Global Data Center Equipment Market Size - Share Outlook, Growth Analysis Report and Forecast Trends 2026-2030

The Global Data Center Equipment Market comprises the physical and electronic infrastructure required to operate data centers, including servers, storage arrays, networking switches and routers, power distribution units, uninterruptible power supplies, cooling systems, and racks. This market forms a critical foundation for cloud computing, enterprise IT, and digital services globally. The equipment market is growing at a pace that exceeds the overall data center market, driven by the increasing density and performance requirements of modern computing workloads.

• •The overall data center market was valued at $418.2 billion in 2025 and is projected to reach $691.6 billion by 2030 at a 10.6% CAGR
• •The data center equipment segment specifically was estimated at $51.91 billion in 2021 and is anticipated to register over 16% CAGR through 2030
• •Equipment includes servers, storage systems, networking gear, power management hardware, and cooling infrastructure

Artificial intelligence is the single most powerful growth engine, with the AI data center market alone expected to grow from $236.44 billion in 2025 to $933.76 billion by 2030 at a 31.4% CAGR. Cloud computing adoption continues to accelerate as enterprises migrate workloads off-premises, while hyperscalers like Amazon, Microsoft, and Google expand their data center footprints. The proliferation of edge computing, the Internet of Things, and 5G networks are also driving demand for distributed data center equipment closer to end users.

• •AI and machine learning workloads demand specialized, high-density server and GPU infrastructure, significantly increasing average equipment spending per rack
• •Hyperscale data center operators are building new facilities at an unprecedented pace to meet cloud and AI computing demand
• •Rising data traffic from streaming, gaming, and enterprise digital transformation initiatives sustains long-term equipment replacement and upgrade cycles

The market is segmented by data center size into large, massive, medium, mega, and small categories, with tier classifications ranging from Tier 1 and 2 through Tier 4 based on redundancy and uptime guarantees. By type, the market includes colocation, hyperscale, and edge data centers, each with distinct equipment requirements. Geographically, North America leads the market due to concentration of hyperscalers and tech enterprises, followed by Asia-Pacific driven by China, India, and Southeast Asian cloud expansion, with Europe also representing a major regional market.

• •Colocation data centers serve multi-tenant customers requiring shared infrastructure, while hyperscale facilities are built and operated by cloud providers for their own workloads
• •Edge data centers are growing fastest as organizations process data closer to users to reduce latency for AI, IoT, and real-time applications
• •Asia-Pacific is the fastest-growing regional market, fueled by digitalization, cloud adoption, and government initiatives supporting data infrastructure

What are the recent trends and outlook?

Liquid cooling is emerging as a critical trend as GPU and AI workloads generate far more heat per rack than traditional enterprise computing, with direct-to-chip and immersion cooling solutions gaining traction. Sustainability requirements are driving demand for equipment with lower power consumption, with power usage effectiveness becoming a key specification for data center operators. The market is also seeing growing adoption of composable infrastructure and software-defined hardware management to improve utilization rates and operational flexibility across the 2025 to 2030 forecast period.

• •Liquid cooling adoption is accelerating as AI racks consuming 40kW to 100kW+ per cabinet make traditional air cooling economically and physically impractical
• •Energy efficiency regulations and corporate sustainability commitments are pushing equipment vendors to optimize power draw and thermal performance
• •Composable disaggregated infrastructure, which pools compute, storage, and networking resources dynamically, is expected to gain adoption among large-scale operators