Service Market For Data Center Market Size, Share, Trends, Growth and Forecast 2032

Service Market for Data Center: Insights

According to the report published by Zion Market Research, the global Service Market for Data Center size was valued at USD 116.15 Billion in 2023 and is predicted to reach USD 560.05 Billion by the end of 2032. The market is expected to grow with a CAGR of 19.1% during the forecast period. The report analyzes the global Service Market for Data Center's growth drivers, restraints, and impact on demand during the forecast period. It will also help navigate and explore the arising opportunities in the Service Market for Data Center industry.

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Key Insights

• As per the analysis shared by our research analyst, the service market for data center market is anticipated to grow at a CAGR of 19.1% during the forecast period (2024-2032).
• The global service market for data center market was estimated to be worth approximately USD 116.15 billion in 2023 and is projected to reach a value of USD 560.05 billion by 2032.
• The growth of the service market for data center market is being driven by rapid expansion of cloud computing, big data, AI, and IoT, which are creating massive demand for scalable and efficient IT infrastructure.
• Based on the service type, the installation and deployment segment is growing at a high rate and is projected to dominate the market.
• On the basis of tier type, the tier 1 segment is projected to swipe the largest market share.
• In terms of end user, the co-location providers segment is expected to dominate the market.
• Based on the data center type, the mid-sized data centers segment is expected to dominate the market.
• On the basis of industry, the t and telecom segment is projected to swipe the largest market share.
• By region, North America is expected to dominate the global market during the forecast period.

Global Service Market for Data Center: Overview

For the purpose of maintaining proper operating data storage or repository there arises the need for creating support services within a data center and for this service market for the data center is useful. Data center services help in managing the data and helps in distribution of the data to the appropriate channels in an extremely organized manner. Commonly, data center services lie in the categories such as software, processes, hardware, and manpower. Data center services are divided depending on whether they are being provided to a data center or they are services provided by a data center.

Global Service Market for Data Center: Growth Factors

The major factor for the proliferation of the global service market for data centers at the current scenario is the huge demand for it as a measure of safety against the data stream termination. The downtime of any degree can be enormously unfavorable to the function and the purpose of a data center. The global service market for data centers is regarded as an optimistic measure that the organizations can take while protecting their data centers and to make sure that they are functioning every moment. Thus, the guarantee of maximum possible uptime forms the key factor for the growth of the global service market for data centers. However, there are factors that hamper the service market for data centers such as the high frequency of these services being present by service providers that are the third party. It is required to have a high level of trust with the user companies in order to handle their data centers which cause problems when it is a long term contract.

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Recent Development

• In late 2024, Blackstone, in partnership with CPP Investments, acquired AirTrunk for nearly US$16 billion — a landmark transaction that redefined the scale of data center M&A activity in the Asia Pacific region.
• In 2024, CBRE Group, Inc. announced its agreement to acquire Direct Line Global from Guardian Capital Partners. The deal reflects CBRE’s strategic intent to enhance and diversify its data center service capabilities by integrating advanced technical expertise — including server infrastructure, design and planning, and retrofit solutions — into a portfolio historically centered on facilities management and real estate services.
• In 2025, Iron Mountain advanced its global expansion strategy with the acquisition of Web Werks, a leading Indian data center operator. The integration significantly bolstered Iron Mountain’s colocation and cloud service offerings in India, while reinforcing its commitment to enabling digital transformation across key international markets through targeted infrastructure investments.
• Equinix entered the Indian market in 2021 through its acquisition of GPX India, a move aimed at strengthening its carrier-neutral and integrated data center presence in South Asia. The addition of GPX India extended Equinix’s global reach to over 65 markets and further solidified its position as a leading neutral interconnection platform for enterprises, hyperscalers, and network service providers seeking scalable, cross-border connectivity.

Service Market for Data Center: Report Scope

Global Service Market for Data Center: Segmentation

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The service market for the data center is globally segmented into service type, tier type, end user, data center type, and industry. All the segments have been analyzed based on present and future trends and the market is estimated from 2024 to 2032.

On the basis of Service Type, the global market is segregated into installation and deployment, training and development, design and consulting, professional, and support and maintenance.

Based on the Tier Type, the market is categorized into tier 1, 2, 3, and 4. Depending on the end user, the market is divided into co-location providers, cloud providers, and enterprises.

On the basis of Data Center Type, the market is bifurcated into mid-sized data centers, small data centers, and large data center.

Based on the Industry, the market is fragmented into IT and telecom, healthcare, retail, manufacturing, BFSI, government and defense, education, energy, and others.

