Overview

The global Next-Generation Data Center Infrastructure Market was valued at USD 64.4 billion in 2025 and is projected to reach USD 143.4 billion by 2034, growing at a CAGR of 9.3% during the forecast period (2026–2034). The market is driven by the rapid build-out of AI-ready facilities, rising rack power density, and the need for energy-efficient power and cooling. The market is shifting from air-cooled, low-density, custom-built halls toward liquid-cooled, high-density, and factory-built designs. Operators want to bring capacity online in months rather than years, so they are choosing prefabricated power and cooling modules and validated reference designs from vendors. Government initiatives such as the United States Executive Order 14318 on Accelerating Federal Permitting of Data Center Infrastructure (July 2025), the European Union's Energy Efficiency Directive reporting and rating scheme for data centres, and India's Union Budget 2026–27 tax holiday until 2047 for foreign cloud providers using Indian data centres are shaping investment decisions. By region, North America held the largest share of the market in 2025, accounting for 38% of global revenue, supported by hyperscale and AI campus investment in the United States. Asia-Pacific is expected to be the fastest-growing region during the forecast period, driven by capacity expansion in China and India, government incentives, and rising cloud and AI demand across Japan, South Korea, and Southeast Asia.

Market Size & Share

Market Dynamics

KEY MARKET TREND:

Shift to Liquid Cooling and High-Voltage DC Power Emerging as a Transformational Trend

• Operators are moving from air cooling to direct-to-chip, rear-door, and immersion cooling as AI racks pass 100 kW, and bodies such as ASHRAE and the Open Compute Project (OCP) are publishing guidance and open designs for liquid-cooled and high-density equipment.
• Power architectures are changing from 54 V in-rack distribution to 400 V and 800 VDC systems, with busways, solid-state protection, and integrated battery storage designed to cut copper use and conversion losses at megawatt-scale racks.
• Vendors are competing to offer complete grid-to-chip portfolios through acquisitions and joint reference designs with chip makers, so buyers can order pre-validated power, cooling, and rack systems that shorten deployment time.
• Vertiv Holdings Co (US) said in October 2025 that its 800 VDC power portfolio is planned for release in the second half of 2026 to support NVIDIA Corporation (US) Rubin Ultra platforms in 2027, as rack power needs move beyond 300 kW.

KEY MARKET DRIVER:

Rapid Growth of AI Workloads and Data Center Power Demand is the Key Driver

• AI training and inference run on accelerated servers that need far more power and cooling per rack, so each new megawatt of AI capacity requires more infrastructure spending than a traditional megawatt.
• Cloud migration, data-residency rules, and edge deployment are increasing the number of facilities, which supports demand for standardized, prefabricated power and cooling systems.
• Grid limits and energy-efficiency rules push operators toward more efficient power, heat reuse, and monitoring software, which raises demand for upgrades in both new and existing facilities.
• According to the IEA, global data centre electricity consumption was about 415 TWh in 2024 and is projected to reach about 945 TWh by 2030, with electricity use in accelerated servers growing by about 30% a year.

KEY MARKET OPPORTUNITY:

Sovereign AI Programs and Retrofit of Legacy Facilities Creating New Growth Opportunities

• Governments in Europe, Asia, and the Middle East are funding national AI compute and secure cloud capacity, creating demand in regions that had limited hyperscale presence.
• Older enterprise and colocation halls designed for low-density racks need liquid-cooling retrofits, higher-capacity power distribution, and monitoring upgrades, which opens a large brownfield market.
• Service-based models such as commissioning, fluid management, predictive maintenance, and infrastructure-as-a-service create recurring revenue and lower the entry cost for operators.
• India's Union Budget 2026–27 proposed a tax holiday until 2047 for foreign cloud providers serving global customers through Indian data centres, and the Government of India's Press Information Bureau cited UNCTAD data showing data centres made up more than one-fifth of global greenfield project values in 2025, with announced investments above USD 270 billion.

Next-Generation Data Center Infrastructure Market Size, 2025-2034 (USD Billion)

Segmentation Analysis

Analysis by Type

Power infrastructure held the largest market share in 2025 because every data hall needs continuous, high-quality power, and AI racks now draw far more of it. Demand covers UPS systems, switchgear, busways, power distribution units, transformers, and backup generators that must meet standards such as IEC 62040 and the Uptime Institute Tier requirements. Operators are moving from 54 V in-rack distribution toward 800 VDC designs for megawatt-scale racks, and vendors such as Vertiv Holdings Co (US) and Schneider Electric SE (France) have announced products and reference designs for this shift.

