Mega Data Centers Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 24.34 Billion |
| Market Size (2029) | USD 30.74 Billion |
| CAGR (2024 - 2029) | 4.78 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Mega Data Centers Market Analysis
The Mega Data Center Market size is estimated at USD 24.34 billion in 2024, and is expected to reach USD 30.74 billion by 2029, growing at a CAGR of 4.78% during the forecast period (2024-2029).
- Virtualization has driven the data center industry over the years. Companies have sought to reduce infrastructure by focusing IT operations on fewer, more highly utilized machines. This process has led to a wider view of data centers in general. Companies operating multiple data centers can choose to focus their facilities on fewer and larger implementations to decrease complexity and costs.
- Implementing fewer mega data centers, depending on their locations, can allow a company to enjoy advantages of certain local benefits, such as tax incentives, low energy prices, climate, or availability of alternative energy sources. Thus, mega data centers result from attempts to minimize cost and maximize profit.
- The merits of choosing a software-led, industry-relevant, and adequately set-up mega data center are lower costs of IT management compared to the present, as well as the ability to access a vast amount of internet and industrial Internet data at local data center speed and bandwidth. This capability is likely to spur IT spending worldwide, as early adopters will have substantial opportunities to invest in new IT techniques to reduce overall business costs and increase revenues.
- Factors including increasing cloud and colocation services, associated cost benefits, and improved economies of scale drive the market for mega data centers. Microsoft, Google, Amazon Web Services (AWS), and Facebook data centers are in a class by themselves. They have to function fully automatic, self-healing, networked mega data centers that operate at fiber optic speeds to make a fabric that can access any node in any particular data center, as there are multiple pathways to every node.
- However, higher initial investments and low resource availability are some factors presenting challenges to this market. Despite such challenges, various organizations have already adopted or are initiating the adoption of mega data centers.
Mega Data Centers Market Trends
Rising Demand of Data Centers in Banking and Finance Sectors
- The banking and finance sector is one of the largest generators of data, and the need for a data center to regulate the cost of operations is a primary driver. Finance and banking structures use data centers to store customer records, employee management, transactions, and electronic banking services, such as remote banking, telebanking, and self-inquiry, which need data centers to function.
- Data centers, as infrastructure, are believed to be the future of finance. Many institutions have created private cloud systems to accommodate massive network, storage, and server capacities to support their retail financial centers, ATMs, and active online accounts.
- Many banks maintain their own data centers, but it has been observed that the trend is changing due to fluctuations in the banks' profits. Also, maintaining a data center is cumbersome, owing to the cost drain on IT, real estate, and operations, as it requires proper cooling, security, and power facilities. This can act as a challenge for the BFSI industry during the forecast period.
Growing Demand from Asia-Pacific to Drive the Market
- The growing demand for high-density, redundant facilities throughout China is precipitating a shift in the design and development of the country's data centers. China has 50 internet users per 100 population, indicating scope for a lot of development, and the connectivity ecosystem comprises 73 colocation data centers, 52 cloud service providers, and 0 network fabrics.
- However, power, space, and IP transit all cost more in China, emphasizing the difficulties in maintaining a data center. Similarly, in India, the digital economy contributes 9.5% of the GDP. The digital economy includes USD 25,518 million fixed-line telephone subscriptions and 1,011.054 million mobile telephone subscriptions, indicating a lot of scope for the development of data centers.
- Moreover, owing to regulatory and security reasons, a number of organizations in India, especially from the BFSI sector, are not allowed to host their data in a data center that is out of the country. As a result, the data center providers are setting up local data centers in India, indicating the growing mega data center facilities in India.
Mega Data Centers Industry Overview
The mega data center market is highly concentrated due to higher initial investments and low availability of resources, which present challenges to this market. Some of the key players in the market are Cisco Systems Inc., Dell Software Inc., Fujitsu Ltd, and Hewlett-Packard Enterprise. Some recent developments in the market include:
In September 2022, Microsoft launched its new data center region in Qatar, becoming the first hyper-scale cloud provider to offer enterprise-grade services in the nation.
