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Europe is the only region where the number of hyperscaler data centers in operation will decrease over time, according to ABI Research principal analyst Leo Gergs
In sum – what to know:
Regional split – Data center growth is uneven globally, requiring region-specific strategies as AI demand and infrastructure maturity diverge.
Hyperscale trends – North America leads, Europe consolidates under energy constraints, while Asia-Pacific balances hyperscale growth with sovereign demand.
Neocloud gap – Adoption is strongest in North America and Europe, with limited uptake in Asia-Pacific and minimal presence in Latin America and MEA.
The global data center industry is becoming increasingly regionally fragmented, shaped by rising AI demand, regulatory pressures, and varying levels of infrastructure maturity, according to a new whitepaper from ABI Research.
The research firm notes that more than 2,600 data centers are unevenly distributed worldwide, requiring tailored regional strategies for cloud expansion and investment. In 2025, Europe accounted for 3,240 data centers, followed by North America with 2,632 and Asia-Pacific with 1,728. Latin America and the Middle East and Africa (MEA) remain smaller but continue to expand, with 493 and 396 sites respectively.
ABI Research stated that North America remains the most advanced market, supported by hyperscale operators such as Amazon Web Services (AWS), Equinix, and Digital Realty. AWS operates 110 locations, while Equinix and Digital Realty have 109 and 86 sites respectively, underpinned by strong AI research and rapid growth in neocloud infrastructure.
“North America continues to be the leader in the global data center market, supported by continuing
hyperscaler expansion, a mature colocation landscape, and a strong foundation in AI research and
Development (R&D). By 2035, it will have more data centers in use than any other region,” the whitepaper reads.
In Europe, Microsoft Azure, AWS, and Google Cloud lead the market with 52, 48, and 45 locations. However, stricter energy regulations and power constraints are limiting new hyperscale developments, pushing operators toward consolidation and more efficient, high-density deployments, according to ABI Research.
“Interestingly, Europe is the only region where the number of hyperscaler data centers
in operation will decrease over time. ABI Research principal analyst Leo Gergs said that this is due
to “stricter energy efficiency rules, power grid constraints, and hyperscaler consolidation around high
utilization zones in Northern and Western Europe.”
Meanwhile, Asia-Pacific is experiencing rapid expansion driven by digitalization across India, ASEAN, Japan, and South Korea. Leading operators in the region include Equinix with 65 locations, Microsoft Azure with 60, AWS with 42, and Zenlayer. The region is also seeing increased demand for sovereign cloud solutions linked to data residency and cybersecurity requirements.
In Latin America, the market is led by Digital Realty, Equinix, AWS, and Oracle, with 24, 9, and 7 locations respectively for the latter providers. Growth is being supported by cloud migration, fintech expansion, and subsea cable investments across key markets such as Brazil, Mexico, Colombia, and Chile.
Meanwhile, the Middle East and Africa is emerging as a key growth region, led by Microsoft Azure with 29 locations, Google Cloud with 27, and Cloudflare with 16. The region benefits from government-backed digital initiatives, sovereign cloud strategies, and access to energy resources.
ABI Research also highlights clear regional differences in market structure. North America leads in hyperscale and AI-driven infrastructure, while Europe is seeing a reduction in hyperscale footprint despite continued capacity growth. Asia-Pacific combines hyperscale expansion with strong sovereign demand, whereas Latin America remains largely dependent on colocation. The Middle East & Africa stands out for its high reliance on Tier One hyperscalers, with 49% of infrastructure tied to these players.
Neocloud adoption further differentiates markets, with North America and Europe leading deployment, while uptake in Asia-Pacific remains limited and is minimal in Latin America and the Middle East and Africa.
