Data Center Renovation Market Forecast to 2034 – For Business Leaders, Analysts, and Strategic Teams

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The Business Research Company's Data Center Renovation Market Forecast to 2034 – For Business Leaders, Analysts, and Strategic Teams

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How Big Is The Global Data Center Renovation Market Expected To Grow, And What Is Its Annual Growth Rate?

Main driving factors for such an exponential surge have been identified as the increasing requirements of data storage stemming from the modernization of legacy infrastructures, and growing concerns about energy efficiency and security compliance requirements. The data center renovation market size of $36 billion in 2025, up from $29.48 billion in 2024, only indicates the enormous potential that the coming years hold. The rate of growth is set to hold steady at a compound annual growth rate CAGR of 22.1%.

Moving forward, the coming years till 2029 are set to see even bigger leaps. The data center renovation market size is expected to reach a mammoth $96.97 billion in 2029, growing at a compound annual growth rate CAGR of 28.1%. Technological advancements including integrated edge computing, 5G, green computing and sustainability, modular designs, and advanced cooling technologies could steer this growth.

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What Is Driving The Growth Of The Data Center Renovation Market?

The increasing usage of online services is expected to propel the growth of the data center renovation market moving forward. The increase in data traffic across multiple sectors due to the surge in online services usage for payments, shopping, traveling, entertainment, and medical applications will necessitate modernization of data centers. As per data from the Switzerland-based United Nations agency for information and communication technologies, International Telecommunication Union, 67% of the world’s population, which is roughly 5.4 billion people, were using the internet in September 2023, a slight increase from 66% the previous year.

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Which Leading Companies Are Driving The Growth Of The Data Center Renovation Market Share?
Leading the charge in the global data center renovation market are Equinix, Digital Realty, Schneider Electric, Vertiv, NTT Communications, Eaton Corporation, Hewlett Packard Enterprise, Cisco Systems, Fujitsu, IBM Corporation, ABB Ltd., Siemens AG, Amazon Web Services AWS, Google Cloud, Microsoft Azure, Iron Mountain, CyrusOne, QTS Realty Trust, DataBank, Flexential, STACK Infrastructure, CoreSite Realty, Aligned Data Centers, CloudHQ, Switch, RagingWire Data Centers, Evoque Data Center Solutions, Compass Datacenters, T5 Data Centers, Cologix.

What Are The Key Trends Of The Data Center Renovation Market?

The recent trend in vertical data center trends among the above-mentioned key players is turning heads all around the market. A vertical data center maximizes vertical space usage inside a data center facility. One instance of such innovation is Brazil based data center provider, Scala Data Centers, launching 6MW IT SGRUTB05 data center, the second largest vertical facility in Latin America. This facility boasts a 6,700 sqm built area with five floors, three dedicated to high-density data halls housing nearly 400 racks with a total power of close to 9MW.

How Is The Global Data Center Renovation Market Segmented?

The data center renovation market is segmented based on product, organization size, and application.

1 By Product: Cooling, Power, IT Racks And Enclosures, Networking Equipment, DCIM, Other Products
2 By Organization Size: Small Size Organization, Medium Size Organization, Large Size Organization
3 By Application: BFSI, IT And Telecom, Manufacturing, Government, Healthcare, Other Applications

Subsegments:
1 By Cooling: Air Conditioning Units CRAC Or CRAH, Liquid Cooling Systems, In-Row Cooling, Free Cooling Economizer, Hot Aisle Or Cold Aisle Containment Systems
2 By Power: Uninterruptible Power Supply UPS Systems, Backup Generators, Power Distribution Units PDUs, Batteries and Energy Storage Solutions, Power Management Systems
3 By IT Racks And Enclosures: Server Racks, Rack Cabinets, Modular Racking Systems, Custom IT Enclosures
4 By Networking Equipment: Routers And Switches, Fiber Optic Cables And Connectors, Network Interface Cards NICs, Firewalls And Load Balancers
5 By DCIM Data Center Infrastructure Management: Monitoring And Management Software, Environmental Monitoring Tools Temperature, Humidity Sensors, Asset Tracking And Management Systems, Energy Management Solutions
6 By Other Products: Fire Suppression Systems, Security Systems Access Control, Surveillance, Cable Management Solutions, Environmental Sensors Water, Smoke Detection, Physical Security Barriers

What Are The Leading Region In The Data Center Renovation Market?

South America emerged as the largest region in the data center renovation market in 2024, closely followed by North America. The regions covered in this report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

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