge computing services of data centers. Through this partnership, the company delivers NTT DATA’s Edge as a Service solution to integrate private 5G, modular data centers, and IoT along with generative AI applications to support edge computing services.


• January 2023: State Street Corporation considered Amazon Web Services as a cloud and infrastructure solution and service provider and expanded the collaboration with Microsoft to deliver cloud managing facilities with a multi-year technology partnership.