DATA CENTER AS A SERVICE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Regional Analysis

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North America has established itself as the dominant region in the global data center as a service market with estimated market share of 33.7% in 2024. The strong presence of leading cloud and managed service providers such as Amazon Web Services, Microsoft Azure, IBM, Google in the U.S. has boosted demand for data center services across all major industry verticals. Key factors driving the market growth include high digital connectivity and IT infrastructure penetration, strong economy supporting large-scale cloud adoption among enterprises, flexibility and scalability offered by data centers, and focus on reducing upfront capital expenditure through pay-per-use pricing models. The exponential data traffic and emerging technologies requiring massive computing power such as IoT, big data analytics and AI are encouraging established businesses to enhance their existing infrastructure through third-party data centers.

Asia Pacific, specifically Southeast Asian countries, is expected to witness fastest growth. Countries like Singapore, Malaysia, Thailand and Indonesia are rapidly emerging as the new destinations for data center investment and operations. Strong economic growth, young tech-savvy population, focus on digitalization of services and availability of highly-skilled workforce at competitive costs have been drawing major cloud and managed service providers to set up their infrastructure in the region. Rising cloud adoption among SMEs and startups, increasing data sovereignty regulations in some APAC nations are prompting global companies to localize their data centers. Governments' initiatives promoting digital economy and improving connectivity infrastructure have raised for third-party data centers exponentially. Proximity to fast-growing markets ensures low latency and compliance with data localization mandates. The region is expected to witness multiple hyperscale data center investments in the near future.