Data Center Monitoring Market Size & Growth Report to 2030

The global data center monitoring market size was valued at around USD 2 billion in 2024 and projected to grow at a significant CAGR of over 19% during the forecast period from 2025 to 2030. The market is witnessing strong growth as organizations increasingly depend on digital infrastructure to support cloud computing, big data, and AI workloads. As data centers become more complex, operators are turning to advanced monitoring solutions to gain real-time visibility into power consumption, environmental conditions, server performance, and network activity. These systems help prevent downtime, improve energy efficiency, and streamline operations, making them essential for maintaining high service availability and operational continuity.

The market includes a wide range of components such as sensors, performance monitoring software, and integrated services that cater to different types of data centers—enterprise, colocation, hyperscale, and edge. Demand is being driven by sectors such as IT & telecom, BFSI, and healthcare, all of which require secure, efficient, and uninterrupted data services. While North America remains the leading region due to its mature digital ecosystem, regions like Asia-Pacific are quickly emerging as key markets, fueled by growing digital transformation initiatives and infrastructure investments.

Market Snapshot:

Key Drivers of Data Center Monitoring Market

The global data center monitoring market is being significantly driven by the rapid expansion of AI-powered and hyperscale data centers, which require robust and highly efficient monitoring systems to maintain operational performance and energy efficiency. With global technology leaders like Amazon, Google, and Microsoft investing heavily in large-scale AI infrastructure, data centers are now handling unprecedented volumes of processing power, which in turn generates higher levels of heat and consumes vast amounts of electricity. This has created a pressing need for advanced data center monitoring systems that can provide real-time insights into environmental factors such as temperature, humidity, airflow, and energy usage. According to a July 2025 report by the U.S. Department of Energy, data centers could account for up to 12% of total U.S. electricity consumption by 2028, nearly doubling their 2023 share. In response, companies like Honeywell are reporting double-digit growth in their hybrid cooling control systems, a reflection of the market’s demand for smart monitoring solutions capable of handling the cooling challenges posed by high-density, AI-focused data center environments.

Another critical driving factor is the rising focus on sustainability, energy optimization, and regulatory compliance. As governments and environmental bodies implement stricter energy usage and carbon emission standards, data center operators are under increasing pressure to adopt systems that allow them to monitor and reduce their environmental impact. Modern monitoring tools, often integrated with AI and machine learning algorithms, are enabling predictive analytics, automated energy optimization, and early failure detection in critical infrastructure components. These capabilities not only help in reducing operational costs but also assist organizations in meeting regulatory mandates and corporate ESG (Environmental, Social, and Governance) goals. Recent industry movements, such as Amazon’s agreement to source nuclear power for its $20 billion data center development in Pennsylvania, underline the necessity of precise, real-time monitoring to track and validate energy sourcing and usage. This trend is also driving the adoption of more intelligent and transparent monitoring systems that align with clean energy commitments and sustainability strategies across the data center ecosystem.

Emerging Trends Shaping the Data Center Monitoring Market

AI and Machine Learning–Powered Predictive Monitoring

One of the most significant trends in the data center monitoring market is the integration of artificial intelligence (AI) and machine learning (ML) into monitoring platforms. These advanced technologies enable predictive analytics by learning from historical data and identifying patterns that may signal potential equipment failures or performance issues. Rather than relying solely on scheduled maintenance or manual checks, predictive monitoring tools use AI algorithms to forecast system anomalies before they happen. This results in reduced downtime, improved operational efficiency, and extended equipment life. According to recent industry reports, over 60% of large enterprises are now implementing DCIM (Data Center Infrastructure Management) solutions embedded with AI capabilities, allowing them to transition from reactive responses to proactive management. These platforms also optimize energy usage, enhance resource allocation, and support decision-making by providing real-time and future performance insights.

Shift Toward Sustainable and Green Data Centers

With global attention turning toward climate change and environmental responsibility, sustainability has become a top priority in data center design and operation. Organizations are actively working to reduce their carbon footprint and energy consumption, and data center monitoring systems play a vital role in achieving these goals. Metrics such as Power Usage Effectiveness (PUE) and Carbon Usage Effectiveness (CUE) are now closely tracked to monitor and minimize resource waste. Advanced monitoring solutions enable data centers to measure and manage power usage, cooling efficiency, and water consumption. Many facilities are also adopting liquid cooling technologies, AI-optimized HVAC systems, and integrating renewable energy sources. Companies like Digital Realty have made public commitments to lower carbon emissions per square foot by 60% by 2030 by using smart monitoring tools and sustainable infrastructure practices. As environmental regulations tighten globally, monitoring systems are becoming indispensable for compliance and long-term ESG (Environmental, Social, and Governance) success.

Growth of Edge Computing and IoT-Enabled Monitoring

The surge in edge computing—where data processing is done closer to the data source rather than centralized cloud centers—is reshaping how data centers are built and monitored. As edge data centers multiply, especially in remote or space-constrained environments, the need for remote and decentralized monitoring is rising. These smaller sites often lack full-time personnel, making automated monitoring essential for reliability. Additionally, the proliferation of Internet of Things (IoT) devices has created vast networks of sensors that feed real-time environmental, power, and equipment data into monitoring platforms. These tools help identify issues like overheating, power surges, or equipment wear at edge locations before they impact performance. As the total volume of global data from IoT is projected to exceed 79 zettabytes (ZB) by 2025, the ability to monitor distributed infrastructure efficiently will be critical to ensuring uptime and service quality.

Adoption of Cloud-Based and Modular Monitoring Platforms

Organizations are increasingly adopting cloud-based data center monitoring solutions due to their scalability, flexibility, and lower upfront costs. Cloud-native platforms provide centralized dashboards that can monitor multiple sites, whether on-premise, cloud, or hybrid, from a single interface. This centralized view improves visibility, simplifies management, and enhances disaster recovery planning. Cloud monitoring tools also offer real-time updates, automatic software patches, and integration with AI-based analytics. In parallel, the rise of modular or prefabricated data centers—which are factory-built and then assembled on-site—is accelerating demand for embedded monitoring tools. These modular data centers come pre-equipped with monitoring systems for power, temperature, and connectivity, enabling quick deployment with built-in oversight capabilities. Their plug-and-play nature makes them ideal for edge locations or rapid IT expansion needs.

Focus on Enhanced Security and Cyber-Physical Threat Detection

Security is no longer limited to the digital realm. Today’s data centers must also guard against physical threats such as unauthorized access, equipment tampering, and environmental hazards, along with traditional cybersecurity risks. Modern monitoring solutions now include integrated modules for video surveillance, biometric access controls, and intrusion detection. Additionally, cyber-physical monitoring tools can detect abnormal behavior in both network and physical infrastructure—such as sudden power draws, unexpected hardware activity, or air conditioning manipulation—that may signal an attack. Given the rising number of cyber incidents globally (with cyberattacks reportedly increasing by 76% in Q1 2024), integrated monitoring solutions that combine cybersecurity and physical security analytics are increasingly essential for risk mitigation and compliance.

Future Opportunities Shaping the Data Center Monitoring Market’s Evolution

The Data Center Monitoring market is brimming with opportunities, primarily driven by the massive infrastructure investments fueling the AI and hyperscale boom. In the current fiscal year alone, analysts estimate that over US $400 billion is being funneled into data center infrastructure, including monitoring and cooling systems. This presents a substantial window for monitoring solution providers to expand into adjacent domains—such as hybrid cooling controls, power optimization, and predictive maintenance systems. Traditional industrial players like Gates Industrial, Generac, and Honeywell are capitalizing on this trend, leveraging decades of experience in pumps, generators, and fluid systems to enter the high-growth data center vertical. For software vendors and DCIM specialists, this scale of investment means expanding into integration with physical infrastructure tools—filling gaps between digital monitoring and hardware-level control.

Another key opportunity lies in addressing the sustainability and regulatory pressures accompanying this expansion. As hyperscale and AI‑driven data centers proliferate, they increasingly strain local power grids and water supplies—spurring demand for real‑time energy and resource monitoring. Governments and utilities are responding: for example, U.S. states like Virginia are mandating water-use reporting for data centers, while organizations are turning to AI-powered analytics to reduce PUE, optimize resource allocation, and align reporting with ESG commitments. Monitoring solutions that integrate energy and water telemetry, compliance dashboards, and advanced analytics will gain traction among operators seeking to balance performance, transparency, and environmental stewardship. This nexus of rapid infrastructure investment and rising sustainability requirements creates a fertile environment for innovative, integrated monitoring platforms that can deliver both operational and regulatory value.

Market Insights:

By Monitoring Type: Security Monitoring Segment Dominated the Data Center Monitoring Market

The global data center monitoring market is bifurcated into component, deployment, monitoring type, data center type, end-use, and geography. On the basis of monitoring type, the security monitoring segment has emerged as the dominant segment due to the growing risks associated with both physical intrusions and cyberattacks. As data centers become critical infrastructure for governments, financial institutions, and global enterprises, ensuring the security of sensitive data and physical hardware has become a top priority. Modern security monitoring solutions now combine physical surveillance systems—such as access control, motion sensors, and CCTV—with advanced cybersecurity platforms that monitor network traffic, detect anomalies, and respond to breaches in real time. The increasing sophistication of cyber threats, including ransomware, DDoS attacks, and insider threats, has made security monitoring an essential investment for any data center operator.

Furthermore, the dominance of this segment is also fueled by regulatory compliance requirements such as GDPR, HIPAA, and ISO 27001, which mandate stringent data protection and access control protocols. Data centers are implementing unified security monitoring platforms that provide centralized dashboards for both digital and physical security, improving situational awareness and incident response capabilities. With the rise of hybrid and edge data centers—often located in less secure or distributed environments—the need for remote, automated, and AI-powered security monitoring has grown significantly. These factors have collectively positioned security monitoring as the leading segment, as organizations increasingly prioritize safeguarding their infrastructure and maintaining customer trust.

By End-Use: IT & Telecom Sub-category Holds the Largest Share of Data Center Monitoring Market

On the basis of end-use, the global data center monitoring market is further segmented into IT & telecom, BFSI, government, healthcare, retail & e-commerce, energy & utilities, manufacturing, and others. The IT & Telecom segment is the dominant end-use industry. This sector is at the forefront of digital infrastructure demand, managing vast volumes of data traffic, cloud services, and content delivery. With the rapid proliferation of data from mobile devices, 5G networks, video streaming, and real-time applications, IT and telecom companies rely heavily on data centers for uninterrupted service delivery. These companies require sophisticated monitoring tools to ensure network reliability, manage server loads, and maintain compliance with service-level agreements (SLAs). Real-time monitoring of power, cooling, network, and server performance is essential in minimizing downtime and optimizing resource usage, making this sector the largest consumer of data center monitoring solutions.

The dominance of the IT & Telecom segment is further reinforced by ongoing investments in hyperscale data centers and the expansion of cloud infrastructure. Major cloud providers and telecom operators are building multi-region facilities to support latency-sensitive applications and edge computing. These environments demand scalable, AI-powered monitoring systems that can manage distributed infrastructure efficiently. Additionally, the integration of monitoring with automation and analytics helps IT and telecom firms respond quickly to network disruptions, security threats, and system failures. As digital services become more complex and customer expectations rise, IT & Telecom remains the most dependent on—and invested in—advanced data center monitoring technologies, solidifying its position as the leading end-use segment.

The data center monitoring market research report presents the analysis of each segment from 2020 to 2030 considering 2024 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2025 to 2030.

Historical & Forecast Period

• 2020-23 – Historical Year
• 2024 – Base Year
• 2025-2030 – Forecast Period

Data Center Monitoring Market Segmentation:

By Component:

• Solution
• Services

By Deployment:

• On-Premises
• Cloud

By Monitoring Type:

• Network Monitoring
• Server Monitoring
• Power Monitoring
• Cooling Monitoring
• Environmental Monitoring
• Security Monitoring

By Data Center Type:

• Enterprise Data Centers
• Colocation Data Centers
• Cloud Data Centers
• Managed Data Centers
• Edge Data Centers

By End-Use:

• IT & Telecom
• BFSI
• Government
• Healthcare
• Retail & E-commerce
• Energy & Utilities
• Manufacturing
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis: North America Leads the Data Center Monitoring Market

Geographically, the North America dominated the global data center monitoring market in the benchmark year 2024, driven by the region’s high concentration of hyperscale data centers, advanced IT infrastructure, and strong presence of global cloud service providers. Major players like Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and Meta have established extensive data center networks across the U.S. and Canada, fueling demand for sophisticated monitoring systems. These systems are crucial for managing power, cooling, security, and server performance in real-time—especially as AI, cloud computing, and high-density workloads continue to grow. A recent executive order issued by the U.S. government in January 2025 further supports this trend by directing federal agencies to expedite land use and permitting for AI-driven data centers, reinforcing the region’s leadership in infrastructure expansion and monitoring innovation.

Additionally, North America is experiencing a strong push toward regulatory compliance and sustainable operations. In March 2024, the U.S. Securities and Exchange Commission (SEC) introduced new Climate Disclosure Rules requiring public companies, including data center operators, to report energy usage and climate-related risks. This has intensified the need for advanced monitoring tools capable of tracking environmental performance, energy consumption, and carbon metrics. Industry leaders such as Vertiv and Honeywell are responding with AI-powered solutions designed to optimize efficiency and support ESG goals. These developments, combined with the region’s mature technology ecosystem and rapid innovation cycles, firmly position North America as the global leader in the data center monitoring market.

Competitive Landscape:

Some of the prominent market players operating in the global data center monitoring market are Schneider Electric SE, Vertiv Group Corp., ABB Ltd., Siemens AG, Honeywell International Inc., and Cisco Systems, Inc. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• Schneider Electric SE
• Vertiv Group Corp.
• ABB Ltd.
• Siemens AG
• Honeywell International Inc.
• Cisco Systems, Inc.
• Eaton Corporation plc
• IBM Corporation
• Nagios Enterprises
• New Relic
• Panduit Corp
• Rittal GmbH & Co. KG

Key Questions Answered by Data Center Monitoring Market Report

• Global data center monitoring market forecasts from 2025-2030
• Regional market forecasts from 2025-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2025-2030 covering 15 major countries from the regions as mentioned above
• Data center monitoring submarket forecasts from 2025-2030 covering the market by component, deployment, monitoring type, data center type, end-use, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level data center monitoring markets from 2025-2030
• Competitive Landscape and market positioning of top 10 players operating in the market