Revolutionizing Data Centers: The AI and Cloud Computing Boom

Over the past decade, data centers have become the topic of conversation in the’investment world and a massive source of revenue for tech giants.

Amazon Web Services generates today's nearly 20% of the e-commerce giant's revenue.

At the same time, however, Nvidia, the leading supplier of components for data centers, has become the third-largest technology company in the world.

The increasing use of technologies from’artificial intelligence, which require significant computing power and storage, is only powering the’s rise of data centers, which is expected to further increase in the years to come.

According to the data presented by Stocklytics.com, the global data center market is expected to grow by 30% and reach a value of more than 430 billion dollars by 2028’.

Cloud computing and AI are exploding the data market.

The widespread adoption of cloud computing has dramatically transformed the landscape of data centers.

While it has reduced the number of organizations operating their own data centers, it has also led to an increase in the number of data centers globally.

This is due in large part to the aggressive infrastructure expansion by major hyperscalers like Microsoft Azure, Google Cloud Platform, and Amazon Web Services to cater to their growing customer base.

Other tech giants, like Nvidia, have also taken advantage of the benefits of this trend, with its GPUs becoming an integral part of modern data centers.

The growing need for data center solutions and technologies has enabled the’ entire d’ market to increase revenue by almost 40% since 2016.

And the market projections for the following years are equally optimistic.

According to a survey by Statista Market Insights, the global data center market is expected to generate more than 344 billion dollars in revenue this year, 15 billion dollars more than’ in 2023.

The’ overall market is expected to grow at a CAGR of 6.5% in the following years, resulting in a market volume of 438 billion dollars by 2028.

Most of this value will come from network infrastructure, the most important segment and the one that is experiencing the fastest growth in the market.

Statista predicts that network infrastructure will yield 256.1 billion dollars in revenue in 2028, nearly 30% more than this year.

The server data centers follow with 120 billion dollars in revenue and a growth of 24% over this period.

While far behind in terms of revenue, the data center storage segment will also see double-digit growth, with revenue up 22% to reach 62 billion dollars over the next four years.

The US generates the most revenue, but the Chinese market is leading in terms of growth.

Statista's data also provided an interesting insight into the main drivers of data center market growth and the countries that have the largest share of total’ revenue.

Statistics show that GDP growth was the main driver of the market, with a 3.2% share of total market growth last year.

The impact of the war between Russia and Ukraine, which has led to an increase in demand for data center services due to geopolitical tensions and cybersecurity issues, has led to a 2.3% share of total market growth.

adoption of technologies and innovation also played an important role, with a share of 1.9%.

In global comparison, the United States will remain the largest player in the global data center landscape, generating close to 100 billion dollars, or about 30% of the total turnover of the market in 2024. This figure is expected to increase by 25% and reach more than 125 billion dollars by’ by 2028.

While Chinese data center revenues are far from these numbers, the Chinese market will experience the strongest growth in the coming years.

Statista S’ expects the Chinese data center segment to grow by 33% and reach a value of 93 billion dollars by’ by 2028.

Other major markets, Japan, Germany, and the United Kingdom, will experience similar growth rates, with revenues increasing by 32%, 27%, and 31%, respectively, during this period of