Edge Data Center Market Size By Component, By Data Center Size, By Ownership, By Rack Count, By Application, By Region Growth Forecast, 2026 - 2035

Edge Data Center Market Size

The global edge data center market was estimated at USD 14.7 billion in 2025. The market is expected to grow from USD 16.9 billion in 2026 to USD 71.9 billion in 2035, at a CAGR of 17.5% according to latest report published by Global Market Insights Inc.

The increasing use of real-time applications such as autonomous systems, immersive media and mission-critical analytics has created a growing need to have data centers located as close as possible to end users/devices in order to minimize latency.
 

The combination of 5G networks and multi-access edge computing is driving the demand for localized data centers that can handle distributed processing (at base stations) by providing faster throughput, better responsiveness and network offloading for advanced digital services.
 

With enterprises deploying large sensor networks, industrial controls and smart devices, the need for edge data centers to facilitate large volume, local processing of data will allow them to operate more efficiently, decrease backhaul traffic and achieve continuous operational intelligence.
 

Artificial intelligence (AI) workloads increasingly require dispersed inference near the data source so that decisions are made quickly. Edge data centers provide scalable compute resources that support distributed AI models enabling increased responsiveness and reduced dependence on cloud resources.
 

In April 2024, Huawei Technologies launched the FusionModule2100 modular edge data center for telecom and enterprise deployments. The solution integrates IT racks, liquid cooling for AI workloads, power distribution, battery backup, and AI-based management, achieving rapid two-week deployments with enhanced energy efficiency and renewable energy support.
 

Government agencies and regulated industries require the local processing and storage of data to meet the requirements of strict data governance regulations, and edge data centers help to ensure that sensitive data remains within the borders of the country, while at the same time supporting advanced digital applications.
 

Edge Data Center Market Trends

Many cloud providers are expanding their offerings into localized nodes, thus forming unified distributed architectures. This trend helps integrate hyperscale platforms with edge facilities, which allows users to place workloads seamlessly, have a level of multi-zone resilience and provide consistent service delivery across many geographic regions.
 

Scalable modular datacenters that have already been prefabricated are quickly becoming the preferred choice for enterprises looking to accelerate their deployment timelines, reduce overall costs, and support remote or densely populated metropolitan areas. This trend demonstrates the continued push from the marketplace toward flexible and easily repeatable designs of edge infrastructure.
 

The partnership between telecom operators and cloud service providers is becoming increasingly common as a means of bringing together 5G Networks and Cloud Edge Services. These partnerships will further promote the acceleration of the deployment timeline for new services and increase the number of services available to consumers, as well as promote the continued development of Integrated Edge Ecosystems to enable the next generation of digital experiences.
 

In May 2024, Vapor IO raised $200 million Series D funding to expand its Kinetic Edge platform across 50 U.S. metropolitan markets. The micro data center colocation model at cell towers and fiber hubs supports multi-tenant deployments with a nationwide goal of 500 locations by 2026.
 

The increased adoption of AI models will also see the emergence of a much tighter coupling between Data Processing Pipelines, Specialized Accelerators and Local Intelligence at the edge. The combination of these three elements is becoming increasingly likely to lead to real-time automation, predictive insights and autonomous decision-making capabilities.
 

Edge Data Center Market Analysis

Learn more about the key segments shaping this market

Download Free PDF

Based on component, market is segmented into solution and service. Solution as a service segment dominates the market with 74% share in 2025, and the segment is expected to reach USD 50.3 billion in 2035.  
 

• Solution providers offer unified orchestration across cloud, core, and edge environments. This trend simplifies workload placement, enhances resilience, and enables consistent application performance across hybrid infrastructures supporting real-time and mission-critical use cases.
   
• Tailored solutions for manufacturing, healthcare, retail, and smart cities are expanding. This trend reflects rising demand for industry-aligned edge capabilities such as localized analytics, AI inference, and secure data compliance frameworks.
   
• Server infrastructure, driven by AI, video, and analytics, prioritizes edge-optimized efficiency, GPUs/AI accelerators, SSD storage with caching, and high-bandwidth networking for deployment in diverse, non-traditional environments.
   
• Service providers deliver end-to-end edge management, including monitoring, orchestration, security, and lifecycle operations. This trend helps enterprises overcome skills shortages and accelerates adoption of distributed edge architectures with predictable OPEX models.
   

