Data Center Rack Market Set to Surpass Valuation of US$ 9.41 Billion by 2033 | Astute Analytica
The market is rapidly adapting to support extreme power densities driven by artificial intelligence. Rack-level liquid cooling integration, advanced physical security, and greater load-bearing capacities are becoming standard as operators seek future-proofed infrastructure for next-generation hardware.
Chicago, Nov. 12, 2025 (GLOBE NEWSWIRE) — The global data center rack market was valued at US$ 4.51 billion in 2024 and is expected to reach US$ 9.41 billion by 2033, growing at a CAGR of 8.5% during the forecast period 2025–2033.
The data center rack is being fundamentally re-engineered to handle the massive power requirements of AI. AI servers generate immense heat and consume vast amounts of electricity, pushing traditional rack capabilities to their breaking point. Projections for 2025 suggest AI deployments will require rack power densities to reach 300 kW. In fact, next-generation GPUs are expected to push these thresholds even higher, potentially surpassing 600 kW per rack. Some extreme AI clusters are even projected to feature rack power densities reaching an incredible 1 MW and beyond. The humble rack must now manage power loads previously unimaginable.
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The power escalation in the data center rack market has direct consequences for energy consumption at the rack level. The International Energy Agency anticipates electricity demand from AI web searches will increase tenfold by 2026. By that year, total electricity demand from data centers is projected to exceed 1,000 Terawatt-hours. Fueling this surge, electricity consumption in accelerated servers, housed within these racks, is projected to grow annually by 30% from 2024 to 2030. Hardware trends confirm this, as NVIDIA’s latest AI chips consume up to 300% more power than predecessors. In response, Google’s “Project Deschutes” introduces a 1 MW rack, proving that the future of the market is inextricably linked to high-power innovation.
Key Findings in Data Center Rack Market
| Market Forecast (2033) | US$ 9.41 Billion |
| CAGR | 8.5% |
| Largest Region (2024) | North America (38.18%) |
| By Rack Type | enclosed racks/cabinets (62%) |
| By Rack Width | 19-inch racks (70.03%) |
| By Rack Height | 37U–48U (45.09%) |
| By End Users | Colocation Data Centers (35.12%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Hyperscale Growth Creates Unprecedented Volume Demand for Standardized Data Center Racks
Hyperscale cloud providers are the primary volume consumers in the data center rack market. Their aggressive expansion plans translate directly into massive orders for racks. The number of large data centers operated by hyperscalers increased to 1,136 at the end of 2024. Throughout 2024, 137 new hyperscale data centers came online, each requiring thousands of racks. The momentum is set to continue, with projections for 2025 and beyond anticipating a steady addition of 130-140 new hyperscale facilities each year. The known pipeline of future hyperscale data centers currently stands at 504 facilities, ensuring a sustained, high-volume demand stream.
These new facilities in the data center rack market are being constructed on a massive scale, defined by their rack capacity. Today’s large hyperscale data centers run on 50 to more than 200 megawatts, with AI pushing future designs toward the 1-gigawatt range. To meet this demand, a construction pipeline exceeding 3 GW of new capacity is added annually. Supporting this build-out is the exponential growth of data that must be stored and processed within these racks. Data center storage capacity is expected to grow from 10.1 zettabytes in 2023 to 21.0 zettabytes in 2027. In parallel, global IoT subscriptions are expected to rise to 3.3 billion by the end of 2024, creating more data that ultimately resides in a data center rack.
Manufacturers Compete on Rack Strength, Depth, and Open Compute Project Compliance
Competition in the high-density segment of the data center rack market is fierce. Key players are differentiating their products based on physical robustness and adherence to new standards. In October 2024, Eaton launched its Heavy-Duty SmartRack enclosures specifically for AI. A key feature of Eaton’s new Heavy-Duty SmartRack is its static weight capacity of up to 5,000 lbs. To house the larger servers common in AI, these Eaton racks are available in an extended 54-inch depth. Such specifications have become critical selling points for AI infrastructure deployments.
