Press release
Booming Construction Activity Drives Growth of the Data Center Migration Market by 2025
Data Center Migration
The valuation of the data center migration market has experienced swift expansion lately, projecting an increase from $12.26 billion in the year 2024 to $14.36 billion by 2025, reflecting a compound annual growth rate (CAGR) of 17.2%. This upward trajectory during the past period resulted from several factors: regulatory compliance requirements and data security legislation becoming more stringent, the rise in mergers and acquisitions necessitating the unification of IT platforms, the spread of remote and geographically dispersed work demanding centralized resource accessibility, soaring expenses related to energy consumption and property for internally managed sites, and a greater emphasis placed on maintaining business operations following unforeseen disruptions.
What Is the Forecasted Global Size of the Data Center Migration Market by 2029?
Anticipation surrounds the data center migration sector, projecting a swift expansion trajectory culminating in a market valuation of $26.77 billion by 2029, characterized by a compound annual growth rate (CAGR) of 16.8%. This period of substantial growth is fueled by several key factors: a rising need to consolidate workloads while simultaneously streamlining physical presence, a greater desire for predictable spending and tighter control over operational expenditures, heightened requirements for adhering to regulatory mandates and guaranteeing data residency, an increasing emphasis on robust business continuity and resilience against disasters, and the necessity for more streamlined integration processes following mergers and acquisitions. Key shifts expected throughout this time frame involve migration orchestration powered by agentic artificial intelligence, the utilization of graph neural networks to enhance discovery processes and map dependencies, the establishment of infrastructure as code for standardized blueprints of landing zones, the adoption of network segmentation patterns aligned with zero trust architecture principles, and the enabling of confidential computing to ensure sensitive workloads remain isolated throughout the migration phase.
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Which Key Drivers Are Contributing to the Growth of the Data Center Migration Market?
Anticipated advancement in the data center migration market will be fueled by the increasing utilization of services hosted in the cloud. These cloud offerings encompass IT resources, data storage, and software delivered from distant servers accessible via the web, which brings advantages like adaptability, pliability, and reduced operational expenditure. The increased uptake of these remote services stems from their inherent flexibility and scalability, permitting companies to effortlessly modify their resource allocation as needed, bypassing substantial initial outlays on physical infrastructure. Facility relocation for data centers facilitates this transition, allowing entities to transfer critical processes, operational loads, and applications from their local hardware setups to cloud platforms, thereby improving operational efficiency, lowering expenses, and bolstering resilience. Illustratively, projections from IT Desk UK Ltd., a technology support firm situated in the United Kingdom, indicated in September 2025 that a substantial 96% of established companies currently leverage at least one cloud service, with worldwide expenditure on cloud infrastructure anticipated to hit a massive $912 billion by the conclusion of 2025, consequently highlighting how expanding reliance on cloud platforms acts as a stimulus for the expansion of the data center migration sector.
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Which Market Trends Are Expected to Drive Data Center Migration Market Expansion?
Leading corporations within the data center transition sector are prioritizing the creation of sophisticated technological offerings, exemplified by orchestration powered by autonomous artificial intelligence agents, aimed at expediting extensive relocations from older infrastructure to cloud environments. This form of migration orchestration, centered on agentic AI, employs self-directing software entities to identify applications and their interdependencies, formulate migration blueprints, reconfigure networking, and fine-tune destination resources, consequently lowering the necessity for human intervention and decreasing the hazards associated with system cutovers across mixed infrastructure setups. As an illustration, in May of 2025, Amazon Web Services (AWS), an American provider of cloud services, introduced AWS Transform (General Availability), a capability that leverages agentic artificial intelligence to revamp and migrate workloads running on VMware, mainframes, and .NET by automatically handling the stages of discovery, mapping dependencies, planning the move, converting networks, and tuning EC2 configurations, all pointed directly at challenging data center migrations. This offering streamlines the entire sequence of identifying, evaluating, and converting processes via specialized artificial intelligence agents, resulting in substantially compressed timeframes for migration projects. Ultimately, its goal is to establish a cohesive sequence, supported by artificial intelligence, for transporting corporate data center assets onto Amazon Web Services platforms, thereby speeding up modernization efforts throughout cloud adoption strategies.
Which Emerging Segments Are Shaping the Future of the Data Center Migration Market?
The data center migration market covered in this report is segmented -
1) By Service Type: Cloud Migration, Application Migration, Database Migration, Storage Migration, Other Service Types
2) By Deployment Mode: On-Premises, Cloud
3) By Organization Size: Small And Medium Enterprises, Large Enterprises
4) By Application: Data Storage, Management, Backup, Recovery, Other Applications
5) By End-User Industry: Banking, Financial Services, And Insurance (BFSI), Information Technology (IT) And Telecommunications, Healthcare, Retail, Government, Other End-Users
Subsegments:
1) By Cloud Migration: Rehosting (Lift And Shift), Replatforming (Lift And Improve), Refactoring And Rearchitecting, Repurchasing To Software As A Service, On Premises To Cloud Migration, Cloud To Cloud Migration, Hybrid Cloud Migration, Multi Cloud Migration, Edge To Cloud Migration, Cloud Exit And Reverse Migration
2) By Application Migration: Containerization And Microservices Decomposition, Operating System And Runtime Modernization, Dependency Mapping And Application Discovery, Testing Validation And Cutover Orchestration
3) By Database Migration: Homogeneous Database Migration, Heterogeneous Database Migration, Schema Conversion And Object Mapping, Data Replication And Change Data Capture, Bulk Load And Offline Transfer, Real Time Streaming Migration
4) By Storage Migration: File Storage Migration, Block Storage Migration, Object Storage Migration, On Premises To Cloud Storage Migration, Cloud To Cloud Storage Migration
5) By Other Service Types: Network And Connectivity Remediation, Identity And Access Management Modernization, Security And Compliance Assessment, Disaster Recovery And Resilience Planning, Business Continuity Planning And Testing, Project And Program Management
Who Are the Major Players Driving Innovation in the Data Center Migration Market?
Major companies operating in the data center migration market are Amazon Web Services Inc.; Google LLC; Microsoft Corporation; Dell Technologies Inc.; International Business Machines Corporation (IBM); Cisco Systems Inc.; Oracle Corporation; NTT Communications Corporation; Fujitsu Limited; DXC Technology Company; Atos SE; Equinix Inc.; Veritis Group Inc.; Unity Group Sp. z o.o.; SoftwareONE Holding AG; Nous Infosystems Pvt. Ltd.; ELEKS Ltd.; Trigent Software Inc.; N-iX LLC; Scalefocus AD
What Are the Key Geographic Areas Fueling Growth in the Data Center Migration Market?
North America was the largest region in the data center migration market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center migration market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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