What Is the Estimated Market Size and CAGR of the Data Center Real Estate Market for the Period 2026–2030?
The data centre real estate market size has grown rapidly in recent years. It will grow from $76.88 billion in 2025 to $87.17 billion in 2026 at a compound annual growth rate (CAGR) of 13.4%. The growth in the historic period can be attributed to increasing demand for cloud services, rising hyperscale data centre expansion, growing digital transformation, and increasing data generation, and rising investor interest.
The data centre real estate market size is expected to see rapid growth in the next few years. It will grow to $143.32 billion in 2030 at a compound annual growth rate (CAGR) of 13.2%. The growth in the forecast period can be attributed to growing adoption of edge computing, rising demand for colocation services, increasing focus on data centre sustainability, expansion of data centre footprint, and growing interconnectivity between data centres. Major trends in the forecast period include advancement in ai-driven infrastructure, innovation in liquid cooling systems, development in sustainable energy r&d, innovation in modular data centre design, and advancement in ai-optimized site selection.
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Which Market Forces Are Stimulating Growth in the Data Center Real Estate Market?
The rising adoption of internet of things (IoT) devices is expected to propel the growth of the data center real estate market. The internet of things (IoT) devices refer to a network of interconnected devices, such as smartphones, sensors, wearables, smart home devices, and security cameras, that communicate and exchange data over the internet without human intervention. The need for internet of things (IoT) connected devices is increasing due to the need for real-time data, as they enhance efficiency, enable remote monitoring, and support smarter decision-making across industries. Data center real estate enhances internet of things (IoT) device adoption by providing the physical infrastructure needed to store, process, and manage massive IoT-generated data. It ensures low-latency connectivity, scalability, and reliable support for widespread IoT deployments. For instance, in September 2024, according to IoT Analytics, a Germany-based research firm focused on IoT market insights, the number of connected IoT devices reached 16.6 billion in 2023, reflecting a 15% increase from 14.4 billion in 2022. Therefore, the rising adoption of internet of things (IoT) devices is driving the growth of the data center real estate market.
Which Key Segments Are Included in the Data Center Real Estate Market Analysis?
The data center real estate market covered in this report is segmented –
1) By Property Type: Colocation, Hyperscale, Wholesale, Retail, Enterprise, Other Properties
2) By Ownership: Owner-Occupied, Leased
3) By Enterprise Size: Small And Medium Enterprises (SMEs), Large Enterprises
4) By Application: Information Technology (IT) And Telecom, Banking, Financial Services, And Insurance (BFSI), Healthcare, Government, Energy, Other Applications
Subsegments:
1) By Colocation: Shared Rack Space, Dedicated Cage, Private Suite
2) By Hyperscale: Cloud Service Provider Facility, Large Enterprise Facility, Internet Company Facility
3) By Wholesale: Full Data Hall Lease, Partial Building Lease, Multi-Tenant Lease
4) By Retail: Single Rack Lease, Multiple Rack Lease, Cabinet Lease
5) By Enterprise: On-Premises Enterprise Facility, Corporate Campus Data Center, Dedicated Organizational Facility
6) By Other Properties: Edge Data Center, Modular Data Center, Hybrid Data Center
Which Future-Ready Trends Are Expected to Influence the Data Center Real Estate Market?
Major companies operating in the data center real estate market are focusing on developing advanced infrastructure, such as multi-campus interconnected hubs, to boost efficiency, enhance reliability, and reduce latency for enterprises. Multi-campus interconnected hubs refer to a network strategy where multiple data centers in strategic locations are seamlessly linked to form a unified ecosystem, enabling high-speed data exchange and operational resilience. For instance, in September 2025, Equinix, a US-based digital infrastructure company, launched its first International Business Exchange (IBX) data center, CN1, in Chennai, India. The facility is a high-performance data center that will be directly connected to the company’s existing multi-data center campus in Mumbai. This interconnection creates a powerful, integrated hub that extends a highly interconnected ecosystem for cloud, carrier, content, and enterprise customers from Mumbai to the Tamil Nadu region. It incorporates a phased investment approach, with an initial $69 million phase delivering 800 cabinets, and is designed for future scalability to support 4,250 cabinets, ensuring it can grow alongside India's digitalization journey while maintaining a focus on sustainability.
Who Are the Top Performers and Innovators in the Data Center Real Estate Market?
Major companies operating in the data center real estate market are Equinix Inc., Iron Mountain Incorporated, Digital Realty Trust Inc., GDS Holdings Limited, Global Switch Limited, Sify Technologies Limited, NTT Global Data Centers, CtrlS Datacenters Ltd., Vantage Data Centers LLC, 11:11 Systems Inc., STACK Infrastructure Inc., EdgeConneX Inc., Flexential Corp., DataBank Holdings Ltd., STT GDC Pte. Ltd., Digital Edge DC Pte. Ltd., Colt Data Centre Services (Colt DCS), DATA4 Group S.A., Keppel Data Centres Holding Pte. Ltd., NorthC Group B.V., Kao Data Ltd.
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Which Regional Markets Are Likely to See the Most Significant Expansion in the Coming Years?
North America was the largest region in the data center real estate market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center real estate market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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