AI Data Center Market Size, Share, Trends, Industry Analysis Report: By Component (Hardware and Software), By Data Center Type, By Industry, and By Region – Market Forecast, 2025–2034

The AI data center market size is expected to reach USD 153.23 billion by 2034, according to a new study by Polaris Market Research. The report “By Component (Hardware and Software), Data Center Type, Industry, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) – Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.

An AI data center is a specialized facility designed to support the high-performance computing, storage, and networking needs required to run artificial intelligence and machine learning workloads efficiently.

Advancements in AI hardware are driving the demand for AI data centers. AI tasks require specialized hardware that can handle complex calculations at high speeds. Over the years, new and more powerful chips, such as Graphics Processing Units (GPUs), Tensor Processing Units (TPUs), and custom-built AI processors, have been developed to meet this need. These hardware innovations enable AI models to train more quickly and operate more efficiently. To fully benefit from these technologies, data centers are being redesigned to support and cool high-performance chips, driving the need for modern, AI-ready facilities with advanced infrastructure. This, in turn, is fueling the growth of the AI data center market.

AI workloads consume a significant amount of power, particularly when training large models or running data-intensive applications. This raises both environmental concerns and operational costs for companies. To tackle this, AI data centers are implementing energy-efficient solutions, including liquid cooling systems, optimized rack designs, and smart power management tools. These changes help reduce electricity use, lower carbon emissions, and improve overall performance. Sustainability is becoming a priority, especially as governments and organizations push for greener operations. This focus on energy efficiency is encouraging the growth of AI-specific data centers, which are built with sustainability in mind.

AI Data Center Market Report Highlights

In 2024, the hardware segment dominated the AI data center market due to the critical role that high-performance computing hardware, such as GPUs, TPUs, and AI-optimized processors, plays in supporting AI workloads.

The hyperscale data center segment is expected to witness the fastest growth during the forecast period due to growing data traffic worldwide.

In 2024, North America dominated the market, driven by the region's strong technological infrastructure and early adoption of AI applications.

Asia Pacific is expected to record a significant share during the forecast period, fueled by the increasing demand for AI applications in countries such as China, Japan, and South Korea.

The global key market players are Amazon Web Service.; CyrusOne; Digital Realty Trust, Inc.; Equinix, Inc.; IBM; Intel Corporation; Microsoft Corporation; NTT Communications; NVIDIA Corporation; Oracle Corporation; QTS Realty Trust, LLC; and Stack Infrastructure.

Polaris Market Research has segmented AI data center market report based on component, data center type, industry, and region:

By Component (Revenue - USD Billion, 2020–2034)

Hardware

Software

By Data Center Type (Revenue - USD Billion, 2020–2034)

Hyperscale Data Center

Colocation Data Center

Edge Data Center

Others

By Industry (Revenue - USD Billion, 2020–2034)

Healthcare

Retail

IT and Telecom

BFSI

Automotive

Media & Entertainment

Manufacturing

Others

By Regional Outlook (Revenue - USD Billion, 2020–2034)

North America

US

Canada

Mexico

Europe

Germany

France

UK

Italy

Spain

Netherlands

Russia

Rest of Europe

Asia Pacific

China

Japan

India

Malaysia

South Korea

Indonesia

Australia

Rest of Asia Pacific

Middle East & Africa

Saudi Arabia

UAE

Israel

South Africa

Rest of Middle East & Africa

Latin America

Brazil

Argentina

Rest of Latin America Show more