HYDERABAD, India, April 29, 2026 /PRNewswire/ — According to a new report by Mordor Intelligence, the edge data center market is witnessing rapid expansion, driven by the surge in real-time data processing and increasing demand for low-latency infrastructure. The edge data center market size was valued at USD 18.08 billion in 2025 and is estimated to grow to USD 22.21 billion in 2026, eventually reaching USD 62.18 billion by 2031, registering a CAGR of 22.87% during the forecast period (2026–2031).

The significant edge data center market growth is fueled by the proliferation of IoT devices, the expansion of 5G networks, and the increasing need for localized data processing. Enterprises are shifting toward decentralized IT infrastructure, which is positively influencing the edge data center industry. Additionally, hyperscalers and telecom providers are investing heavily in edge infrastructure, boosting the overall edge data center market share globally.

Edge Data Center Market Trends Driving Next-Gen Infrastructure

Rising Demand for Low-Latency Data Processing

The rapid rise in high-quality video consumption, combined with expanding 5G networks, is significantly increasing the need for faster and more localized data processing. To meet these expectations, companies are shifting workloads closer to users through edge infrastructure, enabling quicker response times and more efficient operations. Industries are also leveraging this approach to support real-time applications such as smart manufacturing and AI-driven analytics, while telecom providers are transforming edge deployments into new revenue-generating platforms.

“The edge data center market reflects demand tied to distributed computing, with investments tracking latency-sensitive applications and regional capacity expansion. Mordor Intelligence uses triangulation of company disclosures and market signals, offering a more dependable view than fragmented or assumption-led alternatives,” says Ashish Gautam, Senior Research Manager, Mordor Intelligence.

Growing Impact of Connected Devices on Edge Adoption

The rapid expansion of connected devices is pushing organizations to move data processing closer to the source rather than relying solely on centralized cloud systems. This shift enables faster insights, reduces delays, and improves operational efficiency across sectors such as banking, manufacturing, and smart city infrastructure. As businesses generate increasingly large volumes of data, edge solutions are becoming essential for maintaining performance while controlling costs.

Discover comprehensive insights and stay ahead of the latest industry trends, including the Japanese edition for in-depth localized analysis: https://www.mordorintelligence.com/ja/industry-reports/edge-data-center-market?utm_source=prnewswire

Edge Data Center Market Segmentation Analysis

By Component

Solution
Services

By Data Center Size

Small
Medium
Large
Massive
Mega

By Tier Type

Tier 1 and 2
Tier 3
Tier 4

By End-user

IT and Telecom
BFSI
Government
Healthcare
Manufacturing
Others

By Geography

North America
- United States
- Canada
- Mexico
South America
- Brazil
- Argentina
- Rest of South America
Europe
- Germany
- United Kingdom
- France
- Netherlands
- Rest of Europe
Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia and New Zealand
- Rest of Asia-Pacific
Middle East and Africa
- Middle East
  - United Arab Emirates
  - Saudi Arabia
  - Turkey
  - Rest of Middle East
- Africa
  - South Africa
  - Egypt
  - Nigeria
  - Rest of Africa

Leading Companies in the Edge Data Center Market

The edge data center industry is highly competitive, with key players focusing on strategic partnerships, expansion, and innovation to strengthen their market position. Major companies include:

Digital Realty Trust
EdgeConneX
Iron Mountain Inc.
Microsoft Corporation
Equinix
Vertiv
Vapor IO
StackPath
Rackspace Technology
QTS Realty Trust

These companies are actively investing in infrastructure and technological advancements to enhance their edge data center market share.

Regional Insights into Edge Data Center Market Growth

North America continues to hold a strong position in the market, supported by early adoption of advanced connectivity and well-established digital infrastructure. Growth is gradually expanding beyond major cities into smaller regions where costs and capacity advantages exist. At the same time, companies are repurposing existing facilities for new use cases, although challenges such as higher construction expenses and skilled workforce shortages remain.

Asia-Pacific is emerging as a key growth engine, driven by government-led digital initiatives and increasing demand for localized data processing. Countries across the region are investing heavily in expanding their edge infrastructure, supported by lower development costs and a steadily growing talent pool. This is positioning the region as a major hub for future expansion.

Check out related reports published by Mordor Intelligence:
Containerized Data Center Market Report

The containerized data center market is projected to grow from USD 17.13 billion in 2025 to USD 46.16 billion by 2031, registering a CAGR of 17.99%. Growth is driven by rising demand for modular and rapidly deployable infrastructure, increasing edge computing adoption, and the need for energy-efficient and scalable data center solutions.

Vertiv Holdings Co, Schneider Electric SE, Huawei Technologies Co Ltd, Dell Technologies Inc, and Hewlett Packard Enterprise Co are the major companies operating in this market.

Read more about companies active in the market: https://www.mordorintelligence.com/industry-reports/containerized-data-center-market/companies?utm_source=prnewswire

Data Center Construction Market Share

The data center construction market is expected to expand from USD 281.34 billion in 2025 to USD 431.39 billion by 2031, growing at a CAGR of 7.51%. This growth is supported by increasing investments in hyperscale facilities, expansion of cloud infrastructure, and rising demand for sustainable and high-performance data center buildings.

AECOM, DPR Construction, Fortis Construction Inc., Turner Construction Co., and Whiting-Turner Contracting Company are the major companies operating in this market.

Read more about companies active in the market: https://www.mordorintelligence.com/industry-reports/data-center-construction-market/companies?utm_source=prnewswire

Data Center Service Market Size

The data center service market is forecast to grow from USD 148.31 billion in 2025 to USD 422.16 billion by 2032, at a CAGR of 16.12%. Growth is fueled by the increasing adoption of cloud computing, managed services, and the rising need for efficient data storage, processing, and security solutions across industries.

Equinix Inc., Digital Realty Trust Inc., Amazon Web Services (AWS), Microsoft Corporation (Azure), and Google LLC (Google Cloud) are the major companies operating in this market.

Read more about companies active in the market: https://www.mordorintelligence.com/industry-reports/service-market-for-data-center/companies?utm_source=prnewswire

About Mordor Intelligence

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals. With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape.

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