Data Center Market Regional Analysis:
North America Market Insights
North America in data center market is anticipated to capture around 37.2% revenue share by the end of 2035, driven by its well-established digital economy based on high demand for cloud services and advanced technological infrastructure. Additionally, AI technologies being increasingly adopted across various industries drive the investment pace in facilities capable of sustaining such innovations. The U.S. and Canada are witnessing rapid surge in the demand for data centers, which is creating significant opportunities for new entrants in the market.
The U.S. continues to be a prominent data center market in North America, with massive investment and development by leading players like AWS, Microsoft, and Google. For example, Microsoft's investment of USD 100 billion in the 'Stargate' AI supercomputer project is under pipeline and expected to be launched by 2028, thereby demonstrating a commitment towards upgrading the data center capabilities in the country to help support next-generation technologies like AI and quantum computing.
The data center market in Canada is recording significant growth due to favorable government policies toward technology investment and sustainability initiatives. Canada has emerged as a lucrative destination for global tech companies that need reliable infrastructure with regulatory support to host their operations. In January 2024, the federal government announced a new program to drive innovation in technology sectors with funding opportunities, particularly in enhancing digital infrastructures such as data centers.
Asia Pacific Market Insights
Asia Pacific region is poised to witness substantial growth through 2035, driven by the increased internet penetration rates and digital transformation efforts across sectors such as healthcare and retail. Moreover, governments in several countries within the region have been extending their support by promoting investments in the technology infrastructure. This, in turn, becomes vital to allow new technologies such as AI and IoT to gain widespread adoption, further driving the market growth in APEJ during the forecast period.
With its robust digital economy and strong data localization rules, China is anticipated to turn into a dominant country in APEJ data center market. Players in the country continue to invest heavily in cloud infrastructure to support the rapidly growing verticals like e-commerce and fintech. Furthermore, major technology companies like Alibaba, Tencent, and Fujitsu are developing their data center capacities to meet the rising demand. In May 2023, ServiceNow, a U.S.-based software company, and Fujitsu signed an agreement to establish the Fujitsu-ServiceNow Innovation Center, which will focus on digital transformation and customer success.
The data center market in India is witnessing steady expansion due to rising mobile internet usage and cloud adoption. Favorable policies by the government are also attracting both domestic and international investments, hence creating a business climate. These articulated policies attract a number of global players to establish a strong foothold in India. With more industries investing to boost digital infrastructure, demand for data centers is anticipated to rise steadily in India. This momentum places India in an important position in the global data center market.
