Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Data Center Rack Market is Segmented by Rack Size(Quartely Rack, Half Rack, Full Rack), Rack Height (42U, 45U and More), Rack Type(Cabinet (Closed) Racks, Open-Frame Racks, Wall-Mount Racks), Data Center Type(Colocation Facilities, Hyperscale and Cloud Service Provider DCs, Enterprise and Edge), Material(steel, Aluminum, Other Alloys and Composites) and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

Data Center Rack Market Size and Share

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Data Center Rack Market Analysis by Mordor Intelligence

The global data center rack market size is expected to reach USD 2.93 billion in 2025 and is forecast to climb to USD 4.93 billion by 2030, advancing at a robust 10.9% CAGR. The data center rack market is expanding because hyperscale operators, cloud service providers, and edge deployments are standardizing on rack-level liquid cooling and power delivery systems that support loads above 40 kW. Operators view rack infrastructure as the physical foundation for artificial intelligence (AI) workloads, high-performance computing clusters, and latency-sensitive edge nodes. Taller 48U configurations, cabinet-style containment, and liquid-ready structural designs are becoming mainstream as companies seek to maximize compute density while improving thermal management. The region-wide pivot toward sovereign AI, renewable-powered facilities, and stricter energy-efficiency rules further intensifies demand for advanced rack solutions capable of meeting regulatory, sustainability, and serviceability targets. 

Key Report Takeaways

  • By rack size, full rack systems commanded 57.4% of the data center rack market share in 2024; the same segment is projected to post a 12.9% CAGR through 2030.
  • By rack height, 42U installations led with 53.7% revenue share in 2024, while 48U designs are set to expand at a 12.1% CAGR to 2030.
  • By rack type, cabinet enclosures held 72.1% of the data center rack market in 2024; open-frame units lag as cabinet demand rises 11.5% annually.
  • By data-center type, colocation facilities captured 54.3% of 2024 revenue, whereas hyperscale builds are on track for the fastest 13.2% CAGR to 2030.
  • By material, steel accounted for 65.4% of the data center rack market size in 2024, while aluminum is the quickest-growing material at 11.7% CAGR.
  • By geography, North America led with 32.6% share in 2024; Asia-Pacific represents the fastest-growing region at 13.2% CAGR through 2030.

Segment Analysis

By Rack Size: Full Racks Anchor Density Ambitions

Full racks delivered 57.4% of the data center rack market in 2024 and will outpace other sizes with a 12.9% CAGR to 2030. That share equates to a commanding portion of the data center rack market size and reflects hyperscalers’ preference for 42U footprints that streamline cabling, airflow, and PDU standardisation. AI clusters demand sprawling PCIe and NVLink interconnects, making full racks indispensable for clean cable routing that sustains signal integrity at 100 Gbps and higher. In retrofit halls, larger frames also minimise floor-tile reconfiguration costs by aligning with existing cold-aisle geometry.

Liquid cooling magnifies full-rack advantages because taller vertical spaces facilitate segregated supply-and-return coolant channels. Schneider Electric’s GB200 NVL72 blueprint achieves 132 kW per full rack through bespoke manifolds positioned below a 42U server zone. The data center rack market thus rewards vendors that deliver factory-integrated coolant loops, redundant pumps, and quick-disconnect couplings pre-installed within full-height cabinets. Half- and quarter-rack formats still serve edge closets and network rooms, yet their CAGR trails because these environments seldom require lavish GPU clusters.

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Note: Segment shares of all individual segments available upon report purchase

By Rack Height: 48U Designs Become the New Baseline

Although 42U frames dominated 2024 with 53.7% revenue share, 48U variants are the fastest-growing height, posting 12.1% CAGR through 2030. Operators value the extra 6U for housing liquid manifolds, busways, or top-of-rack switches without sacrificing server slots. The incremental height reduces aisle count, yielding up to 12% floor-space savings in large halls. Taller frames also balance weight distribution across casters, vital when cabinets surpass 1,500 kilograms once coolant is added.

Rittal’s VX IT line lets technicians mix 42U and 48U frames on common rails, easing phased migrations that align with budget cycles. Custom 52U or 54U models appear in high-ceiling warehouses where vertical clearance is plentiful, but adoption remains niche. With liquid cooling pushing density ceilings higher, the data center rack market regards 48U as the sweet spot between legacy compatibility and forward-looking capacity.

