The managed data center services market is expected to grow at a CAGR of 16.52%, reaching a market size of US$946.095 billion in 2030 from US$440.433 billion in 2025.
Managed hosting and other services like managed colocation and storage fall under managed data center services. On the other hand, the list includes disaster recovery, compliance, network connectivity, and network security, among others. It is believed that managed data center services will be on a rapid growth trajectory for five years to come, given the proliferation of data centers worldwide, which poses challenges when configuring and running these centers. Hence, enterprises are looking towards outsourcing as a primary option that helps them to optimize business processes while keeping control over critical IT infrastructure.
North America is expected to be the major market for managed data centre services, constituting the maximum share, followed by Europe. In contrast, the Asia Pacific region is expected to witness maximum expansion over the forecast period because of high growth observed in the data centre market, favourable government policies, economic growth, and increasing investment toward IT infrastructure.
There is an increasing trend toward large and medium enterprises opting for managed data centres owing to their cost-efficiency, flexibility, and improvement in organizational efficiency. The cost of setting up an in-house data centre involves high capital expenditure, along with periodic maintenance expenditure. In addition, an enterprise has to incur high wages for hiring technical staff for upgrading, maintenance, and compliance with stringent government regulations. The space in an in-house data center is also limited, and it can be scaled by increasing the capital expenditure on IT infrastructure. Resultantly, enterprises opt for managed data centres as it saves on huge capital expenditure on IT infrastructure.
In addition, these centres offer flexibility and scalability by offering a pay-per-use model, so any enterprise can increase their use at their convenience without the need to incur any substantial expenditure. This is one of the major factors driving the demand for managed data centre services worldwide. Furthermore, increasing investment towards adopting automation solutions and big data across industry verticals coupled with state-of-the-art services offered by vendors to comply with standard government regulations will further propel the demand for managed data centre services over the forecast period.
Large enterprises are projected to grow considerably during the forecast period. Huge volumes of data added to these data centres and huge costs associated with running and managing these data centres are steering business owners towards managed data centre services. Small and medium enterprises also hold a significant market share. This market growth among small and medium enterprises is driven by the increasing popularity of data centre colocation among them.
Furthermore, the growth of this market among large enterprises is driven by the rapidly increasing digitization of business processes and the continuously increasing traffic on the internet, both of which add to the huge volumes of data at data centres every day. Currently, large enterprises hold the lion’s share of the total data centre space owned by enterprises and thus hold a major share of the data generated worldwide. Cost reduction continues to be at the forefront of the enterprises’ growth strategies, and the cost of running and maintaining data centres continues to surge exponentially due to increasing data volumes. Therefore, enterprises are cutting back on their investments in the IT workforce and moving towards managed data centre services, thus boosting the market’s growth.
The market for managed data center services is being adversely affected by the enormous amount of energy required in data centers and rising temperatures. The lack of understanding about the services is another reason why data center technologies need to be managed. This affects how these services are used, so it's becoming more crucial to focus on educating data center owners about these issues.
It can be associated with expanding data centres to handle massive volumes of data. Furthermore, it is projected that the region's extensive telecom network and expanding use of digital services will facilitate market expansion. Furthermore, it is anticipated that the growing number of SMEs and startups in the area will hasten the usage of data centre services. There is an increase in data produced by digital goods and services in Asia-Pacific. This can be attributed to the increasing population in the area and the growth of e-commerce. The Asia Pacific region is home to two major data centre marketplaces: those serving local demand and those serving domestic demand. These Tier II markets are particularly interesting due to the rapid population growth in these regions, which necessitates additional data centre space.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Managed Data Center Services Market Size in 2025 | US$440.433 billion |
| Managed Data Center Services Market Size in 2030 | US$946.095 billion |
| Growth Rate | CAGR of 16.52% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in Managed Data Center Services Market |
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| Customization Scope | Free report customization with purchase |
Managed Data Center Services Market is analyzed into the following segments: