Data Center Rack and Enclosure Market Report 2026

The data center rack and enclosure market size has grown rapidly in recent years. It will grow from $4.11 billion in 2025 to $4.63 billion in 2026 at a compound annual growth rate (CAGR) of 12.5%. The growth in the historic period can be attributed to expansion of enterprise data centers, growth in server deployments, increasing it equipment density, adoption of structured cabling, rise of colocation facilities.

The data center rack and enclosure market size is expected to see rapid growth in the next few years. It will grow to $7.54 billion in 2030 at a compound annual growth rate (CAGR) of 13%. The growth in the forecast period can be attributed to growth of edge computing infrastructure, demand for scalable rack designs, expansion of hyperscale facilities, focus on airflow optimization, increasing retrofit data center projects. Major trends in the forecast period include high-density rack deployment, modular rack configurations, enhanced thermal management, edge data center enclosures, customized rack solutions.

The growth in the number of new data centers is expected to boost the data center rack and enclosure market in the coming years. A data center is a facility that relies on complex networks, computing systems, and storage infrastructure to enable shared access to data and applications. Data center racks and enclosures are vital components used to organize, secure, and house servers, networking devices, and other essential hardware. They are critical to maintaining the efficient and dependable functioning of data center operations. For example, in July 2025, according to GOV.UK, a UK-based government agency, it was projected that the UK will require at least 6GW of AI-capable data center capacity by 2030 - representing a threefold increase compared to the current available capacity. Additionally, plans include establishing a core network of nationally significant sites, each capable of supporting a minimum of 500MW of demand by 2030, with at least one AI Growth Zone expanding beyond 1GW by the same period. Therefore, the rapid expansion of new data centers is driving the growth of the data center rack and enclosure market.

Major companies operating in the data center rack and enclosure market are concentrating on technological innovations such as modular rack-and-service enclosures to enhance deployment speed, improve scalability, and strengthen the integration of cooling, power, and IT infrastructure. A modular rack-and-service enclosure combines server racks, in-row cooling systems, and power and cable management within a single pre-engineered unit, unlike traditional standalone racks with custom cooling and power configurations, enabling quicker installation, improved airflow control, and easier maintenance. For instance, in March 2024, Eaton Corporation, a U.S.-based intelligent power management company, introduced the SmartRack Modular Data Center, developed for fast deployment across enterprise, colocation, and edge environments. The solution includes IT rack enclosures supporting up to 44U of equipment, in-row cooling with 12-25 kW capacity, service enclosures for power distribution and cable management, and full integration with Eaton’s PDUs, UPSs, and Brightlayer monitoring platform, allowing loads of up to 150 kW per unit while cutting installation time from several months to just a few days.

In April 2023, Brookfield Asset Management, a Canada-based asset management firm, acquired Data4 Group for $3.8 billion. This acquisition is intended to bolster Brookfield Asset Management's position in the data center sector by utilizing Data4 Group's extensive portfolio of high-quality data center facilities throughout Europe. This move enhances Brookfield's capability to address the rising demand for digital infrastructure and cloud services, while also capitalizing on the increasing dependence of businesses on data-driven solutions. Data4 Group is a France-based company that provides data center racks and enclosures.

Major companies operating in the data center rack and enclosure market are Dell Inc.; Hewlett Packard Enterprise Development LP; Cisco Systems Inc.; Schneider Electric SE; Eaton Corporation; Emerson Electric Company; Delta Electronics Inc.; Legrand SA; Vertiv Holdings Co.; Rittal Gmbh and Co. KG; nVent Electric plc; Belden Inc.; Panduit Corporation; Blackbox Corporation; AGC Network Ltd.; Rahi Inc.; Hammond Manufacturing Co. Ltd.; C and F Tooling Ltd.; Canovate Group; Chatsworth Products Inc.; AFCO Systems Inc.; Great lakes Data Racks and Cabinets Co. Inc.; Martin International Enclosures LLC; IMS Engineered Products LLC; Amco Enclosures; Prism Enclosures Ltd.

North America was the largest region in the data center rack and enclosure market in 2025. The regions covered in the data center rack and enclosure market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the data center rack and enclosure market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Tariffs have impacted the data center rack and enclosure market by increasing costs of imported steel, aluminum, and fabricated rack components. These impacts are most visible in rack enclosures and floor-mounted installations used in large data centers. Asia-pacific and europe have experienced material cost volatility due to global trade policies. Higher tariffs have influenced pricing strategies and procurement planning for data center operators. On the positive side, tariffs have supported local fabrication and regional supply chain development.

The data center rack and enclosure market research report is one of a series of new reports that provides data center rack and enclosure market statistics, including data center rack and enclosure industry global market size, regional shares, competitors with a data center rack and enclosure market share, detailed data center rack and enclosure market segments, market trends and opportunities, and any further data you may need to thrive in the data center rack and enclosure industry. This data center rack and enclosure market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

A data center rack and enclosure are pieces of equipment used to house and protect servers and other IT equipment within a data center or server room. They provide a structured and organized environment for the placement and management of data center computing equipment.

The main types of products in the data center rack and enclosure category include open-frame racks, rack enclosures, and wall-mount racks. Open-frame racks are made of high-quality metal sheets and feature special holes for fastening equipment to mount servers and other network devices. These racks include solutions and service components and can be fixed with wall-mounted or floor-mounted installations. They come in various sizes, such as 18U-22U, 23U-32U, 33U-42U, 43U-48U, and above 49U. Data center rack and enclosure solutions find applications in various industries, including information technology (IT), telecommunications, banking, financial services, and insurance (BFSI), government, healthcare, manufacturing, education, and others.

The data center rack and enclosure market consists of revenues earned by entities by providing services such as rack design and manufacturing, rack maintenance and installation, cable management solutions, power distribution management, and rack decommissioning and disposal services. The market value includes the value of related goods sold by the service provider or included within the service offering. The data center rack and enclosure market also include sales of server racks, rack cabinets, rack mounting hardware, rack cooling solutions, and blanking panels. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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