Data Center Support Infrastructure Market Size - By Infrastructure, By Organization Size, By Tier, By Deployment Model, By End Use, Growth Forecast 2025 – 2034

Data Center Support Infrastructure Market Size

The global data center support infrastructure market was valued at USD 39.2 billion in 2024 and is estimated to register a CAGR of 9.1% between 2025 and 2034.
 

The increasing adoption of cloud computing is one of the important factors driving the growth of data center support infrastructure industry. The cloud is being used by organizations in different sectors because of its scalability, cost efficiency, and flexibility. This transition requires strong data centers that can manage significant data loads and deliver continuous service. Businesses are investing in data center infrastructure for cloud services and AI applications.
 

For instance, in September 2024, AWS announced a strategy to invest USD 8.3 billion in building, maintaining and operating data centers in the UK over the next five years. This huge investment highlights the increasing need for reliable data center infrastructure to support the development of cloud services and AI.
 

Data center infrastructure is changing due to the rise of hyperscale data centers, which serve massive cloud activities. This increases the need for hyperscale data centers globally. For instance, Statista reported that the number of hyperscale data centers reached around 990 in 2023. This number has increased by 700 in the last two years.
 

Hyperscale data centers need effective handling of high-density workloads, sophisticated cooling solutions and vast power distribution systems. Edge data centers are more significant as they offer low-latency localized services for applications like 5G and the Internet of Things (IoT). The requirement for data collection and storage has grown considerably as an outcome of the digitalization trend and the broad use of cloud services. SMEs are moving to cloud platforms to increase scalability, operational efficiency and for seamless integration of new technologies. It paves the way for the growth of data center support infrastructure.
 

Data Center Support Infrastructure Market Trends

• Data centers which manage high-performance computing workloads are in greater demand because of the quick adoption of Artificial Intelligence (AI) and Machine Learning (ML) technologies. These applications require a lot of processing power such as high-density power supply and effective cooling.
   
• Data center technology advancements including the creation of high-density power solutions and energy-efficient cooling systems are gaining traction. These developments make it possible for data centers to function more effectively, meeting the growing demands of computation. Companies are integrating renewable energy sources into their operations to address the high demand of data centers while achieving sustainability goals.
   
• For instance, in December 2024, Google collaborated with Intersect Power and TPG Rise Climate for a USD 20 billion project to build data centers fueled by nearby renewable energy plants. This project seeks to co-locate data centers with solar, wind, and battery storage facilities. It provides a consistent flow of renewable energy to support their operations.
   
• Governments all over the world are putting regulations to increase the resilience and sustainability of data centers. These rules include reporting requirements for water and energy usage. Moreover, they implement policies and initiatives to support data center infrastructure.
   
• For instance, in September 2024, data centers were classed as "critical national infrastructure" by UK government. This leads to more investment in the industry by providing extra assistance to improve resilience against cyberattacks and IT breakdowns.
   
• Data centers use a large amount of energy, which increases problems regarding operational costs and environmental sustainability. This problem is made worse by the widespread use of AI and other data-intensive technologies, that has drawn more attention from regulatory agencies and environmental organizations. Data centers are vulnerable to attacks as they serve major storage facilities for private data. It is essential to implement strong security measures to preserve data integrity and uphold stakeholder and customer trust.
   

Data Center Support Infrastructure Market Analysis

Based on infrastructure, the market is divided into power distribution systems, cooling systems, racks and enclosures, site and facility infrastructure, and security systems. In 2024, the power distribution systems segment held a market share of over 30% and is expected to cross USD 25 billion by 2034.
 

• Power distribution systems are important for data center equipment to collect the required electricity. It includes generators, Power Distribution Units (PDUs), and Uninterruptible Power Supplies (UPS).
   
• PDUs gives electrical power to multiple devices in the data center. UPS powers up IT equipment in case of an electricity outage. When the UPS is unable to continue operating on its own during extended outages, generators step in as a backup power source.
   
• Strong power distribution systems are important for the growing need of data processing and storage followed by cloud computing and AI applications. Growth in the market is driven by the requirement for energy-efficient power systems to lower operating expenses and their negative effects on the environment.
   
• For instance, in November 2024, Delta Electronics introduced the SMART PDU I-Type device. It helps to improve data center planners' and telecom operators' power management skills. It increases power administration and decreases operational budgets.
   
• Cooling systems are important to keep data centers at perfect temperatures, avoid overheating, and increase the life of equipment. It includes ventilation systems, liquid cooling methods, and air conditioners. The site and facility infrastructure focuses on building secure and robust data center facilities to guard against natural catastrophes and physical threats.

Based on organization size, the data center support infrastructure market is categorized into SME and large enterprise. The large enterprise segment held a market share of 67% in 2024.
 

• Large enterprises are increasing their IT infrastructure to manage large volumes of data and high workloads. It creates a need for cooling solutions, advanced power distribution systems and high-speed networking gear.
   
