Research Note: Data Center Technology Purchasing Trends 2025-2030
What is a Data Center?
A data center is a specialized facility designed to house computer systems, servers, networking equipment, and storage systems that organizations use to process, store, and distribute large amounts of data. These facilities are built with redundant power supplies, advanced cooling systems, and robust security measures to ensure the continuous operation of critical IT infrastructure.
Modern data centers serve as the backbone of our digital economy, supporting everything from cloud computing services and artificial intelligence applications to everyday internet activities. They range in size from small server rooms within office buildings to massive hyperscale facilities spanning hundreds of thousands of square feet.
The evolution of data centers has accelerated in recent years due to the exponential growth in data generation and the increasing demands of technologies like artificial intelligence and machine learning. These facilities now incorporate sophisticated technologies for power management, cooling efficiency, and high-density computing to handle intensive workloads.
Data centers are typically categorized by their purpose and ownership model. Colocation facilities host equipment for multiple customers, hyperscale centers are operated by tech giants like Google and Amazon, edge data centers bring computing closer to users, and enterprise data centers are dedicated to a single organization's needs.
Sustainability has become a major focus in data center design and operation. With these facilities consuming substantial electricity—projected to reach 8-9% of total U.S. power consumption by 2030 according to some estimates—the industry is investing heavily in renewable energy sources, energy-efficient cooling systems, and innovative designs to reduce their environmental impact.
The security of data centers includes both physical measures (like biometric access controls and surveillance) and cybersecurity protocols to protect the vast amounts of sensitive data they house. As critical infrastructure, they incorporate multiple layers of protection against threats ranging from unauthorized access to natural disasters.
Data Center Market Statistics
There were approximately 7,500 major data centers globally as of 2024, with North America hosting the largest concentration of these facilities. Primary markets in North America alone accounted for nearly 7,000 megawatts of capacity by the end of 2024.
The global data center market was valued at approximately $217-256 billion in 2024, according to various market reports, and is projected to grow to $525-776 billion by 2030-2034, representing a compound annual growth rate of 9.6-10.3%.
Data centers represent a significant portion of enterprise IT spending, with hyperscalers and IT service providers accounting for over 70% of global IT spending in 2025, according to Gartner.
The growth in artificial intelligence and machine learning has dramatically accelerated data center expansion, with over 6,350 megawatts of new capacity under construction in primary North American markets at the end of 2024.
Server infrastructure for data centers constitutes a substantial market segment, with the global server market valued at approximately $94 billion in 2023 and growing at nearly 10% annually.
Data center networking equipment represents another major segment, with this market valued at around $34 billion in 2023 and projected to grow at 15% annually through 2030.
Hyperscale data centers operated by major technology companies represent approximately 43% of the total data center market revenue.
By 2028, hyperscalers are projected to operate $1 trillion worth of AI-optimized servers, significantly reshaping the technology purchasing landscape.
Trends
Data centers are experiencing significant shifts in their technology purchasing patterns, driven primarily by the rapid growth of artificial intelligence and increasing demands for efficiency and sustainability. Here are the key purchasing trends in data centers:
Source: Fourester Research
Source: Fourester Research
AI Infrastructure Investments
The most prominent trend is the massive investment in AI-capable infrastructure. Organizations are rapidly acquiring specialized hardware like GPUs and custom AI accelerators to support machine learning workloads. According to market data, demand for AI-ready data center capacity is expected to grow at approximately 33% annually through 2030, with AI-specific hardware representing an increasingly significant portion of data center purchases.
Power and Cooling Solutions
With AI workloads demanding significantly more power, data centers are investing heavily in advanced cooling technologies. There's a notable shift toward liquid cooling solutions, including immersion cooling, to manage the heat generated by high-density computing racks. This represents a substantial and growing segment of data center technology purchases as facilities work to accommodate power demands that can reach 3-4 times that of traditional servers.
Software-Defined Everything
Data centers are increasingly investing in software-defined infrastructure that allows for greater automation and flexibility. This includes software-defined networking (SDN), storage, and security solutions that enable more efficient resource allocation and management. These purchases help data centers become more adaptable to changing workload requirements.
Edge Computing Infrastructure
As organizations seek to reduce latency and process data closer to its source, investment in edge computing infrastructure is accelerating. This includes compact, self-contained micro data centers and specialized edge servers that can be deployed remotely while being managed centrally.
Sustainability-Focused Technology
Environmental concerns are driving significant purchasing decisions, with data centers investing in energy-efficient hardware, renewable power infrastructure, and sophisticated power management systems. This includes advanced power distribution units (PDUs), sustainable backup power solutions, and infrastructure designed to optimize Power Usage Effectiveness (PUE).
Security and Compliance Solutions
With increasing cybersecurity threats and regulatory requirements, data centers are allocating substantial budgets to advanced security solutions. This includes next-generation firewalls, zero-trust network implementations, and specialized hardware and software for data protection and compliance.
Hyperconverged Infrastructure
Many data centers are purchasing hyperconverged infrastructure (HCI) solutions that combine computing, storage, and networking in a single system. This simplified architecture reduces complexity and operational costs while improving scalability.
These purchasing trends reflect the data center industry's evolution to meet the demands of AI workloads, sustainability goals, and the need for greater efficiency and security in an increasingly digital world.
Appendix
Key Data Center Technology Purchasing Trends:
Overall Market Growth: The global data center market was valued at approximately $217.18 billion in 2024 and is projected to reach $391.09 billion by 2030, growing at a CAGR of 10.3%.
