Data Center Rack Market To Reach US$ 9.41 Billion By 2033 Driven By AI Workloads, Hyperscale Expansion, And Data Sovereignty Regulations Says Astute Analytica

(MENAFN- GlobeNewsWire - Nasdaq) Growing global emphasis on data sovereignty is reshaping the data center rack market, as nations impose strict requirements for storing and processing data within their borders. Compliance with regulations such as the EU Data Act (effective September 2025) is prompting operators to deploy racks enhanced with advanced physical security features, including tamper-evident construction, integrated surveillance, and high-grade locking systems to ensure full jurisdictional control.

Chicago, Feb. 02, 2026 (GLOBE NEWSWIRE) -- The global data center rack market was valued at 4.51 billion in 2024 and is expected to reach US$ 9.41 billion by 2033, growing at a CAGR of 8.5% from 2025 to 2033.

An intense wave of infrastructure requirements is changing the data center rack market. Artificial intelligence is causing an urgent need for racks that can take unprecedented thermal and power loads. Projections for 2025 indicate AI will force rack power densities reaching 300kW, with future GPUs requiring 600kW or even 1MW per rack. Because of this, some manufacturers are designing racks to have a static weight capacity of up to 5,000 lbs in order to support heavier servers. Simultaneously, hyperscale expansion leads to massive volume expansion. With 1,136 hyperscale data centers online at the end of 2024, with a known future pipeline of 504 facilities, the demand for standardized racks is immense.

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Robotics and Automation Propel Structural Innovation in Data Center Rack Infrastructure

The drive for automation is pushing a very powerful new demand factor in the data center rack market. As operators bring in robots to take care of server maintenance, cable management, and monitoring, it is the rack itself that needs to become a robotics-friendly platform. This entails a need for racks having better structural accuracy to support robotic arms and autonomous mobile robots moving through dense layouts. In 2024, the hardware segment, including robotic arms and sensors, dominated the data center robotics market and accounted for a 40% share. Projections indicate this trend will only accelerate, with some projecting the data center robotics market will grow from USD 18.5 billion in 2024 to USD 37.41 billion by 2032.

Furthermore, there are specific investments that are emphasizing this momentum in the data center rack market. For instance, the German robotics startup company Neura Robotics raised EUR120 million in January 2025 for cognitive robot development that can be applied to data centers. Amazon is expected to have more than 750,000 robots integrated into its fulfillment centers by February 2025, something that is being replicated more and more in its data center operations. In June of 2024, ABB announced the launch of their OmniCore robotics control platform aimed at the better handling of servers and cable management. The U.S. data center robotics market alone generated about USD 5.4 billion in revenue in 2024. On-premises robotic deployments led a market share of 61% in 2024, signaling a preoccupation with direct operational control. A related field, the global data center automation market, is expected to be worth USD 11.4 billion in 2024.

Rising Physical Security Concerns and Sovereign Cloud Needs Propel Data Center Rack Market

A rising focus on data sovereignty is producing a unique and pressing need within the data center rack market for secure, compliant data center infrastructure. Nations are increasingly imposing strict regulations that require data to be stored and processed within their borders, which is fueling the demand for localized data centers. This trend, made faster by the EU's Data Act that will apply from September 2025, means operators have to invest in racks that comply with specific regional security and compliance requirements. Racks that are being deployed for sovereign cloud purposes often need to be improved with more physical security, including advanced locking mechanisms, integrated surveillance, and tamper-evident physical construction to ensure that data remains under full jurisdictional control.

The geopolitical scenario is driving massive investment in sovereign data infrastructure, which is propelling the data center rack market growth further. In 2025, the US data center market is anticipated to have a value of more than USD 171 billion, which Europe is not expected to reach until 2030, indicating varying regional investment rates. Major cloud providers getting ready: Omdia's study of the top five cloud providers shows they have a presence in 33 countries as of 2024, with 347 data centers in North America and 194 in Europe. Furthermore, initiatives such as the Saudi Vision 2030 are driving the construction of 60 data centers in the Middle East. Cloud data centers, usually containing sovereign data, are recognized to have up to 5.1 times less CO2 emissions than on-premises infrastructure as of a 2025 study. Also, there was a 47 percent growth in physical security breaches against data centers in 2024, indicating that there is a need for physically secure racks.

Enterprises Turn to Colocation to Cut Costs, Boosting Demand for Premium Rack Solutions

Colocation data centers are anticipated to hold a major share of 35.12% in the data center rack market, which is propelled by businesses outsourcing their infrastructure to avoid the huge capital costs of setting up and maintaining their own infrastructure. With their ability to deliver a secure and redundant environment with power and cooling guarantees, colocation providers are an attractive option for enterprises. The multi-tenancy of these facilities puts an absolute premium on physical security, driving high demand for high-quality individually locking enclosed cabinets. Strong rack-level security is a key component of service providers' service offerings to ensure that any one client's hardware is fully isolated from another's. These facilities usually have stringent service level agreements, many of which are Tier III certified (99.982% uptime).

The need to accommodate a diverse range of clients also means that colocation providers need to source flexible rack solutions that can accommodate a broad range of IT equipment with varying power and cooling requirements. Racks should be flexible with adjustable mounting rails and plenty of space for high density cabling. The security measures at these facilities are comprehensive, typically involving 24/7 on-site guards, extensive video surveillance, and multi-factor access control systems that require biometrics and secure mantraps. The growth of the data center rack market therefore is inextricably tied to the adoption of colocation in general, which requires safe, flexible, and high performance rack infrastructure as a basic part of its business model.

North America Data Center Rack Market Booms with AI, Cloud, and Hyperscale Construction Wave

North America data center rack market is dominated by large-scale aggressive development, accounting for more than 38.18% market share. With an endless demand by AI and hyperscale cloud providers, the area has the most active pipeline of construction in the world, and it is just getting started. Northern Virginia is still the hotspot of activity and has a planned development pipeline of 5,900 MW. Phoenix has 4,200 MW of pipeline in its most recent survey, and in mid-2025, the company leads the market with 1,300 MW of capacity under construction. Power projects like Vantage's 1,400 MW campus in Texas create immense pressure on rack manufacturers to provide high-density, strong rack mounting solutions at unprecedented levels.

The requirements for the data center rack market are not limited to these central locations. The Dallas-Fort Worth transmission system has a healthy 3,900 MW in the pipeline, as well. In 2024, Toronto recorded 8.6 MW of leasing activity in Canada, with EllisDon, a construction company, winning 170 MW of new data centre projects. Further south, Mexico is becoming a strategic base, with a giant USD4.8 billion investment by CloudHQ constructing six data centres with 900 MW capacity in Queretaro. In a major 2025 transaction, Blackstone invested over USD 25 billion for the development of digital infrastructure in the state of Pennsylvania.

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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