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AI power and cooling requirements lift data center physical infrastructure market to over $46B in 2028 – Dell'Oro

Liquid cooling to go mainstream with $10 billion in revenues over the next five years. #pressrelease

February 2, 2024

1 Min Read

REDWOOD CITY, Calif. – According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the Data Center Physical Infrastructure (DCPI) market is set to grow at an 11 percent compound annual growth rate (CAGR) from 2023 to 2028, to over $46 billion. The proliferation of accelerated computing to support AI and ML workloads has emerged as a major DCPI market driver which is significantly increasing data center power and thermal management requirements.

Additional highlights from the Data Center Physical Infrastructure 5-Year January 2024 Forecast Report:

  • DCPI revenue growth is forecast to slow to a high single-digit rate in 2024, before accelerating to higher growth in 2025 through 2028.

  • Asia Pacific (excluding China), North America and Europe, the Middle East, and Africa (EMEA) are forecast to grow at the fastest CAGRs during the forecast period. China and the Caribbean and Latin America (CALA) are forecast to grow at slower rates.

  • Data Center Cabinet Power Distribution and Busway, Rack Power Distribution and Thermal Management are forecast to grow at the fastest rates during the forecast period.

  • Cloud and Colocation service providers are expected to account for the majority of growth during the forecast period, with the Enterprise customer segment growth forecast to be modest.

Read the full press release here.

Dell'Oro

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