Global Data Center Equipment Market Size, Trends & Forecast 2.

Global Data Center Equipment Market Segmentation, By Product (Storage Devices, Power Distribution System, Servers, Networking Equipment, Others), End-User (Banking, Financial Services, Insurance, Telecommunications, Healthcare, Pharmaceuticals, Retail, Manufacturing, Government, Business Enterprise, Others)- Industry Trends and Forecast to 2033

Global Data Center Equipment Market size was valued at USD 85.6 billion in 2025 and is expected to reach at USD 221.2 billion in 2033, with a CAGR of 11.2% during the forecast period of 2026 to 2033.

Global Data Center Equipment Market Overview

The global data center equipment market is witnessing robust growth driven by the rapid expansion of cloud computing, big data analytics, artificial intelligence, and digital services. Data center equipment, including servers, storage systems, networking devices, power solutions, and cooling systems, plays a critical role in supporting high-performance and reliable IT infrastructure. Increasing demand for hyperscale and colocation data centers, along with the rollout of 5G and edge computing, is accelerating market adoption. Technological advancements focused on energy efficiency, modular designs, and advanced cooling solutions are further shaping the market. Despite high capital and operational costs, rising investments in digital infrastructure worldwide are expected to support sustained market growth.

Global Data Center Equipment Market Scope

Global Data Center Equipment Market Dynamics

The global data center equipment market dynamics are influenced by rapid digitalization, increasing data generation, and the growing reliance on cloud-based services across industries. A major growth driver is the rising demand for cloud computing, artificial intelligence, machine learning, and big data analytics, which require high-performance servers, storage systems, and networking equipment. The expansion of hyperscale and colocation data centers, along with the deployment of 5G networks and edge computing infrastructure, is further accelerating demand for advanced data center equipment. Additionally, enterprises are increasingly investing in reliable power management and cooling solutions to ensure uninterrupted operations and minimize downtime.

Technological advancements represent a key market trend, with manufacturers focusing on energy-efficient, high-density, and modular equipment designs. The adoption of liquid cooling systems, AI-enabled monitoring tools, and software-defined power and cooling solutions is improving operational efficiency and reducing energy consumption. Sustainability initiatives and stricter environmental regulations are also encouraging the use of renewable energy-compatible equipment and low-carbon technologies.

Despite strong growth prospects, the market faces restraints such as high capital investment, complex installation requirements, and rising operational costs related to power and cooling. Supply chain disruptions and component shortages can also impact equipment availability. However, increasing investments in digital infrastructure, growing demand from emerging economies, and the expansion of edge data centers present significant opportunities. Managing energy efficiency, scalability, and regulatory compliance remains a key challenge for market participants.

Global Data Center Equipment Market Segment Analysis

The global data center equipment market segment analysis highlights strong demand across product categories and end-user industries, driven by increasing digitalization and data-intensive operations. By product, servers hold a significant share of the market as they form the core computing infrastructure required for cloud services, enterprise applications, and high-performance computing workloads. Growing adoption of virtualization, AI, and big data analytics is driving demand for high-density and energy-efficient servers. Storage devices represent another major segment, supported by exponential growth in data volumes and rising need for scalable, secure, and high-speed data storage solutions. Advanced storage technologies, including solid-state drives and software-defined storage, are increasingly being deployed to enhance performance and reliability.

The power distribution system segment plays a critical role in ensuring uninterrupted data center operations, with rising investments in uninterruptible power supplies (UPS), power distribution units (PDUs), and energy management solutions to minimize downtime and improve efficiency. Networking equipment is witnessing rapid growth due to increasing data traffic, cloud connectivity, and adoption of high-speed networks such as 400G and beyond. Other equipment, including cooling systems, racks, and monitoring tools, also contribute significantly as operators focus on optimizing performance and energy efficiency.

By end-user, the banking, financial services, and insurance (BFSI) sector is a key contributor due to high data security, regulatory compliance, and real-time processing requirements. Telecommunications providers invest heavily in data center equipment to support 5G, IoT, and expanding network infrastructure. Healthcare and pharmaceuticals are emerging as high-growth segments, driven by electronic health records, clinical research, and data-driven drug development. The retail sector adopts data center solutions to support e-commerce, customer analytics, and supply chain management, while manufacturing companies use data centers for automation, digital twins, and Industry 4.0 initiatives. Government and business enterprises continue to invest in data center infrastructure to enhance digital services, data security, and operational efficiency, with other industries also increasingly adopting advanced data center equipment to support their digital transformation strategies.

Global Data Center Equipment Market Regional Analysis

The global data center equipment market exhibits varied growth trends across regions, driven by differences in digital infrastructure development and technology adoption. North America dominates the market due to the strong presence of hyperscale data centers, major cloud service providers, and continuous investments in advanced server, storage, and networking equipment. Europe follows, supported by rising demand for energy-efficient data center solutions, stringent data protection regulations, and growing adoption across BFSI, government, and enterprise sectors. The Asia-Pacific region is the fastest-growing market, fueled by rapid digitalization, expanding internet user base, growth of e-commerce, and increasing investments in cloud and 5G infrastructure in countries such as China, India, Japan, and South Korea. Latin America is witnessing steady growth driven by rising adoption of cloud services and colocation data centers. Meanwhile, the Middle East and Africa region is gradually expanding, supported by smart city initiatives, government-led digital transformation programs, and increasing investments in large-scale data center projects.

Global Data Center Equipment Market Key Players

·         Dell Technologies

·         Hewlett Packard Enterprise

·         Cisco Systems

·         IBM

·         Lenovo

·         Schneider Electric

·         Huawei Technologies

·         NetApp

·         Supermicro

·         Arista Networks

Recent Developments

In May 2025, Sanmina announced the acquisition of the data center infrastructure manufacturing arm of ZT Systems from AMD, strengthening its cloud and AI hardware manufacturing capabilities, particularly in advanced cooling and rack solutions.

In November 2025, Schneider Electric signed roughly $2.3 B in multi-year data center power and cooling equipment deals with Switch and Digital Realty effectively strategic supply partnerships boosting infrastructure deployment for AI workloads.

Research Methodology

At Foreclaro Global Research, our research methodology is firmly rooted in a comprehensive and systematic approach to market research. We leverage a blend of reliable public and proprietary data sources, including industry reports, government publications, company filings, trade journals, investor presentations, and credible online databases. Our analysts critically evaluate and triangulate information to ensure accuracy, consistency, and depth of insights. We follow a top-down and bottom-up data modelling framework to estimate market sizes and forecasts, supplemented by competitive benchmarking and trend analysis. Each research output is tailored to client needs, backed by transparent data validation practices, and continuously refined to reflect dynamic market conditions.