Data Center Physical Infrastructure Market is Projected to Reach $127.15 billion by 2034

Data Center Physical Infrastructure Market Size Worth USD 127.15 Billion by 2034 | CAGR: 15.00%


The data center physical infrastructure market size is expected to reach USD 127.15 billion by 2034, according to a new study by Polaris Market Research. The report “Data Center Physical Infrastructure Market Share, Size, Trends, Industry Analysis Report: By Component (Cabling, Power Systems, Cooling Systems, Cable Management Solutions, Cabinets, and Others), By Deployment, By End User, and By Region; Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.

Components such as power supply units, cooling systems, racks, cabling, fire suppression, and security systems come under data center physical infrastructure. These systems ensure that servers and networking equipment function properly. Organizations rely on this infrastructure to protect sensitive information and deliver fast digital services.

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Businesses in banking, healthcare, retail, and technology need data center physical infrastructure to process large volumes of data securely. Companies are investing in physical infrastructure with the growing cloud computing, big data, and AI continue to grow. Data center physical infrastructure ensures that data centers handle rising workloads, reduce operational costs, and support future technological innovations.

Top of FormData Center Physical Infrastructure Market Report Highlights

  • In terms of component, the power systems segment accounted for a major revenue share in 2024. This is due to the growth of data analytics and big data analytics, as well as the expansion of e-commerce.
  • Based on deployment, the on-premises segment held the largest revenue share in 2024. This is owing to on-premises ability to offer greater control, security, and customization.
  • In terms of end user, the IT and telecom segment dominated the revenue share in 2024. This is due to the rapid expansion of 5G networks, cloud platforms, and streaming services.
  • The healthcare segment is estimated to grow at a rapid CAGR from 2025 to 2034. This is due to high adoption of digital health solutions, telemedicine, and precision medicine.
  • North America accounted for a major data center physical infrastructure market share in 2024. This is attributed to high cloud adoption and digital transformation.
  • U.S. held the largest revenue share in the North America data center physical infrastructure landscape in 2024. This is due to the migration of businesses to the cloud and the digitalization of services such as healthcare and public services.
  • The Asia Pacific market is projected to hold a significant revenue share in 2034, driven by e-commerce expansion.
  • The demand for data center physical infrastructure in China is being driven by massive investments in AI research, cloud services, and e-commerce platforms.
  • The industry in Europe is projected to grow at a rapid CAGR from 2025 to 2034, owing to strict data sovereignty laws, growth of cloud services, and the shift toward digital business models.
  • A few global key market players include ABB; CoreSite; Dell; Digital Realty; Eaton; Equinix; Hewlett Packard Enterprise (HPE); IBM; Schneider Electric; Switch, Inc.; and Vertiv.

Polaris Market Research has segmented the market report on the basis of component, deployment, end user, and region:

By Component Outlook (Revenue, USD Billion, 2020–2034)

  • Cabling
  • Power Systems
  • Cooling Systems
  • Cable Management Solutions
  • Cabinets
  • Others

By Deployment Outlook (Revenue, USD Billion, 2020–2034)

  • On-Premises
  • Cloud-Based

By End User Outlook (Revenue, USD Billion, 2020–2034)

  • IT and Telecom
  • BFSI
  • Healthcare
  • Retail
  • Government and Defense
  • Others

By Regional Outlook (Revenue, USD Billion, 2020–2034)

  • North America
    • US
    • Canada
  • Europe
    • Germany
    • France
    • UK
    • Italy
    • Spain
    • Netherlands
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Malaysia
    • South Korea
    • Indonesia
    • Australia
    • Vietnam
    • Rest of Asia Pacific
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • Israel
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Mexico
    • Brazil
    • Argentina
    • Rest of Latin America