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Data Center Outsourcing Market Size and Forecast, by Component (Hardware, Software, Services); Physical Infrastructure; Organization Size; End use - Growth Trends, Key Players, Regional Analysis 2026-2035

  • Report ID: 6421
  • Published Date: Sep 18, 2025
  • Report Format: PDF, PPT

Data Center Outsourcing Market Outlook:

Data Center Outsourcing Market size was over USD 148.09 billion in 2025 and is projected to reach USD 243.53 billion by 2035, growing at around 5.1% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of data center outsourcing is evaluated at USD 154.89 billion.

Data Center Outsourcing Market Overview
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The growing adoption of big data analytics and increasing demand for advanced data centers is fuelling the overall data center outsourcing market growth. For instance, as of 2023, 39.5% of businesses used big data to manage datasets as a business asset. The U.S. is home to 2,701 data centers alone. Across the world, 82% of businesses anticipate raising their data modernization spending. Following the industry's heightened recognition of the importance of big data and data modernization, this percentage rose from 41% in 2022.

Data center outsourcing refers to the practice where a third party offers management and operation of data center facilities rather than handling these functions in-house. This includes services such as infrastructure management, colocation, network services, and security. Scalability, flexibility, and cost efficiency are some of the prime factors driving the sales of data center outsourcing services across the world. Outsourcing reduces the capital expenditure of the organization related to the installation and maintenance of hardware infrastructure. This also reduces the operation cost and need for in-house IT support by shifting to a pay-as-you-go model.  Several end use organizations are widely adopting data center outsourcing services as it aids the companies to concentrate on their core business operations.

Key Data Center Outsourcing Market Insights Summary:

  • Regional Highlights:

    • North America data center outsourcing market will account for 39.50% share by 2035, driven by the strong presence of IT organizations and the high adoption of digital technologies in sectors like IoT, AI, and ML, alongside strict data security policies.
    • Asia Pacific market will register significant growth during the forecast timeline, driven by the rapid advancements in telecommunications, manufacturing, energy, and BFSI sectors, which are driving high adoption of data center outsourcing services.

  • Segment Insights:

    • The large enterprises segment in the data center outsourcing market is projected to hold a 75.50% share by 2035, driven by outsourcing benefits like focusing on core competencies and access to advanced technologies.

  • Key Growth Trends:

    • Scalable storage solutions
    • Increasing adoption of IoT solutions

  • Major Challenges:

    • Data security and privacy concerns
    • Cost implications

  • Key Players: IBM Corporation, HCL Technologies Limited, Cognizant Technology Solutions Corporation, Wipro Limited, Capgemini SE, Tata Consultancy Services Limited, Infosys Limited, Atos SE, Tech Mahindra Limited, DXC Technology Company.

Global Data Center Outsourcing Market Forecast and Regional Outlook:

  • Market Size & Growth Projections:

    • 2025 Market Size: USD 148.09 billion
    • 2026 Market Size: USD 154.89 billion
    • Projected Market Size: USD 243.53 billion by 2035
    • Growth Forecasts: 5.1% CAGR (2026-2035)

  • Key Regional Dynamics:

    • Largest Region: North America (39.5% Share by 2035)
    • Fastest Growing Region: Asia Pacific
    • Dominating Countries: United States, China, Germany, United Kingdom, Japan
    • Emerging Countries: China, India, Brazil, Mexico, South Korea

    • Last updated on : 18 September, 2025

Growth Drivers

  • Scalable storage solutions: The emergence of artificial intelligence (AI) and big data analytics is strongly influencing the data center outsourcing market growth. The end use organizations rely on AI and big data to drive their operation and innovations. Big data analytics generates massive volumes of data, necessitating effective storage solutions; however, standard storage systems are incapable of processing the tremendous amount of data generated. In such instances, outsourced data centers emerge as scalable, high-capacity, and high-performance storage solutions, whereas advanced data centers efficiently manage enormous datasets for big data analytics. For instance, in June 2023, Gartner Magic Quadrant recognized Deloitte as a visionary data center outsourcing and hybrid infrastructure managed service provider globally. 