• Major big organizations are implementing hybrid cloud solutions that blend local data centers with cloud solutions. This movement drives a solid support infrastructure that integrates with both local and cloud deployments.
   
• Large companies invest extensively in advanced technologies like AI, machine learning, and automation to maximize their data center operations. For instance, in February 2025, Goodman, a former industrial landlord who is now a major player in digital infrastructure, has raised $4 billion to increase the capacity of its data center by 500 megawatts. The aim of this investment is to increase Goodman's portfolio of data centers globally with major part of this project is anticipated in Tokyo, Los Angeles, Sydney, and Melbourne.
   
• SMEs are utilizing cloud-based services and the latest IT solutions to increase operational efficiency, cut expenses, and scale their operations. Having access to scalable infrastructure enables SMEs to modify resources in response to demand without having to make large capital investments.
   

Based on tier, the data center support infrastructure market is segmented into tier I, tier II, tier III and tier IV. The tier III segment dominated the market accounting for over USD 15 billion in 2024.
 

• Tier III data centers provide numerous ways for cooling & power. They are built for high availability and redundancy. Tier III solutions offer redundant and immediate maintenance infrastructure which guarantees less downtime.
   
• Tier III data centers are perfect for businesses such as cloud service providers, financial institutions, and e-commerce platforms who need high availability for their apps.
   
• For instance, in January 2025, National Stock Exchange of India, which uses Tier III data center, expanded its co-location data center capacity with the addition of more than 200 racks. The NSE’s commitment to preserve a rich and effective trading environment is signified by this expansion. It helps to improve its capacity to offer low-latency access to trading data.
   
• Tier IV data centers are suitable for mission-critical applications because they provide the maximum degree of redundancy and fault tolerance. They have complete redundant systems such as N+2 configuration which guarantees uninterrupted operation even in the event of maintenance or failures.
   

Based on deployment model, the data center support infrastructure market is segmented into on-premises and cloud. The cloud segment is seeing significant growth in 2024.
 

• In cloud-based deployment methods, data center infrastructure is hosted by third-party service providers who transport services online. It is used in various industries such as SMEs, startups, and large corporations which looks for agility due to its scalability, affordability, and accessibility.  It is available to organizations whenever they need them, removing the necessity for managing physical infrastructure.
   
• Cloud services increase delivery time for new services and applications by enabling fast resource allocation. Cloud data centers help to access data and apps remotely from any location with an internet connection which promotes productivity and cooperation.
   
• In an on-premises deployment method, businesses own and run their data centers inside their premises. This architecture is a popular option for sectors with strict regulatory requirements or sensitive data processing demands which provides increased control over security processes.

North America dominated the global data center support infrastructure market with a major share of over 35% and the U.S. leads the market in the region generating revenue of USD 12 billion in 2024.
 

• In North America, the market for data center support infrastructure is expanding rapidly due to rising demand for cloud computing, digital services, and artificial intelligence (AI) applications.
   
• The U.S. continues to lead the global data center industry due to its sophisticated technological environment and strong need for data processing capabilities.
   
• Many organizations in the U.S. are teaming up to build data centers.  For instance, in January 2025, the "Stargate" project was launched by a consortium consisting of OpenAI, Oracle, and SoftBank. It included about USD 500 billion investment. Its goal is to build powerful AI models and the required infrastructure, such as data centers and power plants, throughout the U.S.
   
• Businesses look for sustainability by implementing energy-efficient data center solutions. They are using cloud-based services and enterprise resource planning (ERP) systems to manage growing workloads, maintain business continuity and satisfy racks & enclosures requirements.
   
• Colocation services in the U.S. are popular among businesses to save operating expenses and improve scalability, which is driving up need for strong support infrastructure.
   

The data center support infrastructure market in Germany is expected to experience significant and promising growth from 2025 to 2034.
 

• In Europe, the market for data center support infrastructure is growing rapidly due to increasing cloud service demand, technology enhancements and sustainability initiatives.
   
• In Germany, green data centers are getting large investments because businesses look to increase operational efficiency and sustainability. Investments in energy-efficient technologies are further stimulated by the German government's funding of renewable energy projects which meet the country's environmental objectives.
   
• Germany is focusing on automation and smart production which necessitates robust data centers that can manage real-time data processing and storage.
   
• Government is supporting firms to open data centers. For instance, in October 2024, German government collaborated with IBM for establishment of USD 330 million quantum European data center in Ehningen. This facility highlights Germany's dedication to developing quantum technology by providing cloud-based quantum computing resources to European customers.
   

The data center support infrastructure market in China is expected to expand significantly from 2025 to 2034.
 

Data Center Support Infrastructure Market Share

• The market for data center support infrastructure is expanding considerably in the Asia Pacific region because of rising digitization, emerging technologies and high investments in data center infrastructure. Businesses in the region are moving from conventional server configurations to advanced data center systems to take advantage of cloud computing.
   
• Advanced data center infrastructure is in demand in the China due to the quick uptake of cloud computing, Internet of Things (IoT), and artificial intelligence (AI) technologies.
   
