The Data Center Real Estate Market is projected to achieve a value of US $143.32 billion by 2030.
The Business Research Company’s Data Center Real Estate Global Market Report 2026 – Market Size, Trends, And Forecast 2026-2035
LONDON, GREATER LONDON, UNITED KINGDOM, January 30, 2026 /EINPresswire.com/ -- The data center real estate sector is experiencing remarkable expansion as demand for digital infrastructure continues to surge worldwide. With increasing data consumption, cloud computing needs, and technological advancements, this market is set to witness significant growth over the next several years. Let’s explore the current market size, key drivers, major trends, and regional dynamics shaping this fast-evolving industry.
Steady Growth in the Data Center Real Estate Market Size
The data center real estate market has seen rapid development in recent years. It is projected to increase from $76.88 billion in 2025 to $87.17 billion in 2026, growing at a compound annual growth rate (CAGR) of 13.4%. This expansion during the historical period is largely due to rising cloud service demands, hyperscale data center proliferation, accelerating digital transformation, increasing data creation, and heightened interest from investors.
Looking ahead, the market is expected to continue its strong upward trajectory, reaching $143.32 billion by 2030 at a CAGR of 13.2%. Future growth will be driven by broader edge computing adoption, surging colocation service needs, a stronger focus on sustainable data center development, ongoing expansion in data center capacity, and enhanced interconnectivity among data centers. Key trends anticipated include advancements in AI-enabled infrastructure, innovations in liquid cooling technology, breakthroughs in sustainable energy research and development, modular data center designs, and AI-driven site selection improvements.
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Understanding Data Center Real Estate and Its Role
Data center real estate refers to specialized buildings designed to house critical computing assets such as servers, storage devices, and networking hardware. These facilities are engineered to provide high levels of security, resilience, and uninterrupted operations through robust power supplies, cooling systems, and network connectivity. The sector covers the purchase, construction, and management of properties optimized for large-scale data processing and storage demands, supporting the backbone of the digital economy.
Internet of Things Drives Data Center Real Estate Demand
One of the primary factors fueling growth in the data center real estate market is the rapid increase in Internet of Things (IoT) device adoption. IoT devices—ranging from smartphones and sensors to wearables, smart home gadgets, and security cameras—create vast amounts of data by continuously communicating over networks without human involvement. These devices require real-time data processing to improve operational efficiency, enable remote monitoring, and support intelligent decision-making across multiple industries.
Data center real estate plays a vital role by providing the infrastructure to store, manage, and process the enormous volumes of data generated from IoT devices. It offers essential features like low-latency connections, scalability, and reliability to accommodate the widespread deployment of these connected devices. For example, in September 2024, IoT Analytics, a German research firm specializing in IoT insights, reported that connected IoT devices reached 16.6 billion in 2023—a 15% increase from 14.4 billion in 2022. This upward trend in IoT adoption is significantly driving demand for data center real estate.
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Regional Overview of the Data Center Real Estate Market
In 2025, North America held the largest share of the data center real estate market. However, the Asia-Pacific region is expected to emerge as the fastest-growing market during the forecast period. The market analysis encompasses several key areas, including Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa, giving a broad perspective on regional trends and future opportunities.
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