Defense Data Center Market to Hit $64 B by 2033, Boosting Digital Realty
DLR•Government and defense AI data centers surged in value from $12.5 billion in 2025 to a projected $64 billion by 2033, driven by AI analytics, autonomous systems, and cybersecurity requirements. Digital Realty is positioned to expand secure computing infrastructure alongside peers VisionWave and Vertiv, tapping rising military cloud demand.
1. Defense Data Center Market Expansion
The government and defense AI data center market was valued at approximately $12.5 billion in 2025 and is forecast to exceed $64 billion by 2033, driven by AI analytics, autonomous systems integration, and heightened cybersecurity and secure cloud computing requirements. Military agencies globally are investing in modular and containerized facilities to support real-time intelligence, command-and-control operations, and autonomous drone deployments.
2. Implications for Digital Realty
Digital Realty, listed among leading data center providers expanding into defense infrastructure, is positioned to benefit from this surge by offering secure, high-performance computing facilities tailored to military cloud and cybersecurity demands. The company may leverage its global footprint and modular data center solutions to capture a share of the growing military IT load, although competition remains intense among peers such as Vertiv and VisionWave.
