#United States #Redwood City #Dell'Oro Group #AI Growth #Data Center Infrastructure

AI-Driven Growth in Data Center Infrastructure

The Data Center Physical Infrastructure (DCPI) market is on a robust growth trajectory, projected to reach $63.1 billion by 2029, according to a recent report by Dell'Oro Group. This growth represents a 15% compound annual growth rate (CAGR) from 2024 to 2029, primarily driven by the increasing demand for AI-ready computing capabilities. As organizations continue to embrace advanced computing workloads, the design and operation of data centers are evolving to accommodate these new demands.

Key Drivers of Growth

According to Alex Cordovil, Research Director at Dell'Oro Group, the rise of artificial intelligence is fundamentally transforming data center designs. Key trends include:

• - Increased Rack Densities: Higher computing demands are resulting in denser rack configurations.
• - Enhanced Power Management: Sophisticated power solutions are becoming essential to support elevated demand levels.
• - Liquid Cooling Technologies: What was once a niche application is rapidly becoming a necessary solution for managing heat within data centers.

Thermal Management and Liquid Cooling

The report outlines significant growth in the thermal management segment, predicted to expand at a 19% CAGR through 2029. Within this category, Direct Liquid Cooling (DLC) is expected to skyrocket from $1.1 billion in 2024 to $5.8 billion by 2029. This technology is poised to become the predominant solution for dissipating heat, driven by accelerated computing requirements.

Power Distribution Infrastructure

In parallel, the Cabinet PDU (Power Distribution Unit) and Busway market is on track to grow at a compelling 21% CAGR. This includes the adoption of overhead busbars, which have emerged as the preferred choice for AI-focused setups. Conversely, rack power distribution (RPP) is anticipated to lag with a modest 5% CAGR.

Service Provider Growth

Service providers, including cloud and colocation services, are set to expand at a 20% CAGR through 2029. Enterprises, on the other hand, are forecast to grow at a lesser pace of 6% CAGR as they increasingly turn to colocation partners for their AI infrastructure needs.

Regional Insights

North America is expected to lead the market, with regions such as EMEA (Europe, Middle East, and Africa) and China peaking around 2026 before experiencing a gradual moderation. The expansion is further supported by trends surrounding AI sovereignty and shifting export policies.

Power Constraints and Adaptation

Despite the ambitious growth forecasts, operators are also facing challenges related to power constraints. The report suggests that operators are increasingly integrating utility connections with on-site power generation solutions to manage these constraints, ensuring that overall capacity expansion remains robust.

Report Overview

Dell'Oro Group's 5-Year Forecast Report on Data Center Physical Infrastructure provides an extensive overview, detailing market sizes and projections for various components, including:

• - Uninterruptible power supplies (UPS)
• - Thermal management solutions
• - Rack power distribution
• - IT racks and containment
• - Software and service offerings

For more detailed insights and data segmentation, the full report is accessible through the Dell'Oro Group's channels.

About Dell'Oro Group

Dell'Oro Group is a respected market research firm specializing in competitive analysis in telecommunications, security, enterprise networks, and data center sectors. With an extensive repository of qualitative and quantitative data, they empower businesses to make informed decisions in this ever-evolving market landscape. For more information, visit www.delloro.com.