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The total investment in data centers is expected to increase from $ 244.74 billion in 2019 to $ 432.14 billion in 2025 at a compound annual growth rate (CAGR) of 9.9%.
Forecasts predict the market to drop in 2020 due to the COVID-19 pandemic, with growth restarting in 2021 onwards. Enterprise data centers will account for an increasingly high proportion of data center investment followed by cloud, which will overtake enterprise data centers in investment by 2025.
The next decade will witness an explosion of data due to increased levels of technology deployment across the globe; this will drive the need for processing and storing data and require the construction of both large and small data centers. The advent of 4G and 5G networks and the deployment of Industry 4.0 technologies and Internet of Things (IoT) devices have caused a steady flow of data generation. Moreover, 5G deployments with increased speeds drive higher data creation that enables deployment of edge and micro data centers.