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Data Center as a Service Market Size to Reach $1,400.6 Billion by 2035 as AI Infrastructure and Cloud Adoption Accelerate Worldwide | Report by SNS Insider

globenewswire.com
AMZN AWS is mentioned as a hyperscaler growing its cloud infrastructure and contributing to North America's dominance in the Data Center as a Service market due to its infrastructure. MSFT Microsoft Azure is identified as a hyperscaler expanding its cloud infrastructure and a key player in the North American DCaaS market, contributing to the region's commercial dominance. GOOGL Google Cloud is highlighted as a hyperscaler increasing its cloud infrastructure, and its presence is a factor in North America's leading position in the Data Center as a Service market. NVDA NVIDIA is mentioned in the context of a collaboration to build supercomputers using NVIDIA AI chips, indicating a positive association with AI infrastructure development.

Data Center as a Service Market Size to Reach $1,400.6 Billion by 2035 as AI Infrastructure and Cloud Adoption Accelerate Worldwide | Report by SNS Insider Austin, June 29, 2026 (GLOBE NEWSWIRE) -- The Data Center as a Service Market was valued at USD 159.6 Billion in 2025 and is expected to reach USD 1,400.6 Billion by 2035, growing at a CAGR of 24.24% over the forecast period.

The data centre as a service (DCaaS) market is growing rapidly as companies in BFSI, healthcare, IT and telecommunications, retail, manufacturing, and government are replacing on-premise infrastructure with scalable cloud-based solutions. Demand is fueled by the growing digital transformation and adoption of AI, and hyperscalers such as AWS, Microsoft Azure and Google Cloud keep growing their cloud infrastructure. Recent AI infrastructure investments underscore the shift of DCaaS providers towards high-performance AI workloads.

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AI Workload Demand and Edge Computing Integration to Augment Market Expansion Globally

The continued rapid transition from legacy on-premise data centres to DCaaS solutions that offer agility, reduce capital expenditure and enterprise-grade infrastructure without the large upfront investment will drive extraordinary market growth in the years ahead. As the trend of remote work, distributed operations and digital transformation accelerates across all major industry segments, organisations will increasingly find that scalable on-demand infrastructure is not only more economical than internal alternatives with fixed capacity, but operationally superior as well.

Segmentation Analysis:

By Infrastructure, Servers Dominated the Market; Storage Segment to Register the Fastest CAGR Globally

Servers held the largest market share with 58% revenue in 2025, fueled by the adoption of AI, IoT and machine learning, and rising demand for hyper-converged IT infrastructure from enterprises, governments, defence agencies and academia. Storage will record fastest CAGR, growing AI data, video, IoT outputs and business document will fuel storage to store virtually for faster and reliable access throughout forecast.

By Enterprise Size, Large Enterprises Dominated the Market; SMEs Segment to Register the Fastest CAGR Globally

Large organisations generated around 59% of the revenue in 2025, driven by large IT spending, stringent compliance rules, disaster recovery, high availability, and scalable infrastructure. SMEs are expected to register the highest CAGR, driven by growing adoption of SaaS, e-commerce and CRM solutions that offer enterprise-grade IT capabilities without heavy upfront capital investment.

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Regional Insights:

North America dominated the global DCaaS market with 37% share in 2025, owing to the presence of AWS, Microsoft and Google. The region’s commercial dominance is backed by the hyperscaler infrastructure and global cloud platforms of these firms. The United States makes up approximately 82.5% of regional revenues, with rapid AI infrastructure investment continuing to generate new high-value demand beyond traditional enterprise workloads, and the combination of hyperscaler concentration and GPU cloud demand solidifies North America’s leading market position.

The Europe Data Center as a Service Market size was valued at USD 26.84 Billion in 2025 and is expected to reach USD 87.91 Billion by 2035, growing at a CAGR of 12.62%. Europe is a significant and growing DCaaS market, influenced by investment in digital transformation, increasing enterprise cloud adoption, and a unique regulatory environment that drives provider selection and deployment architecture. GDPR data sovereignty requirements continue to influence European enterprises’ choice of DCaaS providers, fueling structured demand for European-hosted solutions in which hyperscalers and regional providers are investing more and more to serve.

Asia Pacific is the fastest growing regional market owing to large telecom networks, expansive e-commerce customer bases and fast digital transformation across China, India and South-east Asian markets requiring expanding data centre infrastructure. China accounts for approximately 40.6% of regional revenues through Alibaba Cloud, Tencent Cloud and government infrastructure investment and the region’s AI and e-commerce growth momentum continues what is projected to be the most commercially dynamic DCaaS adoption trajectory globally through 2035.

Key Players:

Recent Developments:

2024: Flexential launched Flexential Fabric in January 2024, a next-generation software-defined interconnection system integrated with FlexAnywhere for advanced data center networking.

2024: YTL Power announced the formation of YTL AI Cloud in March 2024, collaborating with NVIDIA to build Malaysia's fastest supercomputers using NVIDIA AI chips.

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Exclusive Sections of the Report (The USPs):

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About Us:

SNS Insider is one of the leading market research and consulting agencies that dominates the market research industry globally. Our company's aim is to give clients the knowledge they require in order to function in changing circumstances. In order to give you current, accurate market data, consumer insights, and opinions so that you can make decisions with confidence, we employ a variety of techniques, including surveys, video talks, and focus groups around the world.