Data Center Outsourcing

Global Data Center Outsourcing Market to Reach US$157.1 Billion by 2030

The global market for Data Center Outsourcing estimated at US$127.8 Billion in the year 2024, is expected to reach US$157.1 Billion by 2030, growing at a CAGR of 3.5% over the analysis period 2024-2030. Large Enterprises, one of the segments analyzed in the report, is expected to record a 4.4% CAGR and reach US$84.8 Billion by the end of the analysis period. Growth in the SMEs segment is estimated at 2.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$34.8 Billion While China is Forecast to Grow at 6.7% CAGR

The Data Center Outsourcing market in the U.S. is estimated at US$34.8 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$31.6 Billion by the year 2030 trailing a CAGR of 6.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.3% and 2.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.0% CAGR.

Global Data Center Outsourcing Market – Key Trends & Growth Drivers Summarized

Why Is Data Center Outsourcing Becoming a Strategic Priority for Enterprises?

Data center outsourcing has emerged as a critical strategy for enterprises looking to optimize costs, enhance IT agility, and improve infrastructure efficiency. By outsourcing data center operations to third-party providers, businesses can focus on core functions while leveraging specialized expertise in cloud computing, colocation, managed hosting, and IT infrastructure management. The rise of digital transformation, coupled with the increasing complexity of managing on-premise data centers, has accelerated the shift toward outsourced solutions.

Organizations are prioritizing outsourcing as a way to reduce capital expenditures (CapEx) associated with data center construction and maintenance while benefiting from enhanced scalability and disaster recovery capabilities. Additionally, the demand for hybrid IT environments—integrating on-premise, cloud, and colocation services—is fueling outsourcing agreements that provide flexibility, security, and compliance with regulatory standards. As companies seek to improve operational efficiency and meet sustainability goals, data center outsourcing is becoming a preferred approach for managing IT workloads.

What Are the Latest Innovations in Data Center Outsourcing?

Technological advancements in data center outsourcing have introduced AI-driven infrastructure management, software-defined data centers (SDDCs), and automation-enhanced service delivery. AI-powered predictive analytics are now being used to monitor IT performance, optimize power consumption, and preemptively identify hardware failures, reducing downtime risks.

Another key innovation is the rise of edge computing outsourcing, where enterprises partner with data center service providers to deploy infrastructure closer to end-users, improving latency and performance. Additionally, outsourced providers are integrating renewable energy and carbon-neutral operations, aligning with corporate sustainability mandates. Cloud-based disaster recovery-as-a-service (DRaaS) and network function virtualization (NFV) are also reshaping outsourcing models, offering more resilient and cost-effective IT infrastructure solutions.

How Are Market Trends and Regulatory Policies Influencing Data Center Outsourcing?

The increasing emphasis on cybersecurity, data privacy, and regulatory compliance has shaped the outsourcing landscape. Enterprises are partnering with data center providers that offer robust security frameworks, including encryption, multi-factor authentication, and compliance with standards such as GDPR, HIPAA, and SOC 2. Additionally, companies are leveraging sovereign cloud solutions to meet local data residency requirements and mitigate geopolitical risks.

Market trends indicate a growing preference for multi-cloud and hybrid IT outsourcing, where organizations distribute workloads across private clouds, public clouds, and colocation facilities. As businesses embrace AI, IoT, and big data analytics, outsourced data centers are evolving to support high-performance computing (HPC) workloads. Additionally, strategic collaborations between enterprises and hyperscale cloud providers (AWS, Microsoft Azure, Google Cloud) are influencing outsourcing agreements, enabling customized infrastructure solutions.

What Is Driving the Growth of the Data Center Outsourcing Market?

The growth in the data center outsourcing market is driven by increasing enterprise digitalization, rising cloud adoption, and advancements in IT automation. As businesses shift toward as-a-service models, outsourcing providers are delivering end-to-end infrastructure solutions that optimize performance, security, and cost efficiency.

End-use expansion is another key factor, with financial services, healthcare, e-commerce, and government agencies increasingly outsourcing data center operations to meet compliance and scalability demands. The integration of AI-powered data center management and green energy solutions is further driving adoption. Additionally, partnerships between data center providers and AI-driven IT management firms are enhancing service offerings, ensuring continuous innovation in outsourced IT infrastructure.

SCOPE OF STUDY:

The report analyzes the Data Center Outsourcing market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Organization Size (Large Enterprises, SMEs); End-Use (IT and Telecom End-Use, BFSI End-Use, Colocation End-Use, Healthcare End-Use, Government End-Use, Manufacturing End-Use, Energy End-Use, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 42 Featured) -

• Accenture plc
• Atos SE
• Capgemini SE
• Cognizant Technology Solutions
• Cyxtera Technologies, Inc.
• Dell Technologies Inc.
• Digital Realty Trust, Inc.
• DXC Technology Company
• Equinix, Inc.
• Fujitsu Limited
• Global Switch Limited
• HCL Technologies Limited
• Hewlett Packard Enterprise Company
• IBM Corporation
• Infosys Limited
• Iron Mountain Incorporated
• Lumen Technologies, Inc.
• NTT Data Corporation
• Tata Consultancy Services Limited
• Wipro Limited

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