How big is the Data Center Interconnect Market?

The Data Center Interconnect Market size is expected to reach USD 14.12 billion in 2024 and grow at a CAGR of 14.98% to reach USD 28.38 billion by 2029. Read More

What is the current Data Center Interconnect Market size?

In 2024, the Data Center Interconnect Market size is expected to reach USD 14.12 billion. Read More

Who are the key players in Data Center Interconnect Market?

Ciena Corp, Cisco Systems Inc, Juniper Networks Inc, Fujitsu Ltd and Microsemi Corporation are the major companies operating in the Data Center Interconnect Market. Read More

Which is the fastest growing region in Data Center Interconnect Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029). Read More

Which region has the biggest share in Data Center Interconnect Market?

In 2024, the North America accounts for the largest market share in Data Center Interconnect Market. Read More

What years does this Data Center Interconnect Market cover, and what was the market size in 2023?

In 2023, the Data Center Interconnect Market size was estimated at USD 12.28 billion. The report covers the Data Center Interconnect Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Data Center Interconnect Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029. Read More

Data Center Interconnect Market Trends

Market Trends of Data Center Interconnect Industry

This section covers the major market trends shaping the Data Center Interconnect Market according to our research experts:

Increasing Number of Data Centers to Drive the Market Growth

According to the US-based market vendor, Ciena Corporation, the number of data centers has increased in recent years, as there are now more than 7,500 around the globe, with 2,600 packed into the top 20 global cities alone. According to Huawei, global data produced annually may reach 180 ZB in 2025. The proportion of unstructured data (such as raw voice, video, and image data) may also continue to increase, reaching more than 95% shortly, boosting the growth of data centers globally.
Data Communication Network (DCN) and Data Center Interconnect (DCI) solutions are increasingly concerned with quickly increasing DCN and DCI bandwidth to ensure zero packet loss, low latency, and high throughput of lossless networks, meeting the requirements of rapid service development. The DCI network connecting data centers has evolved into a 10 Tbit/s Wavelength Division Multiplexing (WDM) interconnection network.
Further, data center service providers are investing in expanding their colocation and cloud capabilities. End-user enterprises (like telecom and financial organizations) opting to build their own data centers are mainly making the interconnected market for data centers a global investment hotspot. Industries, mainly OTT, ISPs, the financial sector, and the public sector, are developing their use cases for DCI networks due to data center growth and distribution, improved fiber utilization, and low-cost pluggable modules.
The growth of data centers is also driving an increase in DCI, which allows enterprises to connect their data centers, cloud providers, and other data center operators to enable simpler data and resource sharing. According to CloudScene, India has 29 internet users for every 100 people, and its connectivity ecosystem is made up of 122 colocation data centers, 348 cloud service providers, and eight network fabrics.

Numerous factors, including the growth of virtualization and cloud computing, mobile data expansion, video consumption, and on-demand services, are driving a greater need for DCI in India and globally. Other key drivers include a significant increase in data and digital intelligent devices (such as Amazon's Alexa and Google Home) and the government's ambitious Digital India initiative.

Data Center Interconnect Market - Cumulative Number of Hyperscale Data Centers, Total Number, Global, 2015-2021

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Europe to Hold Significant Market Share

The growing number of data centers, increasing investment in cloud technologies, and the expansion of end-user markets are some of the major factors driving the European data center's investment in the interconnect market. The stringent regional laws, like GDPR and the Personal Data Protection Initiative (Gaia-X), further boost the region's local data center construction and development.
Germany, the United Kingdom, the Netherlands, and France are some of the major investors and adopters in the market studied. Investment and growth in the data center sector in the region have been increasing. This is mainly due to the high rate of adoption of cloud technologies. For instance, Microsoft alone has doubled its European data center capacity recently.
Data traffic growth is expected to contribute to the market's growth significantly. For instance, according to Equinix, London is expected to remain the most important European market for data. Furthermore, an increasing number of European data compliance regulations serve as a catalyst, which is expected to grow 48% per year, accounting for 23% of global interconnection bandwidth.
Furthermore, Nokia announced the availability of its 7220 IXR data center hardware platforms running SR Linux to DCspine, a subsidiary of Eurofiber Cloud Infra that provides digital infrastructure and connectivity services across European data centers, in November of this year.With this solution, DCspine will be able to offer more cloud and interconnection services, make the network easier to scale, and automate network operations.
The building would be renamed the Equinix HH1 International Business Exchange (IBX) data center. It would add a fourth market in Germany to the company's global interconnection platform, Platform Equinix, and help meet the growing demand for connecting digital infrastructure across Europe.