AI data center market was valued at $168 billion in 2025 and is projected to reach $505.1 billion by 2035, growing at a CAGR of 11.8% during the forecast Period (2026-2035). Rising demand for AI capabilities is driving enterprises and governments to prioritize AI integration, fueling the growth of scalable, high-performance data center infrastructure. This trend is reflected in significant investments in AI-ready facilities designed to handle large-scale AI workloads efficiently. New multi-gigawatt data centers are being developed across key regions, with projects focusing on affordability, energy efficiency, and advanced computing capabilities to support nationwide AI adoption. These developments are expected to strengthen the overall AI data center market and accelerate its expansion. For instance, in February 2026, Reliance Industries Ltd. invested $110 billion in Indian data centers and infrastructure over seven years. At the India AI Impact Summit, he highlighted making AI affordable nationwide, citing high computing costs as the main challenge. Reliance’s new unit, Jio Intelligence, is building multi-gigawatt AI-ready data centers in Jamnagar, Gujarat, with 120 MW expected to be operational later this year.
Browse the full report description of “AI Data Center Market Size, Share & Trends Analysis by Component (Hardware, Software, and Services), By Data Center Type (Hyperscale Data Centers, Colocation Data Centers, Enterprise Data Centers, Edge Data Centers and Modular or Portable Data Centers), By Deployment Model (Cloud-Based, On-Premises, and Hybrid), By End-User (IT & Telecom, BFSI (Banking, Financial Services & Insurance), Healthcare, Retail & E-commerce, Manufacturing & Industrial, Automotive, Energy & Utilities, Government & Defense, Media & Entertainment, and Others), Forecast Period (2026-2035)” at https://www.omrglobal.com/industry-reports/ai-data-center-market
Key Investments Accelerating AI-Ready Data Center Development
- In February 2026, L&T Vyoma signed an MoU with the Government of Gujarat for ? 25,000 crore to develop a 250 MW green, AI-ready hyperscale data centre in Dholera. Announced during the India AI Impact Summit 2026, this project aims to enhance AI infrastructure in Gujarat, positioning it as a hub for AI and sustainable digital infrastructure. The data centre will support advanced AI workloads while incorporating green energy principles into its operations.
- In December 2025, Microsoft invested $17.5 billion in India, marking its largest investment in Asia, following a $3 billion investment announced earlier. This funding, intended for the period from 2026 to 2029, aims to enhance AI diffusion, improve cloud infrastructure, and double-skilling to 20 million by 2030. The investment will also facilitate the integration of AI into platforms like e-Shram and National Career Service, benefiting India's 310 million informal workers. A new data center is expected to be operational by mid-2026.
Market Coverage
- The market number available for – 2025-2035
- Base year- 2025
- Forecast period- 2026-2035
- Segment Covered-
- By Component
- By Data Center Type
- By Deployment Model
- By End User
- Regions Covered-
- North America
- Europe
- Asia-Pacific
- Rest of the World
- Competitive Landscape - Alphabet (Google Cloud), Amazon Web Services (AWS), Equinix, Inc., Microsoft Corp., NVIDIA Corp.
Key questions addressed by the report.
- What is the market growth rate?
- Which segment and region dominate the market in the base year?
- Which segment and region will project the fastest growth in the market?
- Who is the leader in the market?
- How are players addressing challenges to sustain growth?
- Where is the investment opportunity?
Global AI Data Center Market Report Segment
By Component
- Hardware
- AI Accelerators (GPUs, TPUs, ASICs)
- Servers
- Storage Systems
- Networking Equipment
- Power & Cooling Systems
- Software
- AI/ML Frameworks
- Data Management Platforms
- Orchestration & Virtualization Software
- Services
- Managed Services
- Deployment & Integration
- Consulting & Support Services
By Data Center Type
- Hyperscale Data Centers
- Colocation Data Centers
- Enterprise Data Centers
- Edge Data Centers
- Modular or Portable Data Centers
By Deployment Model
- Cloud-Based
- On-Premises
- Hybrid
By End-User
- IT & Telecom
- BFSI (Banking, Financial Services & Insurance)
- Healthcare
- Retail & E-commerce
- Manufacturing & Industrial
- Automotive
- Energy & Utilities
- Government & Defense
- Media & Entertainment
- Others
Global AI Data Center Market Report Segment by Region
North America
Europe
- UK
- Germany
- Italy
- Spain
- France
- Russia
- Rest of Europe
Asia-Pacific
- China
- India
- Japan
- South Korea
- Australia and New Zealand
- ASEAN Economies
- Rest of Asia-Pacific
Rest of the World
- Latin America
- Middle East & Africa
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