The “Edge Data Centre Market Analysis and Forecast 2025-2034” predicts that the edge data centre sector will grow substantially, hitting a valuation of $109.78 billion by 2034, up from $20.62 billion last year. This significant growth translates to a compound annual growth rate (CAGR) of 17.63% between 2025 and 2034. A major factor driving this expansion is the increasing demand for real-time computing and low-latency data processing close to where it is needed.
Other catalysts include the rollout of 5G networks, a push towards decentralization in computing frameworks, and the rise of Internet of Things (IoT) applications, which necessitate advanced supporting systems. The report highlights that modular data centre architectures are streamlining the construction of these facilities. Additionally, supportive government policies aimed at promoting energy-efficient data centres and smart city initiatives suggest that edge data centres are an optimal solution for businesses.
Various sectors are contributing to this market growth, including banking, healthcare, retail, and automotive, among others. In particular, the IT and telecom industries are seeing rapid enhancements in network infrastructure, aided by edge data centres, which facilitate low-latency data processing and alleviate congestion in centralized systems. Moreover, edge data centres are increasingly being leveraged for use cases such as smart factory automation, autonomous vehicle technologies, and AI-predictive maintenance.
These applications benefit from real-time data, which is crucial in sectors like automotive where production line efficiency is paramount. In retail, edge data can personalize customer experiences by managing local inventory and enhancing in-store engagements, simultaneously ensuring better cybersecurity. Investment in edge data centres has surged recently.
In 2023, firms such as SBA Communications and Edge Centres expanded their facilities in the U.S., while Europe witnessed Arcus establishing Portus Data Centres in Germany. Japan’s edge sector is also growing, driven by R&D projects from companies like Rakuten Mobile. The investment landscape remains vibrant, with significant financial commitments to enhance localized infrastructure capable of supporting emerging technologies, affirming edge computing’s transition into a mainstream option across diverse organizational needs.