By Rack Type: Cabinet Containment Dominates Thermal Strategy

Closed cabinets ruled 72.1% of the data center rack market share in 2024, and the segment is cruising at 11.5% CAGR. AI clusters rely on hot- and cold-aisle segregation plus liquid rear-door exchangers, both of which require sealed enclosures. Cabinet designs also permit door-mounted power meters and security sensors that open-frame racks cannot support.

TeleCommunication Systems slashed PUE to 1.15 by deploying Chatsworth’s passive chimney cabinets, underlining the efficiency leap from precise airflow management. Open-frame racks still populate network labs, while wall-mount units protect edge gear in retail sites, yet their limited containment ability caps growth. Consequently, cabinet suppliers with modular side-panel kits and DCIM-ready smart doors enjoy premium attach-rates in the expanding data center rack market.

Data Center Rack Market
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Note: Segment shares of all individual segments available upon report purchase

By Data Center Type: Hyperscale Momentum Rewrites the Order Book

Colocation halls held 54.3% revenue share in 2024, but hyperscale projects are sprinting at a 13.2% CAGR after operators such as Microsoft budgeted USD 80 billion for AI-optimised campuses. GPU factories require bespoke rack heights, liquid pathways, and back-plane power rails that most multitenant sites cannot retrofit without lengthy outages. Accordingly, cloud giants sign direct supply contracts for cabinet batches that match global templates.

Colocation incumbents answer with AI suites rated 70 kW per rack, yet build-to-suit cycles lag hyperscaler timelines. Enterprises and edge deployments grow steadily as regulatory and latency needs localise workloads. However, their share of the data center rack market size remains secondary because deployment volumes are fragmented across hundreds of micro-sites.

By Material: Steel Holds Ground as Aluminum Gains Lift

Steel frames captured 65.4% of 2024 revenue owing to cost efficiency and compressive strength suited to 1-ton cabinets. Aluminum enclosures, expanding 11.7% annually, tempt buyers with 30% weight savings and double the thermal conductivity, enabling faster heat dissipation into rear-door coolers. Nucor’s USD 115 million buyout of Southwest Data Products exemplifies steel producers doubling down on digital-infrastructure demand. 

Tariffs on Chinese steel and copper shortages inflate input costs, causing some operators to price-compare aluminum despite higher raw-metal premiums. Aluminum’s recyclability aligns with sustainability mandates, tipping decisions in ESG-focused tenders. Composite materials with electromagnetic shielding emerge in defense and healthcare data rooms, yet volumes stay modest. Over the forecast horizon, steel remains the bedrock of the data center rack market, while aluminum secures a growing niche in liquid-cooled GPU rows

Data Center Rack Market
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Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

North America commanded 32.6% of 2024 revenue thanks to deep hyperscale ecosystems, well-established supply chains, and regulatory clarity. Data-center capital expenditure surpassed USD 27 billion in the United States during 2025, though utility congestion in Northern Virginia and Silicon Valley tempers growth. Canada accelerates sustainability-centric builds that leverage hydro generation, while Mexico attracts near-shoring edge nodes supporting U.S. latency targets. Local manufacturing expansions, such as Schneider Electric’s USD 140 million Tennessee plant for switchgear, help suppliers dodge tariff headwinds.

Asia-Pacific is advancing at a 13.2% CAGR, the fastest regional clip in the data center rack market. China channels sovereign AI funds into massive GPU bases, India’s digital-services boom propels 5- to 20-MW campuses across tier-2 cities, and Japan backs edge clusters to automate factories. Regional fabrication hubs slash logistics lead times for racks, yet copper deficits could add cost volatility. Projects such as Vertiv-equipped iGenius AI centers illustrate how domestic supply ecosystems are rising to meet localised compute mandates.

Data Center Rack Market
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Competitive Landscape

The data center rack market remains moderately fragmented even as consolidation accelerates. Global leaders Schneider Electric, Vertiv, and Eaton are assembling full-stack portfolios that merge racks with power and cooling gear. Eaton’s USD 1.4 billion acquisition of Fibrebond delivers prefab power skids that shorten hyperscale deployment schedules. Schneider Electric deepened its liquid-cooling bench by buying Motivair, targeting AI clusters that exceed 100 kW per rack . Such vertical integration improves margin capture and supply-chain control while simplifying procurement for operators seeking turnkey blocks.

