Data Center Market to Reach 959 Billion by 2031

Arizton Advisory & Intelligence projects the global data center market will reach USD 959.19 billion by 2031, rising from a 2025 valuation of USD 514.26 billion. This growth is fueled by the deployment of AI workloads and massive annual investments from hyperscale operators including Amazon Web Services, Apple, Google, Meta, and Microsoft.

In Europe, the data center colocation market is expected to reach USD 46.51 billion by 2031, with the largest investment share concentrated in Western Europe. A primary technological trend across both global and European markets is the adoption of liquid cooling systems to manage the intense heat produced by AI infrastructure and high-performance computing.

Capacity expansion is most significant in the United States and the Nordics. Conversely, the Middle East faces operational risks due to the Israel-Iran conflict, which specifically impacts data center facilities in the United Arab Emirates and Bahrain.