Data Center Renovation Market to Reach USD 73.83 Billion by 2032

Strategic Insights -

The data center renovation market is experiencing significant growth, driven by the increasing emphasis on sustainability across various industries. As companies seek to reduce operating expenses and carbon footprints, energy-efficient technologies and renewable energy sources are becoming increasingly popular. This shift is altering the data center refurbishment market's equipment procurement pattern, with advanced cooling technologies like liquid cooling reducing high energy consumption. The data center operations are increasingly utilizing renewable energy sources like wind and solar, providing a corporation a sustainable strategy to infrastructure modernization.

Key Takeaways:

  • The data center renovation market size was valued at USD 21.99 billion in 2024 and is expected to reach USD 73.83 billion by 2032, expanding at a CAGR of 16.17 percent during 2025-2032.
  • The increasing emphasis on sustainability is driving the market, with energy-efficient technologies and renewable energy sources becoming increasingly popular.
  • Advanced cooling technologies like liquid cooling can reduce the high energy consumption of conventional systems.
  • The data center refurbishment market trends provide a corporation a sustainable strategy to infrastructure modernization, aligning with environmental incentives and offering long-term financial benefits.
  • Key players in the market include Schneider Electric, Vertiv, Eaton Corp., ABB Ltd., Dell Technologies, Hewlett-Packard Enterprise, IBM Corp., Cisco Systems, Siemens AG, and Microsoft Azure.
  • The Infrastructure Renovation segment held the largest market share of 46.25 percent in 2024, due to the significant requirement of upgrading old data center sites to support new workloads.
  • The Electrical Renovation segment is expected to witness the fastest CAGR of 16.94 percent, driven by the increased emphasis on retrofitting old power distribution units (PDUs), switchgear, and back-up power systems.
  • The Modernization and Upgrading segment captured 44.02 percent of the revenue share in 2024, as data centers try to stay relevant with the newest tech.
  • The Power Systems segment led with 37.73 percent of revenue share in 2024, due to the fundamental need for power anytime and at scale for data centers.

Statistics:

  • The data center renovation market size is expected to reach USD 73.83 billion by 2032.
  • The market is expected to expand at a CAGR of 16.17 percent during 2025-2032.
  • The Infrastructure Renovation segment held a market share of 46.25 percent in 2024.
  • The Electrical Renovation segment is expected to witness a CAGR of 16.94 percent from 2025-2032.
  • The Power Systems segment accounted for 37.73 percent of revenue share in 2024.
  • Data centers aged 11-15 years held the largest revenue share at 30.18 percent in 2024.
  • North America led the Data Center Renovation Market share of 41.21 percent in 2024.
  • Asia Pacific is projected to grow with the fastest CAGR of 17.07 percent over 2025-2032.

Sources:

  • SNS Insider, "Data Center Renovation Market size was valued at USD 21.99 billion in 2024 and is expected to reach USD 73.83 billion by 2032"