• Chinese governments are uplifting the use of renewable energy sources to improve regional connectivity through underwater cables and providing incentives for the construction of data centers. Their fundings help to expand the nation's data center infrastructure.
   
• For instance, according to Reuters, China has invested almost USD 6.12 billion in new data centers in year 2022 and 2023. Over USD 28 billion in private sector money has been added to this government investment, resulting in the deployment of 1.95 million server racks, of which about 63% are already in operation.
   
• The top 5 companies in data center support infrastructure industry are ABB Ltd., Delta, Eaton Corporation, Huawei, and Schneider Electric. They collectively hold a market share of around 30% in the market.
   
• ABB Ltd. is known for its advanced automation and power management technologies. The company provides combined solutions which improve data center necessity and energy efficiency. The company involves intelligent grid technologies and advanced power distribution systems are crucial for data center operations. The company gives importance to sustainability and carbon footprint reduction.
   
• Eaton Corporation offers a wide range of data center-specific power management solutions. For instance, in March 2024, Eaton Corporation revealed the SmartRack modular data center system in North America. This innovative product assists businesses in meeting the expanding needs of AI, ML and edge computing. The company has taken the initiative to incorporate renewable energy sources into its products.
   
• Delta Electronics provides high-efficiency power solutions and cooling techniques which support the data center infrastructure. The company provides advanced modular designs which meet the demands of data center operators while improving scalability and flexibility. The company's innovative thermal management solutions save operational costs and maintains high performance & saves energy.
   
• Huawei strengthened its market position with its revolutionary IT infrastructure solutions, especially in networking and cloud computing. The company's strength lies in high-performance servers and storage systems which simplify extensive data processes. The company helps businesses aiming to maximize the performance of their data centers because of its emphasis on AI-driven solutions.
   
• Schneider Electric is prominent in the automation and digital transformation of energy management. Their EcoStruxure design offers a thorough framework for effectively managing data center operations. The company’s strengths are its energy management software and creative cooling solutions, which help businesses save a lot of money and increase dependability.
   
• The data center support infrastructure market is growing significantly due to increasing demand for IoT, cloud computing and AI applications. Businesses are focusing on innovative ways to improve operational efficiency. They are making significant investments in cutting-edge cooling and power distribution systems to handle the growing workloads brought on by edge computing and hyperscale data centers.
   
• With changes in global market, companies are looking for sustainability and energy efficiency. They are focusing on environment-friendly solutions such as advanced cooling systems which lower energy usage and carbon footprints.
   
• The data center support infrastructure industry involves prominent players and innovative upstarts who are adapting to the various demands of latest digital ecosystems. As these businesses develop an increasingly competitive climate, their strategies continue to be shaped by their emphasis on modularity, scalability, and sustainability.
   

Data Center Support Infrastructure Market Companies

Major players operating in the industry include:

• ABB
• Cisco Systems
• Delta Electronics
• Eaton
• Hewlett Packard Enterprise (HPE)
• Huawei Technologies
• IBM
• Legrand
• Rittal
• Schneider Electric
• Vertiv
   

Data Center Support Infrastructure Industry News

• In February 2025, Chevron declared plans to build natural gas power plants in collaboration with Engine No.1 and GE Vernova across the U.S. These plants are located next to data centers. This plan shows the growing importance of energy due to AI developments. It promises a secure power supply for data center operations.
   
• In January 2025, DMO started construction on a new data center close to Münster with an initial expenditure of more than USD 8 million. The facility will have a 500 square meter area which can accommodate 140 racks with densities up to 30 kW each. A 700kWp solar system is also built to improve energy efficiency.
   
• In January 2025, Microsoft announced a strategy to spread its data center infrastructure which costs USD 80 billion. Its prior focus is on the U.S. This large investment demonstrates the increasing necessity for strong data center infrastructure to meet the demands of cloud computing and artificial intelligence.
   
• In January 2025, ByteDance made an investment of USD 614 million to construct a new data center in Datong, Shanxi province. Six two-story data center structures, one six-story combined facility and additional supporting infrastructure will be part of the plan. This facility is to serve the company's ChatGPT-like service, Doubao, and enhance its AI capabilities.
   
• In December 2024, Yondr Group delivered the first 20MW of its 40MW data center plan in Bischofsheim. This accomplishment represents the findings of the first two stages of a four-phase development which was completed in a short 20-month period. It follows the German Energy Efficiency Act (EnEfG), which requires data centers to use renewable energy for at least 50% of their electricity consumption.
   

The data center support infrastructure market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

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Market, By Infrastructure

• Power distribution systems
• Cooling systems
• Racks and enclosures
• Site and facility infrastructure
• Security systems

Market, By Deployment Model

• On-premises
• Cloud

Market, By Organization Size

• SME
• Large enterprise

Market, By Tier

• Tier I
• Tier II
• Tier III
• Tier IV

Market, By End Use

• IT & telecom
• BFSI
• Healthcare & life sciences
• Government & defense
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia