Data Center Storage Market Size - By Storage, By Architecture, By Component, By Medium, By Deployment Model, By Vertical, Growth Forecast 2025 – 2034

Data Center Storage Market Size

The global data center storage market was valued at USD 60.3 billion in 2024 and is estimated to register a CAGR of 9.4% between 2025 and 2034.
 

As organizations generate and store increasing amounts of data, the need for scalable and cost-effective storage solutions has become critical. This demand is driving the data storage market toward more flexible consumption models. Furthermore, businesses are implementing hybrid multi cloud approaches for better cost management along with data security and retrievability. The cloud infrastructures have an incredibly appealing feature of pay-as-you-go, which makes it appealing for all sizes of businesses.
 

In December 2024, Hammerspace and Supermicro formed a partnership to improve data storage on enterprise centers and hybrid clouds. In the collaborative venture, Supermicor plans to sell Hammerspace Global Data Platform which allows effortless data retrieval on AI, hybrid clouds, and HPC. The platform uses enterprise data management to streamline file storage for optimal performance without data silos.
 

The increase in the availability of streaming platforms, digital services, and cloud services has rapidly expanded the need for hyperscale data centers. Tech companies and cloud service providers are putting money into large scale data centers to support the growing needs for cloud storage and processing power. New facilities offer advanced resource storage systems to deal with the immense amount of data.
 

Growing data generation from IoT, AI, and digital transformation initiatives has further accelerated the demand for scalable and efficient storage solutions. Businesses require storage infrastructures that can handle massive data volumes while ensuring high performance, security, and seamless integration across cloud and on-premises environments.
 

Data Center Storage Market Trends

• As businesses transition from hardware-based solutions to more flexible and scalable alternatives, the adoption of Software-Defined Storage (SDS) is becoming more common. Companies are actively pursuing SDS because it enables them to separate storage management from a physical server, which leads to more efficient resource optimization, automation, and cloud integration.
   
• In April of 2024, Hitachi Vantara launched Virtual Storage Platform One (VSP One), a unified storage platform that spans on-premises and cloud environments, supporting both structured and unstructured data. Designed to eliminate data silos and fragmentation, VSP One integrates block and file storage into a single data ecosystem. It includes One Data Plane for cloud integration, currently supporting AWS, and VSP One SDS Cloud, which runs natively on AWS.
   
• Enterprises are rapidly accelerating their shift to the cloud, shifting from single to hybrid and multi-cloud models for scaling data volume while exerting control over critical workloads. This transition is driven by their craving for greater efficiency and cost savings, as well as the ability to provide better disaster recovery business continuity strategies.
   
• Enhanced efficiency and security along with predictive analytics are being utilized for storage management through AI and automation. Streamlining storage processes through automation reduces operational costs, as does the placing of data and strengthening of cyber security, while predictive analytics increases efficiency.
   

Data Center Storage Market Analysis

Based on architecture, the data center storage industry is categorized into block storage, file storage, and object storage. Block storage dominated the market in 2024 with a revenue of over USD 20 billion, while object storage is the fastest-growing segment, projected to grow at a CAGR of 9.7% from 2025 to 2034.
 

• Block Storage is widely used due to its high performance and reliability. It is commonly deployed in databases and enterprise applications that require low latency and structured data management. Its ability to split data into fixed-sized blocks ensures efficient data retrieval and seamless integration with storage area networks (SANs).
   
• File Storage is still the go-to solution for several collaborative workspaces, content management systems, and multifunctional storage systems. Its hierarchical nature allows simple file arrangements, making it perfect for businesses and cloud-based applications. File Storage allows enterprises to greatly increase their storage capabilities without large infrastructural expenses.
   
• Object Storage is picking up the fastest due to the large void in the market for unstructured data storage. It is purpose-built for retaining immense scale data such as media repositories, backups, and other cloud-first applications. The versatility, cost-effectiveness, ease of scaling, and enriched metadata architecture make it the best tool for AI accelerated workloads, big data analytics, and hyperscale cloud computing environments.
   
• In February 2025, DDN exhibited Infinia 2.0, an object-based storage designed to enhance AI training and inference. This technology, which is built on a key-value base structure, integrates with Nvidia’s AI. Infinia has been said to improve AI data processing speed by up to 100x, while reducing costs by a whopping 10 times.

Based on vertical, the IT & Telecommunications sector dominated the data center storage market in 2024 with market share of 23.4%, driven by the rapid expansion of cloud computing, 5G infrastructure, and AI-driven applications.
 

• The increasing demand for low-latency, high-performance storage is fuelled by hyperscale data centres, telecom networks, and edge computing deployments.
   
• Cloud service providers (CSPs) and telecom operators are investing in scalable, software-defined storage (SDS) solutions to support growing data volumes and seamless connectivity.
   
• The implementation of 5G networks and IoT services has increased the demand for efficient real-time data handling, modern virtualization technology, and advanced storage systems.
   
• Intelligent data analysis based on AI and machine learning needs high-performance, fast, and low latency storage to increase the efficiency of the network, predictive maintenance, and automation. Distributed storage solutions are increasingly found in edge data centers to mitigate latency and enhance data access in remote areas.
   

Based by storage, data center storage market is categorized into Storage Area Network (SAN), Network-Attached Storage (NAS), Direct-Attached Storage (DAS), and Software-Defined Storage (SDS).
 

SAN dominated the market in 2024 with revenue of over USD 20 billion.
 

• Storage Area Network (SAN) holds the largest market share due to its high-speed connectivity, scalability, and reliability SAN is the most widely adopted storage system. It finds extensive application in enterprise and database systems, as well as in workloads that are crucial for business branches that demand ultra-low response times and high times. Large corporations and hyperscale computing units dominate the SAN market because they can supply the enormous workloads efficiently.
   
• COPS Monitoring made advancements in its data storage by migrating to NetApp’s new Storage Area Network (SAN) in November 2024, which improves the overall system’s fault tolerance and security. The new SAN is designed with features like dual power supply, dual controllers, and hot-swappable components which further increase reliability. The company deployed identical SANs in New Jersey and Texas, where each SAN is designed to accommodate a whopping 35 petabytes.
   
• Network-attached storage (NAS) is the preferred storage type for file sharing, backup, and cloud services. It is easy to set up and manage while also being highly scalable, making it suitable for small and medium enterprises as well as large organizations that need low-cost storage resources.
   
• Applications with lower budgets but that require rapid local data retrieval are being served well by DAS. It is commonly deployed in desktop computing, small scale, and dedicated server environments. Software defined storage is also on the rise as it is the most efficient of all.
   

Based on medium, the data center storage market is categorized into Hard Disk Drive (HDD), Solid-State Drive (SSD), and Tape Storage. HDD dominated the market in 2024.
 

• The Hard Disk Drive (HDD) accounts for majority of the market due to it being cost effective, having high capacity, and being the industry standard for bulk data storage. The enterprise storage, backup, and archival storage markets usually adopt the HDD model, where cost per terabyte is crucial.
   
• The Solid-State Drive (SSD) market is growing at a fast pace because hyperscale data centers and cloud computing platforms need fast storage solutions. SSDs read and write data at much faster speeds, making them ideal for applications like real-time analytics and AI training that require lower latency, which concurrently replaces HDDs faster.
   
• Tape storage is still relevant for accounting purposes over long-term archival and backup storage, especially in industries that require high capacity, low-cost, and energy efficient data retention solutions. In fact, tape storage still remains critical in accounting for long-term archival and backup storage, especially in industries that require a massive capacity at a low cost.

The North American region dominated the data center storage market in 2024, holding a major share of over 30%, with the United States leading due to cloud expansion and AI-driven workloads.
 

• The U.S. takes the lead in the market because of scale cloud providers like AWS, Google, and Microsoft which continues to put real money into sophisticated storage innovations. With the increase in AI powered workloads and edge computing, there has been an accelerated adoption of low latency SSDs and NVMe based storage.
   
• Increase in demand for storage from companies like Dell, NetApp, Pure Storage helped to strengthen North America's position in the market.
   
• These strategy changes permitted companies to subscribe to storage hardware instead of buying it in full aid with expanding OpEx preferences. Keystone gave power to companies to flexibly manage across hybrid cloud environments and securely meet their operational workloads as devotion to cloud resources changes.
   
• For instance, NetApp introduced Keystone, a pay-as-you-go on-premises storage service, at its Insight conference in Las Vegas. This shift allowed enterprises to subscribe to storage hardware rather than purchase it outright, aligning with the growing preference for OpEx models. Keystone enabled businesses to scale storage needs dynamically while maintaining flexibility across hybrid cloud environments.
   
• Government investments in digital infrastructure and data sovereignty laws have driven regional data center expansion, increasing the demand for secure and high-performance storage
   

The Asia-Pacific data center storage market is expected to experience steady growth from 2025 to 2034 with China leading due to rapid digital transformation and cloud adoption.
 

• China’s dominance in semiconductor and storage device manufacturing has lowered costs and accelerated SSD and software-defined storage (SDS) adoption in data centers.
   
• Rising number of hyperscale data centers in India and Southeast Asia has further boosted the demand for scalable and high-speed storage architectures.
   
• In November 2024 Zuora, Inc. announced the launch of a new data center in Japan to enhance compliance and customer support in the Asia-Pacific region. This facility improves product performance, aligns with evolving data protection laws, and offers up to 30 times faster performance. The expansion strengthens Zuora’s presence in APAC, supporting over 100 regional customers, including BIGLOBE.
   

Europe data center storage market is expected to experience steady growth from 2025 to 2034, with Germany leading due to strict data security laws and green data center initiatives.
 

