With a focus on actionable insights and strategic value, The Business Research Company’s 2026 market reports include market attractiveness scoring, total addressable market sizing, company benchmarking matrices, interactive Excel dashboards, deeper supply chain intelligence, emerging startup tracking, and granular product-level insights.
Data Center Information Technology (IT) Equipment Market Size Outlook: A $228.4 Billion Market By 2030, Growing At 9% Annually
The data center information technology (it) equipment market has experienced robust growth in recent years. This market is projected to expand from $148.13 billion in 2025 to $161.87 billion in 2026, reflecting a compound annual growth rate (CAGR) of 9.3%. The growth observed in the historic period can be attributed to elements such as increasing data consumption and digitalization, the early adoption of rack and blade servers, the expansion of enterprise IT infrastructure, the growth in telecom and IT services, and a rising demand for reliable data storage.
The data center information technology (it) equipment market is projected to experience substantial growth in the upcoming years. This market is anticipated to expand to $228.4 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 9.0%. This expansion over the forecast period is driven by several factors, including the increasing adoption of cloud and hybrid IT solutions, the proliferation of AI and big data analytics, a growing need for energy-efficient data centers, the expansion of IT infrastructure in emerging economies, and the rising demand for edge computing. Key trends during this period are expected to encompass a greater uptake of high-performance servers and storage, an increasing deployment of edge computing and microserver solutions, an elevated demand for energy-efficient and intelligent power distribution units, the incorporation of advanced networking equipment for high-speed connections, and the broadening of on-premises and hybrid cloud deployment options.
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Key Demand Driver Expected To Lift Data Center Information Technology (IT) Equipment Market Revenue
The increasing adoption of cloud computing is anticipated to drive the expansion of the data center information technology (IT) equipment market in the future. Cloud computing involves the delivery of computing resources like servers, storage, databases, networking, and software via the internet on-demand, featuring elastic scaling and a pay-as-you-go pricing model. This transition towards cloud computing is driven by enterprises prioritizing cost optimization by converting upfront capital expenditures into flexible operating expenditures and achieving improved infrastructure utilization. Data center information technology (IT) equipment functions as the core foundation for cloud services by providing the necessary computing power, storage capacity, and networking infrastructure to host, manage, and deliver virtualized resources. This enables seamless scalability, high availability, and secure access to applications and data across various distributed cloud environments. For instance, according to data.gov.sg, an official open data platform based in Singapore, business usage of cloud computing services climbed to 30.8% in 2023 from 27.1% in 2022, demonstrating an accelerating rate of adoption among enterprises. Thus, the rising adoption of cloud computing is a key driver for the data center information technology (IT) equipment market.
Exploring The Data Center Information Technology (IT) Equipment Market Through Its Key Segments
The data center information technology (it) equipment market covered in this report is segmented –
1) By Product Type: Servers, Storage Devices, Networking Equipment, Power Distribution Units, Other Product Types
2) By Deployment Mode: On-Premises, Cloud
3) By Enterprise Size: Small And Medium Enterprises, Large Enterprises
4) By Application: Banking, Financial Services, and Insurance (BFSI), Information Technology (IT) And Telecommunications, Government, Healthcare, Energy
Subsegments:
1) By Servers: Rack Servers, Blade Servers, Tower Servers, High Density Microservers, Edge Servers
2) By Storage Devices: Direct Attached Storage Systems, Network Attached Storage Systems, Storage Area Network Arrays, All Flash Storage Arrays, Hybrid Flash And Hard Disk Arrays
3) By Networking Equipment: Ethernet Switches, Data Center Core Routers, Fibre Channel Switches, Application Delivery Controllers, Network Interface Cards And Adapters
4) By Power Distribution Units: Basic Power Distribution Units, Metered Power Distribution Units, Monitored Power Distribution Units, Switched Power Distribution Units, Intelligent Power Distribution Units
5) By Other Product Types: Rack Cabinets And Enclosures, Cable Management Systems, Uninterruptible Power Supply Systems, Keyboard Video Mouse Switches, Console Management Servers, Environmental Monitoring Sensors, Time Synchronization Appliances
New Trends Redefining Competition In The Data Center Information Technology (IT) Equipment Market
Leading firms in the data center information technology (IT) equipment market are prioritizing enhancements in data center technologies, for instance, rack-scale liquid-cooled artificial intelligence server systems, with the goal of increasing compute density, power efficiency, and throughput. These rack-scale liquid-cooled artificial intelligence server systems represent integrated racks that merge numerous accelerator and central processing unit boards, utilizing direct-to-chip liquid cooling and high-speed fabrics, enabling the entire rack to function like a supercomputer while effectively dissipating heat. As an illustration, in May 2025, Dell Technologies, a multinational technology enterprise based in the US, introduced the PowerEdge XE9780/XE9785 (available in air- and liquid-cooled versions) along with the rack-scale PowerEdge XE9712, which incorporates NVIDIA GB300 NVL7. These new PowerEdge servers are designed to accommodate up to 192 NVIDIA Blackwell Ultra graphics processing units, employing direct-to-chip liquid cooling to facilitate exceptionally high compute density. Specifically, the PowerEdge XE9712, equipped with NVIDIA GB300 NVL72, provides rack-scale efficiency for training tasks, offering up to 50× greater artificial intelligence reasoning output and a 5× improvement in throughput compared to its predecessors.
Data Center Information Technology (IT) Equipment Market Competition: Key Players And Industry Participants
Major companies operating in the data center information technology (it) equipment market are Dell Technologies, Huawei, Lenovo, International Business Machines Corporation (IBM), Cisco Systems, Intel, Schneider Electric, Broadcom, Hewlett Packard Enterprise (HPE), NVIDIA, Eaton, AMD, Legrand, Supermicro, Vertiv, Western Digital, Arista Networks, Pure Storage, Rittal, Extreme Networks
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Data Center Information Technology (IT) Equipment Market Regional Overview: Largest Market And Global Coverage
North America was the largest region in the data center information technology (IT) equipment market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center information technology (it) equipment market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