Learn more about the key segments shaping this market

Download Free PDF

Based on data center size, the edge data center market is bifurcated into micro data centers, hyperscale/enterprise data center and others. The hyperscale/enterprise data centre segment dominates with 45% market share in 2025 and is estimated to reach USD 32.1 billion by 2035.
 

• Large operators build smaller, distributed hyperscale nodes closer to metros. This trend complements core cloud regions, enabling improved latency, AI inference performance, and disaster resilience for data-intensive enterprise workloads.
   
• Hyperscale edge sites integrate large GPU clusters to process AI workloads locally. This trend responds to enterprise demand for faster inference, secure data boundaries, and hybrid-cloud optimization for real-time applications.
   
• Prefabricated modular edge facilities expand across underserved and emerging markets. This trend reduces deployment cost and complexity while enabling flexible scaling for operators and enterprises with distributed infrastructure needs.
   
• Other edge categories such as colocation pods, retail edge hubs, and smart-city shelters grow rapidly. The trend reflects rising specialization for application-centric architectures supporting surveillance, mobility, logistics, and localized analytics.
   

Based on ownership, the edge data center market is segmented into telecom operator edge, hyperscale cloud edge, enterprise-owned edge, and CDN provider edge.  The enterprise-owned edge segment dominates with 31% market share in 2025 and is anticipated to reach USD 13 billion by 2035.
 

• Telecom operators deploy edge infrastructure within 5G networks at base stations and regional facilities, enabling MEC, core network virtualization, content caching, enterprise services, and low-latency consumer applications like cloud gaming, AR, and live streaming.
   
• Enterprises implement edge computing for private applications, IoT, industrial monitoring, retail analytics, healthcare systems, and operational control, supporting local processing and deterministic performance while addressing data sovereignty and strategic infrastructure needs.
   
• Hyperscale cloud providers extend public cloud services to edge locations, supporting low-latency workloads, hybrid architecture, and local data compliance, leveraging managed services, global expansion, and developer ecosystems to enable scalable, distributed cloud-edge solutions.
   

Based on application, the edge data center market is divided into BFSI, colocation, energy, government, healthcare, manufacturing, IT & telecom and others. Colocation segment held a market share of 28% in 2025 and is projected to grow at a CAGR of 20.3% from 2026 to 2035.
 

• Colocation services provide multi-tenant edge facilities, enabling enterprises to deploy computing across regions without capital investment. Providers offer shared power, cooling, network connectivity, flexible capacity, and high availability, supporting distributed enterprise and telecom edge needs.
   
• Telecom operators deploy edge infrastructure for 5G, MEC, network virtualization, content delivery, gaming, and
  z enterprise services, while enterprises extend IT to private edge and hybrid cloud, leveraging distributed facilities for network performance and service delivery.
   
• Financial services adopt edge computing for low-latency trading, fraud detection, regulatory compliance, branch operations, and customer service, enabling real-time transaction processing, distributed analytics, and AI-enhanced responsiveness for banking, insurance, and financial applications.
   
• Healthcare edge computing supports telemedicine, remote patient monitoring, medical imaging AI, EHR access, and device management, ensuring low-latency, reliable, and compliant operations across hospitals, clinics, underserved areas, and medical device deployments.
   

Looking for region specific data?

Download Free PDF

The edge data center market in US is valued at USD 5.7 billion in 2025 and is expected to experience significant and promising growth from 2026 to 2035.
 

• Telecom operators are rapidly deploying 5G-driven multi-access edge computing (MEC) infrastructure at cell sites and regional hubs to enable ultra-low-latency applications, including augmented and virtual reality, cloud gaming, and latency-sensitive enterprise services across multiple industries.
   
• Hyperscale cloud providers are expanding distributed edge nodes to enable hybrid edge-cloud architecture, supporting AI, IoT, and latency-sensitive workloads while providing enterprises with scalable computing resources closer to end users for improved application performance.
   
• Colocation and multi-tenant edge facilities are increasingly in demand, allowing enterprises to deploy distributed computing infrastructure without heavy capital expenditures, while benefiting from high availability, carrier-neutral network connectivity, flexible capacity, and reduced operational complexity.
   
• Edge AI adoption is accelerating across healthcare, manufacturing, and retail sectors, enabling real-time analytics, predictive maintenance, automation, and enhanced customer experiences by leveraging GPUs and specialized accelerators closer to the source of data.
   

