Number of Next-Generation Colocation Sites by Size

Source Research:

Next-Generation Data Center Forecasts

Market Data | 03 Apr 2024 | MD-NGDC-24

The chart above forecasts the number of colocation Data Centers (DCs) worldwide.

The number of next-generation colocation Data Centers (DCs) is expected to reach 7,640 sites by 2030, with a Compound Annual Growth Rate (CAGR) of 6.8%. Key growth drivers for next-generation DCs include increasing demand for mega and large DCs supporting Artificial Intelligence (AI)/Machine Learning (ML) workloads, including generative AI. By 2030, 1,387 mega next-generation DC sites will be built, representing a CAGR of 13.7%, while 1,879 large next-generation DC sites will be built by the same year, at a CAGR of 15.5%.

  • Medium DCs account for close to 40% share of total DCs worldwide, growing to 3,018 sites by 2030. Large DCs are the second largest with a 25% share by 2030, followed by mega DCs with an 18% share. Small and micro DCs round up the list with 16% and 1% respectively.
  • However, in terms of CAGR, large and mega DCs are the fastest-growing DC sizes with 15.5% and 13.7% growth by 2030. This reflects the demand for more server, storage, and networking hardware that is needed to fulfill the requirements of generative AI, machine learning training/ inference solutions, and low-latency networks.
  • At the other end of the spectrum, small and micro DCs will experience a decrease in CAGR by 2030. This is because as cloud solutions mature, the requirements that are required from DC infrastructure can no longer be supported by small and micro DCs.