The Data Center Transformation Market is estimated to increase from USD 11.5 billion in 2023 to USD 18.9 billion by 2028 at a CAGR of 10.5% during the forecast period. Because of elements such as big data analytics, IoT devices, and multimedia content, data centers must improve their capacity and capabilities to accommodate the increasing data loads.

 

By service type, the Data Center Transformation Market includes Consolidation Services, Optimization Services, Automation Services, and Infrastructure Management Services. The automation services segment to grow at the highest CAGR during the forecast period. Data center automation automates IT processes across the computing, network, and storage layers in physical and virtual environments, as per MarketsandMarkets. 

 

The use of software and technologies to streamline and orchestrate various data center processes and duties is referred to as automation. It is critical in data center transition because it improves efficiency, reduces human error, and enables rapid reaction to changing demands.

 

The scope includes the following segments: cloud, colocation, and enterprise data centers. During the forecast period, the cloud data center segment would increase at the fastest CAGR. To deliver better services to their consumers, cloud providers use service models such as private cloud, public cloud, and hybrid cloud. Cloud data centers are hosting increasing enterprise workloads as cloud computing use grows. Major cloud service providers (CSPs) such as Amazon, Microsoft, and Google continue to develop massive facilities in the United States and around the world to boost their cloud computing capabilities.