Data center rack market to hit $13.5 billion by 2033
The global data center rack market is projected to reach $13.5 billion by 2033, driven by the need for high-density, high-power compute environments for AI and hyperscale cloud growth. Manufacturers are increasingly prioritizing solutions that support liquid cooling and significantly higher power loads to accommodate modern AI infrastructure.
Key Takeaways
- Cabinet racks currently lead the market with a 62% share due to superior thermal and security compliance.
- AI GPU clusters now demand rack power densities between 30 kW and 100 kW, far exceeding traditional IT limits.
- Asia Pacific is the fastest-growing region, fueled by cloud investments in China, India, and Southeast Asia.
- Schneider Electric launched EcoStruxure Rack Solutions in 2025 to specifically support liquid-cooled NVIDIA MGX architectures.
Why It Matters
The massive jump in power requirements for AI training is forcing a redesign of the physical layer of the data center. Traditional air-cooled racks are becoming obsolete for high-performance computing, shifting the market toward specialized, liquid-cooling-ready enclosures. For streaming providers, this infrastructure evolution is critical for managing real-time metadata, personalization engines, and edge delivery. As hyperscale providers move toward 100+ kW rack densities, the cost and spatial efficiency of the underlying hardware will dictate the price and scalability of compute-heavy video applications. Watch for the adoption rate of liquid-to-chip cooling as a leading indicator of regional readiness for next-gen AI deployments.
Additional Context
The transition to AI-optimized density is moving even faster than market valuation suggests. Per AFCOM’s 2026 report, average rack density surged to 27 kW in 2026, nearly double the 16 kW average reported in 2025. This sharp rise reflects the industry's race to accommodate next-generation chips; for instance, NVIDIA's NVL72 platform can deliver five times the computational power of 2018-era supercomputers within a single rack, but requires specialized power and thermal management to function. Goldman Sachs reported in May 2025 that 2027 AI server designs may require up to 50 times the power of standard internet servers from just five years ago. Industrial partnerships are consolidating around these thermal challenges. Per Business Insider, Schneider Electric collaborated with NVIDIA in late 2024 to develop "data center reference architectures" capable of supporting high-density clusters up to 132 kW per rack. This initiative aimed to reduce cooling energy usage by 20% through virtual modeling. Further broadening the ecosystem, Schneider acquired Motivair in March 2025 to integrate direct-to-chip liquid cooling into its portfolio. According to Grand View Research in June 2026, North America leads this infrastructure shift with a 35.6% revenue share in the liquid cooling market, followed closely by the Asia-Pacific region’s rapid expansion.
Read full article at sg.finance.yahoo.com
Get this in your inbox → Subscribe
Enjoy our coverage?
Add StreamingMeme as a preferred source on Google to see more of our streaming news at the top of your Search results.
Add as preferred source