Data Center Transformation Market Projected to Reach $61.10 Billion by 2035 | SNS Insider

KUALA LUMPUR, 29 JULY 2026 —

Headline: Data Center Transformation Market Projected to Reach $61.10 Billion by 2035 | SNS Insider Lead: The U.S. data center transformation market is expected to hit $21.13 billion by 2035, while Europe is anticipated to touch $16.07 billion, driven by hybrid cloud adoption, AI-powered infrastructure ... Body: The U.S. data center transformation market is expected to hit $21.13 billion by 2035, while Europe is anticipated to touch $16.07 billion, driven by hybrid cloud adoption, AI-powered infrastructure management, edge computing expansion, and enterprise data center modernization. Austin, July 27, 2026 (GLOBE NEWSWIRE) -- The Data Center Transformation Market was valued at USD 18.00 Billion in 2025 and is projected to reach USD 61.10 Billion by 2035, expanding at a CAGR of 13.0% during the forecast period. There have been considerable advances in the Data Center Transformation market around the world due to the increasing adoption of IT infrastructures that facilitate hybrid cloud environments, AI capabilities, edge computing, and digital transformation by businesses. Companies across different verticals are making an effort to replace their existing data center solutions with advanced ones that can efficiently process huge amounts of enterprise data. Download PDF Sample of Data Center Transformation Market @ https://www.snsinsider.com/sample-request/5513 The fast pace at which the enterprise IT infrastructure is evolving is having a profound impact on the data center landscape of the world. Enterprises need intelligent, automated, and scalable infrastructure that can support the use cases like artificial intelligence, cloud native, edge computing, IoT, and real-time analytics. Multi-cloud and hybrid cloud architectures are helping enterprises in optimizing their workloads in various environments. The Hardware section led the data center transformation market globally in 2025, having captured the maximum market share due to ongoing spending on sophisticated servers, storage, networking systems, cooling systems, and power management systems. It is expected that the Software section will grow at the fastest pace during the forecast period, thanks to growing usage of Data Center Infrastructure Management (DCIM) software, artificial intelligence-enabled monitoring software, predictive maintenance software, workload orchestration software, and intelligent automation software. The share of Consolidation Services segment was largest with a share of about 36.0% in 2025 because of the need of consolidation of legacy systems by companies to enhance efficiency, lower maintenance expenses, and facilitate IT management. On the other hand, the Automation Services segment is projected to show highest growth rate due to the increasing use of artificial intelligence, machine learning, and robotic process automation in data centers of enterprises. Market segment of IT & Telecommunication held the highest market share with around 36.0% in 2025 owing to the increasing investments in the infrastructure of cloud computing, hyperscale data centers, 5G technologies, internet services, and digital communication systems. Market segment of healthcare is expected to register the highest CAGR during the forecast period owing to the increasing adoption of digitalized healthcare data, AI-based diagnostics tools, telemedicine platforms, and imaging applications. The market share of the Tier-3 category was the highest at around 38.4% due to its ideal combination of reliability, scalability, and operational costs. The Tier-4 category will witness the highest growth rate with a CAGR of about 15.2% attributed to the increasing need for continuous operation, fault tolerance, artificial intelligence computing, finance transactions, and high-performance computing environments. If You Need Any Customization on Data Center Transformation Market Report, Inquire Now @ https://www.snsinsider.com/enquiry/5513 North America accounted for the largest share of the global data center transformation market in 2025, contributing more than 40% of worldwide revenue. The region benefits from mature cloud infrastructure, strong enterprise digital transformation initiatives, widespread AI adoption, and continuous investments by hyperscale cloud providers. The U.S. data center transformation market was valued at approximately USD 6.34 billion in 2025 and is projected to reach nearly USD 21.13 billion by 2035, growing at a CAGR of approximately 12.8%. The U.S. remains the world's largest market owing to extensive deployment of hybrid and multi-cloud infrastructure, increasing enterprise adoption of AI-enabled data management, and strong investments from hyperscale operators including Digital Realty, Equinix, Microsoft, Google Cloud, Amazon Web Services, and Meta. The Europe Data Center Transformation Market was valued at approximately USD 5.04 Billion in 2025 and is projected to reach nearly USD 16.07 Billion by 2035, growing at a CAGR of approximately 12.30%. Europe is still a key regional market owing to the presence of rigorous data sovereignty policies, sustainability drives, cloud adoption in enterprises, and increased spending on the modernization of digital infrastructure. The regulatory environment including GDPR makes it necessary for firms to update their data centers. Asia Pacific is expected to register the fastest regional growth during the forecast period, expanding at a CAGR of approximately 14.56%. Rapid digitalization, growing internet penetration, expansion of hyperscale cloud infrastructure, and rising investments in AI and edge computing continue driving strong regional demand. 2025: Equinix continued expanding its global hyperscale data center footprint by adding new capacity across major metropolitan markets to support growing enterprise interconnection and colocation requirements. 2025: NTT advanced its Asia-Pacific data center modernization initiatives by expanding hyperscale infrastructure while improving energy efficiency to address increasing regional cloud services demand. Buy Full Research Report on Data Center Transformation Market 2026-2035 @ https://www.snsinsider.com/checkout/5513 Data Center Modernization & Infrastructure Transformation Analysis – Evaluates virtualization, server consolidation, software-defined infrastructure, cloud migration strategies, AI-powered automation, intelligent networking technologies, and next-generation data center modernization solutions. Hybrid Cloud, Edge Computing & Digital Infrastructure Benchmarking – Examines enterprise adoption trends across hybrid cloud, multi-cloud, edge computing, hyperscale facilities, AI workloads, IoT infrastructure, and digital transformation initiatives driving global market demand. AI-Driven Data Center Management & Automation Insights – Assesses AI-enabled infrastructure monitoring, predictive maintenance, workload orchestration, intelligent capacity planning, software-defined networking, and automation technologies improving operational efficiency. Global Enterprise & Hyperscale Data Center Landscape – Provides insights into enterprise modernization strategies, hyperscale cloud expansion, colocation investments, healthcare, BFSI, manufacturing, IT & telecommunications adoption, and industry-specific infrastructure transformation trends. Regulatory Compliance, Energy Efficiency & Sustainability Tracker – Analyzes data sovereignty regulations, cybersecurity frameworks, ESG initiatives, energy optimization technologies, green data center investments, compliance requirements, and… (AI-assisted rewrite, based on the original source)

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