Research by DLA Piper predicts that the global data center market will be worth nearly $500 billion by 2029. By the end of 2024, it will already be worth roughly $300 billion.
So says TMT Finance, which conducted its research on behalf of legal firm DLA Piper. The CAGR (compound annual growth rate) averages out to 10 percent over the next five years, according to the report.
Naturally all about AI
For the survey, TMT Finance spoke with 176 executives. 70 percent of those surveyed predict increased investments in data centers over the next two years. AI will mainly provide growth, as the unsurprising prediction suggests.
Read also: (Gen)AI in 2025: autonomous, for more industries and collaborative
However, 98 percent of those surveyed express doubts about the availability of enough power. Grid congestion is a global problem that, according to experts, should have been addressed well in advance. For the coming years, at least, it means that the data center market will find it increasingly difficult to meet demand.
Anthony Day of DLA Piper discusses the need to offer more than investment to the data center market. A “clear framework” is also needed, Day argues, to ensure coordination between policy makers, investors, and power providers. It’s not entirely clear how this can be achieved in the span of just a few years, meaning the expected growth will be hitting limits that may prevent the 10% CAGR from being reached.