AI deployments to push data center physical infrastructure market over $50B by 2028 – Dell'Oro
Liquid cooling makes a splash with $15 billion in revenues over the next five years. #pressrelease
August 7, 2024
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, Data Center Physical Infrastructure (DCPI) market growth was revised upwards to a 13 percent compound annual growth rate (CAGR) from 2023 to 2028, to over $50 billion. This raised outlook is due to the rising expectations of accelerated computing, which requires investments in higher amperage power distribution, backup power to manage load variability, and liquid cooling to meet the specific physical infrastructure requirements of AI workloads.
Additional highlights from the Data Center Physical Infrastructure 5-Year July 2024 Forecast Report:
DCPI revenue growth is forecast at double-digit rates for the majority of the forecast period, with particularly elevated revenue growth forecast for 2025.
North America, Asia Pacific excluding China, and Europe, the Middle East, and Africa (EMEA) are expected to lead growth over the forecast period at double-digit CAGRs.
Thermal Management, Power Distribution, and Three-phase UPS market segments are forecast to grow fastest during the forecast period.
Cloud and Colocation service providers are expected to account for most of the growth during the forecast period.
Read the full press release here.
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