Data Center Infrastructure Management Market to reach $41 Billion by 2030; the increasing demand for efficient data storage, energy optimization, and the need to manage complex, scalable data center operations are fueling the Data Center Infrastructu

The Data Center Infrastructure Management Market size is estimated to reach $41 Billion by 2030, growing at a CAGR of 17.4% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Data Center Infrastructure Management Market - By Component (Solution and Service), By Functionality (Performance optimization, Configuration, Operation Monitoring, Reporting & Dashboards and Others), By Tier Standards (Tier 1, Tier 2 ,Tier 3 and Tier 4) , By Data Center Size (Small Data Center, Medium Data Center and Large Data Center), By Deployment Model (On-Premises and Cloud), By Industry Vertical (Banking, Financial Services and Insurance, Government and Public Sector, Healthcare and Life Sciences, IT and ITeS, Manufacturing, Telecommunications, Education, Media & Entertainment, Retail & Ecommerce & Others) and By Geography - Opportunity Analysis & Industry Forecast, 2024-2030.

Digital Transformation across industries is driving market growth as sectors like healthcare, finance, and manufacturing adopt digital technologies to enhance efficiency and innovation, creating a need for advanced data center management. Meanwhile, the Expansion of IoT and Big Data is fueling demand for robust data handling capabilities, as the growing volume of connected devices and data requires efficient storage and processing, fuelling the market growth.

In 2023, the North America region held the largest share of 40% in the Data Center Infrastructure Management Market due to the region's advanced technological infrastructure, strong demand for cloud computing services and substantial investments in sustainable and energy-efficient data centers. North America, particularly the United States and Canada, continues to lead in the expansion of data center facilities driven by both government support and private sector investments. The region’s rapid adoption of emerging technologies, including AI, IoT and big data analytics further accelerates the need for efficient data management and infrastructure solutions. For instance, in December 2024, Canada’s federal government explored a $15 billion incentive program to encourage domestic pension funds to invest in artificial intelligence (AI) data centers powered by green energy. This initiative is aimed at addressing the energy demands of AI technologies while accelerating the country’s transition to clean energy. Alongside this, in December 2024, generative AI startup Cohere announced plans to deploy a multibillion-dollar data center in Canada, built and operated by CoreWeave. The Canadian government is supporting the initiative with up to  $170 million in funding as part of its Canadian Sovereign AI Compute Strategy. These initiatives underscore Canada’s strategic positioning in the global data center infrastructure market and highlight its critical role in powering the growing demand for AI and data-driven services, especially in the context of environmental sustainability.

Digital transformation across industries is a key driver of the data center infrastructure management market, as businesses and governments increasingly rely on data-driven solutions to enhance operational efficiency and support innovation. For instance in Europe, the U.K. government’s decision in September 2024 to officially designate data centers as Critical National Infrastructure highlights the crucial role these facilities play in the nation’s economy. Data centers, which store and process vast amounts of essential data, are now recognized as vital to the functioning of key sectors, much like energy and water systems. This recognition not only underscores the importance of these facilities but also enables the government to offer better support to the data center industry, particularly during critical incidents. Such measures are essential for minimizing economic disruption, ensuring continuity and fostering long-term recovery and future planning. This growing recognition and focus on the digital transformation are encouraging increased investments in data centers further driving the demand for advanced data center infrastructure management solutions.

The expansion of the Internet of Things (IoT) and Big Data continues to drive significant growth in the data center infrastructure management market, as industries require more robust and scalable solutions to handle vast amounts of data generated by IoT devices and big data analytics. In October 2024, Dagang NeXchange Berhad (DNeX) and Google Cloud signed a deal to provide sovereign cloud services in Malaysia with DNeX managing the Google Distributed Cloud (GDC) offering. This partnership is aimed at supporting the growing demand for cloud services, particularly in sectors like IoT where local data sovereignty is increasingly important for compliance and security. In December 2024, Coevolution (CoEvo) is set to deploy its AI Edge cloud infrastructure in Cologix’s VAN3 data center in Vancouver, Canada. Through its GPU-as-a-Service offering, CoEvo is enabling enterprises to access high-performance clusters specifically designed for AI workloads, including IoT and big data applications. This further highlights the increasing importance of data centers in supporting the infrastructure needed to manage and process the massive volumes of data generated by IoT and big data, making the sector a key driver of innovation and growth in the data center infrastructure management market.

ABB Ltd., Emerson Electric Co, Commscope, Inc., Eaton Corporation, Vertiv Group Corp., Schneider Electric SE, Johnson Controls International PLC, IBM Corporation, Huawei, Cisco Systems Inc. and others.

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