Data Centre Equipment Market | Size, Share, Growth | 2025 – 2030
Global Data Centre Equipment Market was valued at USD 60.96 billion in 2023 and is projected to reach approximately USD 145.2 billion by 2030, expanding at a CAGR of 13.2% from 2024 to 2030. This rapid growth underscores the critical role data centers play in today’s digital-first world—serving as the backbone for cloud computing, artificial intelligence, and the Internet of Things (IoT).
Understanding Data Centre Equipment
Data centre equipment encompasses the physical hardware and devices used within data centers to store, manage, process, and transmit data. This includes servers, storage systems, networking devices, power distribution units, cooling systems, and security infrastructure. These facilities are essential for organizations managing vast data volumes—especially cloud service providers, telecom companies, and large enterprises seeking scalable and secure data management solutions.
As global digitalization accelerates, the need for robust and efficient data center infrastructure continues to surge. The proliferation of social media platforms, connected devices, and IoT applications has significantly amplified the demand for enhanced data storage and processing capabilities.
1. Rising Adoption of Edge Computing
Edge computing—an approach that processes data closer to the source rather than relying solely on centralized data centers—is transforming how data is handled. This decentralization minimizes latency and enables real-time analytics crucial for applications like autonomous vehicles, smart cities, and industrial IoT.
Manufacturers are innovating micro data centers, ruggedized servers, and advanced networking solutions designed specifically for edge environments. The ongoing surge in connected devices and real-time processing requirements continues to drive the adoption of such specialized infrastructure.
2. Expansion of IoT and Interconnected Devices
The Internet of Things (IoT) is another major catalyst fueling market growth. As billions of devices and sensors generate vast amounts of data, the need for high-performance, energy-efficient, and scalable data center equipment becomes indispensable.
IoT-driven workloads demand high-density storage, faster processors, and intelligent networking systems, prompting major infrastructure investments across industries.
Escalating Energy Costs and Efficiency Demands
One of the major challenges facing data center operators is rising energy consumption. Running and cooling massive equipment arrays requires substantial power, leading to high operational costs and environmental concerns.
While the adoption of energy-efficient cooling systems, server virtualization, and renewable energy integration offers solutions, these often involve heavy upfront investments. Older data centers, not originally designed for energy efficiency, face additional challenges in upgrading infrastructure.
Transition Toward Software-Defined Infrastructure
A defining trend shaping the data center equipment market is the shift toward software-defined infrastructure (SDI). SDI leverages software to automate and manage computing, storage, and networking resources, allowing organizations to achieve greater flexibility, agility, and cost-efficiency.
Software-defined environments can dynamically allocate resources based on workload needs, reduce operational complexity, and support hybrid cloud deployments—making them indispensable in modern data center strategies.
Market Segmentation Overview
Servers (dominant segment)
Servers remain the cornerstone of data centers, performing critical computing tasks, hosting applications, and ensuring uninterrupted digital operations.
IT and Telecom (leading segment)
BFSI (Banking, Financial Services, and Insurance)
The IT and Telecom segment dominates due to widespread cloud adoption, IoT integration, and 5G rollout. Innovations like Software-Defined Networks (SDN) and Network Function Virtualization (NFV) are accelerating investments in next-generation data centers.
North America – Market leader
Asia-Pacific – Fastest growing region
North America leads the global market due to strong technological infrastructure, cloud adoption, and the growth of online financial and healthcare services.
Meanwhile, Asia-Pacific is witnessing exponential growth driven by smart devices, wearable technology, and expanding digital ecosystems in countries like China, India, and Japan.
The COVID-19 pandemic moderately impacted the market but ultimately accelerated digital transformation. With businesses shifting online, demand for secure and scalable data storage surged. The widespread use of remote working, e-commerce, and digital services further highlighted the necessity of robust data center infrastructure.
Recent Trends and Innovations
September 2023: VVDN Technologies partnered with Axiado Corporation to develop OCP-compliant Open RAN servers, enhancing telecom data center efficiency.
December 2023: Chinese GPU manufacturer Moore Threads launched the MTT S4000, a high-performance GPU optimized for AI and data center applications.
Huawei Technologies Co. Ltd
Hewlett Packard Co. (HPE)