Mid-tier specialists Rittal, Chatsworth, and Panduit defend share through customisation, rapid shipping, and open-standards participation. The Open Compute Project’s Open Bridge Rack illustrates how hyperscalers set de-facto specifications and invite ecosystem vendors to build compatible enclosures that cut energy use 20%. Immersion-cooling disruptors present another flank, offering tank-based systems that bypass 19-inch racks altogether; however, adoption is still limited to niche HPC workloads.

Data Center Rack Industry Leaders

  1. Schneider Electric SE

  2. Vertiv Group Corp.

  3. Eaton Corp. plc

  4. Rittal GmbH & Co. KG

  5. Hewlett Packard Enterprise

  6. *Disclaimer: Major Players sorted in no particular order
Data Center Rack Market
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Recent Industry Developments

  • May 2025: Vertiv announced an 800 VDC power architecture for AI factories, featuring centralized rectifiers and rack-level converters that cut copper mass.
  • April 2025: Legrand launched the Fiber Express Ship Program, offering next-day dispatch of high-bandwidth assemblies to prevent build delays.
  • March 2025: Eaton agreed to acquire Fibrebond for USD 1.4 billion, adding pre-integrated modular enclosures to its portfolio.
  • March 2025: Vertiv released new rack power and cooling systems geared for AI workloads, boosting density and deployment speed.

Table of Contents for Data Center Rack Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Hyperscale and colocation build-outs surge
    • 4.2.2 Rising cloud and edge adoption boosts rack demand
    • 4.2.3 High-density server deployment (greater than 40 kW/rack)
    • 4.2.4 Energy-efficiency regulations (EU Code of Conduct / ASHRAE)
    • 4.2.5 AI-optimised liquid-cooled rack architectures
    • 4.2.6 National incentives for local rack manufacturing
  • 4.3 Market Restraints
    • 4.3.1 High upfront capex for advanced cabinets
    • 4.3.2 Growing use of blade/server-on-chip modules
    • 4.3.3 Power and space scarcity in tier-1 metros
    • 4.3.4 Specialty steel and aluminium supply volatility
  • 4.4 Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces
    • 4.7.1 Bargaining Power of Suppliers
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Threat of New Entrants
    • 4.7.4 Intensity of Rivalry
    • 4.7.5 Threat of Substitutes
  • 4.8 Assessment of Macroeconomic Factors on the Market

