Data Center Renovation Industry Report 2025: Expansion of AI, Edge, and HPC Workloads Generates Demand for Structural and Power Renovations in Mid-Tier Data Centers - Global Market Forecast to 2030 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Data Center Renovation - Global Strategic Business Report" report has been added to ResearchAndMarkets.com's offering.

The global market for Data Center Renovation was estimated at US$24.8 Billion in 2024 and is projected to reach US$54.7 Billion by 2030, growing at a CAGR of 14.1% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions.

As digital transformation accelerates, existing data centers face increasing pressure to modernize infrastructure, improve energy efficiency, and enhance security. Data center renovations involve upgrading IT equipment, optimizing cooling and power distribution, and retrofitting outdated facilities to align with evolving technological and regulatory standards. With the rise of high-density computing, legacy data centers must adapt to support AI workloads, edge computing, and hybrid cloud environments.

Aging infrastructure presents challenges such as inefficient cooling, excessive power consumption, and limited scalability. Renovation projects aim to improve space utilization, reduce carbon footprints, and implement next-generation automation solutions. Additionally, as sustainability becomes a top priority, retrofitting older data centers with energy-efficient cooling, power management, and renewable energy solutions is gaining traction.

What Is Driving the Growth of the Data Center Renovation Market?

The growth in the data center renovation market is driven by increasing demand for energy efficiency, advancements in automation, and the need for scalable infrastructure. Retrofitting older facilities with next-generation cooling, power, and security systems ensures long-term sustainability and regulatory compliance.

End-use expansion is another key factor, with colocation providers, enterprise data centers, and government IT facilities investing in modernization projects. The adoption of liquid cooling, AI-powered energy management, and renewable energy solutions is further accelerating renovation initiatives. Additionally, strategic partnerships between IT infrastructure providers and data center operators are fostering innovation, ensuring that renovated facilities meet the demands of emerging technologies.

What Are the Latest Innovations in Data Center Renovation?

Innovations in modular infrastructure, prefabricated cooling systems, and AI-driven power optimization are revolutionizing data center renovations. One of the most significant advancements is the use of liquid cooling retrofits, which replace traditional air-cooled systems to improve efficiency and support high-performance workloads. Additionally, software-defined power management solutions are helping operators dynamically allocate energy resources based on real-time demand.

Another major trend is the adoption of smart building technologies, including IoT-based environmental monitoring and predictive maintenance. These innovations enable data centers to optimize airflow, automate equipment diagnostics, and extend hardware lifespans. Additionally, the rise of carbon-neutral renovation strategies, such as integrating solar and wind energy with battery storage, is shaping the future of sustainable data center modernization.

How Are Market Trends and Regulations Impacting Data Center Renovations?

Regulatory policies focused on energy efficiency, such as the EU's Energy Efficiency Directive and the U.S. Department of Energy's sustainability initiatives, are driving investment in data center retrofits. Companies are required to reduce their power usage effectiveness (PUE) and carbon emissions, compelling operators to adopt renewable energy and advanced cooling solutions.

Market trends indicate a growing preference for modular and scalable renovation approaches, allowing data centers to upgrade components without significant downtime. Additionally, the increasing adoption of AI-driven facility management is enabling more efficient use of power and space, reducing operational costs. Hybrid cloud adoption is also influencing renovation strategies, with organizations modernizing on-premise infrastructure to integrate seamlessly with public cloud services.

Key Questions Answered:

• How is the Global Data Center Renovation Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Networking Equipment segment, which is expected to reach US$28.1 Billion by 2030 with a CAGR of a 15.7%. The Cooling segment is also set to grow at 14.0% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $6.7 Billion in 2024, and China, forecasted to grow at an impressive 19.1% CAGR to reach $11.9 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as AECOM, Corgan, Cupertino Electric, Inc., DPR Construction, Fortis Construction and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Scope of Study:

• Segments: Product Type (Networking Equipment, Cooling, Power, IT Racks and Enclosures, Other Product Types); Application (IT and Telecom Application, BFSI Application, Colocation Application, Healthcare Application, Government Application, Energy Application, Industrial Application, Other Applications)
• Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Attributes:

Report Attribute	Details
No. of Pages	214
Forecast Period	2024 - 2030
Estimated Market Value (USD) in 2024	$24.8 Billion
Forecasted Market Value (USD) by 2030	$54.7 Billion
Compound Annual Growth Rate	14.1%
Regions Covered	Global

Key Topics Covered:

MARKET OVERVIEW

• Influencer Market Insights
• Tariff Impact on Global Supply Chain Patterns
• Data Center Renovation - Global Key Competitors Percentage Market Share in 2025 (E)
• Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2025 (E)

MARKET TRENDS & DRIVERS

• Aging Infrastructure Across Legacy Data Centers Throws the Spotlight on Large-Scale Renovation and Modernization Projects
• Rising Demand for High-Density Compute Environments Drives Upgrades of Cooling, Power, and Floor Design in Existing Data Centers
• Increased Pressure to Meet Sustainability Targets Strengthens the Business Case for Energy-Efficient Renovation Initiatives
• Transition to Hyperscale and Hybrid Cloud Architectures Fuels the Need for Renovating Outdated On-Premise Facilities
• Expansion of AI, Edge, and HPC Workloads Generates Demand for Structural and Power Renovations in Mid-Tier Data Centers
• Rapid Evolution of Rack Power Densities Necessitates Electrical Reconfigurations and Cooling System Enhancements
• Stricter Regulations on Energy Use Effectiveness (PUE) Drive Investment in Retrofitting for Thermal Optimization
• Enterprise Shift Toward Modular and Scalable Design Architectures Encourages Interior and Layout Renovations
• Integration of Smart Building Technologies and DCIM Tools Spurs Digital Renovation of Facility Management Systems
• Space Optimization Needs in Urban Data Centers Drive Creative Retrofit and Vertical Expansion Projects
• Demand for Tier Upgrades and Uptime Certifications Expands the Scope for Critical Infrastructure Renovation
• Renovation as a Cost-Effective Alternative to New Construction Gains Traction Among Enterprises and Colocation Providers
• Data Center Real Estate Valuation Trends Encourage Renovation to Boost Asset Value and Performance
• Workload Repatriation from Public Cloud Creates a Need for Reconfiguring and Modernizing In-House Facilities

FOCUS ON SELECT PLAYERS: Some of the 32 companies featured in this Data Center Renovation market report include

• AECOM
• Corgan
• Cupertino Electric, Inc.
• DPR Construction
• Fortis Construction
• Gray Construction
• Hanley Energy
• HITT Contracting
• Holder Construction
• Jones Engineering
• Legrand SA
• Mortenson
• Rittal GmbH & Co. KG
• Schneider Electric SE
• Sundt Construction
• Tripp Lite
• Turner Construction Company
• U.S. Engineering Company
• Vertiv Group Corporation
• WZMH Architects

For more information about this report visit https://www.researchandmarkets.com/r/ycy9ot

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