• The EU’s stringent data protection regulations, such as GDPR, have driven investments in secure and localized storage solutions.
   
• The region’s focus on sustainable and energy-efficient storage solutions, such as liquid cooling and AI-powered data optimization, is driving innovation in storage efficiency.
   
• In May 2024 Hetzner Online introduced three new cost-effective dedicated storage servers designed for large-scale data storage. These models combine NVMe speed with high HDD capacity, catering to various applications like archiving, streaming, and database hosting. The lineup includes the SX65, SX135, and SX295, each offering different performance levels to meet business needs.
   

Data Center Storage Market Share

• Top 7 companies of electric vehicle charging cable market are IBM, Microsoft, Oracle, Google LLC, Amazon, Dell and HPE. They collectively hold a market share of around 35% in the market.
   
• Microsoft leveraged strategic partnerships to expand its AI-driven cloud and storage solutions, enhancing scalability and innovation. In September 2024 Microsoft, BlackRock, and partners launched a $30 billion investment fund to expand data center infrastructure. This initiative aims to enhance storage capacity and computing power while addressing the rising energy demands of AI workloads. With AI-driven data centers expected to consume up to 4% of global energy by 2029, the partnership focuses on scalable, efficient storage solutions to support the digital economy.
   
• Oracle strengthened its cloud infrastructure with autonomous database solutions and multi-cloud compatibility to attract enterprise clients. Google LLC invested heavily in AI-powered storage and sustainability, enhancing efficiency in its cloud and edge solutions.
   
• Amazon, through AWS, dominated cloud storage by offering scalable, secure, and cost-effective solutions tailored for various industries. Dell prioritized enterprise storage hardware and hybrid cloud solutions, integrating AI to optimize data management.
   
• HPE focused on edge-to-cloud strategies, providing AI-driven storage and high-performance computing to support digital transformation. In March 2024, HPE and Pure Storage introduced new enterprise storage solutions for AI and high-performance workloads. HPE expanded its GreenLake for File Storage with a high-density, all-flash array offering improved capacity and performance. Meanwhile, Pure Storage enhanced its Pure1 management platform with self-service upgrades, ransomware anomaly detection, and disaster recovery capabilities.
   
• The data center storage market is highly competitive, driven by innovation, scalability, and cloud integration. Leading companies dominate through a mix of hardware, software, and cloud-based storage solutions, leveraging R&D investments and strategic partnerships to strengthen their market position.
   
• Cloud service providers play a key role in shaping the industry with scalable and secure storage solutions, while traditional hardware providers continue to evolve by integrating software-defined storage (SDS) and hybrid cloud models.
   
• The market also sees competition from emerging players specializing in high-performance, AI-driven, and security-focused storage solutions. As demand grows, companies are investing in automation, AI, and next-generation storage technologies to maintain a competitive edge.
   

Data Center Storage Market Companies

Major players operating in the data center storage industry include:

• Amazon
• Dell
• Fujitsu
• Google
• HPE
• Huawei
• Microsoft
• Oracle
   

Data Center Storage Industry News

• In February 2025, Turkish data center provider Radore modernized its storage infrastructure by deploying Huawei’s advanced storage solutions, significantly boosting performance, reliability, and operational efficiency. Radore, aimed to overcome the limitations of its legacy storage system, which struggled with high latency and slow data access.
   
• In January 2025, Lenovo announced its acquisition of Israeli enterprise storage company Infinidat. Lenovo stated that this move aligns with its growth strategy, strengthening its enterprise storage offerings and expanding its position in the entry and mid-range storage market.
   
• In October 2024, Huawei launched its New-Generation All-Flash Data Center Solution at GITEX GLOBAL 2024, enhancing performance, security, and efficiency for AI, analytics, and critical workloads. With innovations like 100M+ IOPS storage, 500 GB/s AI model support, ultra-dense analytics storage, and 99.99% ransomware detection, Huawei aims to drive faster, greener, and more resilient digital transformation for enterprises.
   
• In June 2024, Pure Storage introduced AI-driven security and performance upgrades, including Evergreen//One, a storage-as-a-service solution optimized for AI workloads with guaranteed GPU performance. New features include an AI-powered copilot for storage management, enhanced ransomware detection using machine learning, and expanded SLAs covering disaster recovery and security assessments.
   

The data center storage market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

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Market, By Storage

• Storage area network (SAN)
• Network-attached storage (NAS)
• Direct-attached storage (DAS)
• Software-defined storage (SDS)

Market, By Architecture

• Block storage
• File storage
• Object storage

Market, By Component

• Hardware
• Software

Market, By Medium

• Hard disk drive (HDD)
• Solid-state drive (SSD)
• Tape Storage

Market, By Deployment Model

• On-premises
• Cloud-based
• Hybrid

Market, By Vertical

• IT & telecommunications
• BFSI
• Healthcare
• Retail & E-commerce
• Government & defence
• Media & entertainment
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia