Cloud Data Center Market Size to Gain USD 128.62 Billion by 2034

The global cloud data center market size was evaluated at USD 44.54 billion in 2024 and is expected to grow around USD 128.62 billion by 2034, registering a CAGR of 11.18% from 2025 to 2034.

Highlights of the Cloud Data Center Market

• By service, the infrastructure-as-a-service (IaaS) segment accounted for a considerable growth of the market in 2024.
• By service, the software-as-a-service (SaaS) segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
• By deployment, the hybrid cloud segment registered the largest revenue share in 2024.
• By deployment, the public cloud data center segment will gain a significant share of the market over the studied period of 2025 to 2034.
• By organization size, the large segment held a dominant presence in the market in 2024.
• By end use, the BFSI (Banking, financial services, and insurance) segment led the global market.
• North America dominated the global market in 2024.
• APAC is predicted to witness significant growth in the market over the forecast period.

Industry Valuation and Growth Rate Projection

The cloud data center market refers to a cloud data center that is not present physically but virtually. It is a facility that contains a network of servers, storage, and computing resources that can be read and edited remotely over the Internet. This enables the users to store, process, and manage data without owning or dealing with the physical setup.

Some of the applications of cloud data centers are such as data storage and backup, web hosting, software development, education and training, healthcare and telemedicine, and disaster recovery. As the need for cloud data centers keeps surging, the requirement for more centers is being met universally.

• Following the data obtained from the Cloudscene platform, there are over 11,800 operational data centers in the world.

Cloud Data Center Market: Stats and Figures

• In the year 2025, the total number of data centers available in the United States was stated to be 5,426.
• The investment to be made in the data centers, on a global scale, in the coming years, is about to reach $7 trillion.
• As per the research by Goldman Sachs, data centers will account for 8% of the total electricity demand in the US by the year 2030.
• According to the analysis of McKinsey and Company, the requirement for AI-ready data center capacity will rise from 19% in 2023 to 22% in 2030.

What Does an Industry Leader Have To Say About the Market?

• Brian Dula, Region CEO of the Electrification and Automation business at Siemens Smart Infrastructure USA:

While focusing on building cloud data centers, Dula said, “Tools like artificial intelligence and cloud services provide great opportunities as well as some challenges in terms of the scale of growth. At Siemens, we are ‘productizing’ the critical components necessary so companies like Compass can build new data centers faster while reducing on-site work and costs. It is the prefabrication, modular, and fungible design of our technology that provides the bedrock needed to meet the demand the industry is calling for.”

How Has AI Benefited the Market?

The cloud data center market, alongside AI, can evaluate hefty data and enhance the security of cloud data centers. Here is how AI benefited the market:

• Automating cloud-related tasks: AI can be used to prevent the systems from cyberattacks and detect failures initially.
• Predictive analytics: AI can foresee the trends and patterns of users, after studying which, businesses can take informed decisions at a quicker pace.
• Enriched productivity: AI can deal with tasks that might be tedious for humans to work on regularly, such as handling documents, categorizing packages, and matching accounts, thus increasing productivity at work.
• Security: AI can keep an eye on networks and other users and spot disturbances in the patterns of the same.

Geographical Insights 

The global cloud data center market is experiencing significant growth, with North America maintaining its position as the dominant region while Europe emerges as the fastest-growing market. The APAC region is expected to grow in the coming years.

North America

The market in North America stood in an influential position, as the presence of data centers is counted to be the highest in the region in comparison with others. In the US, the supply of electricity keeps increasing in many states, leading to the growth of data centers overall.

The U.S. General Services Administration (GSA) declared a 10-year electricity procurement contract with Constellation New Energy, Inc, which contains the supply of more than 10 million megawatt-hours (MWh) of electricity to 80 federal facilities across the PJM Interconnection region, including some parts of 11 mid-Atlantic and Midwest states and the District of Columbia. 

Europe

The 5G technology is being implemented by companies in the region. Rising adoption of Artificial Intelligence in the data centers and companies putting all the effort in keeping the data as safe as possible is pushing the market ahead in Europe.

Microsoft has pledged to certify that European cloud data will be stored and processed in Europe. Sovereign Cloud solutions will see to it that the customers’ data in Europe stays in Europe, and only the Microsoft employees based in Europe will have remote access to these systems.

APAC

The government is encouraging the adoption of data centers for the digital revolution in the APAC region. Ever-increasing demand for data centers and companies acquiring other companies for expanding their business worldwide are driving the growth of the cloud data center market.

The digital infrastructure giant Vertiv has acquired a Chinese firm and has set an objective of boosting the company's portfolio and improving its ability to facilitate high-performance computing and AI applications globally.

Which Recent Developments Took Place in This Industry?

• In June 2025, CoreWeave seemingly provided some of the computing capacity to OpenAI through the latest deal between Google and OpenAI. In January 2025, Siemens and Compass Datacenters decided to begin a multi-year agreement for the distribution of custom modular medium-voltage skid solutions, while having the target of accelerating data center construction and fulfilling customer demands.

What Does the Competitive Landscape Look Like?

The cloud data center market is highly competitive, with leading pharmaceutical companies such as NTT, Equinix, Digital Realty, Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform, Meta (Facebook), IBM Cloud, and Alibaba Cloud holding the highest market share. Emerging biotech firms also play a crucial role by fostering a dynamic and evolving competitive landscape.

The market is dominated by several pharmaceutical companies renowned for their significant contributions to cancer research and treatment. Based on current data, the top three leading companies are:

• Company Name: NTT UD REIT Investment Corporation
• Year of Incorporation: 2002
• Headquarters: Tokyo, Japan

The yearly revenue of NTT UD REIT Investment Corporation stood at $23,776,503 in 2024.

• Company Name: Equinix
• Year of Incorporation: 1998
• Headquarters: California, United States

The gross profit of Equinix grew from $3,960,000 in 2023 to $4,281,000 in 2024.

• Company Name: Digital Realty
• Year of Incorporation: 2004
• Headquarters: Texas, United States

The annual revenue of Digital Realty was accounted to be $5,554,968 in 2024.