Data Center Renovation Market Report 2026
Global Outlook – By Product (Cooling, Power, IT Racks And Enclosures, Networking Equipment, DCIM, Other Products), By Organization Size (Small Size Organization, Medium Size Organization, Large Size Organization), By Application (BFSI, IT And Telecom, Manufacturing, Government, Healthcare, Other Applications) – Market Size, Trends, Strategies, and Forecast to 2030
Data Center Renovation Market Overview
• Data Center Renovation market size has reached to $36 billion in 2025 • Expected to grow to $123 billion in 2030 at a compound annual growth rate (CAGR) of 27.9% • Growth Driver: The Rise Of Data Center Renovation In The Online Services Era • Market Trend: Scala Data Centers Unveils Latin America’s Second Largest Vertical Data Center • South America was the largest region in 2025.What Is Covered Under Data Center Renovation Market?
Data center renovation refers to the collective set of processes used to physically construct a data center facility. It combines data center operational environment requirements with construction standards. A data center renovation project charter can help to establish a clear and defined project scope, decision rights, and executive sponsorship for the project, as well as identify any potential risks that could hinder project performance. The data center renovation is used for the purpose of storing, processing, and disseminating data and applications by the organizations’ shared IT operations and equipment. The main types of products in the data center renovation market are cooling, power, IT racks and enclosures, networking equipment, DCIM, and others. Cooling refers to supplementing or replacing traditional mechanical cooling with alternative equipment or methods that are enabled by higher operating temperatures. This could foster a better flow of air within hot and cold aisle containment models and produce steady cooling results. The data center renovation is used by small, medium, and large size organizations in various applications including BFSI, IT and telecom, manufacturing, government, healthcare, and others.
What Is The Data Center Renovation Market Size and Share 2026?
The data center renovation market size has grown exponentially in recent years. It will grow from $36 billion in 2025 to $45.98 billion in 2026 at a compound annual growth rate (CAGR) of 27.7%. The growth in the historic period can be attributed to aging data center infrastructure, rising energy consumption, growth of enterprise data needs, compliance with uptime standards, expansion of digital services.What Is The Data Center Renovation Market Growth Forecast?
The data center renovation market size is expected to see exponential growth in the next few years. It will grow to $123 billion in 2030 at a compound annual growth rate (CAGR) of 27.9%. The growth in the forecast period can be attributed to AI workload intensity growth, sustainability driven retrofits, adoption of liquid cooling, demand for operational efficiency, increase in hybrid data centers. Major trends in the forecast period include energy efficient cooling upgrades, power infrastructure modernization, modular data center design, dcim integration projects, high density rack optimization.
Global Data Center Renovation Market Segmentation
1) By Product: Cooling, Power, IT Racks And Enclosures, Networking Equipment, DCIM, Other Products 2) By Organization Size: Small Size Organization, Medium Size Organization, Large Size Organization 3) By Application: BFSI, IT And Telecom, Manufacturing, Government, Healthcare, Other Applications Subsegments: 1) By Cooling: Air Conditioning Units (CRAC Or CRAH), Liquid Cooling Systems, In-Row Cooling, Free Cooling (Economizer), Hot Aisle Or Cold Aisle Containment Systems 2) By Power: Uninterruptible Power Supply (UPS) Systems, Backup Generators, Power Distribution Units (PDUs), Batteries and Energy Storage Solutions, Power Management Systems 3) By IT Racks And Enclosures: Server Racks, Rack Cabinets, Modular Racking Systems, Custom IT Enclosures 4) By Networking Equipment: Routers And Switches, Fiber Optic Cables And Connectors, Network Interface Cards (NICs), Firewalls And Load Balancers 5) By DCIM (Data Center Infrastructure Management): Monitoring And Management Software, Environmental Monitoring Tools (Temperature, Humidity Sensors), Asset Tracking And Management Systems, Energy Management Solutions 6) By Other Products: Fire Suppression Systems, Security Systems (Access Control, Surveillance), Cable Management Solutions, Environmental Sensors (Water, Smoke Detection), Physical Security BarriersWhat Is The Driver Of The Data Center Renovation Market?
