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Global Data Center Renovation Market Analysis 2025-2030: Growth Drivers, Challenges, And Opportunities
Data Center Renovation
What Is the Projected Growth of the Data Center Renovation Market?
The size of the data center refurbishment market has seen explosive growth in recent times. The market, which is expected to expand from $29.48 billion in 2024 to $36 billion in 2025, promises a compound annual growth rate (CAGR) of 22.1%. Factors such as the modernization of outdated infrastructure, a surge in demand for data storage, energy efficiency considerations, and enhancements in security and compliance have contributed to the growth observed in the past.
The market size of data center renovation is anticipated to experience phenomenal expansion in the upcoming years. The projection is that it will reach $96.97 billion by 2029, with a 28.1% compound annual growth rate (CAGR). The surge during the forecast period can be credited to the incorporation of edge computing, implementation of 5G, a focus on sustainability and green computing, and efforts towards resilience and disaster recovery. The notable trends within the predicted period involve technological progression, green-focused activities, modular and expandable structures, as well as progressive cooling solutions.
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What Are the Different Data Center Renovation Market Segments?
The data center renovation market covered in this report is segmented -
1) By Product: Cooling, Power, IT Racks And Enclosures, Networking Equipment, DCIM, Other Products
2) By Organization Size: Small Size Organization, Medium Size Organization, Large Size Organization
3) By Application: BFSI, IT And Telecom, Manufacturing, Government, Healthcare, Other Applications
Subsegments:
1) By Cooling: Air Conditioning Units (CRAC Or CRAH), Liquid Cooling Systems, In-Row Cooling, Free Cooling (Economizer), Hot Aisle Or Cold Aisle Containment Systems
2) By Power: Uninterruptible Power Supply (UPS) Systems, Backup Generators, Power Distribution Units (PDUs), Batteries and Energy Storage Solutions, Power Management Systems
3) By IT Racks And Enclosures: Server Racks, Rack Cabinets, Modular Racking Systems, Custom IT Enclosures
4) By Networking Equipment: Routers And Switches, Fiber Optic Cables And Connectors, Network Interface Cards (NICs), Firewalls And Load Balancers
5) By DCIM (Data Center Infrastructure Management): Monitoring And Management Software, Environmental Monitoring Tools (Temperature, Humidity Sensors), Asset Tracking And Management Systems, Energy Management Solutions
6) By Other Products: Fire Suppression Systems, Security Systems (Access Control, Surveillance), Cable Management Solutions, Environmental Sensors (Water, Smoke Detection), Physical Security Barriers
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What Are the Primary Drivers Shaping the Data Center Renovation Market?
The surge in online service usage is anticipated to boost the progression of the data center renovation market. As online services for payments, shopping, travel, entertainment, and medical applications gain more popularity, the data volume across diverse sectors multiplies. This is incentivizing the trailblazers of the data center renovation market to update their core IT infrastructure to maintain pace with the dynamic market shifts. For example, the International Telecommunication Union, a United Nations agency stationed in Switzerland, dedicated to information and communication technologies, disclosed in September 2023 that 67% of the global populace, equating to 5.4 billion individuals, were active internet users. This was a jump from 5.3 billion users (or 66% of the global populace) the previous year, 2022. Thus, the expanding utilization of online services is steering the growth of the data center renovation market.
Which Companies Are Leading in the Data Center Renovation Market?
Major companies operating in the data center renovation market include Equinix, Digital Realty, Schneider Electric, Vertiv, NTT Communications, Eaton Corporation, Hewlett Packard Enterprise, Cisco Systems, Fujitsu, IBM Corporation, ABB Ltd., Siemens AG, Amazon Web Services (AWS), Google Cloud, Microsoft Azure, Iron Mountain, CyrusOne, QTS Realty Trust, DataBank, Flexential, STACK Infrastructure, CoreSite Realty, Aligned Data Centers, CloudHQ, Switch, RagingWire Data Centers, Evoque Data Center Solutions, Compass Datacenters, T5 Data Centers, Cologix
What Trends Are Expected to Dominate the Data Center Renovation Market in the Next 5 Years?
Prominent firms in the data center renovation market are introducing vertical data centers to enhance their profit margins. A vertical data center, in this context, is a design strategy that optimizes the use of vertical space in a data center facility. For example, in May 2023, Scala Data Centers, a Brazil-based data center provider, inaugurated 6MW IT SGRUTB05 data center, ranking as the second biggest vertical facility in Latin America. The SGRUTB05, with a constructed area of 6,700 square meters and a height of 35.5 meters, consists of five floors, three of which are devoted to high-density data halls accommodating approximately 400 racks and a total power of around 9MW. The implementation of Scala's One Scala Template methodology by a CoE comprising over 200 experts has streamlined the processes involved in the data center's design, project, construction, and commissioning, meeting the needs of the Hyperscale market. The SGRUTB05 runs solely on renewable energy and boasts a PUE under 1.4, zero WUE, conforming with LEED and ANSI/TIA-942-B green data center standards.
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What Are the Top Revenue-Generating Geographies in the Data Center Renovation Market?
South America was the largest region in the data center renovation market in 2024. North America was the second largest region of the data center renovation market. The regions covered in the data center renovation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Data Center Renovation Market?
2. What is the CAGR expected in the Data Center Renovation Market?
3. What Are the Key Innovations Transforming the Data Center Renovation Industry?
4. Which Region Is Leading the Data Center Renovation Market?
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