The Open Compute Project (OCP) standard is another major competitive battleground across the global data center rack market. In June 2025, Schneider Electric launched new high-density NetShelter Racks, followed by a new OCP-inspired rack system in 2025 to support NVIDIA’s MGX architecture. Legrand also entered this space, announcing new OCP ORV3-compliant solutions in October 2025. Mirroring competitors, Legrand’s new OCP-compliant rack also features a capacity of up to 5,000 lbs. Supporting the OCP ecosystem, Legrand’s solution suite includes a 33kW power shelf and a vertical DC busbar available in 400A, 700A, and 1400A options, demonstrating that rack systems now include integrated power components.
Rack-Centric Solutions Drive Strong Financial Performance and Strategic Corporate Growth
The financial health of leading manufacturers directly reflects their success in the data center rack market. Legrand’s H1 2025 sales were driven by a significant 24% revenue increase from its AI-focused data center infrastructure portfolio. To solidify its position, Legrand made seven acquisitions in 2025, adding €500M in annualized revenue to enhance its AI-ready rack and power capabilities. As a result of this strategy, Legrand’s data center revenue is projected to exceed €2B in 2025, highlighting the profitability of advanced rack solutions.
Product strategy is increasingly focused on integrated, rack-centric systems. In March 2024, Eaton introduced its SmartRack modular data center solution, available in 13 standard configurations for rapid deployment. These modular solutions from Eaton are designed for critical IT equipment with up to a 150 kW load per rack in the data center rack market. Schneider Electric supports its rack offerings with robust power systems. Schneider Electric’s Galaxy VXL UPS series, often sold with its NetShelter racks, delivers up to 1.25 MW per unit. This trend toward pre-integrated, rack-level systems is a defining feature of the market’s evolution.
Liquid Cooling Integration Forces a Radical Redesign of the Data Center Rack Chassis
The data center rack market is being transformed from a simple enclosure into a sophisticated fluid dynamics chassis. The intense heat from AI servers makes liquid cooling essential, requiring racks to be redesigned to manage fluid flow. A 2024 survey revealed that 20.1% of enterprise data centers already used some form of liquid cooling. A strong adoption trend is clear, as projections show that 38.3% of enterprise data centers expect to employ liquid cooling by 2026. A 2024 Uptime Institute survey with 964 respondents found that 22% are making use of Direct Liquid Cooling (DLC).
For new data center construction in 2025, infrastructure to support liquid-cooled racks has quickly become the default. A common hybrid design in 2025 involves 70% liquid cooling and 30% air cooling, with the rack serving as the integration point. In a key product move in the data center rack market, Schneider Electric announced in 2025 its new rack systems are purpose-built to feature direct-to-chip liquid cooling. While still a niche, less than 10% of data centers in 2025 utilize full immersion cooling. A significant benefit is that liquid cooling systems can reduce cooling energy consumption by over 18% compared to traditional methods, making the rack a key component in achieving efficiency goals.
Edge Computing Demands a New Breed of Compact and Modular Data Center Racks
The expansion of edge computing is creating a new product category within the data center rack market. The need for lower latency for applications like IoT is driving demand for racks deployed outside traditional data centers. Edge deployments require compact rack solutions that can fit into constrained spaces like warehouses or factory floors. The evolution of edge computing will require new device form factors to engage with AI, which will, in turn, influence the design of these smaller, distributed racks.
Vendors are actively developing racks for this segment. Eaton launched its SmartRack modular solution in 2024 to meet the growing requirements for edge computing. A primary advantage is that these modular racks can be deployed in a matter of days. As edge computing grows, its impact will be widespread. The rise of hybrid and edge computing is having a significant impact on data center sustainability strategies in 2024. The management of these distributed rack assets presents a new operational challenge for the industry.
New Construction and Modernization Cycles Guarantee Long-Term Rack Replacement Demand
The long-term outlook for the data center rack market is secured by a dual engine of growth: new construction and infrastructure modernization. In Europe’s four largest markets, inventory growth in early 2025 was strong, with Frankfurt and Paris seeing annual inventory growth of 13.7% and 11.2% respectively. Looking forward, the U.S. data center colocation market is expected to grow significantly from 2025 to 2030. Similarly, the Asia Pacific data center colocation market is projected for rapid expansion during the same period, creating a global pipeline for new rack installations.
