Data Center Information Technology (IT) Equipment Global Market Report 2025

The data center information technology (IT) equipment market size has grown strongly in recent years. It will grow from $135.35 billion in 2024 to $148.13 billion in 2025 at a compound annual growth rate (CAGR) of 9.4%. The growth in the historic period can be attributed to the surge in e-commerce transactions, rising mobile data consumption, increasing video streaming audiences, growing adoption of remote and hybrid work, and the widespread use of social media.

The data center information technology (IT) equipment market size is expected to see strong growth in the next few years. It will grow to $209.77 billion in 2029 at a compound annual growth rate (CAGR) of 9.1%. The growth in the forecast period can be attributed to the increasing share of the digital economy in gross domestic product, rising participation in online gaming, growing consumption of ultra-high-definition over-the-top video, continued adoption of remote and hybrid work, and expanding use of digital public infrastructure and digital identity. Key trends in the forecast period include adoption of liquid immersion cooling, deployment of direct-to-chip liquid cooling, implementation of silicon photonics-based interconnects, compute express link memory pooling, and non-volatile memory express over fabrics storage.

The growing cloud computing adoption is expected to drive the growth of the data center information technology (IT) equipment market going forward. Cloud computing refers to the delivery of computing resources such as servers, storage, databases, networking, and software over the internet on demand with elastic scaling and pay-as-you-go pricing. The shift toward cloud computing is driven by enterprises focusing on cost optimization by replacing upfront capital expenditure with flexible operating expenditure and improved infrastructure utilization. Data center information technology (IT) equipment forms the backbone of cloud services by providing the computing power, storage capacity, and networking infrastructure required to host, manage, and deliver virtualized resources, enabling 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 increased to 30.8% in 2023 from 27.1% in 2022, reflecting accelerated enterprise adoption. Therefore, growing cloud computing adoption is fueling the data center information technology (IT) equipment market.

Key companies operating in the data center information technology (IT) equipment market are focusing on innovations such as rack-scale liquid-cooled artificial intelligence server systems to enhance compute density, power efficiency, and throughput. Rack-scale liquid-cooled artificial intelligence server systems are integrated racks combining multiple accelerator and central processing unit boards with direct-to-chip liquid cooling and high-speed fabrics, allowing the entire rack to function as a supercomputer while efficiently dissipating heat. For instance, in May 2025, Dell Technologies, a US-based multinational technology company, launched PowerEdge XE9780/XE9785 (air- and liquid-cooled) and the rack-scale PowerEdge XE9712 featuring NVIDIA GB300 NVL7. These new PowerEdge servers support up to 192 NVIDIA Blackwell Ultra graphics processing units with direct-to-chip liquid cooling, delivering very high compute density. The PowerEdge XE9712 with NVIDIA GB300 NVL72 provides rack-scale efficiency for AI training with up to 50× higher reasoning output and 5× throughput improvement compared with the previous generation.

In July 2025, Hewlett Packard Enterprise (HPE), a US-based enterprise technology company, acquired Juniper Networks for an undisclosed amount. This acquisition aims to strengthen HPE’s position in artificial intelligence-driven networking and hybrid cloud markets, enhance its enterprise infrastructure portfolio with advanced AI-native networking solutions, and drive innovation by leveraging Juniper’s Mist AI software and cloud networking capabilities. Juniper Networks is a US-based networking company that provides data center information technology equipment.

Major players 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.

North America was the largest region in the data center information technology (IT) equipment market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in data center information technology (IT) equipment report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the data center information technology (IT) equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid rise in U.S. tariffs and the subsequent trade frictions in spring 2025 are having a major impact on the electrical and electronics sector, with semiconductors, display panels, and rare-earth metals (essential for batteries and motors) subject to steep duties. Consumer electronics brands face profit erosion, as competitive markets limit their ability to pass costs to buyers. Industrial electronics manufacturers, meanwhile, grapple with delayed projects due to shortages of tariff-impacted components like printed circuit boards. Companies are responding by relocating assembly to tariff-exempt countries, increasing inventory buffers, and redesigning products to reduce dependency on restricted materials.

The data center information technology (IT) equipment market research report is one of a series of new reports that provides data center information technology (IT) equipment market statistics, including data center information technology (IT) equipment industry global market size, regional shares, competitors with the data center information technology (IT) equipment market share, data center information technology (IT) equipment market segments, market trends, and opportunities, and any further data you may need to thrive in the data center information technology (IT) equipment industry. This data center information technology (IT) equipment 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.

Data center information technology (IT) equipment refers to the physical computing and networking devices installed within a data center, including computer servers, enterprise storage systems, and network switches and routers. These components work together to process, store, and transmit digital information, providing reliable and scalable computing capacity, data storage, and connectivity that enable organizations to run applications, protect and analyze data, and deliver digital services.

The primary product types of data center IT equipment include servers, storage devices, networking equipment, power distribution units, and others. Servers are specialized computers that deliver resources, data, applications, or services to other computers over a network. They are typically designed with redundant compute, memory, storage, and network interfaces, allowing multiple client systems to reliably request and receive processing and data from a centralized host. Data center IT equipment is deployed through various modes such as on-premises and cloud, serves enterprises of all sizes including small and medium enterprises and large enterprises, and finds applications across multiple industries, including banking, financial services, and insurance (BFSI), information technology (IT) and telecommunications, government, healthcare, and energy.

The data center information technology (IT) equipment market consists of sales of general-purpose and accelerated servers, enterprise storage systems, and data-center networking equipment. 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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