The Regional segment includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

Service Market for Data Center Dynamics

Key growth drivers

The primary driver of the data center services market is the explosive growth of data generation driven by technologies like cloud computing, IoT, big data analytics, and AI. As businesses and individuals become more reliant on digital services, the demand for secure and reliable data storage, processing, and management facilities intensifies. The widespread adoption of cloud computing by businesses of all sizes is also a major catalyst, as companies shift away from managing their own on-premise infrastructure to leveraging the scalability and cost-efficiency of cloud service providers. The global rollout of 5G networks and the proliferation of connected devices are also fueling the need for data centers, particularly edge computing facilities that can process data closer to the source to reduce latency.

Restraints

Despite strong growth, the market faces several significant restraints. One of the most prominent is the high capital and operational costs associated with building and maintaining data centers, including the substantial energy consumption required for power and cooling. This makes it difficult for smaller players to compete and can strain profitability. Another key restraint is the shortage of skilled professionals needed to design, operate, and manage complex data center infrastructure and advanced technologies like AI-powered systems. Furthermore, growing environmental concerns and regulatory pressures related to power usage and water consumption are prompting data center operators to invest in costly green technologies and sustainable practices.

Opportunities

The market is rich with opportunities, particularly in catering to the growing need for specialized services. The rise of AI and High-Performance Computing (HPC) presents a major opportunity, as these workloads require specialized, high-density infrastructure and advanced cooling solutions. Providers who can meet these demands are well-positioned for growth. The increasing demand for colocation services from small and medium-sized enterprises (SMEs) offers another avenue for expansion, as these businesses seek the benefits of a professional data center without the massive upfront investment. Additionally, the development of modular and prefabricated data centers allows for faster and more flexible deployment, while the integration of renewable energy sources and innovative cooling technologies provides a chance to address sustainability concerns and appeal to eco-conscious clients.

Challenges

The data center services market faces notable challenges, including the ever-present threat of cybersecurity risks and data breaches. As data centers become central hubs for sensitive information, they are increasingly targeted, making robust security and compliance a non-negotiable requirement. Another significant challenge is the increasing demand for power and energy efficiency. With AI and other technologies consuming more power, data centers must find innovative ways to manage their energy footprint and secure reliable power sources. Lastly, supply chain disruptions and fluctuating costs for key components like servers and networking equipment can hinder the timely and cost-effective deployment of new data center capacity, adding complexity to an already intricate market.

Global Service Market for Data Center: Regional Analysis

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Geographically, the service market for the data center is diversified into Asia-Pacific, Europe, North America, Latin America, and the Middle East and Africa. The region that is anticipated to hold a significant market share in the global market is the North America. This growth can be attributed to the factor that the IT infrastructure is highly developed and dependent in this region. The demand for data center services is rapidly increasing in Asia-Pacific region, owing to the improving industrial infrastructure and flourishing IT environment.

Global Service Market for Data Center: Competitive Players

Some of the key market players that are involved in the service market for data center include:

• Schneider Electric SE
• Dell, Inc.
• Vertiv Co.
• Equinix, Inc.
• Huawei Technologies Co. Ltd.
• HPE
• IBM
• Cisco Systems, Inc.
• Fujitsu Ltd.
• Hitachi Ltd.

Global Service Market for Data Center: Segmentation

The Global Service Market For Data Center is segmented as follows:

By Service Type 

• Installation And Deployment
• Training And Development
• Design And Consulting
• Professional
• Support And Maintenance 

By Tier Type 

• Tier 1
• 2
• 3
• 4

By End User 

• Co-location Providers
• Cloud Providers
• Enterprises 

By Data Center Type 

• Mid-sized Data Centers 
• Small Data Centers 
• Large Data Center

By Industry 

• T And Telecom 
• Healthcare
• Retail
• Manufacturing 
• BFSI
• Government And Defense
• Education
• Energy, And Others

Global Service Market for Data Center: Regional Segment Analysis

• North America
  • U.S.
• Europe
  • UK
  • France
  • Germany
• Asia Pacific
  • China
  • Japan
  • India
• Latin America
  • Brazil
• The Middle East and Africa

What Reports Provides

• Full in-depth analysis of the parent market
• Important changes in market dynamics
• Segmentation details of the market
• Former, on-going, and projected market analysis in terms of volume and value
• Assessment of niche industry developments
• Market share analysis
• Key strategies of major players
• Emerging segments and regional markets
• Testimonials to companies in order to fortify their foothold in the market.