Data Center Transformation Market To Reach $28.62 Billion By 2030

Data Center Transformation Market Growth & Trends

The global data center transformation market size is estimated to reach USD 28.62 billion by 2030, registering to grow at a CAGR of 15.7% from 2025 to 2030 according to a new report by Grand View Research, Inc. The demand for data center transformation is likely to grow owing to increasing investment in data center technologies.

The COVID-19 pandemic had a positive impact on the data center transformation market. The leading players increasing inclination toward data security as a result of the pandemic is creating growth prospects for the data center transformation market. Businesses worldwide are making efforts to expedite their digital transformation initiatives to remain viable. Consumers are spending most of their time online. This has led to a rise in demand for data centers with increased storage.The pandemic made it difficult for businesses of all sizes, particularly small ones, to maintain on-premises servers. And they have begun migrating to the cloud. This has resulted in a surged requirement for cloud servers and infrastructures.

The rising adoption of Internet-enabled gadgets worldwide has resulted in a significant increase in the volume of data collected by industries. The introduction of 5G technology, which provides fast data streaming speed, is anticipated to encourage a large number of customers to use digital services. This has prompted IT and telecommunication service providers to deploy enhanced data storage and transportation systems.

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Data Center Transformation Market Report Highlights

• The consolidation services segment accounted for the largest revenue share of over 36.0% in 2024 driven by the rising demand for optimized operational efficiency and cost reduction.

• The cloud service providers segment accounted for the largest revenue share of over 45.0% in 2024 owing to the increasing demand for hybrid and multi-cloud environments. As organizations seek to take advantage of both on-premises and cloud solutions, they are adopting hybrid cloud strategies to facilitate a smooth flow of data and applications between these environments.

• The IT and telecommunication segment accounted for the largest revenue share of over 36.0% in 2024. Growing data traffic is a critical factor driving the transformation of data centers in the IT and telecommunications sectors.

• The data center transformation market in North America held a share of over 45.0% in 2024.

Data Center Transformation Market Segmentation

Grand View Research has segmented the global data center transformation market based on services, end-user, vertical, and region:

Data Center Transformation Service Outlook (Revenue, USD Billion, 2018 - 2030)

• Consolidation Services

• Optimization Services

• Automation Services

• Infrastructure Management Services

Data Center Transformation End-user Outlook (Revenue, USD Billion, 2018 - 2030)

• Cloud Service Providers

• Colocation Providers

• Enterprises

Data Center Transformation Vertical Outlook (Revenue, USD Billion, 2018 - 2030)

• BFSI

• IT and telecommunications

• Government and defense

• Energy

• Manufacturing

• Others

Data Center Transformation Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

• Latin America

  • Brazil

• Middle East & Africa

  • UAE

  • Saudi Arabia

  • South Africa

List of Key Players in Data Center Transformation Market

• Accenture

• Atos

• Cisco Systems, Inc.

• Cognizant

• Dell Inc.

• HCL Technologies

• IBM

• Microsoft

• Schneider Electric SE

• Wipro