Data Center Networking Market Analysis: Challenges, Growth Factors, and Future Outlook

The global Data Center Networking Market is expected to reach USD 39.22 billion by the end of 2025. Looking ahead, the market is projected to grow substantially, reaching USD 73.20 billion by 2030, with a compound annual growth rate (CAGR) of 13.3% between 2025 and 2030.

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This growth is being driven by several transformative trends, including the exponential rise in data generation, the widespread adoption of artificial intelligence (AI) and machine learning, and the rapid expansion of cloud-based services. These developments are fueling the demand for high-performance computing and resilient, high-capacity networking infrastructure within data centers.

North America currently holds the dominant share of the global data center networking market. This leadership is attributed to the region's aggressive push toward AI-driven infrastructure, robust cloud adoption, and the presence of major hyperscale data center operators. However, the region is also grappling with a growing shortage of wholesale data center space in key urban hubs, resulting in record-high rental rates and intensified competition for capacity.

As demand for bandwidth, low latency, and scalable connectivity increases, data center networking is emerging as a strategic investment priority for enterprises, cloud providers, and colocation facilities alike.