US Data Center Rack Market Market Size (2024 - 2029)

The United States data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium-sized enterprises, stringent government regulations for local data security, and substantial investments by domestic players. This expansion is reflected in the market's capacity and infrastructure developments, including a substantial increase in IT load capacity and raised floor space. The market's growth trajectory is further supported by the planned installation of millions of racks and the development of numerous submarine cable systems, enhancing connectivity and data handling capabilities across the country.

Market Size of US Data Center Rack Industry

US Data Center Rack Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Volume (2024) 2.34 Million units
Market Volume (2030) 5.13 Million units
CAGR (2024 - 2030) 14.00 %
Market Concentration High

Major Players

US Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

US Data Center Rack Market Analysis

The US Data Center Rack Market size in terms of production volume is expected to grow from 2.34 Million units in 2024 to 5.13 Million units by 2030, at a CAGR of 14% during the forecast period (2024-2030).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

Under Construction IT Load Capacity: The upcoming IT load capacity of the United States data center rack market is expected to reach 24,000 MW by 2029.

Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 80 million sq. ft by 2029.

Planned Racks: The country's total number of racks to be installed is expected to reach over 4 million units by 2029. Northern Virginia is expected to house the maximum number of racks by 2029.

Planned Submarine Cables: There are more than 80 submarine cable systems connecting the United States, and many are under construction.

US Data Center Rack Industry Segmentation

A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

The United States Data Center Rack Market is Segmented by rack size (quarter rack, half rack, full rack) and by end user (IT & telecommunication, BFSI, government, and media & entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

By Rack Size
Quarter Rack
Half Rack
Full Rack
By End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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US Data Center Rack Market Size Summary

The United States data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments by domestic players. The market is characterized by a robust expansion in IT load capacity and raised floor space, with Northern Virginia anticipated to host the largest number of racks. The proliferation of hybrid cloud service providers and the rising need for colocation services are further propelling the demand for data center racks. The market is also witnessing a shift towards full racks due to space shortages and the growing data consumption from IoT platforms, 5G technology, and increased smartphone usage. This trend is supported by the expanding digital economy and the need for efficient data storage and processing solutions.

The competitive landscape of the U.S. data center rack market is relatively concentrated, with key players such as Eaton Corporation, Black Box Corporation, Rittal GMBH & Co.KG, Schneider Electric SE, and Vertiv Group Corp. These companies are actively engaging in strategic collaborations to enhance their market presence and profitability. Recent partnerships and expansions, such as Rittal's collaboration with TD SYNNEX and H5 Data Centers' expansion in Atlanta, highlight the ongoing efforts to meet the growing demand for data center infrastructure. The market's growth is further supported by technological advancements and the increasing adoption of cloud deployments, with a significant portion of U.S. infrastructure decision-makers leveraging hybrid or multi-cloud solutions.

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US Data Center Rack Market Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increased Migration to Cloud-based Business Operations

      2. 1.2.2 Internet Adoption and Information Technology Services to Boost Market Progress

    3. 1.3 Market Restraints

      1. 1.3.1 Low Availability of Resources

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Rack Size

      1. 2.1.1 Quarter Rack

      2. 2.1.2 Half Rack

      3. 2.1.3 Full Rack

    2. 2.2 By End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

US Data Center Rack Market Market Size FAQs

The US Data Center Rack Market size is expected to reach 2.34 million units in 2024 and grow at a CAGR of 14% to reach 5.13 million units by 2030.

In 2024, the US Data Center Rack Market size is expected to reach 2.34 million units.

US Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)