Data Center Equipment Market Size to Surpass USD 669.29 Billion by 2031 at 15.7% CAGR | The Insight Partners

The report from The Insight Partners, therefore, provides several stakeholders—including raw material providers, data center equipment manufacturers, distributors/suppliers/system integrators, and end users —with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

/EIN News/ -- US & Canada, May 06, 2025 (GLOBE NEWSWIRE) -- According to a new comprehensive report from The Insight Partners, the global Data Center Equipment Market is observing significant growth owing to the rising investments in data centers and growing reliance on compute-intensive workloads.

The report runs an in-depth analysis of market trends, key players, and future opportunities. In general, the data center equipment market comprises a vast array of equipment type and tier type which are expected to register strength during the coming years.

To explore the valuable insights in the Data Center Equipment Market report, you can easily download a sample PDF of the report – https://www.theinsightpartners.com/sample/TIPRE00010654/

Overview of Report Findings

1. Market Growth: The data center equipment market size 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 data center equipment market has witnessed significant growth in recent years, driven by the increasing demand for digital services, cloud computing, and data storage solutions. As businesses and consumers rely more on digital platforms for daily activities, the need for robust, secure, and scalable data infrastructure has escalated. Data centers, which are facilities used to house critical IT systems and components such as servers, storage systems, networking equipment, and cooling systems, have become pivotal in supporting the growing volume of data.
   
2. Technological Innovations: ARM servers are computers that use processors based on the ARM architecture instead of the x86 architecture, which has been the dominant design for servers. ARM architectures provide a range of benefits, including improved energy efficiency. ARM servers are reshaping how businesses think about performance, power efficiency, and cost. ARM chips are designed with a focus on low power consumption, which translates into lower energy costs for data centers. As energy expenses continue to be one of the largest operational costs for data center operators, the ability to reduce power usage without compromising performance is a significant advantage. This makes ARM-based servers especially appealing for cloud providers and enterprises looking to optimize their energy usage, reduce their carbon footprint, and ultimately lower their operational expenses. For instance, according to forecasts from Wells Fargo, ARM server shipments are forecast to skyrocket from 7.1% of shipments in 2023 to 22% of shipments by 2027.
   
3. Growing Reliance on Compute-Intensive Workloads: 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. 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.
   
4. Geographical Insights: In 2024, Europe led the market with a substantial revenue share, followed by North America and Asia Pacific.
   
   

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Market Segmentation

• Based on equipment type, the market is segmented into servers, storage devices, cooling equipment, power distribution units (PDUs), racks, enclosures, and others. . The server segment is further categorized into rack server, blade server, and tower server. The cooling equipment segment is subsegmented into air conditioners, chillers, air handling units, heat exchangers, and others. The power distribution units (PDUs) segment is further divided into switched rack PDU, metered rack PDU, monitored rack PDU, and basic rack PDU. The racks segment is segmented into enclosed racks, open frame racks, wall mount racks, and others. The servers segment dominated the market in 2024.
• Based on tier type, the data center equipment market is segmented into tier 3, tier 4, tier 1, and tier 2. The tier 3segment dominated the market in 2024.

For Detailed Data Center Equipment Market Insights, Visit: https://www.theinsightpartners.com/reports/data-center-equipment-market

Competitive Strategy and Development

• Key Players: 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.
• Trending Topics: data center cooling, liquid cooling, immersive cooling, Industry 4.0, among others

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Global Headlines 

• "ABB acquired a minority stake in North Carolina company DG Matrix to support the commercialization of solid-state power electronics for generative AI data centers and renewable microgrids. The company’s Power Router platform replaces conventional systems with an all-in-one solution that is up to five times smaller and has best-in-class energy efficiency of 98 percent. Financial details of the investment were not disclosed."
• "Legrand announced the acquisition of Computer Room Solutions (CRS), a leader in Data Centre infrastructure. With close to 20 years in operation, CRS is a premier player in the design, development, and commissioning of data center infrastructure."

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Conclusion

The market for data center equipment is primarily fueled by the rising investments in new data centers and a growing reliance on compute-intensive workloads. The proliferation of IoT devices and the growing focus on sustainability and energy-efficient equipment are expected to provide lucrative opportunities for the data center equipment market growth. The increasing interest in Advanced RISC Machines (ARM) servers in data centers is likely to be a key trend in the data center equipment market.

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The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.

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