| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 18.08 Billion |
| Market Size (2030) | USD 52.11 Billion |
| CAGR (2025 - 2030) | 23.58 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Edge Data Center Market Analysis
The Edge Data Center Market size is estimated at USD 18.08 billion in 2025, and is expected to reach USD 52.11 billion by 2030, at a CAGR of 23.58% during the forecast period (2025-2030).
- Driven by the rising demand for low-latency processing, the Edge Data Center market is witnessing robust growth. With the explosion of data from smartphones, IoT devices, and digital services, there's a pressing need for localized data processing to address latency challenges. Furthermore, the rollout of 5G technology, which hinges on high bandwidth and low latency, underscores the pivotal role of edge data centers.
- Edge data center operators are channeling investments into energy-efficient technologies and practices. These investments include energy-efficient hardware and sophisticated cooling systems designed to minimize energy waste. Moreover, the integration of AI technologies offers a chance to further optimize energy consumption in data centers. By dynamically fine-tuning cooling systems, adjusting server settings, and scheduling workloads to harness renewable energy, AI stands to revolutionize energy management.
- As establishing new sites in key locations like FLAPD (Frankfurt, London, Amsterdam, Paris, and Dublin) becomes increasingly challenging, there's a shift towards edge data centers. Projections suggest that by 2028, 50% of AI workloads might transition to the edge, with edge capacity poised to bolster prominent AI applications, including Computer Vision.
- Globally, governments are voicing concerns over data center constructions, primarily due to their substantial energy consumption, which often clashes with national climate goals and strains electricity grids. For instance, in Ireland, national electricity demand is projected to surge by 32% by 2026. This scenario is prompting data center operators to explore sustainable alternatives, aiming to curtail their carbon footprint while meeting market demands.
- Moreover, regulations that mandate local data storage are driving businesses to invest in edge data centers. These centers not only help in reducing latency but also enhance application performance for critical services, including autonomous vehicles and smart city projects.
- Edge data centers are more susceptible to physical and cyber threats due to their distributed nature. Each edge device can be a potential target for attacks, which complicates security management compared to centralized data centers. This factor might hinder the market growth.
Edge Data Center Market Trends
IoT to Hold Significant Market Demand
- Edge data centers, small and decentralized, sit close to data sources, playing a pivotal role in managing the vast amounts of data churned out by Internet of Things (IoT) devices. Their strategic positioning near users and devices enables quicker data processing and diminished latency. This proximity is essential for sectors like autonomous vehicles, smart cities, and telemedicine, where every millisecond is critical.
- STL Partners projects a significant infrastructure expansion, with the number of network edge data centers ballooning from about 250 in 2022 to nearly 1,200 by 2026, underscoring the growing emphasis on localized data processing.
- Edge data centers play a vital role in reducing communication lags between IoT devices and central networks. This is especially crucial for real-time data processing applications, including autonomous vehicles and AR/VR technologies. The advent of 5G networks amplifies the demand for edge infrastructure, which is essential for managing faster data speeds and real-time traffic.
- With demand surging, companies are intensifying their investments to solidify their market foothold. In October 2024, Duos Technologies Group, via its subsidiary Duos Edge AI, entered into a strategic partnership with Accu-Tech. This collaboration is set to accelerate the nationwide deployment of edge data centers, addressing the growing demand for rapid data processing and improved connectivity, especially in underserved areas. Their partnership comes at a pivotal moment in the evolving landscape of edge computing.
- In summary, the integration of edge data centers with IoT technologies marks a significant evolution in data processing and management. With both the market size and the number of IoT devices on the rise, businesses are urged to recalibrate their infrastructure strategies to harness the full potential of edge computing solutions.
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North America is Expected to Hold a Major Share of the Market
- North America is witnessing a surge in the edge data center market, spurred by a growing appetite for swift data processing and storage. Key players, including Equinix Inc., EdgeConneX Inc., Dell Technologies, and NVIDIA Corporation, are pouring investments into expanding their edge data center footprints across the continent.
- In Canada, tech giants Amazon Web Services (AWS) and Microsoft are at the forefront of edge data center development. AWS has earmarked a hefty USD 17.9 billion for infrastructure projects in Calgary, while Microsoft has made a notable USD 500 million investment in Quebec.
