Data Center Market Growth Fueled by AI

The United States data center market is projected to grow from USD 50.16 billion in 2023 to USD 91.29 billion by 2029, driven by the shift toward cloud computing and edge computing, which enhances data processing capabilities. Meanwhile, in Virginia, residents are expressing concerns over the construction of a large data center near residential areas, highlighting tensions between local communities and the expanding data center industry. In India, the data center sector is expected to double by FY27, underpinned by digitalization and the adoption of AI, despite facing infrastructure challenges. Globally, the data center market is valued at USD 219 billion as of 2023, with projections to reach USD 585 billion by 2032, spurred by investments in key regions such as Malaysia. The modular data centers market is also set to expand significantly, forecasted to grow by USD 42.56 billion from 2023 to 2028, driven by the need for rapid deployment and reduced complexity. As data centers proliferate, balancing economic growth with community concerns remains a critical issue.