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Rapid Cloud Adoption and Infrastructure Upgrades Fuel Global Data Center Renovation Market — Valued at USD 39.39 Billion by 2035 (CAGR 11.49%)

The global Data Center Renovation Market is projected to grow from USD 13.27 billion in 2025 to USD 39.39 billion by 2035, expanding at a CAGR of 11.49%, driven by aging infrastructure upgrades, energy-efficient solutions, cloud adoption, and integration of advanced technologies.
Published 01 November 2025

The Data Center Renovation Market is witnessing robust growth due to the increasing need for modernization of aging data center facilities, rapid adoption of cloud computing, and rising demand for scalable, energy-efficient solutions. Renovation projects include upgrading servers, cooling systems, power distribution units, and other critical components to enhance performance, reliability, and sustainability.

Valued at USD 11.90 billion in 2024, the market is expected to reach USD 13.27 billion in 2025 and expand to USD 39.39 billion by 2035, growing at a CAGR of 11.49% during the forecast period. Factors such as evolving IT requirements, stricter energy regulations, and advancements in data center technologies are propelling market growth.

Market Overview & Forecast

  • Market Size 2024: USD 11.90 Billion
  • Market Size 2025: USD 13.27 Billion
  • Market Size 2035: USD 39.39 Billion
  • CAGR (2025–2035): 11.49%
  • Base Year: 2024
  • Market Forecast Period: 2025–2035
  • Historical Data: 2020–2023
  • Market Forecast Units: USD Billion
  • Report Coverage: Revenue Forecast, Competitive Landscape, Growth Factors, and Trends

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Competitive Landscape

The Data Center Renovation Market is highly competitive, with global technology providers and infrastructure solution companies focusing on energy-efficient solutions, advanced automation, and integrated IT infrastructure. Market players aim to offer customized renovation solutions to enhance scalability, flexibility, and sustainability of data centers.

Key Companies Profiled:

  • Siemens
  • Microsoft
  • Schneider Electric
  • Dell Technologies
  • Johnson Controls
  • Legrand
  • Eaton
  • ABB
  • Honeywell
  • Emerson Electric
  • Hewlett Packard Enterprise
  • IBM
  • Google
  • Vertiv
  • Cisco Systems

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 Key Market Drivers

  • Rapid Technological Advancements: Deployment of AI, IoT, and automation technologies necessitate renovations to accommodate new IT infrastructure and smart monitoring systems.
  • Growing Demand for Energy Efficiency: Energy-efficient power and cooling systems are critical for reducing operational costs and complying with sustainability regulations.
  • Surge in Cloud Computing Adoption: Expansion of cloud services and colocation facilities increases demand for renovating existing data centers to handle higher workloads.
  • Increasing Need for Data Storage and Management: Data-intensive applications, analytics, and enterprise workloads drive the renovation of storage systems and network infrastructure.
  • Sustainable Practices and Government Regulations: Renovation projects increasingly focus on reducing carbon footprint, adhering to green building standards, and meeting regulatory compliance.

Key Market Opportunities

  • Upgrading Aging Infrastructure: Many data centers built a decade ago require renovation to support modern IT workloads and improve operational efficiency.
  • Increasing Demand for Energy-Efficient Solutions: Retrofitting cooling, power, and lighting systems offers significant energy and cost savings.
  • Growing Need for Scalability and Flexibility: Modular designs and flexible infrastructure support dynamic IT requirements and expansion of cloud services.
  • Expanding Cloud and Colocation Services: Rising adoption of hybrid and multi-cloud strategies creates renovation opportunities in existing facilities.
  • Integration of Advanced Technologies: Renovation projects increasingly incorporate AI-driven management, automation, and predictive maintenance solutions.

Market Segmentation

By Renovation Type:

  • Retrofitting
  • Expansion
  • Modernization

By Renovation Goal:

  • Energy Efficiency
  • Scalability
  • Performance Optimization
  • Security Enhancements

By Infrastructure Component:

  • Servers & Storage
  • Networking Equipment
  • Power Distribution Units
  • Cooling Systems
  • Security & Monitoring Systems

By Data Center Age:

  • Less than 5 Years
  • 5–10 Years
  • More than 10 Years

By Region:

  • North America
  • Europe
  • Asia Pacific (APAC)
  • South America
  • Middle East & Africa (MEA)

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Geographical Insights

  • North America: High cloud adoption, enterprise IT investments, and strict energy regulations make it the leading market for data center renovation.
  • Europe: Growth driven by modernization of legacy data centers, sustainability initiatives, and adoption of energy-efficient solutions in Germany, the UK, and France.
  • Asia Pacific: Rapid digital transformation, rising cloud service demand, and increasing IT infrastructure investments in China, India, and Japan drive market expansion.
  • South America: Moderate growth supported by modernization of enterprise data centers and expansion of colocation services.
  • Middle East & Africa: Infrastructure upgrades in telecom and cloud facilities contribute to steady regional market growth.

Market Trends & Dynamics

  • Increased adoption of modular and scalable renovation approaches for flexible expansion.
  • Integration of AI and predictive maintenance solutions for optimized operations.
  • Focus on green data centers with energy-efficient cooling, lighting, and power management.
  • Expansion of colocation and hyperscale data centers requiring renovation of existing facilities.
  • Rising use of IoT and monitoring tools to improve operational visibility and reduce downtime.

Future Outlook

The Data Center Renovation Market is expected to witness robust growth over the next decade, driven by cloud adoption, energy-efficient technologies, and modernization of aging infrastructure. With a projected CAGR of 11.49% (2025–2035), the market is set to reach USD 39.39 billion by 2035, positioning data center renovation as a critical strategy for enterprise resilience, scalability, and sustainability.

Read the Research Report Insights in Regional Language:

数据中心改造市场 | Marché de la rénovation des centres de données | データセンター改修市場 | Markt für die Renovierung von Rechenzentren | 데이터 센터 리노베이션 시장 | Mercado de renovación de centros de datos

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