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Insights on the Data Center Physical Infrastructure Market

According to a recent report from Dell'Oro Group, the globally recognized authority on market intelligence, the Data Center Physical Infrastructure (DCPI) sector is projected to achieve remarkable growth, surpassing $80 billion by 2030. With an estimated compound annual growth rate (CAGR) in the mid-teens from 2025 to 2030, this market is witnessing significant evolution, primarily shaped by ongoing technological advancements and rising power demands.

Key Trends Affecting the Market

The growing constraints on power availability, combined with technological disruptions, are central to the transformation of data center infrastructures globally. As these challenges unfold, operators are compelled to innovate and adapt. Alex Cordovil, Research Director at Dell'Oro Group, elaborates, "The DCPI market is in a phase of significant change, influenced by factors like increasing chip thermal design power and the pervasive need for substantial data storage capabilities."

As data centers scale up operations to support complex AI tasks, on-site power generation is no longer an optional add-on but has transitioned into a critical operational necessity. The incorporation of elements such as Direct Liquid Cooling is becoming essential. Industry leaders like NVIDIA are introducing designs like the Vera Rubin compute tray, which fully liquid-cools systems, eliminating traditional cooling fans and greatly enhancing thermal management.

Growth Segments

1. Thermal Management: Expected to grow at an impressive 20% CAGR, this segment is projected to match the market size of UPS systems by the end of the decade. The focus on effective cooling solutions will redefine data center architectures.

2. Direct Liquid Cooling: Reports indicate that this technology is on track to surpass $8 billion by 2030, signifying its transition from optional technology to foundational necessity, particularly for dense AI infrastructures.

3. Cabinet PDU & Busway: The rise in overhead busway systems as the preferred architecture for AI-centric environments is highlighted. The upcoming DC power distribution architectures are likely to shape future operational choices.

Role of Service Providers

Service providers, including cloud and colocation companies, are forecasted to escalate their DCPI investments at a rate nearly five times faster than traditional enterprises. This trend underscores the increasing complexity and capital requirement of infrastructures that are engineered for AI readiness.

Conclusion

With power availability emerging as a bottleneck due to grid interconnection delays and existing infrastructure challenges, many providers are leaning towards natural gas turbines and reciprocating engines for on-site generation, enabling them to bring significant campus projects online.

The insights from Dell'Oro Group's Data Center Physical Infrastructure 5-Year Forecast provide a holistic overview of this fast-evolving market, covering various segments including UPS, thermal management, and more. Given the rapid technology changes and power dynamics, organizations operating in the data center space will need to be agile, continually adapting to remain competitive in this burgeoning market.

For further engagement and detailed inquiries into the market report, Dell'Oro Group can be contacted at +1.650.622.9400 or through their website at www.delloro.com.