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Data Center Information Technology (IT) Equipment Market Size Outlook: How Fast Will Revenue Grow Through 2030?
The data center information technology (it) equipment market has experienced significant growth in recent years. This market is projected to expand from $148.13 billion in 2025 to $161.87 billion in 2026, achieving a compound annual growth rate (CAGR) of 9.3%. Historically, this growth can be ascribed to several factors, including rising data consumption and increased digitalization, the early adoption of rack and blade servers, the expansion of enterprise it infrastructure, the growth within telecom and it services, and a growing demand for reliable data storage.
The data center information technology (IT) equipment market is poised for robust expansion in the coming years. Projections indicate it will reach $228.4 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 9.0%. This anticipated growth is driven by several factors, including increasing cloud adoption and hybrid IT deployments, the advancement of AI and big data analytics, a heightened demand for energy-efficient data centers, the broadening of IT infrastructure in developing regions, and the escalating requirements for edge computing. Furthermore, significant trends expected during this period involve the wider adoption of high-performance servers and storage devices, the growing implementation of edge computing and microserver solutions, a rising need for energy-efficient and intelligent power distribution units, the integration of advanced networking equipment for high-speed connectivity, and the expansion of on-premises and hybrid cloud deployment solutions.
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Data Center Information Technology (IT) Equipment Market Expansion Supported By Key Demand Factors
The increasing adoption of cloud computing is anticipated to propel the growth of the data center information technology (IT) equipment market in the future. Cloud computing describes the delivery of computing resources such as servers, storage, databases, networking, and software over the internet as needed, offering elastic scaling and pay-as-you-go pricing. This shift towards cloud computing arises from enterprises prioritizing cost optimization by replacing upfront capital expenditure with flexible operating expenditure and improving infrastructure utilization. Data center information technology (IT) equipment serves as the essential framework for cloud services, supplying the computing power, storage capacity, and networking infrastructure needed to host, manage, and deliver virtualized resources. This facilitates seamless scalability, high availability, and secure access to applications and data across distributed cloud environments. For instance, according to data.gov.sg, a Singapore-based official open data platform, business usage of cloud computing services rose to 30.8% in 2023 from 27.1% in 2022, highlighting accelerating adoption among businesses. Therefore, the expanding adoption of cloud computing is driving the data center information technology (IT) equipment market.
Data Center Information Technology (IT) Equipment Market Segments: Where Are The Largest Growth Opportunities?
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
#Data Center Information Technology (IT) Equipment Market Growth Trends: What Is Influencing The Future Outlook?
Leading firms in the data center information technology (IT) equipment market are concentrating on enhancing data center technologies, including rack-scale liquid-cooled artificial intelligence server systems, with the goal of increasing compute density, improving power efficiency, and optimizing throughput. These rack-scale liquid-cooled artificial intelligence server systems consist of 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, during May 2025, Dell Technologies, a US-based multinational technology company, introduced its PowerEdge XE9780/XE9785 (which are both air- and liquid-cooled) and the rack-scale PowerEdge XE9712, equipped with NVIDIA GB300 NVL7. These recently unveiled PowerEdge servers accommodate as many as 192 NVIDIA Blackwell Ultra graphics processing units, incorporating direct-to-chip liquid cooling to achieve exceptionally high compute density. Furthermore, the PowerEdge XE9712, when paired with NVIDIA GB300 NVL72, offers rack-scale efficiency for training applications, providing up to 50x greater artificial intelligence reasoning output and a 5x improvement in throughput compared to its predecessor.
Data Center Information Technology (IT) Equipment Market Major Participants And Competitive Dynamics
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 Distribution: Which Areas Drive Market Expansion?
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.