The forecast for the edge data centre market predicts a substantial increase in value, reaching $109.78 billion by 2034 with a notable CAGR of 17.63% from 2025 to 2034. This growth is attributed to the rising demand for real-time computing, low-latency data processing, and the expansion of 5G networks.
The âEdge Data Centre Market Analysis and Forecast 2025-2034â estimates that the edge data centre market will reach $109.78 billion in value by 2034, up from last yearâs figure of $20.62 billion. This equates to a significant CAGR of 17.63% during the period 2025-2034.
According to the report, one of the main drivers behind growth is the growing demand for real-time computing and low-latency data processing as close as possible to where computation can have the most operational effect. Other factors fuelling the marketâs growth are said to be the expansion of 5G networks, a greater need for decentralisation in computing infrastructure, and the incorporation of IoT applications that require the latest supporting systems.
Modular data centre architecture is helping streamline the construction of edge data centres, the reportâs authors state. Additionally, government policies encourage energy-efficient data centres and investment in smart city projects, both of which suggest edge-based data centres are the optimum choice.
A range of industries are influencing the growth of this market segment, including banking, financial services and insurance (BFSI), IT and telecom, healthcare, retail, automotive, and manufacturing. Network infrastructure improvements are moving especially quickly in the IT and telecom sectors, as edge data centres enable low-latency data processing and can reduce blockages in core networks caused by massively-centralised compute and storage.
The benefits to end-users that require faster, more responsive digital services include real-time computing capability, plus potential improvements in cybersecurity.
Smart factory automation is typical of the use-cases that can be supported by edge-located centres, although the concept is becoming increasingly important to different industries. For instance, autonomous vehicle technologies and AI-predictive maintenance require real-time data to be effective, and organisations such as manufacturing and distribution also see benefit from improved supply chain processes and less downtime. The latter is particularly important in the automotive and engineering sectors, where even short system outages or network latency can have a significant impact on the performance of production lines.
Edge data can help personalise shopping experiences in the retail sector, managing local inventory and in-person, in-store customer experiences. The centresâ proximity and relatively small size (thus, fewer services exposed to attack) can also enhance cybersecurity and keep customer data more secure.
Edge data centre investments
There has been a surge of investment in the edge data centre market over recent years. In 2023, tower firm, SBA Communications, opened a new facility in Dallas Fort Worth, Texas, US, while Edge Centres, a large player in the US edge data centre sector, launched its fifth facility in October 2023.
In Europe, independent infrastructure fund management company, Arcus established Portus Data Centres, a facility provision vehicle for the German market. Arcus also purchased IPHH internet Port Hamburg in December 2023.
Japanâs edge data centre market has witnessed rapid growth, driven by research and development projects by companies like Rakuten Mobile, Inc. One such project that studies advanced edge cloud technologies for next-generation communications was picked up by Japanâs National Institute of Information and Communications Technology (NICT) with a view to improve the edge platform concept and future deployments in the country. Rakuten Mobile is investing in local cloud facilities to meet the growing communication demands expected as 5G and its successors, 5G+ and 6G, roll out.
In February 2024, a $530 million investment by Azora and Core Capital was announced for the construction of six edge centres in Spain and Portugal, totalling 60 MW capacity.
There is a booming demand for low-latency, high-speed data processing, and localised infrastructure to support technologies like AI, 5G, and IIot in a growing range of cases. While centralised cloud services from hyperscalers remain popular, edge computingâs use in multiple niche use-cases over the last few years has made it a mainstream choice for a growing number of disparate organisations.
(Image source: âRaspberry Pi Clusterâ by l33tname is licensed under CC BY 2.0.)
