Global spending on data centers is projected to grow by 15% to $367 billion in 2025, marking the most substantial increase among IT industry segments, according to data from AltIndex.com. The sector’s expansion is driven by demand for cloud computing, growing data volumes, and the widespread adoption of AI.
The data center market has witnessed rapid growth over the past decade, evolving from a niche segment into a major revenue generator for technology companies. Companies such as Nvidia, now the largest tech firm by market value, and Amazon Web Services, which accounts for about 20% of Amazon’s revenue, highlight the centrality of data centers in modern technology and business ecosystems.
This projected growth in 2025 follows a significant recovery in 2024 when global data center spending surged by 34% to over $318 billion. This rebound came after a relatively modest 3% growth in 2023, which saw total spending of $236 billion. Gartner forecasts continued double-digit growth, placing 2025 among the top-performing years for the industry in the past decade. Historical benchmarks for data center spending include growth of 20% in 2022 and 16% in 2018.
In comparison, other IT sectors are expected to grow at a slower pace. Global software spending is forecasted to rise by 14% to over $1.2 trillion in 2025. IT services are expected to increase by 9% to $1.7 trillion, while IT devices and communication services are projected to see annual increases of 9.5% and 4%, respectively.
Over the past decade, annual data center spending has more than doubled, rising from $171 billion in 2015. The United States and China account for the largest share of this growth. In 2024, the U.S. market generated approximately $100 billion, or 30% of global data center revenue, a figure expected to rise to $125 billion by 2028. China, the second-largest market, is anticipated to see a 33% increase, reaching $93 billion by 2028. Other major markets, including Japan, Germany, and the United Kingdom, are projected to grow by 32%, 27%, and 31%, respectively, over the same period.
