AI workload deployment, hyperscale capacity expansion, and rising demand for high-density power are reshaping the global data center infrastructure market.

The global Data Center Infrastructure Market was valued at USD 269.86 billion in 2025 and is estimated to reach USD 328.11 billion in 2026, according to Next Move Strategy Consulting (NMSC). The market is projected to reach USD 795.17 billion by 2035, advancing at a 10.3% CAGR from 2026 to 2035. Rising AI workload deployment, GPU accelerator demand, hyperscale data center expansion, and infrastructure modernization are strengthening procurement across compute, power, cooling, network, physical infrastructure, software, and lifecycle services.

Hardware remains the largest offering segment, valued at USD 171.99 billion in 2025, while Software is projected to register the fastest growth at a 12.9% CAGR through 2035. Enterprise Data Centers represented the largest data center type segment at USD 102.19 billion in 2025, while Cloud Data Centers are projected to expand at the fastest CAGR of 12.96%. Tier III led the tier-standard landscape at USD 111.28 billion in 2025, whereas Tier IV is forecast to advance at the fastest rate of 14.5%.

Key Findings

• The Data Center Infrastructure Market is projected to expand from USD 328.11 billion in 2026 to USD 795.17 billion by 2035, representing a 10.3% CAGR.

• Hardware led the offering landscape with USD 171.99 billion in 2025, while Software is projected to grow at the fastest offering CAGR of 12.9%.

• Enterprise Data Centers led by data center type with USD 102.19 billion in 2025, while Cloud Data Centers are forecast to register a 12.96% CAGR through 2035.

• Tier III represented the largest tier-standard segment at USD 111.28 billion in 2025, while Tier IV is projected to achieve the fastest CAGR of 14.5%.

• The market creates an absolute revenue opportunity of USD 467.06 billion between 2026 and 2035, based on the increase from USD 328.11 billion to USD 795.17 billion.

What Is Driving Growth in the Data Center Infrastructure Market?

Rising AI workload deployment and GPU accelerator demand remain the primary growth drivers for the market. Growing compute intensity is increasing infrastructure requirements across servers, accelerators, storage, networking, power distribution, and advanced cooling. The U.S. Department of Energy continues to track sustained growth in data center electricity consumption associated with expanding compute infrastructure, reinforcing the scale of investment required to support AI workloads. NMSC’s analysis indicates that AI-driven demand, together with continued hyperscale capital expenditure, is anchoring procurement across compute, power, cooling, and supporting infrastructure globally.

Hyperscale capacity expansion provides a second important growth avenue, where cloud service providers continue to expand new and upgraded facilities, increasing requirements for integrated power, thermal management, rack infrastructure, networking, and digital management platforms. The continued expansion of Vertiv’s infrastructure portfolio reflects the growing need for high-density and high-reliability systems serving large data center construction pipelines. Our assessment indicates that accelerating hyperscale deployments are also placing greater pressure on infrastructure supply chains and equipment delivery schedules.

What Is Restraining Data Center Infrastructure Market Expansion?

Grid interconnection delays and power availability constraints are emerging as important barriers to faster facility development, particularly in established data center markets where available transmission capacity is under pressure from rising electricity demand. The U.S. Federal Energy Regulatory Commission continues to address lengthy interconnection queues affecting new power access. High capital requirements for liquid cooling, power infrastructure, and Tier IV facility construction further increase deployment costs. These constraints extend project timelines and make power availability, infrastructure readiness, and site selection increasingly important considerations for operators and investors.

Where Are New Opportunities Emerging in the Data Center Infrastructure Market?

NMSC’s analysis shows that liquid cooling retrofit projects represent a significant opportunity as operators modernize existing facilities for higher-density AI workloads. Retrofit-friendly direct-to-chip cooling and rear-door heat exchanger solutions provide a pathway for upgrading legacy air-cooled environments without requiring complete facility reconstruction. Vendors that offer modular systems compatible with existing Tier III footprints are positioned to address recurring modernization demand as operators increase rack densities and prepare facilities for advanced AI accelerators.

