Data Centre Equipment Market: Key Vendor Strategies
The global Data Centre Equipment Market Size is undergoing a significant transformation as the world pivots toward an AI-driven digital economy. As of 2026, the demand for high-performance computing, low-latency networking, and advanced cooling solutions has reached unprecedented levels. This market is the backbone of the "Fourth Industrial Revolution," supporting everything from generative AI models to global financial transactions.
Market Overview
The data centre equipment market encompasses all physical and digital components necessary for the operation of a data facility. This includes servers, storage systems, networking hardware, and power and cooling infrastructure.
In the current landscape of 2026, the market is characterized by a "Hyperscale Super-cycle." Large cloud providers and enterprises are aggressively upgrading their legacy systems to support AI-ready infrastructure. There is a notable shift toward high-density rack designs and liquid cooling technologies to manage the extreme heat generated by modern AI chips.
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Market Size and Forecast (2025-2026)
Based on current industry data, the data centre equipment market continues to exhibit robust growth.
2025 Market Size: The market was estimated at approximately $88.88 billion to $95.5 billion in 2025, depending on the specific equipment categories included (IT hardware vs. total infrastructure).
Growth Rate: The market is witnessing a compound annual growth rate (CAGR) of approximately 11.12%, a pace expected to hold steady through the 2029 forecast period.
2026 Outlook: By the end of 2026, the global market for data centre equipment is projected to surpass $105 billion, driven by massive capital expenditures from hyperscalers like Microsoft, Amazon, and Google.
Market Segmentation in Data Centre Equipment
The market is divided into several critical segments, each evolving to meet new technical demands:
By Component: Servers: The largest segment, increasingly focused on GPU-heavy configurations for machine learning.
Networking Equipment: High-demand for high-speed switches (400G and 800G) to reduce bottlenecks.
Storage: Shift toward All-Flash Arrays (AFA) to handle real-time data processing.
Power & Cooling: Rapid growth in liquid immersion cooling and modular power units.
By Type:
Hyperscale Data Centres: Accounting for the lion's share of new equipment investment.
Colocation: Growing as enterprises outsource their physical infrastructure.
Edge Data Centres: A rapidly expanding niche bringing compute power closer to the end-user.
By Vertical: BFSI (Banking, Financial Services, and Insurance): High demand for secure, high-uptime equipment.
IT & Telecom: Driven by 5G rollouts and cloud service expansion.
Healthcare: Growing need for storage to handle massive genomic and imaging data.
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Edge Computing
A primary driver for the diversification of equipment is the rise of edge computing. Unlike traditional centralized data centers, edge computing requires compact, ruggedized equipment that can operate in decentralized locations—such as near 5G cell towers or inside manufacturing plants. This shift is fueling a specialized market for "micro-data centers" and localized servers that provide ultra-low latency for applications like autonomous vehicles and industrial IoT.
Key Players in Data Centre Equipment
The competitive landscape is a mix of traditional hardware giants and specialized infrastructure providers. Major players include:
|
Category |
Key Companies |
|
IT & Networking |
Cisco Systems, Huawei Technologies, Nokia, Juniper Networks, Brocade Communications Systems Inc. |
|
Hardware & Storage |
DELL, IBM, Hewlett Packard Enterprise (HPE), NetApp, EMC, Fujitsu Corporation, Oracle, NEC Corporation |
|
Data Centre Operators |
Equinix Inc., Digital Realty Trust, Inc., NTT Communication Corporation, Global Switch, CyrusOne Inc., Cyxtera Technologies, Inc. |
|
Specialized Solutions |
Meru Networks, Alcatel Lucent |
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Future Outlook
The Data Centre Equipment market is no longer just about "boxes and wires"; it is about enabling the next generation of human intelligence. With a forecasted growth rate of 11.12%, the industry is moving toward more sustainable, efficient, and dense configurations. As we move through 2026, the successful players will be those who can provide Green Data Centre solutions that balance the massive power requirements of AI with global sustainability mandates.
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