Global Data Center Outsourcing Market Forecast 2026-2031

The Global Data Center Outsourcing market is forecast to grow at a CAGR of 6.6%, reaching USD 341.7 billion in 2031 from USD 248.5 billion in 2026.

The global centre outsourcing market is expanding steadily as businesses increasingly contract with suppliers who have superior resources and technical know-how to handle their IT infrastructure, including cloud computing services. It has become simpler since big data, artificial intelligence, and cloud services came into being. The worldwide data center outsourcing market’s growth is driven by increased demand for scalable, efficient, and cost-effective IT infrastructure factors. Companies attempting to save money are increasingly choosing managed services for their hybrid infrastructures or outsourcing their data centers. Besides, the increasing request for cloud-based services propels the requirement for regulated hybrid infrastructure services and data center externalization.

Data Centre Outsourcing Market Growth Drivers:

• Increasing demand for shared infrastructure

The demand for virtual storage services increased due to the growth of multiple industries and the rise in shared infrastructure services. Other factors driving the data center outsourcing market include higher spending levels on business technology and IT services and a rise in market research and development initiatives. Additionally, during the projection period, the data center outsourcing market will have new opportunities due to advancements in technology, modernization of manufacturing practices, and rising demand from emerging economies.

• Growing need for affordable IT solutions

Businesses are increasingly looking for inexpensive and more effective options. Managed Services for Hybrid IT infrastructure and Data Center Outsourcing provide a cost-effective way to handle the latest IT solutions while reducing operational costs. With the help of these solutions, businesses can contract out the management of their IT infrastructure to a third-party supplier, who can offer a variety of services like networking, hosting, and storage. They can also offer improved data security, scalability, and dependability

• The demand for cloud-based services is rising.

Cloud computing is an increasingly significant component of contemporary IT infrastructure. Businesses have been opting for cloud computing services to reduce costs and improve scalability, security, and performance. These solutions are cheap platforms that businesses can use to store their data, programs, and services while allowing access to them from anywhere, on any device. Because data is stored in multiple locations, making it more difficult for hackers to access, cloud-based solutions are also more secure, which is also leading to market growth.

Data Centre Outsourcing Market Restraint:

• Fragmented market and data breaches are resisting the global market

There are a lot of well-known, technologically advanced players in the market, and the specializations that have developed among the vendors under study are expected to further fragment the market. There will also be fierce competition because various strategies have been employed to break into new emerging markets and acquire or partner with other technology-driven companies. This has resulted in the development of incompatible technology stacks, which force potential customers to stick with a particular vendor to obtain goods and services. These challenges associated with outsourcing make businesses more vulnerable to various problems, including operational problems with communication, scope understanding, unclear stakeholder perspectives, and lower code quality.

Data Centre Outsourcing Market Geographical Outlook:

• North America is expected to grow rapidly during the forecast period.

Outsourcers can offer scalable and secure data solutions because the region has a strong digital economy. Since there are also many multinational corporations located in North America that need adaptable, cheap data centers. This combination makes it possible for businesses in this location to expand by attracting both local and international resources in terms of investment, thus making it known as a central place for expanding one’s data center outsourcing. For example, Rimini Street unveiled Rimini ONE, a complete outsourcing solution that includes IT operations, support, and maintenance, in March 2023. It reduces the costs involved in data center management by providing enterprises with a single, efficient point to access essential IT services. Furthermore, it enables businesses to focus on their main strengths through outsourcing, ensuring the reliability and efficiency of their data center infrastructure.

Data Centre Outsourcing Market Key Developments:

• April 2026: DXC Technology launched DXC OASIS, a new AI-driven managed services orchestration platform designed to modernize outsourced IT and data center operations. The platform integrates agentic AI with enterprise infrastructure management to deliver predictive operations, automated service delivery, and real-time orchestration across complex IT environments.

• November 2025: Kyndryl was recognized as a Leader in the 2025 Gartner Magic Quadrant for Data Center Outsourcing Services, highlighting its AI-powered infrastructure orchestration, operational resilience, and enterprise outsourcing capabilities for mission-critical environments.

• September 2025: Equinix unveiled its Distributed AI infrastructure platform, integrating AI-ready networking, Fabric Intelligence automation, and AI Solutions Labs to help enterprises outsource and scale complex hybrid data center operations globally.

• September 2025: Nokia and Kyndryl announced that Swiss telecommunications provider iWay selected their joint solution to modernize and automate outsourced data center infrastructure operations. The deployment includes Nokia’s Data Center Fabric and Event-Driven Automation platform combined with Kyndryl’s managed network services to improve scalability, security, and operational efficiency.

• June 2025: Hewlett Packard Enterprise and KDDI Corporation announced a collaboration to launch AI-focused outsourced data center operations at the Osaka Sakai Data Center by early 2026. The facility will deploy NVIDIA Blackwell-based infrastructure with HPE liquid cooling technologies to support enterprise AI application development and large language model training services.

• April 2025: Corscale Data Centers, Affinius Capital, and e2Companies announced a strategic partnership for hyperscale outsourced data center development in the United States. The agreement enables deployment of e2Companies’ Virtual Utility® technology for on-site power generation, storage, and energy optimization across current and future hyperscale facilities.

Data Center Outsourcing Market Scope: