Global Data Center Market Set to Double by 2031 on AI-Driven Investment Surge — Arizton Advisory & Intelligence

Event summary

Global data center market valued at USD 514.26 billion in 2025, projected to reach USD 959.19 billion by 2031, growing at a CAGR of 10.95%.
Data center investments increased by approximately 35.22% in 2025 compared with 2024, driven by AI workloads and hyperscale operator investments.
APAC data center market investments surged by 31.99% in 2025, with rapid AI adoption in China as a key driver.
The U.S. accounts for nearly 130 GW of upcoming data center power capacity, concentrated across nine states.

The big picture

The global data center market is experiencing a significant boom, driven by the deployment of AI workloads and substantial investments from hyperscale operators. This growth is not uniform, with regions like APAC and Latin America seeing rapid increases in investment due to AI adoption and strategic advantages such as natural cooling methods. The market's expansion is also influenced by technological advancements like liquid cooling, which are crucial for managing the heat generated by high-performance computing equipment.

What we're watching

Regional Shifts: How the Israel–Iran conflict will affect digital infrastructure in the Middle East, particularly hyperscale facilities in the UAE and Bahrain.
Technological Advancements: The pace at which liquid cooling technology adoption will accelerate for AI and HPC workloads, especially in APAC.
Market Concentration: Whether leading global operators like Digital Realty and Equinix can sustain their significant share of global IT capacity amid increasing competition.