Data Center Equipment Market Size Projected to Reach $238.42 billion by 2034 | 13.2%

According to Straits Research the global data center equipment market size was valued at $78.11 billion in 2025 and is projected to grow from $88.42 billion in 2026 to $238.42 billion by 2034 at a CAGR of 13.2% during the forecast period (2026–2034).

The global data center equipment market is witnessing rapid growth as organizations continue investing in cloud computing, artificial intelligence (AI), edge computing, and high-performance IT infrastructure. Data center equipment includes servers, storage systems, networking equipment, power infrastructure, cooling systems, and related hardware that support cloud services, enterprise IT, telecommunications, AI workloads, and edge computing.

The data center equipment market is expanding due to growing cloud migration, rapid adoption of artificial intelligence, enterprise digital transformation, and increasing investments in hyperscale data centers. Key industry trends include AI-ready infrastructure, liquid cooling technologies, smart self-managing software, fiber-optic networking, energy-efficient facilities, and edge computing deployments. The market is also benefiting from rising 5G deployment and demand for energy-efficient infrastructure, while opportunities continue to emerge in AI infrastructure, liquid cooling, and colocation facilities.

North America dominated the global data center equipment market in 2025, supported by strong cloud adoption, advanced digital infrastructure, and the presence of major hyperscale data center operators. Asia-Pacific is expected to witness the fastest growth during the forecast period due to increasing investments in digital infrastructure, cloud computing, telecommunications, and enterprise IT modernization across emerging economies.

Market Segments

1. By IT Infrastructure
   1. Networking Equipment
   2. Server
   3. Storage
2. By Applications
   1. IT and Telecom
   2. BFSI
   3. Government and Defense
   4. Healthcare
   5. Energy