The U.S. data center renovation market is projected to grow from $8.71 billion in 2025 to $36.25 billion by 2035, while Europe is expected to expand from $6.39 billion to $26.30 billion by 2035.
Austin, United States, Sept. 01, 2026 (GLOBE NEWSWIRE) -- The Data Center Renovation Market was valued at USD 25.55 Billion in 2025 and is expected to reach USD 114.36 Billion by 2035, growing at a CAGR of 16.17% from 2026 to 2035.
The global data center renovation market growth is driven by companies that seek energy efficiency, security, and computing capacity due to the development of cloud, edge, and AI technologies, which has resulted in many companies renovating existing data centers rather than constructing new greenfield data centers. There is also growing adoption of efficient cooling, incorporation of renewable energy, electricity upgrades, and space optimization to achieve sustainability and comply with carbon regulations. Schneider Electric launched advanced energy-efficient power distribution units and AI-driven monitoring software in 2024 for sustainable data center renovation services.
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Key Takeaways:
- Leading Renovation Type: Mechanical Renovation (~41% share)
- Leading Renovation Goal: Improved Energy Efficiency (~46% share)
- Leading Infrastructure Component: Cooling Systems (~38% share)
- Leading Data Center Age Group: 11–15 Years (~33% share)
- Largest Regional Market: North America (~41.21% share)
- Fastest-Growing Regional Market: Asia-Pacific
Market Segmentation Analysis:
By Renovation Type
Mechanical Renovation comprised about 41% of the market in 2025, consisting mainly of the requirement for renovation of structural components including elevated floors, enhanced server room capacity, and fire suppression and physical security systems, with major players such as Equinix and Digital Realty promoting retrofits on a large scale. The most rapidly growing segment is that of Electrical Renovation, due to the increase in investments made in the retrofitting of outdated power distribution systems, switchgear, and backup power systems, with manufacturers like Vertiv and Schneider Electric developing modular electrical infrastructure.
By Renovation Goal
Improved Energy Efficiency has taken the biggest share at about 46%, with increasing energy costs and more stringent environmental policies encouraging the adoption of efficient UPS solutions, fast-speed fans, and energy management technologies similar to Google’s and Meta’s AI-driven energy optimization strategy. Increased Capacity and Density, is the fastest-growing one due to the rapid development of higher-density computing and AI applications.
By Infrastructure Component
Cooling Systems accounted for the highest market share of around 38% in 2025, thanks to the fast growth in power density due to HPC and AI-based applications, which saw vendors such as Vertiv and STULZ roll out liquid-cooled and energy-efficient air handling units. Power Systems is the fastest-growing component, owing to the critical requirement for reliable power architecture systems as players, such as Eaton and ABB rolled out UPS and switchgears.
By Data Center Age
The data centers with age 11-15 years possessed the maximum market share of around 33% in 2025 because they were still in operation and needed to be upgraded to suit their present requirements of digitization, which was taken care of by IBM and NTT by consolidating servers. The data centers aging 16-20 years had the fastest growth rate due to the pressing need for upgrading and replacing the existing infrastructure not able to meet the demands anymore.
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Regional Analysis
North America takes the highest market share of 41.21% in Data Center Renovation Market. As the North American region is equipped with Technologies & Tools that make its infrastructure robust, along with having several legacy data centers in need of renovation, the data center renovation market is seen here. It is a very digitally transforming region with investments being made for the efficient and secure data center technologies.
The U.S. data center renovation market was valued at USD 8.71 billion in 2025 and is projected to reach USD 36.25 billion by 2035, registering a CAGR of 15.33% from 2026 to 2035. The US market growth is driven by the presence of many legacy data centers, quick adoption of digital technologies, and environmental regulations compelling retrofitting with green technologies.
Europe data center renovation market is predicted to be worth USD 6.39 billion in 2025 and will further grow to USD 26.30 billion in 2035 at a CAGR of 15.20% in the forecast period 2026-2035. Europe data center renovation market is still witnessing slow growth due to strict environmental regulations and adoption of green technology.
Asia Pacific is the fastest-growing region with a CAGR of 17.07% as growing digital infrastructure, increasing cloud adoption, and quick industrialisation. As consumption and performance demand continue to increase, investments toward modernization of older, expansive facilities are climbing.
Key Players:
- ABB
- Dell Technologies
- Eaton
- Hewlett Packard Enterprise (HPE)
- Huawei
- Rittal
- Schneider Electric
- Vertiv
- Cisco Systems
- IBM
- Microsoft (Azure / hybrid infrastructure)
- Google Cloud
- Amazon Web Services (AWS)
- Juniper Networks
- Arista Networks
- Siemens
- Hitachi
- Fujitsu
- Oracle
- NTT Data / NTT Ltd.
Recent Developments
2024: Schneider Electric expanded its sustainable data center renovation solutions with advanced energy-efficient power distribution units, intelligent cooling technologies, and AI-based monitoring platforms.
2024: Vertiv introduced upgraded cooling and power management solutions designed to support high-density computing environments and AI workloads.
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Exclusive Sections of the Report (USPs):
- Renovation Type & Infrastructure Upgrade Metrics – helps you understand adoption trends across mechanical and electrical renovation investment and infrastructure retrofit cycles across global colocation and enterprise deployments.
- Cooling & Power System Modernization Metrics – helps you evaluate liquid cooling and power distribution upgrade trends and specialist infrastructure vendor competitive positioning across global data center markets.
- Data Center Age & Lifecycle Refresh Metrics – helps you analyze mid-life and legacy facility refresh cycles and renovation ROI patterns across global enterprise and hyperscale verticals.
- Energy Efficiency & Sustainability Compliance Metrics – helps you uncover growth in green retrofit adoption and carbon-reduction infrastructure investment across regulated digital infrastructure markets globally.
- Modular & Prefab Renovation Supply Chain Metrics – helps you identify growth opportunities in modular construction feedstock and rapid-deployment renovation scalability across global data center verticals.
- Competitive Landscape & Facility Expansion Metrics – helps you gauge the competitive strength of key infrastructure providers based on retrofit project scale and geographic service footprint globally.
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CONTACT: Rohan Jadhav - Principal Consultant Phone: +1-315-961-9094 (US)
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