Data Center Equipment Market is expected to reach US$ 669.29 Billion by 2031

Growing Reliance on Compute-Intensive Workloads to Fuel Data Center Equipment Market Growth During Forecast Period 

According to our latest study, "Data Center Equipment Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – By Equipment Type, Tier Type, and Geography," the market was valued at US$ 242.74 billion in 2024 and is expected to reach US$ 669.29 billion by 2031; it is estimated to register a CAGR of 15.7% during 2025–2031. The report includes growth prospects owing to the current data center equipment market trends and their foreseeable impact during the forecast period.    

Various industries are incorporating high-performance computing (HPC), big data analytics, AI and machine learning, and real-time simulations to enhance customer experience, bolster cybersecurity measures, and revolutionize their business processes. The deployment of these technologies and the optimization of their value necessitate robust infrastructure capable of handling increasingly complex workloads. The compute-intensive nature of AI model training has driven the evolution of hardware to meet the escalating demands of AI and other advanced applications.

Data Center Equipment Market Analysis — by Geography

Source: The Insight Partners Analysis

This recent boom in compute-intensive workloads such as HPC, AI, and generative AI has had a significant impact on data center workloads. These workloads are driving up the development of new equipment with higher thermal design power, higher rack power densities (50+kW, 100+kW, 300+kW per rack), advanced networking, and more efficient cooling and power solutions. In addition, large-scale AI training, autonomous vehicle development, and genomic sequencing all rely on high-performance computing environments, which require robust data center equipment capable of handling massive data throughput and extreme thermal loads. This is pushing enterprises to invest heavily in next-generation hardware, such as liquid-cooled server racks and advanced networking, to optimize performance and energy efficiency. In April 2025, Dell Technologies announced the launch of a suite of infrastructure advancements across its server, storage, and data protection portfolios, aiming to accelerate data center modernization for the AI era. With enhancements to its PowerEdge, PowerStore, PowerScale, PowerProtect, and ObjectScale product lines, Dell promises higher performance, improved sustainability, and simplified management for both modern and traditional workloads. Similarly, in December 2024, Amazon Web Services, Inc. announced new data center components aimed at supporting the next generation of AI innovation and meeting the evolving needs of its customers. These advancements incorporate innovations in power management, cooling systems, and hardware design to create a more energy-efficient data center. Thus, the growing reliance on compute-intensive workloads across industries is transforming the data center sector, spurring innovation and investment in equipment that can deliver higher performance, greater scalability, and improved energy efficiency.

Amazon Web Services Inc, Hewlett Packard Enterprise Co, International Business Machines Corp, Oracle Corp, Kyndryl Holdings Inc, Broadcom Inc, Cisco Systems Inc, Dell Technologies Inc, Microsoft Corp, and Hitachi Vantara Corp are among the key players profiled in the data center equipment market report. Several other major players were also studied and analyzed in the market study to get a holistic view of the market and its ecosystem.

The report includes the data center equipment market forecast by equipment type, tier type, and geography. Based on equipment type, the market is segmented into servers, storage devices, cooling equipment, power distribution units (PDUs), racks, enclosures, and others. In terms of revenue, the servers segment held the largest data center equipment market share and is expected to register the highest CAGR during the forecast period.

The scope of the data center equipment market report focuses on North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). North America dominated the market in 2023, followed by Europe and APAC.

The market in Asia Pacific is segmented into Australia, China, Japan, India, South Korea, and the Rest of APAC. In terms of revenue, China held the largest data center equipment market share in APAC. China has been increasing its investment in computing capacity in response to export controls imposed by the US, which have restricted the sale of advanced chips to companies. This push to develop domestic technological capabilities drives the demand for advanced data center infrastructure and equipment. As China works to build self-sufficiency in computing resources, there is a growing need for high-performance servers, storage systems, and networking solutions to support the country's data processing and AI advancements. Companies and government initiatives are investing in infrastructure to replace or supplement foreign technology. In July 2024, China Mobile launched a data center in Beijing. The computing center was one of 12 that China Mobile has in regions such as Jing-Jin-Ji, CNI Yangtze Index, Greater Bay Area, Chengdu-Chongqing, Guizhou, Inner Mongolia, Ningxia, Heilongjiang, Hubei, and Shandong.

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