Global Data Center Market Projected to Near $500 Billion by 2029

Data Center Market Growth and Power Challenges

Market Projections

  • Global data center market expected to reach nearly $500 billion by 2029

  • Currently valued at around $300 billion in 2024

  • Growth driven by AI, cloud computing, and digital infrastructure

  • Predicted 10% annual growth rate over the next five years

Investment Outlook

  • 70% of executives expect increased investment in data centers in the next two years

  • AI seen as a key driver for ongoing demand

Power Concerns

  • Power availability and reliability are major concerns for investors and operators

  • 98% consider power issues when making decisions about data center projects

  • Half view power as a principal barrier to investment

Industry Responses

  • Companies restructuring to focus on land acquisition and alternative power sources

  • Grid power already allocated through 2027 in some areas

  • New developments looking at 2028-29 for power availability

  • Operators exploring alternatives like natural gas, onsite turbines, and fuel cells

Future Outlook

  • Continued pressure to find and utilize power sources

  • Need for coordination between policymakers, investors, and power providers

  • Data center capacity crucial for AI revolution and global economy


Most data center experts expect to see continued investment over the coming years, but power remains a key concern.

The global data center market is projected to reach nearly $500 billion by 2029, driven by investment in AI, cloud computing, and digital infrastructure, according to new research from law firm DLA Piper.

In a survey of 176 senior executives on the topic of data center investment opportunities, most expressed confidence about the sector’s future, with 70% of respondents predicting increased investment in data centers in the next two years.

The global data center market is expected to be valued at around $300 billion in 2024, according to analysis by TMT Finance, which carried out the research for DLA Piper.

With a projected average compound annual growth rate of approximately 10% over the next five years, the market is expected to be valued at $483.15 billion by 2029.

Power Challenges

While almost all respondents said they expect AI to drive ongoing demand for data centers, those surveyed also expressed “significant concern” over the stability of power supplies for the rapidly growing number of data center facilities worldwide.

Ninety-eight percent of investors and operators told DLA Piper that they had concerns about the availability and reliability of power supplies when they made decisions about data center projects, with half of respondents identifying the issue as a principal barrier to investment.

‘Capacity Is Key’

“Data center capacity is key to the AI revolution and the wider global economy. To satisfy increasing demands for processing power, not only will significant investment be required from across the industry, but also a clear framework established to encourage coordination between policymakers, investors, and power providers that ensures the heightened future power demands can be met.”

The US Data Center Markets team confirmed that power is one of the biggest issues impacting the industry as we head into 2025.


“Everybody is completely changing the way their companies are structured,” - "They are adding acquisition folks to go about finding more land, and they are looking at alternative sources of power. The [grid] power is effectively [allocated] for 2025 and 2026, even into 2027, so all new developments are looking at 2028-29.”

To bridge the power gap over the next few years,  operators are increasingly turning to natural gas, onsite turbines, fuel cells, different types of energy, and lower voltage power.

“I don’t see it slowing down" -  “Everybody is pressured to find this power and put it to work.”

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