North America region in the edge data center market held a market revenue USD 6.2 billion in 2025 and is anticipated to grow at a CAGR of 16% during 2026 to 2035.
 

• Telecom operators in the US and Canada are deploying 5G-driven MEC infrastructure at urban and suburban sites, supporting latency-sensitive applications including AR/VR, cloud gaming, industrial IoT, and autonomous systems for both consumer and enterprise markets.
   
• Canadian edge deployments emphasize connectivity for remote communities and resource-heavy industries like mining, oil, and energy, with localized edge nodes reducing latency and bandwidth costs while enabling real-time analytics, AI inference, and industrial automation in geographically dispersed regions.
   
• Hyperscale cloud providers are expanding edge nodes across North America, particularly near major data hubs in Toronto, Vancouver, New York, and Silicon Valley, supporting hybrid edge-cloud architectures, AI workloads, IoT applications, and enterprise digital transformation initiatives.
   
• Colocation and multi-tenant edge facilities are rapidly growing in North America, allowing enterprises in both the US and Canada to access distributed computing infrastructure without heavy capital expenditure, benefiting from high availability, carrier-neutral connectivity, scalable capacity, and flexible deployment options.
   

Europe edge data center market accounted for USD 4.4 billion in 2025 and is anticipated to show growth of 17% CAGR over the forecast period.
 

• Strong regulatory emphasis on data sovereignty is driving local edge deployments across national jurisdictions, ensuring sensitive data remains within borders and supports compliance with GDPR while enabling enterprises to deploy latency-sensitive applications securely.
   
• Integration of renewable energy, energy-efficient cooling, and sustainable designs in edge data centers is becoming a key trend, helping operators meet ESG goals while reducing operational costs and minimizing carbon footprint.
   
• Telecom-led MEC facilities are expanding to support industrial IoT, smart city infrastructure, and connected automotive applications, delivering low-latency services and distributed processing close to end users for real-time operations.
   
• Enterprise-owned edge infrastructure is growing across manufacturing, retail, and healthcare sectors, providing deterministic latency, on-premises data processing, and secure operations, particularly where regulatory or operational requirements prevent reliance on public cloud facilities.
   

Germany dominates the Europe edge data center market, showcasing strong growth potential, and held a market share of 28% in 2025.
 

• Industrial edge adoption is growing rapidly to support Manufacturing 4.0 initiatives, robotics automation, and predictive maintenance applications, providing deterministic performance, reduced latency, and improved operational efficiency in smart factories and industrial IoT environments.
   
• Stringent data privacy, regulatory compliance, and national security requirements drive the deployment of localized edge infrastructure, ensuring sensitive sectors such as healthcare, finance, and government maintain data sovereignty while meeting strict operational standards.
   
• Telecommunications operators are expanding 5G edge infrastructure, including MEC nodes, to enable low-latency enterprise services, smart city applications, and autonomous vehicle testing, providing reliable connectivity and distributed compute power across urban and industrial areas.
   
• Sustainable and energy-efficient edge facilities are increasingly prioritized, leveraging renewable energy sources, advanced cooling systems, and energy optimization technologies to reduce operational costs, meet ESG goals, and support long-term infrastructure scalability.
   

Asia Pacific region leads the edge data center market, exhibiting remarkable growth with a CAGR of 20% during the forecast period of 2026 to 2035.
 

• Rapid 5G rollout across urban and semi-urban areas drives telecom edge deployments supporting latency-sensitive applications such as AR/VR, cloud gaming, and enterprise digital services, enhancing connectivity and user experiences.
   
• Cloud providers are expanding edge presence across multiple APAC countries, enabling hybrid edge-cloud architectures to support low-latency workloads, AI processing, and data-intensive enterprise applications closer to end users.
   
• Enterprise-owned edge infrastructure adoption is increasing in manufacturing, logistics, and retail sectors to provide real-time analytics, operational efficiency, and deterministic performance while meeting local compliance and latency requirements.
   
• Colocation facilities are scaling rapidly to accommodate growing demand from global hyperscale’s and regional businesses, offering distributed infrastructure access without heavy capital expenditure and supporting multi-tenant, high-availability deployments.
  
   

China to experience substantial growth in the Asia Pacific edge data center market in 2025. The market in China is expected to reach USD 9.7 billion by 2035.
 