Increasing usage of online services is expected to propel the growth of the data center renovation market going forward. The increasing use of online services for payment, shopping, traveling, entertainment, and medical applications will increase overall data traffic across multiple sectors. This factor will encourage the data center renovation market leaders to modernize their back-end IT infrastructure to handle the ongoing market changes. For instance, in September 2023, according to the International Telecommunication Union, a Switzerland-based United Nations agency for information and communication technologies, 67% of the world’s population, or 5.4 billion people, were currently using the Internet, compared to 5.3 billion people (66% of the world’s population) in 2022. Therefore, the increase in usage of online services is driving the data center renovation industry growth.Key Players In The Global Data Center Renovation Market
Major companies operating in the data center renovation market are Equinix; Digital Realty; NTT Communications; Iron Mountain; CyrusOne; QTS Realty Trust; DataBank; Flexential; STACK Infrastructure; CoreSite Realty; Aligned Data Centers; CloudHQ; Switch; RagingWire Data Centers; Evoque Data Center Solutions; Compass Datacenters; T5 Data Centers; Cologix; Vantage Data Centers; EdgeConneX
This chart is for illustrative purposes; the full report includes a detailed competitor analysis and comprehensive overview of the top 10 companies in the market.
This chart maps companies by product innovation and brand strength, with bubble size indicating relative revenue, helping identify market leaders, challengers, and niche players. This is an illustrative chart; the full report provides a complete and accurate competitive analysis.
Explore how leading companies compare across key metrics in our report Get Report
Global Data Center Renovation Market Trends and Insights
Major companies operating in the data center renovation market are launching vertical data center to increase their profitability in the market. A vertical data center, in the context of data center renovation, refers to a design or architectural approach that maximizes the efficient use of vertical space within a data center facility. For instance, in May 2023, Scala Data Centers, a Brazil based data center provider launched 6MW IT SGRUTB05 data center, the second largest vertical facility in Latin America. SGRUTB05 boasts a 6,700 sqm built area, standing 35.5 meters tall with five floors, three dedicated to high-density data halls housing around 400 racks and a total power of nearly 9MW. Scala's One Scala Template methodology, executed by a CoE comprising over 200 experts, streamlined the design, project, construction, and commissioning processes for the data center, catering to Hyperscale market demands. SGRUTB05, operates exclusively on renewable energy, boasts a PUE under 1.4, zero WUE, and adheres to LEED and ANSI/TIA-942-B eco-friendly data center standards.What Are Latest Mergers And Acquisitions In The Data Center Renovation Market?
In September 2024, Rambøll Group A/S, a Denmark-based engineering and consultancy company, acquired I 3 SOLUTIONS GROUP LIMITED for an undisclosed amount. Through this acquisition, Rambøll Group A/S aims to strengthen its position as a full service provider in the global data center consulting market, leveraging the deep technical domain expertise of i3 Solutions Group to deliver more integrated, innovative, and sustainable data center solutions. I 3 SOLUTIONS GROUP LIMITED, a UK-based engineering firm that provides data center renovation.
Regional Insights
South America was the largest region in the data center renovation market in 2025. North America was the second largest region of the data center renovation market. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, SpainNeed data for a specific geography? Request Regional Data
What Defines the Data Center Renovation Market?
The data center renovation market consists of revenues earned by entities by providing data center renovation for colocation center, enterprise and cloud. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.How is Market Value Defined and Measured?
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This chart presents market attractiveness based on a quantitative evaluation of growth, competition, strategic alignment, and risk, offering a clear view of opportunity areas for decision-making. This chart is for illustrative purposes; the full report contains the complete analysis.
This chart highlights the Total Addressable Market (TAM) by estimating the maximum revenue opportunity using an assumption-driven approach, supporting strategic planning and opportunity sizing across markets. The chart is illustrative; the full report provides a more comprehensive analysis.
Access full TAM calculations and growth projections in our report Get Report
What Key Data and Analysis Are Included in the Data Center Renovation Market Report 2026?
The data center renovation market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the data center renovation industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.Data Center Renovation Market Report Forecast Analysis
| Report Attribute | Details |
|---|---|
| Market Size Value In 2026 | $45.98 billion |
| Revenue Forecast In 2030 | $123 billion |
| Growth Rate | CAGR of 27.9% from 2026 to 2030 |
| Base Year For Estimation | 2025 |
| Actual Estimates/Historical Data | 2020-2025 |
| Forecast Period | 2026 - 2030 |
| Market Representation | Revenue in USD Billion and CAGR from 2026 to 2030 |
| Segments Covered | Product, Organization Size, Application |
| Regional Scope | Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa |
| Country Scope | The Countries Covered In This Market Report Are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, Uk, Usa, Canada, Italy, Spain. |
| Key Companies Profiled | Equinix, Digital Realty, NTT Communications, Iron Mountain, CyrusOne, QTS Realty Trust, DataBank, Flexential, STACK Infrastructure, CoreSite Realty, Aligned Data Centers, CloudHQ, Switch, RagingWire Data Centers, Evoque Data Center Solutions, Compass Datacenters, T5 Data Centers, Cologix, Vantage Data Centers, EdgeConneX |
| Customization Scope | Request for Customization |
| Pricing And Purchase Options | Explore Purchase Options |