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Cloud Services Fuel Expansion In The Cloud Data Center Market Emerges as a Core Driver of the Cloud Data Center Market in 2025

10-22-2025 09:44 AM CET | IT, New Media & Software

Press release from: The Business Research Company

Cloud Data Center Market

Cloud Data Center Market

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What Is the Expected CAGR for the Cloud Data Center Market Through 2025?
There has been a rapid expansion of the cloud data center market size in the past few years. Anticipated growth projects the value to increase from $27.22 billion in 2024 to a substantial $30.96 billion by 2025, maintaining a compound annual growth rate (CAGR) of approximately 13.7%. This positive trend during the observed historical period is largely due to factors such as enhanced scalability, improved cost-effectiveness, increased agility and flexibility, heightened security measures, and commitment towards green initiatives.

What's the Projected Size of the Global Cloud Data Center Market by 2029?
In the coming years, the size of the cloud data center market is projected to experience swift expansion. By 2029, the market is anticipated to inflate to $52.21 billion with a compound annual growth rate (CAGR) of 14.0%. The growth expected within this forecast period is likely to be due to factors such as edge-to-cloud orchestration, the escalation of cybersecurity threats, advancements in quantum computing, the rise of containerization, strict data privacy regulations, workloads related to AI (artificial intelligence) and machine learning, as well as 5G deployment. Key trends to watch within this forecast period incorporate data sovereignty and compliance, containerization, strategies revolving around hybrid and multi-cloud, infrastructure optimized for AI, and serverless computing.

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Top Growth Drivers in the Cloud Data Center Industry: What's Accelerating the Market?
The growth of the cloud data center market is anticipated to be fueled by the soaring demand for cloud services. These services encompass an array of readily available computing resources and applications that are provided on demand via the Internet. The popularity of these services stems from the scalability, accessibility, and security they offer. Cloud data centers, which provide the necessary infrastructure and resources for hosting, processing, and delivering on-demand computing capabilities over the Internet, serve to support these services. For instance, the European Commission (EC), an executive body of the European Union (EU) based in Belgium, revealed that in December 2023, about 42.5% of the businesses in the European Union bought cloud computing services. Mostly used for email, file storage, and office software, this represented a 4.2% increase from 2021. Therefore, the escalating demand for cloud services is the key driver propelling the expansion of the cloud data center market.

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What Trends Will Shape the Cloud Data Center Market Through 2029 and Beyond?
Key players in the cloud data center industry are striving to boost their market revenues by unveiling new data center facilities, including cyber cloud data centers. These centers represent a data center infrastructure that synergizes cloud computing services with a strong emphasis on hardened cyber-security measures. For instance, Acronis International GmbH, originating from Switzerland, launched a new cyber cloud data center in Toronto, Canada, in March 2023. This forms part of their expansive global network, which comprises over fifty similar facilities. The Toronto data center equips Acronis partners with a broad spectrum of cyber protection solutions, enabling them to concoct new services that can address their clients' data protection requirements more effectively, more efficiently, assuring swift access, uninterrupted data availability, and the bonus advantage of data sovereignty.

What Are the Main Segments in the Cloud Data Center Market?
The cloud data centermarket covered in this report is segmented -

1) By Service Model: Infrastructure As A Service Model, Platform As A Service-Model, Software As A Service-Model
2) By Deployment Model: Public, Private, Hybrid
3) By Organization Size: Small And Medium Enterprise, Large Enterprises
4) By End-Users: Banking, Financial Services And Insurance (BFSI), Colocation, Energy, Government, Healthcare, Manufacturing, Information Technology (IT) And Telecommunication, Other End-Users

Subsegments:
1) By Infrastructure As A Service (IaaS): Compute, Storage, Networking
2) By Platform As A Service (PaaS): Development Tools, Middleware, Database Management
3) By Software As A Service (SaaS): Enterprise Applications, Collaboration Tools, Content Management Systems, Communication And Email Services

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Which Top Companies are Driving Growth in the Cloud Data Center Market?
Major companies operating in the cloud data center market are Alphabet Inc., Microsoft Corporation, Verizon Corporation, Reliance Group, Amazon Web Services Inc., International Business Machines Corporation (IBM), Oracle Corporation, KDDI Telehouse, Fujitsu Limited, Eaton Corporation plc, Tencent Cloud, Lumen Technologies, HCL Technologies Limited, Alibaba Cloud, Schneider Electric SE, Google Cloud, Equinix Inc., General Electric Company, China Unicom, Capgemini SE, China Telecom Americas Inc., Cyxtera Technologies Inc., QTS Realty Trust Inc., Flexential Corp., AT&T Inc.

Which Regions Will Dominate the Cloud Data Center Market Through 2029?
North America was the largest region in the cloud data center market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cloud data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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3.Policy Makers & Regulators - To track industry developments and align regulatory frameworks.
4.Consultants & Analysts - To support market entry, expansion strategies, and client advisory work.

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Email: saumyas@tbrc.info

Learn More About The Business Research Company
With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

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