  • Increasing adoption of IoT solutions: The IT and telecom companies are widely adopting IoT solutions due to their efficiency in real-time data processing. Autonomous vehicles, smart sensors in industrial devices, wearable electronics, and smart home devices are some of the IoT solutions that generate mass volumes of data. These IoT-based devices rely on real-time analytics to ensure operational efficiency and safety, which further drives the demand for data center outsourcing services. There are around 15 billion connected IoT devices worldwide and this is expected to double by 2030.

Challenges

  • Data security and privacy concerns: Organizations often hesitate to outsource their data centers due to concerns about potential data breaches and cyberattacks. Moreover, adhering to data protection regulations such as GDPR, CCPA can be challenging when outsourcing. Businesses may have trouble ensuring third-party data centers abide by strict compliance regulations.

  • Cost implications: Outsourcing may involve hidden expenses such as transition fees, integration costs, and ongoing management and monitoring charges that can diminish the anticipated savings. Also, tailoring outsourced solutions to meet specific organizational needs or integrating them with existing systems can incur significant additional costs.

Data Center Outsourcing Market Size and Forecast:

Report Attribute Details

Base Year

2025

Forecast Period

2026-2035

CAGR

5.1%

Base Year Market Size (2025)

USD 148.09 billion

Forecast Year Market Size (2035)

USD 243.53 billion

Regional Scope

  • North America (U.S. and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, South Korea, Malaysia, Australia, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Data Center Outsourcing Market Segmentation:

 Organization Size 

Large enterprises segment is anticipated to capture data center outsourcing market share of around 75.5% by the end of 2035. Outsourcing data center functions allows large enterprises to focus on their core competencies and strategic goals, rather than diverting resources to manage and maintain complex IT infrastructure. Additionally, data center providers often offer state-of-the-art technologies and innovations, including cutting-edge security measures, high-performance computing, and advanced data management solutions. Large enterprises leverage these technologies to stay competitive and improve operational efficiency.

Component 

The data center outsourcing market hardware segment is anticipated to hold a dominant position throughout the forecast period owing to the increasing demand for effective data storage solutions. Several end use organizations are witnessing a digital shift and the rising adoption of IoT devices leading to high data production is further fuelling the need for effective data outsourcing.

The growing demand for advanced digital infrastructure for product development and deployment is driving the need for innovative data center outsourcing hardware solutions.  Data center outsourcing providers continuously upgrade their hardware infrastructure to offer advanced services and attract a wider consumer base, thus technological advancements in hardware and data center management tools are contributing to the segmental growth.

Our in-depth analysis of the data center outsourcing market includes the following segments:

Component
  • Hardware
    • Servers
    • Storage Devices
    • Networking Equipment
    • Cooling Systems
    • Power Distribution Units (PDUs
  • Software
    • Operating Systems
    • Virtualization Software
    • Management and Monitoring Software
    • Security Software
  • Services
    • Colocation Services
    • Cloud Services
    • Managed Services
    • Network Services
    • Security Services

Physical Infrastructure
  • Data Center Facilities
  • Racks and Cabinets
  • Cabling and Wiring
  • Power and Cooling Infrastructure

Organization Size
  • Large Enterprises
  • Small and Medium Enterprises (SMEs)

End use
  • BFSI 
  • Colocation 
  • Energy
  • Government 
  • Healthcare 
  • IT and Telecom 
  • Manufacturing 
Vishnu Nair
Vishnu Nair
Head - Global Business Development

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Data Center Outsourcing Market Regional Analysis:

North America Market Insights

North America in data center outsourcing market is projected to hold more than 39.5% revenue share by 2035 owing to the strong presence of IT organizations and high adoption of digital technologies such as IoT, AI, and ML in the manufacturing sector. The region’s strict data security policies are promoting end use companies to adopt advanced ata services, driving the overall data center outsourcing market growth.