Cooling infrastructure is projected to grow at the fastest CAGR during the forecast period because air cooling cannot manage the heat from very dense AI racks. Direct-to-chip, rear-door, and immersion systems, along with coolant distribution units (CDUs), are becoming standard in new AI halls. Large deals such as Eaton Corporation plc (Ireland) buying Boyd Thermal (US) for USD 9.5 billion and Vertiv Holdings Co (US) buying PurgeRite (US) show how strongly suppliers are investing in this area.

Type categories include

                    ·           Power Infrastructure (Dominating Segment)

                    ·           Cooling Infrastructure (Highest CAGR Segment)

                    ·           Racks & Enclosures

                    ·           Modular & Prefabricated Systems

                    ·           Others

Analysis by Component

Hardware held the largest market share in 2025 because most spending on a new facility goes into physical equipment such as UPS units, batteries, switchgear, chillers, CDUs, racks, cabling, and containment. Each megawatt of AI capacity needs more power and cooling equipment than a traditional megawatt, which lifts hardware value per site. Standards such as ISO/IEC 22237 and EN 50600 guide how this equipment is designed and installed. Long lead times for transformers, switchgear, and generators make early equipment orders a competitive tool.

Software is projected to grow at the fastest CAGR during the forecast period because operators need real-time visibility across power, cooling, and IT loads, and manual monitoring cannot keep up with racks of 100 kW or more. Data center infrastructure management (DCIM), digital twin, and AI-based energy optimization tools help improve capacity use, predict failures, and support reporting under rules such as the EU Energy Efficiency Directive.

Component categories include

?    Hardware (Dominating Segment)

?    Software (Highest CAGR Segment)

?    Services

Analysis by Deployment

Hyperscale data centers held the largest market share in 2025 because cloud and AI companies build campuses of 100 MW and above and standardize designs across sites. These operators buy power and cooling equipment in bulk through multi-year supply agreements and work directly with vendors on custom designs. Open Compute Project (OCP) specifications help them lower cost and speed up deployment.

Edge data centers are projected to grow at the fastest CAGR during the forecast period because AI inference, 5G services, industrial automation, and data-residency rules require computing closer to users. Edge sites are small, so operators prefer prefabricated, containerized, and micro data center designs that can be installed in months and managed remotely. Telecom operators are adding edge capacity at network sites, while enterprises place local AI nodes in factories, hospitals, and retail networks.

Deployment categories include

                    ·           Hyperscale Data Centers (Dominating Segment)

                    ·           Edge Data Centers (Highest CAGR Segment)

                    ·           Colocation Data Centers

                    ·           Enterprise Data Centers

Analysis by Application

Cloud computing held the largest market share in 2025 because public cloud, software-as-a-service, and enterprise migration still drive most of the installed capacity in new and existing facilities. Cloud providers set the design standards for power, cooling, and rack layouts and refresh their fleets on a regular cycle.

AI and high-performance computing are projected to grow at the fastest CAGR during the forecast period. According to the IEA, electricity use in accelerated servers is expected to grow by about 30% a year to 2030, compared with about 9% a year for conventional servers. This requires new power trains, liquid cooling, and stronger racks and floors. Reference designs now support racks of up to 246 kW and AI clusters of up to 10.4 MW, and chip makers such as NVIDIA Corporation (US) and Advanced Micro Devices, Inc. (US) are aligning platforms with new power and cooling architectures.

Application categories include

                    ·           Cloud Computing (Dominating Segment)

                    ·           AI & High-Performance Computing (Highest CAGR Segment)

                    ·           Big Data & Analytics

                    ·           Content Delivery & Streaming

                    ·           Others

By Region

Next-Generation Data Center Infrastructure Market Regional Analysis

Next-Generation Data Center Infrastructure Market Share 2025, (%)

North America

38%

South America

XX%

Europe

XX%

Middle East Africa

XX%

Asia Pacific

30%

Regional Analysis

North America held the largest market share in 2025, accounting for 38% of the global market share, because the United States hosts the largest concentration of hyperscale and AI campuses. The IEA notes that the United States accounts for by far the largest share of the projected rise in data centre electricity demand to 2030. Executive Order 14318 (July 2025) supports permitting, financing, and federal land access for data centers above 100 MW, although grid connection remains the main constraint. Canada is expanding data center capacity supported by hydropower availability, while Mexico is emerging as a nearshore data center location supported by its proximity to the United States. Vendors such as Vertiv Holdings Co (United States), Eaton Corporation plc (Ireland), and Schneider Electric SE (France) are expanding through acquisitions and long-term supply agreements. The region leads in the adoption of liquid cooling, prefabricated modules, and 800 VDC pilots.

Asia-Pacific is projected to grow at the fastest CAGR during the forecast period, with its share rising from 30% in 2025 to about 34% by 2034. China leads through large state and private cloud build-outs, and the IEA expects it to be second only to the United States in data centre demand growth to 2030. India is gaining rapidly, as its Union Budget 2026–27 offers foreign cloud providers a tax holiday until 2047 for services delivered through Indian data centres. Japan is expanding data center infrastructure for AI and cloud applications, while South Korea is increasing capacity to support AI computing and digital services. Rest of Asia-Pacific markets, including Singapore, Malaysia, and Australia, are also adding capacity for AI and cloud. Regional suppliers such as Huawei Technologies Co., Ltd. (China), Delta Electronics, Inc. (Taiwan), and Mitsubishi Electric Corporation (Japan) are expanding their power and cooling portfolios, while hot and humid climates across several markets are increasing interest in liquid cooling and heat reuse.

Countries and Regions Covered

North America (Dominating Region)

o    United States (Largest Country Market)

o    Canada

o    Mexico

Asia-Pacific (Fastest Growing Region)

o    China (Largest Country Market)

o    India (Fastest-Growing Country Market)

o    Japan

o    South Korea

o    Rest of Asia-Pacific

Europe

o    United Kingdom (Largest Country Market)

o    Germany

o    France

o    Italy

o    Rest of Europe

Latin America

o    Brazil (Largest Country Market)

o    Chile (Fastest-Growing Country Market)

o    Rest of Latin America

Middle East & Africa

o    United Arab Emirates (Largest Country Market)

o    Saudi Arabia (Fastest-Growing Country Market)

o    Rest of Middle East & Africa

Market Share

The market is consolidated because a group of global suppliers, including Vertiv Holdings Co. (United States), Schneider Electric SE (France), Eaton Corporation plc (Ireland), ABB Ltd (Switzerland), Siemens AG (Germany), Delta Electronics, Inc. (Taiwan), Legrand SA (France), Trane Technologies plc (Ireland), Johnson Controls International plc (Ireland), Carrier Global Corporation (United States), Daikin Industries, Ltd. (Japan), Mitsubishi Electric Corporation (Japan), Cummins Inc. (United States), Modine Manufacturing Company (United States), and Munters Group AB (Sweden), offer broad or specialized power, cooling, electrical, thermal-management, and data-center infrastructure solutions. Many regional and specialist firms also compete in liquid cooling, racks, busways, backup power, modular systems, and data-center services. High capital needs, long qualification cycles with hyperscalers, global deployment requirements, and supply chain scale favor established suppliers. Key success factors include the ability to deliver integrated power and cooling systems, secure long lead-time components, provide global service coverage, and support high-density AI workloads.

Key Players

           ·           Vertiv Holdings Co. (United States)

           ·           Schneider Electric SE (France)

           ·           Eaton Corporation plc (Ireland)

           ·           ABB Ltd (Switzerland)

           ·           Siemens AG (Germany)

           ·           Delta Electronics, Inc. (Taiwan)

           ·           Legrand SA (France)

           ·           Trane Technologies plc (Ireland)

           ·           Johnson Controls International plc (Ireland)

           ·           Carrier Global Corporation (United States)

           ·           Daikin Industries, Ltd. (Japan)

           ·           Mitsubishi Electric Corporation (Japan)

           ·           Cummins Inc. (United States)

           ·           Modine Manufacturing Company (United States)

           ·           Munters Group AB (Sweden)

Recent Market Developments

• November 2025: Daikin Applied acquired Chilldyne, adding negative-pressure direct-to-chip liquid-cooling technology for high-performance and AI data centers and expanding its end-to-end cooling portfolio.
• February 2026: Schneider Electric launched its Motivair liquid-cooling solutions factory in Bengaluru, its first production site for this technology in India, to support the country's expanding high-density AI data-center infrastructure.
• September 2026: ABB launched its Infinitus direct-current portfolio for AI data centers, including solid-state transformers, DC power distribution, and protection technologies designed around rising AI power requirements and reduced infrastructure footprint.
• September 2026: Vertiv announced that its 2.3 MW CoolChip coolant distribution unit (CDU) qualified as NVIDIA DSX Ready, supporting liquid-cooled infrastructure for edge, colocation, hyperscale, and AI factory deployments.

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