AI Infrastructure Dominance: AI infrastructure represents the fastest-growing segment with a 33% CAGR, projected to grow from $65.15 billion in 2024 to $360.62 billion by 2030. This category includes GPU servers, AI accelerator cards, and specialized AI training clusters.
Power & Cooling Solutions: With a 20% CAGR, spending on power and cooling solutions is expected to increase from $43.44 billion in 2024 to $129.70 billion by 2030, reflecting the significant power demands of AI workloads.
Software-Defined Infrastructure: This category is growing at a 15.7% CAGR, rising from $32.58 billion in 2024 to $78.15 billion by 2030, as organizations seek more flexible and automated management solutions.
Edge Computing Expansion: With an 18% CAGR, edge computing infrastructure spending is projected to increase from $21.72 billion in 2024 to $58.63 billion by 2030.
Category Distribution (2024):
AI Infrastructure: 30%
Power & Cooling: 20%
Software-Defined Infrastructure: 15%
Edge Computing: 10%
Sustainability Technology: 10%
Security & Compliance: 10%
Hyperconverged Infrastructure: 5%
The visualization shows how AI-related spending is dramatically outpacing other categories, reflecting the industry's pivot toward supporting AI workloads. By 2030, AI infrastructure is projected to represent a significantly larger portion of overall data center spending compared to 2024.
Comprehensive List of Data Centers by Category
Largest Data Centers by Physical Size
China Telecom - Inner Mongolia Information Park (China): World's largest data center complex
Range International Information Hub (Langfang, China): 6.3 million square feet
QTS Atlanta-Metro Data Center (Atlanta, USA): 970,000 square feet
Switch SuperNAP (Nevada, USA): Largest US data center by square footage
Meta's Prineville Facility (Oregon, USA): Meta's largest data center campus
Switch Stargate (Texas, USA - Under Development): Part of a $100 billion project on 875 acres
Microsoft's Boydton Campus (Virginia, USA): One of Microsoft's largest data center facilities
Google Council Bluffs (Iowa, USA): Major Google data center campus
Yotta NM1 (Navi Mumbai, India): Largest data center building in India
Amazon Web Services Oregon (Oregon, USA): Major AWS data center cluster
Largest Data Center Markets by Power Capacity
Northern Virginia (USA): World's largest data center market (6,922.6 MW as of late 2024)
Beijing (China): Second largest market by power consumption
Tokyo (Japan): Third largest market globally
London (UK): Fourth largest market globally
Shanghai (China): Fifth largest with nearly 0.6 gigawatts capacity
Singapore: Major APAC hub with estimated 1.02 thousand MW by 2025
Dallas-Fort Worth (USA): Major North American market
Sydney (Australia): Eighth largest market globally
Frankfurt (Germany): Largest continental European market
Hong Kong: Major APAC hub with 1.42 thousand MW by 2025
Largest Data Center Markets by Country/Region
United States: Over 5,000 MW capacity (more than half of global capacity)
China: 4.27 thousand MW estimated by 2025
North America Region: 22.1 thousand MW estimated by 2025
Asia-Pacific Region: 20.32 thousand MW estimated by 2025
Europe Region: 13.58 thousand MW estimated by 2025
Germany: 1.69 thousand MW by 2025
UK: Major European market
France: 1.27 thousand MW by 2025
India: 3.31 thousand MW by 2025
Australia: 2.18 thousand MW by 2025
Largest Data Center Markets by Growth Rate
Middle East Region: 17.25% CAGR projected through 2030
Saudi Arabia: 21.87% CAGR projected through 2030
Philippines: 18.10% CAGR projected through 2030
Indonesia: 16.73% CAGR projected through 2030
Malaysia: 15.01% CAGR projected through 2030
India: 15.11% CAGR projected through 2030
Vietnam: 12.61% CAGR projected through 2030
Australia: 13.35% CAGR projected through 2030
Hyperscale Segment: 27.90% CAGR projected through 2034
Edge Data Center Segment: 20.9% CAGR projected through 2030
Largest Data Center Operators/Companies
Equinix: Largest colocation provider (11% of global colocation market)
Digital Realty Trust: Major global data center REIT
China Telecom: Largest operator in China
NTT Ltd: Major global operator
CyrusOne: Leading provider in North America and Europe
Global Switch: Major European operator
Vantage Data Centers: Rapidly expanding global operator
ST Telemedia Global Data Centres (STT GDC): Strong presence in Asia
QTS Data Centers: Major US provider
Switch: Innovative US-based provider
Largest Data Center Markets by Segment
Hyperscale
Northern Virginia (USA): Dominated by AWS, Microsoft, Google, and Facebook
Oregon (USA): Major hyperscale cluster
Beijing (China): Major hyperscale market
Singapore: Growing hyperscale market
Colocation
North America: 39.0% of global colocation market as of 2024
Europe: 30% of global market in 2023
Asia-Pacific: Fastest growing colocation region
Edge Data Centers
United States: Largest edge data center market
Europe: Second largest edge market
Asia-Pacific: Fastest growing edge market
By Tier Level
Tier 4 (Highest Reliability): Led by financial services hubs (New York, London, Tokyo, Singapore)
Tier 3: Most common tier for enterprise and colocation facilities worldwide
This comprehensive list reflects the current state of global data center infrastructure as of early 2025, with markets continuing to evolve rapidly in response to AI, cloud computing, and other technological demands.