AI & Cloud to Drive $145 Billion Smart Data Center Market by 2033
Worldwide, Monday, 9 February 2026.
The smart data center market is projected to reach $145.3 billion by 2033, with North America currently leading. AI-driven demand may cause US electricity use to jump 2-3x by 2028.
Market Growth and Drivers
The global smart data center market is projected to grow from US$82.6 billion in 2026 to US$145.3 billion by 2033, reflecting a compound annual growth rate (CAGR) of 8.4% [1]. This expansion is largely attributed to the increasing demand for cloud computing, artificial intelligence (AI), and high-performance computing infrastructure [1]. These technologies require scalable and energy-efficient infrastructure, positioning the IT & telecom sector as a key end-user in the smart data center market [1].
North American Dominance and Key Players
Currently, North America leads the smart data center market, driven by substantial investments in hyperscale data centers and the early adoption of advanced technologies [1]. Key companies operating within this market include IBM Corporation, Schneider Electric SE, Siemens AG, and Cisco Systems, Inc. [1]. These companies are at the forefront of providing innovative solutions and services that cater to the evolving needs of data centers.
Rising Electricity Demand and Infrastructure Investments
The International Energy Agency (IEA) projects that the rise of data centers will significantly impact U.S. power demand, increasing it by an average of 2% annually from 2026 to 2030 [7]. This is double the pace observed between 2016 and 2025 [7]. Data centers are expected to account for approximately 50% of U.S. power demand growth during this period [7]. To meet this surging demand, McKinsey estimates that approximately $7 trillion in capital expenditures will be directed towards global data center infrastructure by 2030, with over 40% of that investment occurring in the U.S. [6].
Strategic Expansions and Project Developments
Several major projects indicate the rapid growth and investment in data center infrastructure. Soluna Holdings, in partnership with Metrobloks, is developing a 100+ MW AI and high-performance compute (HPC) data center in Willacy County, Texas, with potential expansion to over 300 MW [4]. Rowan Digital Infrastructure has commenced construction on its 300 MW Project Temple data center in Texas, with operations slated to begin in 2027 [4]. Crow Holdings is also developing a 245 MW data center campus in central Dallas, with the first 70 MW building expected to be completed in late 2027 [4]. These projects highlight the scale and pace of data center development to support future technological demands.