(MENAFN- GlobeNewsWire - Nasdaq) The data center outsourcing market is growing as enterprises shift toward scalable cloud-based infrastructure, cost-efficient operations, and advanced managed services, supported by strong U.S. momentum increasing from USD 44.8 billion in 2024 to USD 68.0 billion by 2032 amid accelerating digital transformation and hybrid cloud adoption.

Austin, Nov. 26, 2025 (GLOBE NEWSWIRE) -- The Data Center Outsourcing Market size was valued at USD 141.8 billion in 2024 and is expected to reach USD 219.3 billion by 2032, growing at a CAGR of 5.60% during 2025-2032.

Outsourcing Data Centers The adoption of cloud-based infrastructure, lower operating costs, and enterprises' growing emphasis on core capabilities are the main factors propelling market expansion. One of the main drivers of growth is the growing need for managed services and scalable IT infrastructure.

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U.S. Data Center Outsourcing Market to hit USD 68.0 billion by 2032 at CAGR of 5.36%.

The rising need for cloud services, scalable IT infrastructure, and affordable data management solutions are the main drivers of this expansion. In order to increase productivity, guarantee company continuity, and take advantage of cutting-edge technologies like artificial intelligence (AI), the Internet of Things (IoT), and edge computing, businesses are increasingly outsourcing data center operations.

Segmentation Analysis:

By Service, Managed Hosting Services Segment Led the Market in 2024; Security Management Services is Expected to be the Fastest-Growing Segment during 2025-2032

The managed hosting services segment dominated the data center outsourcing market and accounted for a significant revenue share in 2024, due to growing enterprise demand for reliable, scalable, and fully managed Infrastructure Services. The security management services are expected to register the fastest CAGR during the forecast period, due to rising cyber threats, stringent data regulations, and the rise in demand for cloud.

By Enterprise Size, Large Enterprises Segment Led the Market in 2024; Small and Medium Enterprises is the Fastest-Growing Segment during 2025-2032

The large enterprise segment leads the data center outsourcing market and held a revenue share of more than 75% of revenue share in 2024, as large enterprises operate the largest and most complex IT infrastructures, have a higher outsourcing budget, and require more complex data, making this segment lucrative. Small and Medium-sized Enterprises are anticipated to grow at the fastest CAGR, owing to the rising number of SMEs outsourcing to minimize capital expenditure and gain access to enterprise-grade infrastructure.

By Deployment, On-premises Segment Dominated the Market in 2024; Cloud-based is the Fastest-Growing Segment over 2025-2032

The on-premises deployment segment dominated the market and accounted for 68% of the data center outsourcing market share in 2024. Legacy systems, tight compliance requirements higher control over the data landscape, particularly in finance, healthcare, and government sectors. The cloud segment is expected to witness the fastest growth rate owing to high scalability, affordability, and rapid digital transformation.

By End-Use, Retail Segment Dominated the Market in 2024; Travel is Expected to be the Fastest-Growing Segment over 2025-2032

The IT sector dominated the data center outsourcing market and accounted for a significant revenue share in 2024, due to its high dependency on data processing, cloud computing, and digital services. Telecom will have the fastest CAGR during the forecast period as 5G networks are implemented and data traffic volume rises.

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Regional Insights:

North America dominated the data center outsourcing market and accounted for 40% of revenue share in 2024, attributed to its advanced IT infrastructure, early adoption of cloud technologies, and the presence of several leading data center providers in this region.

The fastest CAGR for Asia Pacific throughout the projected period will be driven by rapid digitalization, rising internet penetration, and expanding cloud use among SMEs and large companies. The region will become a future hot spot due to the robust market growth until 2032, which is backed by government efforts, rising investments in IT infrastructure, and demand in the telecom and e-commerce sectors.

Key Players:

• IBM Corporation
• HCL Technologies
• Atos SE
• Fujitsu Ltd.
• DXC Technology
• NTT Data Corporation
• Capgemini SE
• TCS (Tata Consultancy Services)
• Wipro Limited
• Cognizant Technology Solutions

Data Center Outsourcing Market Report Scope:

Report Attributes	Details
Market Size in 2024	USD 141.8 Billion
Market Size by 2032	USD 219.3 Billion
CAGR	CAGR of 5.60% From 2025 to 2032
Base Year	2024
Forecast Period	2025-2032
Historical Data	2021-2023
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments	. By Service (Managed Hosting Services, Colocation Services, Infrastructure Management Services, Disaster Recovery and Backup Services, Network Management Services, Storage Management Services, Security Management Services, Migration and Consolidation Services, Consulting and Advisory Services, Others) . By Deployment (On-Premises, Cloud, Hybrid) . By Enterprise Size (Large Enterprises, Small and Medium Enterprises (SMEs)) . By End-Use (IT, Telecom, Healthcare, BFSI, Retail & E-commerce, Entertainment & Media, Energy, Others)
Customization Scope	Available upon request
Pricing	Available upon request

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Recent Developments:

• In February 2025, DXC Technology entered into a strategic agreement with Skanska AB to modernize Skanska's global IT infrastructure. As part of this collaboration, DXC will manage Skanska's Azure cloud and on-premises environments, enhance cybersecurity, and deliver modern workplace solutions, aiming to improve operational efficiency and security across Skanska's operations in Europe and the U.S.
• In April 2025, NTT DATA released its first sustainability report for its data center division, NTT Global Data Centers. The report highlights the company's commitment to achieving Net-Zero emissions by 2030, with initiatives such as achieving 51% renewable energy usage for non-IT load globally and securing 1.7 TWh of renewable energy through Power Purchase Agreements.

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