In addition to new builds, the existing stock of data centers represents a massive modernization opportunity across the data center rack market. As of early 2024, about half of all data centers are more than 11 years old, meaning their racks are ill-equipped for modern IT loads. An Uptime Institute 2024 survey found a third of operators are already developing new capacity specifically for high-density cabinets and racks. This need to replace outdated racks to support denser hardware ensures a consistent replacement cycle, reinforcing the market’s long-term stability.
The Data Center Rack Evolves into an Intelligent, Digitally Monitored Asset
The modern data center rack is becoming a smart, connected device. Manufacturers across the data center rack market are embedding intelligence and digital capabilities directly into the rack itself. For example, Eaton’s Heavy-Duty SmartRack enclosures introduced in 2024 feature a glacier white color for improved visibility and serviceability. Going further, Schneider Electric is integrating digital twin modeling software, like its ETAP power simulation suite, into its 2025 rack and pod designs. New high-density rack PDUs and NetShelter racks from Schneider in 2025 also feature integrated power monitoring, turning the rack into a source of valuable operational data.
To combat talent shortages, a 2025 partnership between Schneider Electric and Compass Datacenters focuses on making racks more autonomous. They are integrating factory-pre-commissioned sensors and gateway technologies directly into the infrastructure. Furthermore, these rack systems are monitored 24/7 by a Connected Service Hub to reduce the need for on-site staff. While the global average rack density in 2025 is 12 kW, many legacy facilities still operate below 8 kW as of 2024. In a sign of the hardware driving this intelligence, NVIDIA was projected in 2024 to ship up to 2 million of its H100 chips, all destined for intelligent, high-density racks. The average rack power density has already surged from 8 kW to 17 kW between 2023 and 2025.
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Rack-Level Efficiencies Become Crucial for Meeting Data Center Sustainability Targets in Data Center Rack Market
Sustainability has become a paramount concern, placing a new focus on the efficiency of the data center rack. U.S. data centers are projected to consume 12% of total national power by 2030, making every watt saved at the rack level significant. In 2024, data centers accounted for around 1.5% of global electricity consumption, totaling approximately 415 TWh. Servers, housed within racks, account for about 60% of electricity demand in modern data centers in 2024, making rack-level power management critical.
The industry is using key metrics and goals to drive rack-level improvements. The average Power Usage Effectiveness (PUE) for data centers was 1.56 in 2024, a figure that efficient rack design and cooling can directly improve. Many operators have committed to 100% renewable energy goals by 2030, a target supported by more efficient rack infrastructure. Geographically, North America dominated the data center rack market in 2024, and the region also led the data center liquid cooling market in 2024. This leadership position highlights the importance of the North American market in driving the development of sustainable rack technologies globally.
Data Center Rack Market Major Players:
- Belden Inc.
- Black Box Corporation
- Chatsworth Products
- Cisco Systems, Inc.
- Dell Inc.
- Eaton Corporation plc
- Fujitsu Limited
- Hewlett Packard Enterprise Development LP
- Legrand S.A.
- Martin International Enclosures
- nVent Electric
- Panduit Corp.
- Schneider Electric SE
- Vertiv Group Corp.
- Other Prominent Players
Key Market Segmentation:
By Rack Height
- 36U & Below
- 37U–48U
- 49U & Above
By Rack Type
- Open Frame Racks
- Enclosed Racks/Cabinets
- Wall-Mounted Racks
By Rack Depth
- 600 mm–1000 mm
- 1001 mm–1200 mm
- Above 1200 mm
By Rack Width
- 19 Inch Racks
- 23 Inch Racks
- Others
By Mounting Type
- Floor-Mounted Racks
- Wall-Mounted Racks
By Application
- Servers
- Networking Equipment
- Storage Devices
- Others
By End User
- Colocation Data Centers
- Cloud Service Providers
- Enterprises
- Telecom Operators
- Government & Public Sector
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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