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Data Center Transformation Market to Reach US$ 24.8 Bn by 2030, Growing at a CAGR of 10.9% (2023-2030) | Persistence Market Research

04-21-2025 08:11 AM CET | IT, New Media & Software

Press release from: Persistence Market Research

Data Center Transformation Market

Data Center Transformation Market

The global data center transformation market is witnessing a significant shift, as businesses across various industries continue to modernize their IT infrastructure to keep pace with rapid technological advancements. The market, valued at US$ 12 billion in 2023, is projected to grow at a compound annual growth rate (CAGR) of 10.9%, reaching US$ 24.8 billion by 2030. This transformation is driven by the increasing need for more efficient, scalable, and resilient data centers that can support the growing volume of data generated by businesses and consumers alike.

Data center transformation is largely being propelled by the increasing adoption of cloud computing, the Internet of Things (IoT), artificial intelligence (AI), and big data analytics. Organizations are increasingly looking to optimize their data storage, processing, and management systems to improve performance, reduce operational costs, and enhance scalability. As enterprises strive to stay competitive in the digital age, they are turning to modern technologies like hyper-converged infrastructure (HCI), software-defined networking (SDN), and automation to drive their transformation efforts. Additionally, the rising demand for edge computing and the push towards green and energy-efficient data centers are further contributing to the market's growth. North America continues to dominate the market, with its advanced technological infrastructure and strong demand for data center services.

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Key Highlights from the Report

➤ The global data center transformation market is forecast to grow at a CAGR of 10.9% from 2023 to 2030.
➤ The market value is projected to increase from US$ 12 billion in 2023 to US$ 24.8 billion by 2030.
➤ The adoption of cloud computing and AI technologies is a significant driver for market growth.
➤ North America is expected to maintain its dominant position in the data center transformation market.
➤ The rise of edge computing is contributing to the demand for smaller, more efficient data centers.
➤ Green and energy-efficient data centers are becoming a major trend within the market.

Market Segmentation

The data center transformation market can be segmented based on several factors, including type of service, end-user industry, and technology. Services within the data center transformation market primarily include consulting, implementation, and managed services. Consulting services are in high demand as businesses seek expert advice on optimizing their infrastructure, adopting cloud services, and integrating new technologies. Implementation services, including the deployment of hardware and software solutions, are critical as organizations look to modernize their existing data centers to improve efficiency and scalability.

On the technology front, the market can be further divided into cloud computing, virtualization, edge computing, and automation. Cloud computing continues to be a key driver of transformation, enabling businesses to migrate to more scalable and cost-efficient infrastructure. Virtualization technologies, such as software-defined storage and network virtualization, are also gaining traction as they allow organizations to optimize their resources and reduce costs. Moreover, the shift towards edge computing is creating new opportunities for data centers, particularly those that focus on low-latency applications and real-time data processing.

Regional Insights

North America is expected to lead the global data center transformation market throughout the forecast period. The region's strong IT infrastructure, coupled with the rapid adoption of cloud computing, AI, and edge computing technologies, continues to fuel demand for data center modernization. Additionally, the region is home to several large cloud service providers, including Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, all of which are driving innovation in the data center sector. The demand for green data centers and energy-efficient solutions in North America is also pushing the transformation efforts forward.

In contrast, the Asia-Pacific (APAC) region is expected to witness the highest growth rate in the data center transformation market. The increasing digitalization of industries and the rapid adoption of emerging technologies such as IoT and AI are propelling demand for more efficient and scalable data center infrastructures. China and India, in particular, are leading the charge in terms of data center investments, with a growing number of cloud service providers expanding their operations in these countries to cater to the increasing demand for data services. The APAC market is also benefiting from government initiatives aimed at promoting digital infrastructure development.

Market Drivers

The primary drivers of the data center transformation market are the increasing adoption of cloud computing and the growing need for businesses to manage large amounts of data. As more organizations migrate to the cloud, the demand for modernized data center infrastructures that can support cloud-based services has surged. Cloud computing enables businesses to scale their operations more efficiently while reducing capital expenditure on physical infrastructure.

Additionally, the rise of edge computing is another significant driver. With the increasing need for real-time data processing and low-latency applications, organizations are seeking to establish smaller, more distributed data centers closer to end-users. This shift towards edge computing is pushing businesses to modernize their data centers to handle the growing demands of IoT devices and connected systems. Furthermore, automation technologies, including artificial intelligence and machine learning, are becoming essential in optimizing data center operations and enhancing operational efficiency.

Market Restraints

Despite the growth potential, there are several challenges that could hinder the expansion of the data center transformation market. One of the main restraints is the high initial cost of transforming existing data centers. Modernizing an outdated infrastructure often requires significant investments in new hardware, software, and specialized services. This can be a barrier for small and medium-sized businesses that may not have the financial resources to undertake such projects.

Another restraint is the complexity involved in integrating new technologies with legacy systems. Many businesses still rely on outdated infrastructure, which can be difficult to integrate with modern solutions like cloud computing and automation. This can result in extended project timelines and higher implementation costs. Additionally, businesses in certain sectors, such as healthcare and finance, must contend with stringent regulatory requirements when modernizing their data centers, adding further complexity to the transformation process.

Market Opportunities

The data center transformation market is also brimming with opportunities, particularly in the areas of green and energy-efficient data centers. As businesses seek to reduce their carbon footprints and comply with increasing environmental regulations, there is growing demand for sustainable data center solutions. Green technologies, such as renewable energy sources, energy-efficient cooling systems, and low-power hardware, are becoming essential components of modern data center designs.

The rise of artificial intelligence and machine learning also presents significant opportunities for the data center transformation market. AI and machine learning can help optimize data center operations, improve resource management, and reduce energy consumption. As these technologies continue to evolve, they will play a pivotal role in enhancing the efficiency and performance of data centers. Furthermore, the increasing adoption of edge computing presents an opportunity for businesses to transform their data centers to support decentralized, real-time processing capabilities.

Reasons to Buy the Report

✓ In-depth analysis of the global data center transformation market, including key trends, drivers, and challenges.
✓ Comprehensive market segmentation by type of service, technology, and end-user industry.
✓ Regional insights that highlight key growth opportunities in North America, APAC, and other regions.
✓ Competitive analysis of the major players in the data center transformation market.
✓ Market forecasts for the period from 2023 to 2030, providing a roadmap for future industry developments.

Key Players

✦ IBM
✦ Cisco Systems Inc.
✦ Dell Technologies
✦ Huawei Technologies
✦ Microsoft Corporation

■ In 2023, Dell Technologies announced a new partnership with cloud providers to integrate hybrid cloud solutions into data center transformation strategies.
■ Cisco introduced an AI-powered network optimization tool designed to enhance data center performance and scalability in 2023.

The data center transformation market is set for significant growth as businesses across industries strive to modernize their IT infrastructures. As organizations embrace the benefits of cloud computing, edge computing, and energy-efficient solutions, the demand for data center transformation services will continue to increase. With key players innovating in AI, machine learning, and green technologies, the future of the market looks promising, providing substantial opportunities for both businesses and investors.

Contact Us:

Persistence Market Research
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Email: sales@persistencemarketresearch.com
Web: https://www.persistencemarketresearch.com

About Persistence Market Research:

At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 2012, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.

Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.

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