Global Refurbished Data Centers Market Size, Share Analysis Report By Component (Hardware (Power Systems, Cooling Systems, Servers, Networking Devices, Others (Racks)), DCIM (Data Center Infrastructure Management) Software (On-premises, Cloud), Services), By Data Center Type (Colocation, Hyperscale, Edge, Others (Managed, Modular)), By Tier Level (Tier 1 and Tier 2, Tier 3, Tier 4), By Data Center Size (Small, Medium, Large), By Industry (BFSI, IT & Telecom, Healthcare, Government, Manufacturing, Retail & E-commerce, Others (Media & Entertainment)), Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034

Report Overview

The Refurbished Data Centers Market size is expected to be worth around USD 140.3 Billion By 2034, from USD 40.6 billion in 2024, growing at a CAGR of 13.2% during the forecast period from 2025 to 2034. In 2024, North America held a dominant market position, capturing more than a 40.0% share, holding USD 16.2 Billion revenue. The US Market size was exhibited at USD 12.99 Billion in 2024 with CAGR of 11.5%.

Refurbished data centers are facilities that have been upgraded or modernized to extend their operational life and improve efficiency, without the full expense of constructing new infrastructure. These centers often incorporate second-hand or refurbished equipment that is restored to like-new condition. This approach not only saves money but also contributes to environmental sustainability by reducing waste and the demand for raw materials needed to build new components​.

The market for refurbished data centers is growing as businesses seek cost-effective and environmentally responsible solutions to expand their IT capabilities. This sector offers refurbished servers and other equipment at a significantly reduced cost compared to new models, which can be up to 80% cheaper. Such cost efficiencies make refurbished data centers an attractive option for companies aiming to enhance their IT infrastructure without a hefty investment​.

One of the key objectives of the refurbished data centers market is to provide high-quality, reliable IT solutions that meet the evolving needs of modern businesses while mitigating the impact on the environment. This involves not only extending the life of existing data center equipment but also ensuring that these refurbished systems deliver comparable performance and reliability to their new counterparts​.

The primary driving factors for the refurbished data centers market include the rising costs associated with new IT equipment and the increased focus on sustainability. Businesses are looking to reduce both capital expenditure and their environmental footprint, making refurbished options particularly appealing.

According to Market.us, The AI Data Center Market is poised for exponential growth, reaching USD 157.3 billion by 2034, up from USD 14.3 billion in 2024, at a CAGR of 27.10%. North America led in 2024 with over 40% market share, generating USD 5.7 billion, largely driven by the US market at USD 5.38 billion.

Meanwhile, The Global Data Center Colocation Market will also witness robust growth, expected to surge from USD 57.2 billion in 2023 to USD 227.4 billion by 2033, with a CAGR of 14.8%. The demand for scalable, cost-effective infrastructure solutions is pushing businesses to adopt colocation services, ensuring better connectivity and security without heavy capital investments.

The demand for refurbished data centers is primarily driven by medium to large enterprises looking to expand or update their IT infrastructure cost-effectively. The need for scalable, flexible, and efficient IT solutions has never been greater, with sectors such as healthcare, finance, and technology leading the way in adoption.

Key Takeaways

• North America leads the market, holding a dominant share of over 40.0% in 2024. The region generated a revenue of USD 16.2 billion, making it the largest contributor to the refurbished data center industry.
• The United States plays a crucial role in this market. The U.S. market alone was valued at USD 12.99 billion in 2024, growing at a CAGR of 11.5%.
• The hardware segment accounted for the largest share in the refurbished data centers market, contributing over 45.6% in 2024. The demand for refurbished servers, storage devices, and networking equipment is rising due to their cost efficiency and sustainability benefits.
• Colocation services emerged as a major player, capturing more than 35.7% of the market in 2024. Businesses prefer colocation due to lower capital expenditures and access to advanced infrastructure.
• Tier 3 refurbished data centers held a dominant position, representing over 43.6% of the market in 2024. These centers offer a balanced mix of affordability and reliability, making them a preferred choice for businesses.
• Large-scale refurbished data centers accounted for more than 52.8% of the market share in 2024. Enterprises with high data processing needs are driving demand in this segment.
• The IT & Telecom sector was the top end-user, securing over 32.6% of the market in 2024. The industry’s heavy reliance on data processing and storage fuels the demand for refurbished data centers.

Analysts’ Viewpoint

Investment opportunities in the refurbished data centers market are large, with significant potential for returns due to the growing demand for cost-effective and sustainable IT solutions. Investors can engage in various aspects of the refurbishing process, from the acquisition of used equipment to upgrading and reselling it, or even providing services around the maintenance and operation of refurbished data centers​.

Technological advancements play a crucial role in the refurbished data centers market. Innovations in server technology, cooling systems, and energy efficiency are critical to making refurbished equipment competitive with new products. Providers who can integrate the latest technologies into refurbished systems not only enhance performance but also improve the marketability of refurbished data centers​.

Artificial intelligence (AI) has a profound impact on the refurbished data centers market, primarily by optimizing operations and improving efficiency. AI can predict hardware failures, optimize energy consumption, and streamline maintenance processes, thereby enhancing the overall reliability and performance of refurbished data centers.

US Refurbished Data Centers Market

The U.S. market for refurbished data centers reached a valuation of USD 12.99 billion in 2024 and is projected to grow at a CAGR of 11.5%. This growth trajectory underscores the increasing demand for cost-effective and environmentally sustainable data center solutions. As organizations prioritize reducing both capital expenditures and environmental impacts, refurbished data centers present an attractive alternative to new infrastructure investments.

The United States leads in the refurbished data centers market, primarily due to several key factors that have positioned it at the forefront of this industry. Firstly, the presence of established technological infrastructure and the concentration of major tech companies, especially in regions like Northern Virginia, Silicon Valley, and Dallas, significantly contribute to this dominance.

Northern Virginia, for instance, is recognized as a major hub due to its extensive data center developments and robust fiber connectivity, which make it an attractive location for both new and refurbished data center operations​. Moreover, the U.S. benefits from a highly developed IT asset disposal (ITAD) ecosystem, which is crucial for the refurbishment and resale of data center components.

Investment and innovation in the field of refurbished data centers are also significant in the U.S. due to the country’s focus on sustainability and reducing electronic waste. This focus aligns with the growing global demand for green technology solutions, positioning the U.S. as a leader in the refurbished data centers market.

In 2024, North America held a dominant market position in the refurbished data centers market, capturing more than a 40% share, which equates to a revenue of approximately USD 16.2 billion. This leadership is largely attributed to several key factors.

Firstly, the region boasts a highly developed IT infrastructure, which drives continuous innovation and adoption of advanced technologies, including refurbished systems. The presence of major technology firms and data center operators who actively pursue cost-efficient and environmentally sustainable solutions also significantly contributes to the market growth.

Moreover, North America’s stringent regulatory standards regarding electronic waste and energy consumption compel data center operators to consider refurbished equipment as a viable option to meet these regulations while managing costs effectively. Initiatives promoting green technology and sustainable practices further bolster the adoption of refurbished data centers across industries such as healthcare, finance, and technology, which are prevalent in the region.

The trend towards digital transformation in North American businesses continues to surge, leading to an increased demand for data processing and storage solutions that are both cost-effective and reliable. Refurbished data centers offer a practical solution to meet these demands without the hefty price tag of entirely new infrastructure.

By Component Analysis

In 2024, the hardware segment held a dominant market position in the refurbished data centers market, capturing more than a 45.6% share. This strong performance can be attributed to several pivotal factors.

Primarily, the continuous technological advancements and innovations in hardware components such as servers, storage solutions, and networking devices have significantly enhanced their performance and efficiency, making them appealing for businesses seeking robust data center solutions​.

The demand for these hardware solutions is also driven by their crucial role in supporting emerging technologies like artificial intelligence (AI), machine learning, and edge computing. These technologies require highly efficient and capable hardware to manage and process large volumes of data effectively, which refurbished hardware can provide at a more accessible cost​.

Furthermore, there is an increasing emphasis on energy efficiency and sustainability within the data center industry. Refurbished hardware often includes upgraded, energy-efficient components that help reduce the overall energy consumption of data centers, aligning with global sustainability goals and regulations. This not only helps companies save on operational costs but also enhances their corporate responsibility profiless.

Overall, the combination of cost efficiency, advanced technological capabilities, and environmental sustainability makes the hardware segment a leading choice in the refurbished data centers market, supporting its strong market share and continued growth.

By Data Center Type Analysis

In 2024, the colocation segment held a dominant position in the refurbished data centers market, capturing more than a 35.7% share. This prominence is largely due to colocation’s ability to offer businesses a highly efficient, cost-effective solution for managing IT infrastructure without the capital expenditures associated with building and maintaining their own data center facilities.

Colocation centers provide not just space, but also power, cooling, and physical security, allowing businesses to focus more on their core operations while enjoying the benefits of state-of-the-art data management and network technologies​.

Furthermore, the rising demand for scalable and flexible IT infrastructure drives the growth of the colocation market. Businesses, especially those experiencing rapid growth or facing fluctuating demands, find colocation an ideal solution due to its scalability and the ability to expand IT resources without significant delays or new construction costs.

Based on latest survey, The Data Center Construction Market is on track to hit USD 453.5 billion by 2033, up from USD 237.1 billion in 2023, growing at a CAGR of 6.7%. North America remains the key player, accounting for 38% of the market with USD 90.1 billion in revenue in 2023. The region’s investment in hyperscale and edge data centers is shaping the market, catering to rising AI, cloud, and IoT-driven workloads.

Additionally, the integration of cloud services with colocation facilities allows for hybrid cloud environments, which are increasingly popular among enterprises seeking to optimize their cloud computing strategies with minimal latency and enhanced connectivity options​.

Moreover, colocation facilities are strategically investing in green technologies and advanced cooling systems to meet sustainability goals and reduce operational costs, making them an even more attractive option for companies looking to minimize their environmental impact while ensuring their data infrastructure is both robust and reliable​.

By Tier Level Analysis

In 2024, the Tier 3 segment of refurbished data centers held a dominant market position, capturing more than a 43.6% share. This significant market share can be attributed to the balanced offering of high availability and reasonable costs that Tier 3 facilities provide.

These data centers are equipped with multiple power and cooling paths, which are key to ensuring high uptime without substantially increasing costs. This makes them particularly appealing to businesses that require high reliability but must also manage budget constraints.

Tier 3 data centers are designed to allow for maintenance without disrupting the computational operations, providing a minimum of N+1 redundancy for power and cooling resources. This setup supports uninterrupted service even during most equipment maintenance or failures, ensuring continuous availability of services which is crucial for many businesses’ operations​.

Furthermore, the preference for Tier 3 data centers is bolstered by their ability to support robust, uninterrupted network connections, which are vital for the operation of critical applications and services. The resilience offered by these facilities makes them a preferred choice for enterprises looking to mitigate risks associated with data center downtime​.

Overall, the dominance of the Tier 3 segment in the refurbished data center market is driven by their ability to provide high levels of reliability and redundancy, essential features for supporting complex and critical business operations, all while maintaining cost efficiency​.

By Data Center Size Analysis

In 2024, the large segment of refurbished data centers held a dominant market position, capturing more than a 52.8% share. This leading status can be attributed to several key factors that favor large-scale data center operations.

Firstly, large data centers provide extensive connectivity options and access to a broader range of network service providers, cloud providers, and internet exchanges. This enables them to offer low latency and high-speed connections that are crucial for modern, data-intensive applications, enhancing network performance and supporting sophisticated hybrid and multi-cloud deployments​.

Additionally, the scalability of large data centers meets the growing demand for data processing capabilities driven by increasing digitalization across various sectors. This scale benefits enterprises by offering robust infrastructure capable of handling significant workloads and data storage needs efficiently.

The expansive nature of these facilities also allows for more advanced cooling and power management systems, which are essential for maintaining high levels of data center efficiency and reliability​. Moreover, large data centers are better positioned to incorporate advanced technologies such as AI and machine learning for optimizing data center operations, which can significantly reduce energy consumption and operational costs.

The strategic use of these technologies in large facilities contributes to their market dominance by improving overall service delivery and operational sustainability​. These advantages make large data centers a preferred choice for enterprises looking to leverage the latest in technology and connectivity to support their heavy data and processing demands.

By Industry Analysis

In 2024, the IT & Telecom segment held a dominant market position in the refurbished data centers market, capturing more than a 32.6% share. This leadership is primarily driven by the massive demand for data center infrastructure and storage capabilities from IT companies and telecom providers.

The segment’s substantial market presence reflects the increasing reliance on digital technologies and the crucial role data centers play in supporting cloud services, artificial intelligence, and the expansion of 5G networks​. The IT & Telecom sector’s needs are extensive due to the rapid growth of cloud-based platforms and the proliferation of Internet of Things (IoT) devices, which generate vast amounts of data requiring efficient processing and storage.

Furthermore, this segment is heavily influenced by the continuous push for technological advancements in data transmission and internet services, which necessitate robust and scalable data center solutions to manage increasing data traffic and ensure connectivity​.

Additionally, the global expansion strategies of major cloud service providers, who are extending their services to new geographical regions, also contribute to the growth. This expansion requires a network of data centers that can support high-speed data processing and house the infrastructure needed to deliver services effectively to a global customer base​.

Overall, the dominance of the IT & Telecom segment in the refurbished data centers market is bolstered by the sector’s critical need for advanced data processing capabilities and its direct impact on the development and deployment of new technologies and services. This segment’s growth is set to continue as digital transformation initiatives remain a top priority for businesses worldwide.

Key Market Segments

By Component

• Hardware
  • Power Systems
  • Cooling Systems
  • Servers
  • Networking Devices
• Others (Racks)
• DCIM (Data Center Infrastructure Management) Software
  • On-premises
  • Cloud
• Services

By Data Center Type

• Colocation
• Hyperscale
• Edge
• Others (Managed, Modular)

By Tier Level

• Tier 1 and Tier 2
• Tier 3
• Tier 4

By Data Center Size

• Small
• Medium
• Large

By Industry

• BFSI
• IT & Telecom
• Healthcare
• Government
• Manufacturing
• Retail & E-commerce
• Others (Media & Entertainment)

Driver

Cost Efficiency

Refurbished data centers present a financially attractive solution for organizations, especially amid economic constraints where budget optimization is crucial. The primary driver of their appeal is the significant cost savings they offer compared to deploying new servers.

Organizations can save up to 80% on upfront costs, which allows for a redistribution of financial resources towards other critical areas such as cybersecurity or software upgrades. These savings are particularly compelling for startups and small to medium-sized enterprises that may have limited budgets but need robust IT infrastructure to grow and compete.

Restraint

Perceptions of Reliability and Performance

Despite their advantages, refurbished data centers face skepticism concerning their reliability and performance. Concerns persist that refurbished equipment may fail more frequently than new hardware, potentially leading to higher maintenance costs and operational disruptions. This hesitance is often rooted in the misconception that “used” or “second-hand” equates to lower quality.

Overcoming this challenge requires providers to continually demonstrate through rigorous testing and certification processes that refurbished servers are indeed reliable and perform comparably to new ones. Providers like ThomasTech ensure each piece of equipment meets strict industry standards, which helps in gradually shifting market perceptions​.

Opportunity

Sustainability and Corporate Responsibility

Refurbished data centers align with the increasing corporate focus on sustainability and reducing environmental impact. By choosing refurbished servers, companies can significantly decrease their electronic waste and carbon footprint.

This approach not only supports global efforts to foster a circular economy but also resonates with stakeholders increasingly evaluating companies based on their environmental stewardship.

The adoption of refurbished servers also presents an opportunity for businesses to showcase their commitment to sustainable practices, which can enhance brand reputation and appeal to a growing demographic of eco-conscious consumers​.

Challenge

Keeping Up with Technological Advancements

A significant challenge for refurbished data centers is maintaining pace with rapid technological advancements. As new software and applications continue to demand more complex and powerful hardware, there is a risk that refurbished equipment might not always meet the latest performance requirements.

Refurbished data center providers must therefore be vigilant in continuously updating their offerings and ensuring that the hardware they refurbish can support the latest technologies and workloads. This involves not only physical refurbishment but also constant updates and sometimes even hardware modifications to meet new standards and expectations​.

Growth Factors

Refurbished data centers are becoming increasingly popular due to several compelling growth factors. Cost-effectiveness stands out as a primary driver. Organizations can significantly reduce their capital expenditures by opting for refurbished servers and other equipment, which are much less expensive than their brand-new counterparts.

This financial savings aspect is crucial, especially for small to medium-sized enterprises or startups that require robust IT capabilities but must manage limited budgets effectively​. Another significant growth factor is the scalability that refurbished data centers offer.

They allow organizations to dynamically scale their IT infrastructure based on current needs without a substantial upfront investment. This flexibility is vital in today’s fast-evolving business landscape, where companies must quickly adapt to changing market demands​.

Emerging Trends

Several emerging trends are redefining the refurbished data centers industry, largely driven by technological advancements and changing industry norms. A notable trend is the increasing integration of artificial intelligence (AI) within data center operations.

AI is being used to optimize everything from energy management to server allocation, which enhances operational efficiencies and reduces costs. Moreover, AI-driven automation in data centers helps in predictive maintenance, thereby ensuring higher reliability and minimizing downtime​.

Lastly, the Global Data Center Automation Market is set to grow from USD 9.1 billion in 2023 to USD 34.3 billion by 2033, at a CAGR of 14.2%. With North America leading at 38.7% market share (USD 3.5 billion in 2023), automation is becoming essential for enhancing operational efficiency, reducing human intervention, and ensuring seamless AI-driven management.

Sustainability is another critical trend. There is a growing emphasis on eco-friendly practices within data centers, which is encouraging the adoption of refurbished equipment to reduce electronic waste and decrease the carbon footprint of IT operations. This trend aligns with global efforts towards sustainability and is particularly appealing to environmentally conscious organizations​.

Business Benefits

The business benefits of refurbished data centers are substantial and varied. Financially, the lower cost of refurbished hardware frees up capital that can be invested in other areas such as R&D, marketing, or expanding operational capacities. This makes refurbished data centers an excellent choice for businesses looking to optimize their IT spending without sacrificing performance or scalability​.

From an operational perspective, refurbished data centers can be set up and made operational quicker than new builds, allowing businesses to accelerate their time to market for IT-dependent products and services. Additionally, the reliability of refurbished servers has significantly improved, with vendors offering comprehensive warranties and support that match those of new equipment, ensuring peace of mind for businesses regarding their IT investments​.

Overall, refurbished data centers not only support financial savings but also contribute to corporate sustainability goals, making them a strategic choice for businesses aiming to enhance their IT infrastructure in a cost-effective and environmentally responsible manner. These factors combined make refurbished data centers an attractive option for a wide range of businesses, fostering growth and innovation in the tech sector.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Player Analysis

Vantage Data Centers made significant strides in 2024 by securing substantial equity investments totaling $12.3 billion, reflecting strong investor confidence and a strategic focus on expanding their global footprint. These investments underline Vantage’s commitment to growth and innovation in providing scalable data center solutions.

Amazon’s acquisition of the Cumulus data center campus for $650 million in 2024 is a noteworthy development. This acquisition highlights Amazon’s strategy to integrate sustainable solutions by transitioning to nuclear-powered facilities, positioning them as a leader in sustainable data center operations.

HMC Capital’s activities in 2024, including the acquisition of Global Switch’s Australian unit for approximately $1.41 billion and further investments in expanding its data center portfolio through the purchase of iseek, demonstrate HMC’s aggressive expansion strategy in the data center market. This aligns with their broader strategy to strengthen their market presence and enhance infrastructure capabilities.

These key players have actively shaped the market through strategic acquisitions, expansion, and embracing sustainable energy solutions, setting significant trends in the refurbished data centers industry. Each company’s approach to scaling up operations and enhancing data center capabilities reflects a robust market dynamic geared towards sustainability and efficiency.

Top Key Players in the Market

• Dell Technologies Inc.
• Hewlett Packard Enterprise Development LP
• International Business Machines Corporation (IBM)
• Cisco Systems, Inc.
• Lenovo
• Huawei Technologies Co., Ltd.
• Super Micro Computer, Inc.
• Fujitsu
• Inspur Group
• Apto Solutions Inc.
• Others

Recent Developments

• September 2024: Blackstone, in partnership with the Canada Pension Plan Investment Board, acquired AirTrunk, a leading data center operator in the Asia-Pacific region, for approximately AU$24 billion (US$16.11 billion). This transaction set a new benchmark as the largest data center deal to date.
• October 2024: HMC Capital announced the acquisition of Global Switch Australia for A$1.94 billion (approximately US$1.29 billion), marking its entry into the rapidly growing data center sector. This acquisition supports HMC’s strategy to establish a global digital infrastructure platform. ​
• November 2024: HMC Capital secured a deal to acquire iseek, an Australian data center operator, for A$400 million. This move is part of HMC’s plan to list a $4 billion data center fund on the Australian Securities Exchange, aiming to capitalize on the increasing demand for data centers driven by advancements in artificial intelligence. ​

Report Scope