In January and July, Dell’Oro Group published Data Center Physical Infrastructure 5-year forecasts that provide a complete overview of the market. The forecasts provide a comprehensive overview of market and technology trends and include tables covering data center physical infrastructure for the following market segments:
UPS by power rating
Thermal management by product type and heat rejection
Busway, cabinet and rack power distribution by product type
IT racks and containment by rack height, wall mount enclosures and containment
Software and services by UPS, thermal management and digital services
Data Center Physical Infrastructure revenues are analyzed by the following regions – North America, EMEA (Europe, Middle East, and Africa), Asia Pacific (Excluding China), China, and CALA (Caribbean and Latin America)
We also track Data Center Physical Infrastructure revenues by customer segment:
Top 10 Cloud
Rest of Cloud
Telco
Colocation
Large Enterprise
Rest of Enterprise
The reports include tables showing manufacturers’ revenue, units shipped, and average selling prices.
AI Build-Out to Propel Data Center Physical Infrastructure Market to $63.1 Billion by 2029
According to Dell’Oro Group
Termal Management and Cabinet PDU & Busway Lead Growth; Liquid Cooling Set to Quintuple by 2029
REDWOOD CITY, Calif.
According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the worldwide Data Center Physical Infrastructure (DCPI) market is projected to grow at a 15 percent CAGR from 2024 to 2029, reaching $63.1 billion by 2029 as AI-ready capacity accelerates through the mid-decade. This outlook reflects stronger-than-expected deployments to support accelerated computing workloads.
“AI is reshaping facility design from the rack up—densities are climbing, power is getting smarter, and liquid is moving from niche to necessary,” said Alex Cordovil, Research Director at Dell’Oro Group. “Our latest forecast shows the market scaling faster and more broadly than earlier expected, with vendors and operators adapting quickly to new thermal and electrical realities while navigating power constraints pragmatically.”
Additional highlights from the Data Center Physical Infrastructure 5-Year July 2025 Forecast Report:
Thermal Management is projected to grow at a 19 percent CAGR by 2029; within it, Direct Liquid Cooling (DLC) is set to surge from $1.1B in 2024 to $5.8B in 2029 as rack densities rise with accelerated computing and DLC asserts itself as the dominant heat technology to dissipate heat out of the rack.
Cabinet PDU & Busway will expand at a 21 percent CAGR; overhead busbars—now the de facto choice for AI halls—are forecast to grow 25 percent CAGR, while RPPs lag at 5 percent CAGR.
Service Providers (cloud & colocation) are set to grow at a 20 percent CAGR through 2029, while Enterprise increases 6 percent CAGR as enterprise leaders favor colocation partners to host AI infrastructure.
Growth is broad-based, with North America leading and EMEA/China peaking around 2026 before moderating; AI sovereignty and export-policy shifts support momentum.
Operators increasingly combine utility ties with on-site generation and other tactics; overall, we expect only a modest impact on capacity expansion from power constraints.
About the Report
Dell’Oro Group’s Data Center Physical Infrastructure 5-Year Forecast report provides a complete overview of the Data Center Physical Infrastructure market. This covers market sizes and forecasts for uninterruptible power supplies (UPS), thermal management, cabinet power distribution and busway, rack power distribution, IT racks and containment, and software and services. Allocation of manufacturing revenues by cloud service providers, telco, colocation, and enterprise customer segments is also provided.
