• Fri. Oct 4th, 2024

US has 70 percent more data centers than next 10 largest markets combined

The widespread adoption of cloud computing has transformed the data center landscape. Although it significantly cut the number of organizations operating their own data centers, it has also fueled a surge in the global data center count. Still, no market is even close to the United States when it comes to the total number of data centers.

According to data presented by Stocklytics.com, the United States counts 5,388 data, or 70 percent more than the next ten largest markets combined.

US has 10 times more data centers than China

Over the past decade, the once-niche piece of IT infrastructure – data centers – has become the talk of the investment world and a massive revenue driver for tech giants like Microsoft, Amazon, Google, and Nvidia.

The surging use of AI technologies, which require significant computing power and storage, has only fuelled the data center boom, helping the entire market to grow by 52 percent since 2017 and hit a $416 billion value.

Most of that figure comes from the United States, the single largest player in the global data center landscape. According to Statista Market Insights, the US data center market will generate over $120 billion, or roughly 30 percent of total market revenue, in 2024. However, the US dominance is also shown in the total number of data centers, which is much higher than in any other market.

According to data from the Cloudscene platform, currently, there are more than 11,800 operational data centers worldwide, and 45 percent of them are in the United States. Statistics show the United States has 5,388 data centers, ten times more than China and most European countries. For instance, the second-ranked Germany counts 520 data centers.

The United Kingdom is close to that figure, with 512 data centers as of March. Statistics show China is the fourth largest player in the global data center landscape with 449 listed data centers.

Canada, France, and Australia follow with 336, 315, and 307, respectively. The Cloudscene data also showed Japan is the last country on the top ten list, with 219 operational data centers.

Data centers to become a half-a-trillion dollar industry

Despite the apparent US dominance in revenue and the number of data centers, most of these countries will see impressive double-digit growth in the following years, helping the global data center market to hit record valuation.

After reaching a $416 billion value in 2024, the data center market will grow by a CAGR of 8.45 percent in the following years and become a half-a-trillion-dollar industry by 2027. The impressive growth will continue even after that, with the market value rising to almost $625 billion by the end of a decade.

Most of that figure will come from network infrastructure, the market’s largest and fastest-growing segment. Statista expects the network infrastructure to bring in $315 billion in revenue in 2029, or 31 percent more than this year.

Although far below in total revenue, servers will see much bigger growth in this period, jumping by 76 percent to $207 billion. The data center storage segment will see similar growth, with revenue rising by 71 percent to $101 billion in the next five years.

Main image courtesy of Flickr

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