The global edge data center market size was valued at USD 12.8 Billion in 2024, and it is expected to reach USD 47.7 Billion by 2033, exhibiting a growth rate (CAGR) of 15.57% from 2025 to 2033.
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The demand for efficient data connectivity and reliable internet access is responsible for the growth of the edge data center market. In line with this, the rising shift towards decentralized data processing and storage is becoming important for improving data speeds and reducing latency, especially in rural and semi-urban areas. Furthermore, in September 2024 Duos Edge AI launched its first Edge Data Center at Region 16 Education Service Center in Amarillo, Texas. This center enhances high-speed internet for 60 school districts, directly benefiting student’s learning experiences and boosting economic prospects in the Texas Panhandle. Investments in localized data infrastructure are not only modernizing educational systems but also fostering new opportunities for local enterprises by ensuring seamless connectivity. In contrast, the role of Edge Data Centers in reducing latency and enhancing real-time data processing is further exemplified by American Tower’s new Aggregation Edge Data Center in Raleigh, North Carolina, launched in July 2024. This 4,000-square-foot facility, with an initial 1-megawatt capacity expandable to 4 megawatts, serves the needs of businesses and the Research Triangle Park, a region known for its innovation hubs. Meanwhile, these initiatives access vital connectivity solutions and improve data exchange, thereby ensuring smoother operations in research, development, and everyday commercial activities.
Moreover, this trend signifies the growing importance of decentralized data centers in bolstering local and regional infrastructure, aiding faster digital transformation. The push towards sustainable energy practices in data center operations is evident with Quetta Data Centers, launched by Azora and Core Capital in February 2024. The investment of over €500 Million aims to establish six Edge Data Centers totaling 60MW across key locations in Spain and Portugal, including Madrid, Barcelona, and Lisbon. These facilities prioritize renewable energy solutions and are designed to maintain a PUE (Power Usage Effectiveness) below 1.15, showcasing a commitment to eco-friendly operations. This focus aligns with Europe's ongoing efforts to meet sustainability goals while addressing the rising demand for data processing and storage, ensuring that digital expansion does not compromise environmental priorities.
The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America dominates the edge data center market, driven by advanced technological infrastructure, a surge in data-heavy applications, and strong investments in IT innovations.
North America is the dominating region in the market, as it benefits from the widespread adoption of edge computing to support real-time data processing essential for AI and machine learning. In March 2024, Eaton introduced the SmartRack modular data center in North America, enabling rapid deployment for these technologies with up to 150 kW load capacity and seamless integration with Eaton’s power management systems for enhanced efficiency. This reflects the region's proactive stance in bolstering scalable and efficient data solutions. Also, the market is further fueled by significant investments from leading tech companies and increasing demand for low-latency data services, strengthening its leadership position.
In Europe, the market is leaning toward sustainable energy solutions, integrating renewable sources like wind and solar into data center operations. On the contrary, countries such as Germany are championing these green initiatives, aiming to reduce carbon footprints. For instance, edge data centers partnering with local green energy providers to ensure efficient, eco-friendly data processing closer to end users.
Asia Pacific is witnessing rapid edge data center growth driven by surging mobile internet use and 5G expansion. In line with this, countries like Japan and tech hubs are emphasizing edge infrastructure for real-time processing, especially for IoT and smart city applications. This trend supports industries looking for low-latency solutions, which is enabling faster data processing for critical operations in urban centers.
Edge data centers in Latin America are growing due to increasing digital connectivity in rural and underserved areas. Brazil is a key player, investing in smaller, decentralized centers to support regional internet needs. Besides this, this expansion improves content delivery and cloud service access, especially for sectors like e-commerce and entertainment, where latency reduction is crucial for user satisfaction.
The Middle East and Africa is focusing on edge data centers to boost digital transformation and support remote work. In contrast, the UAE is an example, investing in advanced edge infrastructure to enhance data services for emerging tech, including fintech and smart city projects. The strategic deployment helps bridge data gaps, ensuring faster processing and greater accessibility across diverse areas.
Some of the leading edge data center market companies include Compass Datacenters, DC BLOX Inc., Dell Technologies Inc., EdgeConneX Inc., Equinix Inc., Hewlett Packard Enterprise Development LP, Huawei Technologies Co. Ltd., International Business Machines Corporation, Nvidia Corporation, Rittal Limited (Friedhelm Loh Group), Schneider Electric SE, Vapor IO Inc., and Vertiv Group Corp., among many others. In March 2024, Schneider Electric partnered with NVIDIA to launch AI data center reference designs, enhancing edge AI capabilities. These designs integrate NVIDIA’s accelerated computing platform to improve performance, scalability, and sustainability, featuring high-power distribution and liquid-cooling systems for advanced AI and data processing needs.
Report Features | Details |
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Market Size in 2024 | USD 12.8 Billion |
Market Forecast in 2033 | USD 47.7 Billion |
Market Growth Rate 2025-2033 | 15.57% |
Units | Billion USD |
Scope of the Report | Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
|
Components Covered | Solution, Services |
Facility Sizes Covered | Small and Medium Facility, Large Facility |
Verticals Covered | IT and Telecom, BFSI, Retail and E-commerce, Government, Healthcare and Life Sciences, Manufacturing, Gaming and Entertainment, Automotive, Others |
Regions Covered | Asia Pacific, Europe, North America, Latin America, Middle East and Africa |
Countries Covered | United States, Canada, Germany, France, United Kingdom, Italy, Spain, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico |
Companies Covered | Compass Datacenters, DC BLOX Inc., Dell Technologies Inc., EdgeConneX Inc., Equinix Inc., Hewlett Packard Enterprise Development LP, Huawei Technologies Co. Ltd., International Business Machines Corporation, Nvidia Corporation, Rittal Limited (Friedhelm Loh Group), Schneider Electric SE, Vapor IO Inc., Vertiv Group Corp., etc. |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |