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The rise of technologies like IoT and the growing demand for low-latency and high-bandwidth applications are key factors fueling this market expansion
The global edge data center market is set to reach $317 billion by 2026, more than doubling its 2020 valuation of $153 billion, according to a recent analysis by global real estate consulting firm JLL. This 107% growth underscores the increasing demand for edge IT infrastructure, driven by the need for faster data processing and enhanced computational power.
Edge data centers, which bring computing resources closer to the point of data generation or consumption, are becoming critical as organizations strive for real-time data processing. The rise of technologies like IoT and the growing demand for low-latency and high-bandwidth applications are key factors fueling this market expansion. JLL’s analysis highlights that 41% of data center professionals prioritize low latency as the primary driver for edge deployments, with data security and privacy following closely at 38.3%. The report also suggests that edge computing will play a vital role in the adoption of emerging technologies, including IoT and generative AI. By bringing computing closer to the data source, edge infrastructure enhances efficiency, security, and business continuity.
JLL’s comprehensive market estimate includes IT infrastructure, colocation, and cloud services revenue specifically related to edge deployments. As enterprises increasingly rely on a combination of data center types—on-premises, colocation, cloud, and edge—the growth of edge computing is poised to be a cornerstone of the future digital economy.
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