5. MARKET SIZE and GROWTH FORECASTS (VALUE)

  • 5.1 By Rack Size
    • 5.1.1 Quarter Rack
    • 5.1.2 Half Rack
    • 5.1.3 Full Rack
  • 5.2 By Rack Height
    • 5.2.1 42U
    • 5.2.2 45U
    • 5.2.3 48U
    • 5.2.4 Other Heights (52U and Custom)
  • 5.3 By Rack Type
    • 5.3.1 Cabinet (Closed) Racks
    • 5.3.2 Open-Frame Racks
    • 5.3.3 Wall-Mount Racks
  • 5.4 By Data Center Type
    • 5.4.1 Colocation Facilities
    • 5.4.2 Hyperscale and Cloud Service Provider DCs
    • 5.4.3 Enterprise and Edge
  • 5.5 By Material
    • 5.5.1 Steel
    • 5.5.2 Aluminum
    • 5.5.3 Other Alloys and Composites
  • 5.6 By Geography
    • 5.6.1 North America
    • 5.6.1.1 United States
    • 5.6.1.2 Canada
    • 5.6.1.3 Mexico
    • 5.6.2 South America
    • 5.6.2.1 Brazil
    • 5.6.2.2 Argentina
    • 5.6.2.3 Rest of South America
    • 5.6.3 Europe
    • 5.6.3.1 Germany
    • 5.6.3.2 United Kingdom
    • 5.6.3.3 France
    • 5.6.3.4 Italy
    • 5.6.3.5 Spain
    • 5.6.3.6 Russia
    • 5.6.3.7 Rest of Europe
    • 5.6.4 Asia-Pacific
    • 5.6.4.1 China
    • 5.6.4.2 Japan
    • 5.6.4.3 India
    • 5.6.4.4 South Korea
    • 5.6.4.5 Australia and New Zealand
    • 5.6.4.6 Rest of Asia-Pacific
    • 5.6.5 Middle East and Africa
    • 5.6.5.1 Middle East
    • 5.6.5.1.1 Saudi Arabia
    • 5.6.5.1.2 United Arab Emirates
    • 5.6.5.1.3 Turkey
    • 5.6.5.1.4 Rest of Middle East
    • 5.6.5.2 Africa
    • 5.6.5.2.1 South Africa
    • 5.6.5.2.2 Nigeria
    • 5.6.5.2.3 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Schneider Electric SE
    • 6.4.2 Vertiv Group Corp.
    • 6.4.3 Eaton Corp. plc
    • 6.4.4 Rittal GmbH and Co. KG
    • 6.4.5 Hewlett Packard Enterprise
    • 6.4.6 Dell Technologies Inc.
    • 6.4.7 Legrand SA
    • 6.4.8 IBM Corp.
    • 6.4.9 Chatsworth Products Inc.
    • 6.4.10 Panduit Corp.
    • 6.4.11 APC (by Schneider Electric)
    • 6.4.12 Tripp Lite (Eaton)
    • 6.4.13 Great Lakes Case and Cabinet
    • 6.4.14 Belkin International Inc.
    • 6.4.15 Kendall Howard LLC
    • 6.4.16 Martin International Enclosures
    • 6.4.17 Black Box Corp.
    • 6.4.18 Fujitsu Ltd.
    • 6.4.19 Oracle Corp.
    • 6.4.20 Cisco Systems Inc.

7. MARKET OPPORTUNITIES and FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
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Global Data Center Rack Market Report Scope

A data center rack is a type of physical steel and electronic framework designed to house servers, networking devices, cables, and other data center computing equipment. Data center racks are deployed primarily for infrastructure management in data centers. These are being used in the manufacturing, retail, BFSI, IT, and telecom industry.

The data center rack market is segmented by Rack Units (Small, Medium, Large), End-user Industry (BFSI, IT and Telecom, Manufacturing, Retail, and Others), and Geography.

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Rack Size Quarter Rack
Half Rack
Full Rack
By Rack Height 42U
45U
48U
Other Heights (52U and Custom)
By Rack Type Cabinet (Closed) Racks
Open-Frame Racks
Wall-Mount Racks
By Data Center Type Colocation Facilities
Hyperscale and Cloud Service Provider DCs
Enterprise and Edge
By Material Steel
Aluminum
Other Alloys and Composites
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia and New Zealand
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Rest of Africa
By Rack Size
Quarter Rack
Half Rack
Full Rack
By Rack Height
42U
45U
48U
Other Heights (52U and Custom)
By Rack Type
Cabinet (Closed) Racks
Open-Frame Racks
Wall-Mount Racks
By Data Center Type
Colocation Facilities
Hyperscale and Cloud Service Provider DCs
Enterprise and Edge
By Material
Steel
Aluminum
Other Alloys and Composites
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Russia
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia and New Zealand
Rest of Asia-Pacific
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Turkey
Rest of Middle East
Africa South Africa
Nigeria
Rest of Africa
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Key Questions Answered in the Report

What is the current size of the data center rack market?

The global data center rack market size stood at USD 2.93 billion in 2025 and is projected to reach USD 4.93 billion by 2030.

Which rack configuration holds the largest market share?

Full rack systems led with 57.4% of data center rack market share in 2024, reflecting their dominance in hyperscale and colocation builds.

How fast is the Asia-Pacific market growing?

Asia-Pacific is the fastest-growing region, expected to register a 13.2% CAGR between 2025 and 2030 as sovereign AI and manufacturing digitisation fuel demand.

Why are cabinet racks preferred for AI workloads?

Cabinets provide sealed containment necessary for liquid cooling and structured airflow, enabling densities that routinely exceed 40 kW per rack.

What materials are most common in rack construction?

Steel frames remain prevalent with 65.4% share, while aluminum adoption is rising at 11.7% CAGR due to its lighter weight and superior thermal conductivity.

Page last updated on: June 20, 2025

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