Steady Expansion Forecast for Data Center Outsourcing Market, Projected to Reach $282.98 Billion by 2029

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What Will the Data Center Outsourcing Industry Market Size Be by 2025?
In recent times, the data center outsourcing market has seen robust growth. The market is projected to expand from $194.83 billion in 2024 to $209.92 billion in 2025, with a compound annual growth rate (CAGR) of 7.7%. The historic period's growth can be associated with a growing demand for cost efficiency, an upward trend in cloud adoption, the utilization of managed services, an increase in data traffic, and a heightened focus on primary business functions.

What's the Long-Term Growth Forecast for the Data Center Outsourcing Market Size Through 2029?
In the coming years, a robust expansion is foreseen in the data center outsourcing market, with projections indicating a size of $282.98 billion by 2029, demonstrating a compound annual growth rate (CAGR) of 7.8%. This anticipated growth is largely due to factors such as heightened uptake of the hybrid cloud, surging demand for AI-integrated data centers, the preference for sustainable and green data centers, a boost in edge computing, and an increased emphasis on cybersecurity and compliance. The forecast period is touted to see major trends like progress in AI-driven automation, the creation of energy-saving data centers, innovations in hybrid cloud solutions, advancements in edge computing infrastructure, and the construction of modular data centers.

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What Are the Key Growth Drivers Fueling the Data Center Outsourcing Market Expansion?
The swift uptake of cloud computing is projected to drive the expansion of the data center outsourcing market in the future. Cloud computing pertains to the provision of computing services, like servers, storage, databases, networking, software, analytics, and intelligence via the internet. This swift uptake can be attributed to cloud computing's capacity to offer scalable, cost-efficient, and adaptive infrastructure, allowing organizations to implement applications and administer workloads effectively without the need for heavy investment in physical hardware. Data center outsourcing bolsters cloud computing as it lets organizations delegate infrastructure management to expert providers, enhancing scalability, diminishing operational costs, and hastening cloud adoption. For example, Eurostat, a government agency based in Luxembourg, reported in December 2023 that 42.5% of European Union (EU) enterprises adopted cloud computing services, marking an increase of 4.2 percentage points from 2021. Therefore, the swift uptake of cloud computing is fueling the expansion of the data center outsourcing market.

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What Are the Key Trends Driving Data Center Outsourcing Market Growth?
Key players in the data center outsourcing market are prioritizing the creation of groundbreaking solutions like gigascale AI hosting infrastructure data centers. This is in response to the accelerated demand for high-performance computing abilities, fueled by artificial intelligence (AI) and machine learning. These gigascale AI hosting infrastructure data centers serve as large-scale facilities fine-tuned for AI workloads. They assist with data center outsourcing by giving businesses the ability to delegate complex AI tasks to expert providers, which obviates the need for internal infrastructure and diminishes operational expenses. For example, BSO Network Solutions Limited, an infrastructure and connectivity provider from Ireland, initiated DataOne, an advanced data center platform designed to accommodate large-scale AI workloads, in November 2024. This unveiling enables BSO to provide scalable, energy-sensitive answers that are custom-made for AI-centric firms, setting the firm up as a prominent figure in the changing data center outsourcing field. This introduction of specialized infrastructure demonstrates a more general industry movement where outsourcing providers contribute significantly to high-tech advancements to cater to the escalated computational requirements of contemporary businesses.

How Is the Data Center Outsourcing Market Segmented?
The data center outsourcingmarket covered in this report is segmented -

1) By Component: Hardware, Software, Service
2) By Physical Infrastructure: Data Center Facilities, Racks And Cabinets, Cabling And Wiring, Power And Cooling Infrastructure
3) By Industry Vertical: Information Technology (IT) And Telecommunications, Banking, Financial Services, and Insurance (BFSI), Government, Media And Entertainment, Healthcare And Life Sciences, Travel And Logistics

Subsegments:
1) By Hardware: Servers, Storage Devices, Networking Equipment, Power And Cooling Systems, Security Appliances
2) By Software: Data Center Infrastructure Management (DCIM), Cloud Management Platforms, Security And Compliance Software, Virtualization Software
3) By Service: Managed Hosting, Colocation Services, Information Technology (IT) Infrastructure Management, Disaster Recovery Services, Support And Maintenance

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Which Companies Are Leading the Charge in Data Center Outsourcing Market Innovation?
Major companies operating in the data center outsourcing market are Amazon Web Services Inc., Dell Technologies Inc., accenture* plc, IBM Corporation, Google Cloud, SAP SE, Hewlett Packard Enterprise Development LP, Fujitsu Limited, Tata Consultancy Services Limited, Capgemini SE, NTT DATA Group Corporation, Cognizant Technology Solutions Corporation, Infosys Limited, HCL Technologies Limited, Atos SE, Wipro Limited, Equinix Inc., Tech Mahindra Limited, T-Systems International GmbH, Digital Realty Trust Inc., Unisys Corporation

Which Regions Are Leading the Global Data Center Outsourcing Market in Revenue?
North America was the largest region in the data center outsourcing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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