- Ericsson projects North America's monthly data traffic to balloon from roughly 4 exabytes (EB) in 2021 to an estimated 18 EB by 2027, underscoring the urgent need for localized data processing. Additionally, bolstered by government investments and initiatives, the market is witnessing robust growth.
- In a strategic move, Cologix, a key player in interconnection and hyperscale edge data centers, forged a partnership with AI cloud service provider Consensus Core in August 2024. This collaboration, centered at Cologix's MTL10 ScalelogixSM data center in Montréal, Canada, paves the way for Consensus Core to introduce its NVIDIA-powered GPU-as-a-Service (GPUaaS) in Canada, positioning MTL10 as a premier hub for high-performance AI workloads.
- STL Partners forecasts a dramatic rise in power consumption for U.S. data centers, projecting a leap from 17 gigawatts (GW) in 2022 to a staggering 35 GW by 2030. With its early embrace of cutting-edge technologies and a robust network backbone, North America is set to retain its dominance in the global edge data center arena.
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Edge Data Center Industry Overview
The Edge Data Center market is highly competitive and fragmented, primarily driven by the presence of major players. These key players employ strategies such as mergers, acquisitions, and product innovations to maintain a competitive edge and broaden their global footprint. Key player include American Tower Corporation, DartPoints, Digital Realty Trust, Inc., and others.
The edge data center market is poised for robust growth over the next decade, driven by technological advancements and increasing data demands across various sectors. With projections indicating substantial increases in market size and investment opportunities, stakeholders are encouraged to explore this dynamic sector further.
Edge Data Center Market Leaders
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American Tower Corporation
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DartPoints
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Digital Realty Trust, Inc.
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EdgeConneX
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H5 Data Centers
- *Disclaimer: Major Players sorted in no particular order
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Edge Data Center Market News
- December 2024: Gcore, a provider of edge AI solutions and Qareeb Data Centres have formed a strategic partnership to enhance AI and cloud infrastructure in the Gulf Cooperation Council (GCC). The partnership aims to support the GCC’s digital transformation and innovation in AI and cloud services. Qareeb Data Centres will utilize its edge data centre infrastructure to deliver Gcore’s solutions across the GCC market.
- August 2024: RailTel along with Techno Electric will soon roll out edge data centres at 100 locations across smaller cities in the country to push digital transformation. The central PSU will launch the centres in Tier II and III cities to accelerate pace of digital transformation and low latency in data transmission.
Edge Data Center Industry Segmentation
An edge data center is a small data center that is located close to the edge of a network. It provides the same device found in traditional data centers but is contained in a smaller footprint, closer to end users and devices.
The edge data center market is segmented by component (solution, services), by facility (small and medium facility, large facility), by end-user (IT and telecom, BFSI, government, healthcare, manufacturing, other end-users), by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Component | Solution |
| Services | |
| By Facility | Small and Medium Facility |
| Large Facility | |
| By End-users | IT and Telecom |
| BFSI | |
| Government | |
| Healthcare | |
| Manufacturing | |
| Other End-users | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
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Edge Data Center Market Research FAQs
How big is the Edge Data Center Market?
The Edge Data Center Market size is expected to reach USD 18.08 billion in 2025 and grow at a CAGR of 23.58% to reach USD 52.11 billion by 2030.
What is the current Edge Data Center Market size?
In 2025, the Edge Data Center Market size is expected to reach USD 18.08 billion.
Who are the key players in Edge Data Center Market?
American Tower Corporation, DartPoints, Digital Realty Trust, Inc., EdgeConneX and H5 Data Centers are the major companies operating in the Edge Data Center Market.
Which is the fastest growing region in Edge Data Center Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Edge Data Center Market?
In 2025, the North America accounts for the largest market share in Edge Data Center Market.
What years does this Edge Data Center Market cover, and what was the market size in 2024?
In 2024, the Edge Data Center Market size was estimated at USD 13.82 billion. The report covers the Edge Data Center Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Edge Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Edge Data Center Industry Report
Statistics for the 2025 Edge Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Edge Data Center analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
