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

Global Data Center Rack Market Trends and Insights

Hyperscale and Colocation Build-outs Surge

Hyperscale capital spending topped USD 27 billion in the United States during 2025, reflecting 69% year-over-year growth that cements data-center construction as the fastest-expanding non-residential segment. Individual GPU clusters now demand 10–140 kW per rack, pushing operators to redesign white-space layouts around liquid manifolds versus legacy air handling. Colocation leaders such as Digital Realty introduced AI-ready suites that sustain 70 kW per cabinet, signalling that premium rack infrastructure is a competitive differentiator. Because retrofit costs for air-cooled halls can eclipse new-build budgets, these expansions fuel multiyear ordering cycles for cabinet-class racks. The trend also illustrates hyperscalers’ shift toward owning facilities to preserve control of training and inference environments.

Rising Cloud and Edge Adoption Boosts Rack Demand

Enterprises are placing compute nodes next to factories, warehouses, and retail stores, compelling vendors to engineer ruggedized racks. FedEx deployed edge modules inside logistics hubs through a Dell–Switch collaboration that requires vibration-resistant enclosures and remote-management PDUs. Telecom operators like Etisalat are rolling out compact edge servers that mount in sealed cabinets installed on street furniture, illustrating how 5G pushes rack form factors beyond traditional data floors.^{[1]MEPS International, “Global Steel Market Monthly Review,” mepsinternational.com} Manufacturers such as 3M leverage Azure SQL Edge on industrial shop floors, demanding NEMA-rated racks that tolerate dust and temperature swings. Consequently, the data center rack market accelerates in segments that supply pre-integrated, modular solutions suitable for thousands of distributed sites.

High-Density Server Deployment (Greater Than 40 kW/rack)

Liquid cooling partnerships, including Vertiv’s GB200 NVL72 reference platform with NVIDIA, support 132 kW heat loads per rack.^{[2]Intel, “Etisalat Deploys Edge Cloud on 5G,” intel.com}Air systems cap out near 20 kW, so direct-to-chip coolant loops and rear-door heat exchangers become indispensable. Chatsworth Products demonstrated > 30 kW cabinets by channeling exhaust vertically into ceiling plenums, a tactic that enables legacy halls to defer large-scale chiller upgrades. Elevated rack weight from coolant manifolds drives redesigns of structural frames and seismic anchoring. These engineering shifts ripple through supply chains, spurring demand for thicker gauge steel, leak-proof quick couplings, and redundant power strips.

Energy-Efficiency Regulations (EU Code of Conduct / ASHRAE)

The European Union’s revised Energy Efficiency Directive mandates yearly reporting for facilities over 100 kW IT load, aligning incentives toward liquid cooling that can achieve PUE as low as 1.03. ^{[3]European Commission, “Revised Energy Efficiency Directive 2025,” ec.europa.eu}ASHRAE widened allowable inlet temperatures, enabling chiller-less economiser modes when racks maintain tight airflow containment. Germany’s Energy Efficiency Act compels data centers to reuse waste heat, favouring rear-door liquid coolers that can transfer high-grade thermal energy to district-heating loops. Vendors integrating compliant racks enjoy accelerated procurement cycles as operators race to meet disclosure deadlines.

High Upfront Capex for Advanced Cabinets

Liquid-ready racks cost 20–35% more than air-only frames because they bundle manifolds, drip-less couplings, sensors, and heavier doors. While energy savings can offset the premium over a 3–5-year span, mid-market operators often face budget lockouts that delay adoption. Leasing providers now pre-stage customised racks to shorten deployment cycles; Networks Centre reduced installation costs 18% for a multinational bank by shipping fully cabled cabinets. Financing innovations ease the burden, yet price sensitivity remains a near-term brake on emerging-market roll-outs.

Power and Space Scarcity in Tier-1 Metros

Northern Virginia and Silicon Valley utilities quote transformer lead times of up to four years, restricting new-build capacity and raising land prices. Operators, therefore, squeeze more compute into existing shells, boosting demand for high-density racks that maximise watts per square foot. Iron Mountain’s geothermal-assisted hall in Pennsylvania cut energy use 34% with a 1.6 PUE, proving that creative cooling can unlock stranded power. Nevertheless, grid congestion spurs a migration to secondary markets, shifting rack sales geography toward sites with untapped megawatt allotments.

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.

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.

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

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.