Top 10: Global Data Centre Markets

The global data centre market is continuing to grow, with businesses around the world eager to capitalise on disruptive technologies like artificial intelligence (AI).

As a result, regional markets around the world are continuing to expand their services. With a focus on sustainability and edge computing, these new and improved offerings are able to better meet the evolving needs of the data centre sector.

With this in mind, Data Centre Magazine takes a look at some of the current leading global data centre markets, which are ranked by power consumption.

10. Silicon Valley

Major players: Equinix, Vantage Data Centers, DigitalBridge

Silicon Valley, often referred to as a tech hub within the US, boasts a robust data centre market driven by the presence of major technology giants. As the region has historically faced challenges such as power constraints and limited land availability, it has led to a broad range of innovative solutions in data centre design and energy efficiency. 

Those who operate in this area are able to leverage the area’s high-speed connectivity and proximity to some of the leading technology enterprises in the world. 

9. Dallas

Major players: CyrusOne, Digital Realty, NTT

Dallas continues to emerge as a significant data centre market due to its central location, affordable power and business-friendly environment. The region benefits from a robust fibre network and relatively low risk of natural disasters. 

The area has seen substantial growth in hyperscale facilities, catering to cloud providers and large enterprises. In addition, the Dallas data centre market is characterised by its ability to offer scalable solutions and diverse connectivity options.

8. Sydney

Major players: NextDC, AirTrunk, CDC Data Centres

The data centre market in Sydney has experienced rapid growth in recent years, which has been driven by increasing cloud adoption and digital transformation initiatives. The city serves as a key hub for Asia-Pacific (APAC) connectivity, attracting both local and international operators. 

Sydney's data centres are able to focus on sustainability, with many facilities adopting the use of renewable energy sources. The market also faces challenges with power infrastructure and land scarcity, which has led to plenty of edge deployments to meet growing demand.

7. Shanghai

Major players: GDS Holdings, Chindata Group, China Telecom

Shanghai data centre developments continue to boom, on account of a rapidly advancing digital economy within the People’s Republic of China. On account of data localisation laws, the city now serves as a major financial and technology hub, which is driving demand for high-performance computing and low-latency connectivity. 

The city’s data centres are characterised by their focus on energy efficiency and adherence to tight government regulations.As a result, developments in the city are continuing to grow with an emphasis on green technology and support for China's digital transformation initiatives.

6. Frankfurt

Major players: DE-CIX, Digital Realty, Equinix

As one of the major European players in the data centre market, Frankfurt benefits from its central location and robust financial services sector. The city offers excellent connectivity, with the DE-CIX Internet exchange providing low-latency access across Europe. 

Data centres within this area are able to prioritise energy efficiency and sustainability, with many facilities powered by renewable sources. As one of the fastest-growing markets currently, it is expected to grow at a CAGR of 6.78% to reach 1.96 thousand megawatts by 2030.

5. Tokyo

Major players: KDDI Telehouse, Oracle, NTT Communications 

Tokyo's data centre market is driven by Japan's advanced technology sector and its increasing adoption of cloud technologies. The city currently serves as a key connectivity point between Asia and North America, with a broad range of technology companies around the world eager to invest.

Data centres across Tokyo are well-known for their high reliability and advanced earthquake-resistant designs. As a result, it continues to see growth in hyperscale developments and investments in next-generation technologies. 

4. Singapore

Major players: ST Telemedia Global Data Centres, Microsoft, AWS

Singapore has established itself as a premier data centre hub in Southeast Asia, particularly due to its ability to leverage its strategic location and robust infrastructure. The city-state offers excellent connectivity, political stability and a business-friendly environment. 

Data centre within this region are often very energy efficient, particularly as the government has implemented strict regulations to manage power consumption. Revenue here alone is projected to reach US$1.21bn in 2024, with network infrastructure dominating the market with an expected market volume of US$0.77bn.

3. London

Major players: Colt Technology Services, Equinix, Kao Data

London remains a critical data centre market, serving as a major connectivity hub between Europe and North America. It is currently the fastest-growing market in Europe, as the city benefits from its strong global business sectors and a broad ecosystem of cloud providers. 

With the UK having classed data centres as Critical National Infrastructure in 2024, the UK and Ireland at large is a critical market, with a phenomenal presence on the global data centre stage.

2. Beijing

Major players: Telstra PBS, GDS, Telehouse

The city of Beijing in China serves as a crucial hub for cloud providers and technology companies. It continues to experience rapid growth in the data centre sector, particularly on account of the country’s booming digital transformation efforts. 

Beijing's data centres focus on high-performance computing and adherence to strict data sovereignty regulations. The market faces challenges with power consumption limits, leading to innovative cooling solutions and increased emphasis on energy efficiency. 

1. Northern Virginia

Major players: Data Bank, CloudHQ, Digital Realty, etc.

Sometimes referred to as ‘Data Center Alley’, Northern Virginia remains the world’s largest data centre market to date. Some of the benefits associated with the region include its proximity to government agencies, abundant fibre connectivity and competitive power rates. It is also an area relatively unaffected by natural disasters. 

Data centres in Northern Virginia are often characterised by their massive scale and focus on sustainability. As the market continues to rapidly expand, so do developments in hyperscale facilities and edge computing solutions to meet growing cloud demands.

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