Mega Data Centers Market Leaders
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Cisco Systems Inc.
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Dell Software Inc.
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Fujitsu Ltd
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Hewlett-Packard Enterprise
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Intel Corporation
*Disclaimer: Major Players sorted in no particular order
Mega Data Centers Market News
- November 2022: BDx Indonesia, PT Indosat Tbk, and PT Aplikanusa Lintasarta announced the launch of a new 100MW data center campus on 12 acres of land acquired from PT Suryacipta Swadaya, a member of Suryainternusa Group.
- May 2022: With the opening of the first data center, NTT Ltd. in India announced the opening of its new hyperscale data center site in Mumbai. NTT now has 12 data center locations nationwide, totaling more than 2.5 million square feet and 220 MW of facility power, further solidifying its position as the industry leader in India.
Mega Data Centers Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Introduction to Market Drivers and Restraints
4.4 Market Drivers
4.4.1 Increasing Demand for Data Center Consolidation
4.4.2 Rising Demand of Data Centers in Banking and Finance Sectors
4.5 Market Restraints
4.5.1 High Investment and Installation Costs
4.6 Technology Snapshot
5. MARKET SEGMENTATION
5.1 By Solution
5.1.1 Storage
5.1.2 Networking
5.1.3 Server
5.1.4 Security
5.1.5 Other Solutions
5.2 By End-user
5.2.1 BFSI
5.2.2 Telecom and IT
5.2.3 Government
5.2.4 Media and Entertainment
5.2.5 Other End-users
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 Latin America
5.3.5 Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Cisco Systems Inc.
6.1.2 Dell Software Inc.
6.1.3 Fujitsu Ltd
6.1.4 Hewlett-Packard Enterprise
6.1.5 IBM Corporation
6.1.6 Intel Corporation
6.1.7 Juniper Networks Inc.
6.1.8 Verizon Wireless
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Mega Data Centers Industry Segmentation
Mega data center refers to a single facility with 15,000 or more servers. Global digitization is expected to contribute value to different end-user industries, such as BFSI and IT services. This is a growing need for mega data centers worldwide. Various government bodies have been identified to facilitate Industry 4.0 by deploying IoT and cloud services, further expected to drive the mega data center market.
The mega data center market is segmented by solution (storage, networking, servers, security, and other solutions), end-user (BFSI, telecom and it, government, media and entertainment, and other end-users), and geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Solution | |
| Storage | |
| Networking | |
| Server | |
| Security | |
| Other Solutions |
| By End-user | |
| BFSI | |
| Telecom and IT | |
| Government | |
| Media and Entertainment | |
| Other End-users |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East & Africa |
Mega Data Centers Market Research FAQs
How big is the Mega Data Center Market?
The Mega Data Center Market size is expected to reach USD 24.34 billion in 2024 and grow at a CAGR of 4.78% to reach USD 30.74 billion by 2029.
What is the current Mega Data Center Market size?
In 2024, the Mega Data Center Market size is expected to reach USD 24.34 billion.
Who are the key players in Mega Data Center Market?
Cisco Systems Inc., Dell Software Inc., Fujitsu Ltd, Hewlett-Packard Enterprise and Intel Corporation are the major companies operating in the Mega Data Center Market.
Which is the fastest growing region in Mega Data Center Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Mega Data Center Market?
In 2024, the North America accounts for the largest market share in Mega Data Center Market.
What years does this Mega Data Center Market cover, and what was the market size in 2023?
In 2023, the Mega Data Center Market size was estimated at USD 23.23 billion. The report covers the Mega Data Center Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Mega Data Center Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Mega Data Centers Industry Report
Statistics for the 2023 Mega Data Centers market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Mega Data Centers analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