• Government policies, 5G expansion, and national industrial strategies accelerate edge deployment for smart cities, autonomous vehicles, industrial IoT, and connected infrastructure, driving innovation and low-latency application adoption.
   
• Hyperscale cloud providers are establishing edge nodes to deliver low-latency AI, content delivery, and real-time enterprise services, enhancing cloud-edge integration across distributed locations.
   
• Enterprise-owned edge infrastructure grows in manufacturing, healthcare, and finance sectors to ensure data residency, regulatory compliance, and secure operations for mission-critical workloads closer to source data.
   
• Integration of AI accelerators, GPUs, and specialized hardware in edge facilities enables real-time video analytics, autonomous systems, and industrial automation applications with high-performance computing at the network edge.

Latin America is valued at USD 589.7 million in 2025 and is expected to experience substantial growth during the forecast period from 2026 to 2035.
 

• Telecom operators are deploying edge infrastructure to improve connectivity in urban and remote regions, supporting MEC, 5G, and latency-sensitive applications for consumer, enterprise, and government services.
   
• Colocation providers are expanding multi-tenant edge facilities, allowing regional enterprises to access distributed computing resources without high capital investment, while offering flexible capacity, carrier-neutral connectivity, and high availability.
   
• Adoption of cloud-based edge services is growing across financial services, retail analytics, and e-government applications, enabling real-time processing, operational efficiency, and AI-driven decision-making.
   
• Energy-efficient designs and distributed edge deployments are prioritized due to variable infrastructure reliability, power constraints, and the need for sustainable, cost-effective operations across emerging markets.
   

MEA is valued at USD 221.1 million in 2025 and is expected to experience substantial growth during the forecast period from 2026 to 2035.
 

• Rapid 5G rollout and telecom-led MEC deployments support smart city initiatives, industrial automation, and latency-sensitive applications, enhancing digital services and connectivity across urban and remote regions.
   
• Cloud providers are establishing edge infrastructure to support financial services, government operations, and energy sectors, delivering real-time analytics, low-latency workloads, and hybrid cloud integration.
   
• Colocation adoption is growing, enabling regional enterprises to access distributed computing without heavy capital investment while benefiting from shared infrastructure, carrier-neutral networks, and flexible capacity.
   
• Edge computing supports remote monitoring, IoT, and healthcare applications in regions with limited network coverage, ensuring reliable operations, improved services, and local data processing closer to end users.
   

Edge Data Center Market Share

• The top 7 companies in the edge data center industry are Huawei Technologies, Dell Technologies, IBM, Schneider Electric, Hewlett Packard Enterprise Company, Eaton, Vertiv contributed around 34.7% of the market in 2025.
   

• Huawei Technologies offers a comprehensive edge infrastructure portfolio including servers, storage, networking, power systems, modular data centers, and management platforms. The company emphasizes integrated IT and telecom solutions for seamless MEC deployment across APAC, Middle East, Africa, and LATAM.
   
• Dell Technologies provides PowerEdge servers, VxRail hyper-converged infrastructure, and modular edge solutions optimized for ruggedized and distributed deployments. Strategic enterprise and telecom partnerships, combined with VMware integration and expanded storage capabilities, support both enterprise-owned and operator-focused edge infrastructure.
   
• IBM  delivers hybrid cloud and AI-optimized edge solutions, industry-specific deployments for telecom, manufacturing, retail, and finance, and professional services. Red Hat OpenShift enhances edge orchestration, while IBM Edge Application Manager enables unified management across distributed edge environments.
   
• Schneider Electric focuses on physical infrastructure for edge deployments, offering EcoStruxure modular data centers, power distribution, cooling systems, and DCIM platforms. Prefabricated solutions ensure rapid deployment, energy efficiency, and sustainability, integrating with existing building systems and renewable energy sources
   
• Hewlett Packard Enterprise Company provides HPE Edgeline converged systems, ProLiant servers, Aruba networking, and GreenLake consumption-based services. Edge solutions integrate with hybrid cloud platforms, SD-WAN connectivity, and telecom operator partnerships, enabling flexible deployment without heavy capital investment.
   
• Eaton  specializes in electrical power management, including UPS systems, distribution units, remote management, and battery backup, ensuring reliable edge operations. Integration with generators, renewable energy, and microgrid architectures supports remote and unmanned edge facilities requiring high availability.
   
