Data Center Rack Market 2025: The Backbone of Digital Infrastructure

“Racks are no longer just metal frames—they’re now intelligent, modular systems enabling scalability, airflow optimization, and edge deployment flexibility.”

Strategic Focus Points

• Shift toward modular & open-frame designs for fast scalability
• Integration of smart rack monitoring (temperature, load, PDU analytics)
• Adoption of high-density racks (40U–52U) for AI & HPC workloads
• Increased demand for preconfigured racks supporting liquid cooling

“Next-gen racks will act as ‘infrastructure anchors’—not just housing IT, but optimizing its power, cooling, and sustainability footprint.”

Market Pulse

The global Data Center Rack Market is projected to reach USD 5.17 billion in 2025, growing steadily at a CAGR of 12.7% to hit USD 9.42 billion by 2030.

• Rising hyperscale and colocation buildouts in North America and APAC continue to drive demand for high-load racks.
• Enterprises are upgrading to smart rack ecosystems that integrate sensors, airflow analytics, and hybrid cooling.

Who’s Leading the Charge?

Leaders - Schneider Electric, Vertiv, Eaton, Rittal, HPE Market, collectively account for ≈45% of the total market share through integrated rack and power ecosystem offerings.
Challengers - Huawei, Oracle, Panduit, Belden, nVent, IBM, Cisco, Fujitsu, Dell, and Legrand, who are expanding their modular rack portfolios, integrating smart monitoring, and targeting edge and hyperscale deployments with high-density and cost-optimized solutions.
MnM’s POV- “The rack market is evolving from a commodity metal segment to an intelligent systems layer. Vendors that embed power, cooling, and monitoring capabilities directly into rack architecture will shape the next growth curve. 

Market research indicates strong trends Download the PDF to uncover business insights - https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=210971325

Innovation Focus— “Smart, Dense & Sustainable Racks”

• Rack density climbing to 20–30 kW per cabinet
• Hybrid designs combining airflow control + liquid manifolds
• Integration of sensors for predictive thermal and load management

Why It Matters:

• Supports HPC, AI, and edge data center expansion
• Reduces OPEX via efficient power and cooling distribution
• Enables sustainability tracking at the rack level

Recent Launches & Investment Spotlight:

• Schneider Electric partnered with NVIDIA to co-develop reference designs for liquid-cooled, 142 kW/rack AI data centers.
• In July, Vertiv acquired Great Lakes Data Racks & Cabinets for ~USD 200 million to expand its high-density, AI-ready rack solutions portfolio.
• Eaton launched 800 VDC power architecture to boost energy efficiency in next-gen AI and HPC rack environments.

Value Proposition for Vendors:

• Strengthen vertical-specific rack offerings (AI, telecom, colocation)
• Integrate rack intelligence for energy and cooling optimization
• Align GTM strategies with modular edge and AI data center rollouts

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