The U.S. for data center outsourcing market was evaluated at USD 36.1 billion in 2024 and is foreseen to increase at a CAGR of 5.2% from 2026 to 2035. The continuous innovations in data center technologies are influencing the data center outsourcing market growth in the U.S. For instance, in March 2024, Avant Technologies, Inc. announced that it is set to build an advanced data center facility in Milwaukee and is expected to be operational by the first half of 2025. Avant Technologies specializes in advanced AI infrastructure solutions and mainly attracts AI and big data companies.

Canada is also an opportunistic for data center outsourcing market providers owing to the presence of strong tech companies such as Shopify, Descartes Systems Group Inc., Constellation Software Inc., and more. Cegen Environment is one of the top providers of cost-effective and green data center services in the country.

APAC Market Insights

The Asia Pacific data center outsourcing market is estimated to observe significant growth through 2035 owing to the rising infrastructure development projects and digital transformative initiatives. Asia Pacific is witnessing rapid advancements in sectors such as telecommunications, manufacturing, energy, and BFSI driving high adoption of data center outsourcing services. BFSI is one of the sectors that is highly vulnerable to data security threats, to protect their data these organizations rely on advanced outsourcing technologies.

India is witnessing a rise in remote jobs, fintech, and online education that is positively influencing the demand for scalable data center solutions, ultimately uplifting the profits of outsourcing service providers. The growing adoption of cloud computing by several businesses is also augmenting the demand for outsourced data centers in the country.

China is one of the prime manufacturing hubs across the world, and the increasing adoption of digital technologies in this sector is pushing the need for reliable outsourced data centers. Also, the rapid advancements in the e-commerce sector are driving the need for flexible and scalable outsourced data centers with strict data security compliance.

Data Center OutsourcingMarket_PPT 2-min
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Data Center Outsourcing Market Players:

    Key players in the data center outsourcing market are adopting strategies such as the introduction of advanced hardware and software outsourced data center solutions, collaboration & partnerships, and regional expansion to earn high profits. To grab this digital shift opportunity, industry giants are focusing on the development of customized outsourced data center solutions.

    Some of the key players include:

    • Dell
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Infosys
    • IBM Corporation
    • HCL Tech
    • Accenture
    • Atos
    • Capgemini
    • Tata Consultancy Services
    • Tech Mahindra
    • Cognizant
    • Wipro
    • Oracle Corporation
    • Hewlett Packard Enterprises
    • Unisys

Recent Developments

  • In April 2024, Google Inc. announced that it had invested USD 3 billion to build data center campuses in Virginia and Indiana. This move is one of the advancements of the company in the U.S.
  • In April 2022, JLL announced that it is providing integrated facilities management and project management services to CyrusOne. JLL is currently managing 50 CyrusOne data centers in North America. 
  • Report ID: 6421
  • Published Date: Sep 18, 2025
  • Report Format: PDF, PPT
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Frequently Asked Questions (FAQ)

In the year 2026, the industry size of data center outsourcing is evaluated at USD 154.89 billion.

The global data center outsourcing market size was worth over USD 148.09 billion in 2025 and is poised to grow at a CAGR of over 5.1%, reaching USD 243.53 billion revenue by 2035.

North America data center outsourcing market will account for 39.50% share by 2035, driven by the strong presence of IT organizations and the high adoption of digital technologies in sectors like IoT, AI, and ML, alongside strict data security policies.

Key players in the market include IBM Corporation, HCL Technologies Limited, Cognizant Technology Solutions Corporation, Wipro Limited, Capgemini SE, Tata Consultancy Services Limited, Infosys Limited, Atos SE, Tech Mahindra Limited, DXC Technology Company.

Data Center Outsourcing Market Report Scope

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