• Vertiv delivers thermal management and edge infrastructure solutions including modular SmartMod data centers, precision cooling, power distribution, UPS systems, and monitoring platforms. Rapid deployment, factory testing, and telecom operator partnerships enhance reliability for distributed MEC and edge networks.
   

Edge Data Center Market Companies

Major players operating in the edge data center industry are:

• Dell Technologies
• Eaton
• EdgeConnex
• EdgePresence
• Flexential
• Fujitsu
• Hewlett Packard Enterprise Company
• Huawei Technologies
• IBM
• Rittal
• Schneider Electric
• Vapor
• Vertiv
   
• Dell Technologies delivers comprehensive edge computing infrastructure through PowerEdge servers, VxRail HCI, and storage systems, supporting enterprise, telecom, and government customers. The company emphasizes simplified distributed management, integrated security, hybrid cloud connectivity, and telecom MEC solutions backed by strong partnerships, global channels, and financing programs.
   
• Eaton provides power management solutions essential for reliable edge operations, including UPS systems, power distribution units, remote management, and extended battery backup. Eaton addresses challenging electrical environments through ruggedized equipment, generator integration, and microgrid solutions, supported by global manufacturing, strong distributor networks, and energy-focused sustainability initiatives.
   
• EdgeConnex operates as a pure-play edge data center provider building and managing regional facilities across North America, Europe, and APAC. The company focuses on metro markets, carrier-neutral connectivity, rapid deployment, and underserved regions, offering strategically located colocation infrastructure backed by substantial private equity investment.
   
• EdgePresence delivers distributed edge data center infrastructure through an IaaS model, offering multi-tenant colocation close to end users for low-latency content delivery, gaming, cloud services, and telecom applications. Standardized designs, automation, flexible contracts, and strong carrier and cloud partnerships expand its service reach.
   
• Flexential provides colocation, cloud, and managed services across U.S. markets, including edge facilities supporting distributed enterprise workloads. The company emphasizes hybrid architecture, compliance and security expertise, disaster recovery, and professional services, with recent expansions and platform upgrades strengthening its edge-focused capabilities for regulated industries.
   

Edge Data Center Industry News

• In November 2024, Verizon Business expanded its Mobile Edge Compute (MEC) platform with 25 new U.S. locations, bringing the total to 65 metropolitan markets. The $200 million investment supports enterprise edge applications including autonomous vehicles, smart manufacturing, and augmented reality, integrated with AWS Wavelength and 5G Ultra Wideband.
   
• In October 2024, Microsoft Azure launched Edge Zones expansion into 15 new global markets including Frankfurt, Stockholm, Sydney, São Paulo, and Dubai, reaching 85 locations. The deployment uses Azure Stack Edge appliances with telecom integration, sub-20ms latency, and hybrid cloud management through Azure Arc.
   
• In September 2024, EdgeConneX announced a €500 million investment program for new edge data centers across 12 European markets including Barcelona, Munich, and Milan. Facilities offer 5–20MW capacity, carrier-neutral connectivity, sustainability initiatives, and renewable energy sourcing, accelerating enterprise edge adoption under private equity backing.
   
• In August 2024, Schneider Electric introduced EcoStruxure Edge Micro Data Center solutions for retail, branch offices, and telecom sites. Modular 2–10 rack designs integrate IT, power, cooling, monitoring, and remote management, enabling four-week deployments with energy-efficient free cooling and predictive maintenance capabilities.
   

The edge data center market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Mn) from 2022 to 2035, for the following segments:

Click here to Buy Section of this Report

Market, By Component

• Solution
• Service

Market, By Data Center Size

• Micro Data Center
• Hyperscale/Enterprise Data Center
• Others

Market, By Ownership

• Telecom Operator Edge
• Hyperscale Cloud Edge
• Enterprise-Owned Edge
• CDN Provider Edge

Market, By Rack count

• Small (1–10 racks)
• Medium (10–100 racks)
• Large (>100 racks)

Market, By Application

• BFSI
• Colocation
• Energy
• Government
• Healthcare
• Manufacturing
• IT & Telecom
• Others  

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

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Portugal
  • Croatia
  • Benelux
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Singapore
  • Thailand
  • Indonesia
  • Vietnam
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Turkey