According to the latest data, the United States at present leads in the global data centre market with 5,388 facilities, ten times more than China and even more than most of Europe combined. The growth in adoption of cloud and other AI technologies is fueling an increase in demand for data centers, and India is ready to have its data center boom.
Not only is the US data center market much larger than that of any other country, but it contains 70 percent more capacity than the next ten largest markets combined. Germany was second at 520 and the UK third at 512, while China, in the fourth position, had 449 operational data centers.
Eighth place was held by Canada, France, and Australia with 336, 315 and 307, while Japan rounded out the top ten with 219.
This is fueled partly by the rapid growth of AI technologies, which largely require both computing and storage capacities. It is as a result of this that the data center market increased by 52% since 2017 to push its value to $416 billion. According to forecasts, the global data center market will expand at an 8.45% CAGR in the forthcoming years, possibly reaching a half-trillion-dollar industry in 2027.
According to Statista Market Insights, the data center market in the US will account for more than 30% share of the total market revenue by generating over $120 billion by 2024.
India is fast making its presence felt in the international data center industry, and it will add another 500 MW of capacity in the next four years. Data centre capacity in India doubled from 540 MW in 2019 to 1,011 MW in 2023. Which makes India one of the speediest markets worldwide.
Such will drive growth within the sector by a remarkable CAGR of 26% in the following three years, thereby attracting even diversified investors such as long-term pension and sovereign wealth funds, besides other growth-stage private equity firms.
India saw 21% absorption in the first half of this year with the growing demand for edge data centers, especially in Tier 2 and 3 cities, according to Savills India.
