Data Center Server Rack Market Revenue to Attain USD 399.56 Bn by 2033

17 Sep 2025

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Table of Content

1. Data Center Server Rack Market Revenue and Trends 2025 to 2033 2. Key Drivers Enabling the Growth of the Data Center Server Rack Market 3. Segment Insights 4. Data Center Server Rack Market Coverage

Data Center Server Rack Market Revenue and Trends 2025 to 2033

The global data center server rack market revenue reached USD 107.38 billion in 2025 and is predicted to attain around USD 399.56 billion by 2033 with a CAGR of 17.85%. The data center server rack market consists of standardized, high-density frameworks designed to house servers, networking equipment, and other IT components in data centers. These racks facilitate efficient space utilization, power management, and simplified cabling, allowing for organized stacking of multiple servers and IT components.

Key Drivers Enabling the Growth of the Data Center Server Rack Market

This market is experiencing significant growth due to the exponential increase in data generation from sources such as cloud computing, Artificial Intelligence, and IoT. The surge in demand necessitates the establishment of more data centers worldwide and an increase in server density within existing facilities. The growing adoption of modular and edge data centers further drives the demand for flexible, scalable, and energy-efficient rack systems. Additionally, technological advancements in cooling solutions are essential for supporting high-density server deployments and meeting stringent sustainability goals. Government digitalization initiatives also highlight the need for robust data center infrastructure, accelerating the demand for sophisticated rack solutions.

Segment Insights

• By product type, the rack enclosures segment leads the market due to the rising demand for high-density servers driven by AI and cloud computing, which require secure, organized, and space-efficient solutions for optimal power and cooling management. 
• By rack height, the ≤42U segment dominated the market. This is because they offer an established standard, an optimal balance of capacity and space, and versatility to accommodate diverse IT equipment needs.
• By rack width, the 19-inch rack is the most prevalent in the market due to its standardization (defined by the EIA-310 standard), universal compatibility with various IT hardware, and efficient use of space, enabling dense configurations.
• By data center type, hyperscale data centers represent the dominant segment, as they require large-scale, high-density racks for hardware deployment, with a focus on energy efficiency and cost-effectiveness.
• By end-use industry, the IT and telecom sector leads the market due to the increasing demand for scalable and efficient infrastructure that supports digital transformation, cloud computing, AI, and big data.
• By service type, the installation and deployment segment dominates the market, as modern data center infrastructure is increasingly complex and necessitates specialized expertise to ensure efficient and seamless operations.

Regional Insights

North America is the leading region in the data center server rack market. This dominance is attributed to a high concentration of major cloud providers and technology companies, significant digital transformation, substantial investments in AI and big data, and supportive government policies and digital infrastructure. The presence of tech giants such as Amazon Web Services (AWS), Google, and Microsoft Azure, who are aggressively expanding their data center footprints, drives demand for server racks.

Asia-Pacific region is the fastest-growing market due to its large population, rapid digital transformation across sectors such as e-commerce, banking and financial services, and healthcare, as well as the widespread adoption of 5G, AI, and edge computing. The rapid digitization of industries like banking and healthcare in countries such as China, India, and Japan is creating a surge in data traffic, leading to extensive data center installations and positioning the region as the fastest-growing market for data center racks.

Data Center Server Rack Market Coverage

Recent Development

• In July 2024, Vertiv launched the Vertiv™ MegaMod™ CoolChip, a prefabricated modular data center solution equipped with liquid cooling technology. This solution is designed to enable efficient and reliable AI computing and can be configured to support the platforms of leading AI compute providers, with scalability tailored to customer requirements. 
  (Source: https://www.vertiv.com)

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