The global data center rack and enclosure market was valued at USD 4.6 billion in 2024 and is projected to grow at a CAGR of 8.4% from 2025 to 2034, according to a recent report by Global Market Insights Inc.

The increasing adoption of edge computing, spurred by the proliferation of Internet of Things (IoT) devices, is a significant driver of market growth. The surge in modular data centers, known for their portability and scalability, boosts demand for adaptable racks and enclosures. These systems enable businesses to expand data center capacity incrementally without committing to large-scale infrastructure. Modular designs often require specialized racks and enclosures that are quick to deploy and flexible enough to meet evolving operational demands.

By component, the data center rack and enclosure market is segmented into solutions and services. In 2024, the solutions segment captured 75% of the market share and is expected to reach USD 7 billion by 2034. The increasing complexity of tasks like artificial intelligence (AI), machine learning (ML), and big data processing drives demand for high-density rack solutions. These racks optimize space utilization, a critical factor in environments with constrained power, cooling, and availability. Advanced cooling mechanisms, such as liquid cooling and airflow optimization, are essential features supporting these dense configurations.

In terms of application, the market is categorized into manufacturing, BFSI, colocation, government, healthcare, IT & telecom, energy, and others. The IT & telecom segment accounted for 32% of the market share in 2024. The shift towards cloud computing is revolutionizing IT and telecom industries, increasing the demand for robust data center infrastructure. Scalable and efficient racks and enclosures are essential to handle growing data volumes while ensuring optimal performance in cloud-based operations.

North America dominated the global data center rack and enclosure market in 2024, holding a 40% market share, with the U.S. leading the region. The presence of major cloud service providers like Amazon Web Services (AWS), Google Cloud, and Microsoft Azure has driven significant data center expansion in the region. This growth necessitates modular, flexible, scalable rack and enclosure solutions to support dynamic storage needs. Additionally, substantial investments by government entities and private enterprises in digital transformation and IT infrastructure upgrades further fuel market expansion.

The demand for innovative, high-performance data center racks and enclosures continues to rise as industries embrace digital transformation and advanced technologies. This trend ensures a positive outlook for the market through the forecast period.

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The global data center outsourcing market was valued at USD 132.3 billion in 2024 and is estimated to grow at a CAGR of 6.4% to reach USD 243.3 billion by 2034, according to a recent report by Global Market Insights Inc.

The demand for data center outsourcing continues to rise as businesses increasingly pursue flexible and secure infrastructure solutions. Organizations are embracing hybrid cloud strategies that combine the control of private clouds with the agility of public cloud services. This approach enables companies to scale operations while maintaining tighter oversight of critical data. Outsourcing providers are now offering integrated solutions that span both private and public environments, optimizing performance and cost management simultaneously.

As emerging technologies such as 5G, IoT, and real-time applications gain momentum, enterprises are turning to edge computing for faster processing at the source of data generation. This has led to a shift toward more distributed outsourcing models, where smaller, decentralized facilities are placed closer to end users. In the US, hyperscale operators, including Microsoft Azure, Google Cloud, AWS, and IBM, are leading the outsourcing movement with their massive infrastructure and capacity to support enterprises at scale without hefty upfront investments. Meanwhile, data privacy frameworks such as HIPAA, FINRA, and CCPA are shaping outsourcing demand, driving businesses to work with providers who offer certified facilities, robust compliance support, and regional regulatory alignment.

The data center outsourcing market from the hardware segment captured 43.7% share in 2024 and is projected to grow at a CAGR of 6.4% through 2034. With rising data volumes and evolving technologies, organizations are opting to outsource hardware management to cut capital expenses and adopt an operating cost model. Managing in-house infrastructure upgrades proves cost-intensive and time-consuming, which is why outsourcing hardware services has become a preferred path for scalability and agility.

The power and cooling infrastructure segment is expected to register a CAGR of 8.7% from 2025 to 2034. Outsourcing providers are introducing advanced energy management solutions to support high-performance computing environments. Technologies such as AI-based temperature control, liquid cooling, and free cooling are being adopted to handle heat generated by dense workloads while also reducing energy consumption and enhancing system reliability.

The United States data center outsourcing market held a 76.1% share in 2024, generating USD 34.8 billion. The US remains a global hub for data centers, driven by the presence of major providers such as Equinix, Amazon Web Services (AWS), Verizon Communications, and Google Cloud. As regulatory frameworks become more complex, companies increasingly seek third-party partners with the compliance credentials and infrastructure to navigate evolving data privacy laws. Canada’s enterprise market is also transitioning toward cloud-driven outsourcing models, prioritizing speed, innovation, and cross-platform orchestration. Providers with strong hybrid and multi-cloud capabilities are seeing increased traction across the region.

Key companies operating in the global data center outsourcing market include Cognizant, Tata Consultancy Services (TCS), Fujitsu, Accenture, Amazon Web Services (AWS), Google Cloud, Microsoft Azure, Equinix, Verizon Communications, and Digital Realty. To strengthen their position in the competitive data center outsourcing space, companies are focusing on expanding global infrastructure, integrating edge computing solutions, and offering hybrid and multi-cloud management platforms. Strategic investments are being made in AI-based automation for data management, energy optimization, and real-time monitoring. Providers are also forming alliances with hyperscale cloud vendors to co-deliver scalable services while ensuring compliance with evolving regional regulations. Emphasis is being placed on offering flexible service models, cost-effective infrastructure-as-a-service (IaaS), and dedicated support for industry-specific compliance, like healthcare or finance.

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