Dell'Oro Group Updates Market Growth Predictions for Data Center Cooling Efficiency
The Dell'Oro Group has recently published a pivotal report, signaling a positive shift in the market outlook for Data Center Physical Infrastructure (DCPI). Their forecast predicts a significant revenue increase, estimating a 14% compound annual growth rate (CAGR) from 2024 to 2029, leading to an impressive $61 billion market size. The remarkable growth is attributed to several key factors that are reshaping the sector.
Tam Dell'Oro, founder of Dell'Oro Group, highlighted that the upgraded forecast stems from actual results exceeding prior expectations through 2024. The demand for accelerated computing resources, particularly high-end GPUs for Artificial Intelligence (AI) workloads, has surpassed previous estimates. This shift is noteworthy as it signifies a redistribution of demand, with Tier 2 Cloud Service Providers now investing heavily in advanced technology solutions, previously dominated by Tier 1 players.
One of the main driving forces behind this growth is the substantial increase in power and thermal management requirements, necessitated by the proliferation of accelerated computing solutions aimed at supporting AI and Machine Learning (ML) workloads. Currently, the average power density for data center racks is around 15 kW, but as AI workloads become more prevalent, this could spike to between 60 to 120 kW per rack. This leap triggers a wave of innovation in power distribution mechanisms alongside a significant pivot towards liquid cooling systems, which are poised to replace traditional air cooling methods.
The report outlines strong growth for 2025 and 2026, driven by the deployment of enhanced DCPI infrastructure among Tier 1 and Tier 2 service providers. Notably, regions such as Asia Pacific (excluding China), North America, and Europe, the Middle East, and Africa are expected to witness the fastest growth during this period. While top-tier cloud service providers are looking to construct facilities dedicated to AI inferencing, colocation services, both wholesale and retail models, may play a crucial role in the expansion of AI inferencing capabilities in the long run.
This strategic report, titled "Data Center Physical Infrastructure 5-Year January 2025 Forecast Report," offers an extensive analysis of the sector, detailing market sizes and projections for vital components, including Uninterruptible Power Supplies (UPS), thermal management systems, cabinet power distribution, and rack power distribution, among others. It provides critical insights into the allocation of manufacturing revenues across various entities such as Cloud Service Providers, telecom companies, colocation services, and enterprise clients.
Dell'Oro Group, known for its rigorous market research and strategic competitive analysis, continues to ensure that businesses make informed decisions based on a robust foundation of both quantitative and qualitative data. For insights into the evolving landscape of data center technologies and infrastructure, businesses and stakeholders are encouraged to consult their latest report, which sheds light on trends that will shape the future of the data center market, emphasizing the importance of efficient power and cooling systems to accommodate the increasing demands of AI workloads.
For more detailed information, Dell'Oro Group invites interested parties to reach out through their contact channels available on their website.
Tam Dell'Oro, founder of Dell'Oro Group, highlighted that the upgraded forecast stems from actual results exceeding prior expectations through 2024. The demand for accelerated computing resources, particularly high-end GPUs for Artificial Intelligence (AI) workloads, has surpassed previous estimates. This shift is noteworthy as it signifies a redistribution of demand, with Tier 2 Cloud Service Providers now investing heavily in advanced technology solutions, previously dominated by Tier 1 players.
One of the main driving forces behind this growth is the substantial increase in power and thermal management requirements, necessitated by the proliferation of accelerated computing solutions aimed at supporting AI and Machine Learning (ML) workloads. Currently, the average power density for data center racks is around 15 kW, but as AI workloads become more prevalent, this could spike to between 60 to 120 kW per rack. This leap triggers a wave of innovation in power distribution mechanisms alongside a significant pivot towards liquid cooling systems, which are poised to replace traditional air cooling methods.
The report outlines strong growth for 2025 and 2026, driven by the deployment of enhanced DCPI infrastructure among Tier 1 and Tier 2 service providers. Notably, regions such as Asia Pacific (excluding China), North America, and Europe, the Middle East, and Africa are expected to witness the fastest growth during this period. While top-tier cloud service providers are looking to construct facilities dedicated to AI inferencing, colocation services, both wholesale and retail models, may play a crucial role in the expansion of AI inferencing capabilities in the long run.
This strategic report, titled "Data Center Physical Infrastructure 5-Year January 2025 Forecast Report," offers an extensive analysis of the sector, detailing market sizes and projections for vital components, including Uninterruptible Power Supplies (UPS), thermal management systems, cabinet power distribution, and rack power distribution, among others. It provides critical insights into the allocation of manufacturing revenues across various entities such as Cloud Service Providers, telecom companies, colocation services, and enterprise clients.
Dell'Oro Group, known for its rigorous market research and strategic competitive analysis, continues to ensure that businesses make informed decisions based on a robust foundation of both quantitative and qualitative data. For insights into the evolving landscape of data center technologies and infrastructure, businesses and stakeholders are encouraged to consult their latest report, which sheds light on trends that will shape the future of the data center market, emphasizing the importance of efficient power and cooling systems to accommodate the increasing demands of AI workloads.
For more detailed information, Dell'Oro Group invites interested parties to reach out through their contact channels available on their website.
Topics Consumer Technology）
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