Segmentation Analysis

Data Center Infrastructure Market by Offering, 2025–2035 (USD Billion)

Hardware led the market with USD 171.99 billion in 2025, supported by continued spending on compute, networking, power, cooling, and physical infrastructure across new and upgraded facilities. NMSC’s findings suggest that Software is the fastest-growing offering segment at a 12.9% CAGR, reflecting greater investment in DCIM, monitoring, observability, infrastructure analytics, and infrastructure AIOps as facilities become more complex and energy-intensive.

Analyst Commentary

“NMSC’s assessment indicates that data center infrastructure demand is shifting toward higher-density, power-intensive, and thermally demanding environments. AI workloads are increasing the importance of coordinated compute, power, cooling, networking, and infrastructure management, while modernization requirements are creating additional opportunities across existing facilities.”

Product development across the industry increasingly reflects this shift, with vendors expanding liquid cooling, high-density rack systems, AI-ready power architectures, and integrated infrastructure solutions designed to accelerate deployment and reduce complexity.

Key Players Shaping the Data Center Infrastructure Market

The competitive landscape includes global infrastructure, computing, networking, power management, cooling, and technology providers. Key participants include Schneider Electric, Vertiv Holdings Co., Dell Technologies, Hewlett Packard Enterprise Company, Huawei Technologies Co., Ltd., Cisco Systems, Inc., NVIDIA Corporation, and others.

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Latest Developments in the Data Center Infrastructure Market

On July 23, 2026, Schneider Electric and AMD introduced a jointly developed and validated reference design for the AMD Helios rack-scale platform. The design supports 246 kW AI racks and modular AI clusters with up to 10.4 MW of IT load, integrating compute with power, cooling, and digital infrastructure technologies.

On July 23, 2026, Vertiv announced the deployment of integrated power, liquid cooling, rack infrastructure, and installation services supporting the Naval Postgraduate School’s NVIDIA DGX GB300 system. The deployment demonstrates how existing facilities can be adapted for high-density, liquid-cooled AI environments.

On July 15, 2026, Supermicro expanded its Data Center Building Block Solutions liquid-cooling portfolio with ten rear-door heat exchanger models supporting cooling capacities from 10 kW to 120 kW. The solutions are designed for both new and legacy data centers, providing lower-disruption pathways to higher-density cooling.

On June 22, 2026, Dell Technologies introduced the PowerEdge XE8812 within its Dell AI Factory with NVIDIA, featuring NVIDIA Vera Rubin NVL4 architecture and supporting up to 144 GPUs per rack in the PowerRack 9100. The platform targets demanding HPC and AI workloads requiring increased compute density and direct liquid cooling.

On June 17, 2026, Vultr selected HPE and NVIDIA for large-scale AI data center deployments using NVIDIA GB300 NVL72 systems, Spectrum-X networking, liquid cooling, and HPE deployment services. The expansion supports hyperscale GPU clusters and 400GbE/800GbE networking for enterprise AI, inference, model training, and private-cloud workloads.

Report Scope

• Segmentation: By Offering, Data Center Type, Facility Size, Facility Location, Tier Standard, and End User.

• Coverage: 38 countries across the global data center infrastructure ecosystem.

• Companies profiled: 20, including Schneider Electric, Vertiv Holdings Co., Dell Technologies, Hewlett Packard Enterprise Company, Huawei Technologies Co., Ltd., NVIDIA Corporation, and others.

• Market share: Available for the top 10 companies.

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About Next Move Strategy Consulting

Next Move Strategy Consulting provides market intelligence, research, and strategic advisory services across technology, industrial, healthcare, energy, mobility, and other high-growth sectors. Its research combines industry analysis, primary and secondary research, market data, and strategic interpretation to support business planning and investment decisions.