The Dell’Oro Group Data Center Physical Infrastructure reports include quantitative and qualitative insights into industry trends, market size, quarterly forecasts and vendor share. The data center physical infrastructure market is analyzed by the following segmentations:
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.
Data Center Physical Infrastructure Maintains Strong Growth Trajectory, up 18 Percent Y/Y in 2Q 2025
According to Dell’Oro Group
Direct Liquid Cooling Surges 156 Percent Y/Y, Becoming The De Facto Standard for AI Clusters
REDWOOD CITY, Calif.
According to a new report by 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 sustained its momentum in 2Q 2025, growing 18 percent year-over-year to $8.9 billion in manufacturer revenue. This marks the third consecutive quarter of high-teens growth, underscoring the durable demand created by the ongoing AI buildout.
“Hyperscalers and colocation providers are scaling capacity at an unprecedented pace, and direct liquid cooling has consolidated as the technology of choice, moving quickly from early adoption to mainstream design,” said Alex Cordovil, Research Director at Dell’Oro Group. “This is creating a structural uplift across power and cooling architectures that will shape the data center landscape for years to come. With AI viewed as existential to competitiveness, we expect data center infrastructure growth to remain exceptionally strong through 2026.”
Additional highlights from the 2Q 2025 Data Center Physical Infrastructure Quarterly Report:
Thermal Management expanded 29 percent Y/Y, with Direct Liquid Cooling surging 156 percent Y/Y as it emerges as the de facto standard for large AI clusters.
Power distribution markets grew 26 percent Y/Y, driven by the rapid adoption of overhead busways and intelligent rack PDUs to support higher-density racks.
UPS revenue rose 13 percent Y/Y to $3.3 billion, with demand strongest in large three-phase systems of 251 kVA and above.
North America led with 23 percent Y/Y growth as record-breaking gigawatt-scale campus announcements accelerated, while EMEA and Asia Pacific trailed but are expected to pick up momentum.
Hyperscalers and colocation providers accounted for more than 80 percent of expansion, underscoring their central role in fueling the AI supercycle.
Vendors across the spectrum benefitted from the AI surge, from large infrastructure powerhouses like Vertiv to specialized cooling players such as Munters.
About the Report
Dell’Oro Group’s Data Center Physical Infrastructure quarterly 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. The report also shares insights into market trends, future outlook, and competitive landscape.