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The Data Center Equipment Market

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The data center equipment space covers the hardware components used in data centers. It ranges from switches and routers to servers, cables, modems, and all physical components needed for executing core IT tasks.

Data center hardware also includes storage devices and drives as well as specialized cooling systems used to keep the components at an ideal temperature in the data center.

See below to learn all about the global data center equipment market:

See more: The Best Data Center Companies

Data Center Equipment Market

The global data center equipment market was estimated at over $50 billion in 2021. It’s forecast to maintain a compound annual growth rate (CAGR) of 12% over the analysis period from 2022 to 2028, reaching $120 billion by the end of it.

Regionally, the global data center equipment market is segmented as follows:

  • The U.S. market segment is forecast to maintain a CAGR of 18% throughout the analysis period
  • The European segment had an estimated market share of 30% in 2021
  • Within Europe, Germany has one of the highest CAGRs at 15%
  • The Asia-Pacific market segment is forecast to maintain a CAGR of 13% from 2022 to 2028

By industry, demand in the data center market is being driven by several sectors:

  • Banking, financial services, and insurance (BFSI)
  • Energy
  • Government
  • Health care
  • Manufacturing
  • IT
  • Telecommunications

Data Center Equipment Features

When it comes to hardware components of a data center, they can be divided into four categories, depending on their relation to the primary data center architecture.

Processing and Computing Equipment

At its centermost point, a data center requires high-performing and powerful computers. Those are responsible for processing the massive amounts of data needed by users.

This usually includes:

  • Servers racks
  • Servers
  • User desktops

Storage Equipment

The storage segment of the data center is where the data is stored before and after processing. Storage equipment enables the brains of data centers to store, access, retrieve, and distribute archived data and applications.

Types of storage include:

  • Hard drives
  • Tape drives
  • External storage for backup and archiving

Networking Equipment

The stored data and processing power of a data center need to be easily accessible to the users who need them. Networking equipment also enables data centers to connect with one another, allowing for collaboration and access to a wider pool of computing and storage resources.

Data center networking equipment includes:

  • Switches
  • Routers
  • Modems
  • Cables
  • Physical firewalls

Maintenance Infrastructure

Large and fully connected data centers require a dedicated maintenance and sustainability infrastructure in order to function properly. This includes climate control for the processor and server rooms, as well as adaptable power supply solutions.

Data center maintenance requires:

  • Cooling systems or HVAC
  • Uninterrupted power source
  • Humidity control
  • Airflow control

The variety and quantity of secondary data center equipment are different depending on the size and topology of the data center. While some architectures pool the resources into a centralized local spot, others rely on layers and various dimensions.

Types of data center networks include:

  • Fat Tree DCN
  • BCube
  • Three-Tier DCN
  • DCell

Green Data Centers

By 2025, data centers are expected to be the leading consumer of electricity in the information and communication technology (ICT) sector at 33%, followed by smartphones and networks at 15% and 10%. 

As consumption capacities of data centers are also forecast to increase, solutions for more compact design and more efficient energy consumption will also be on the rise. More users of data center solutions are also expected use the data center as service solutions to keep up with the changes in the industry themselves.

“Given the explosive demand for more data, cloud services and data center capacity, it’s imperative to deploy energy-efficient data centers with smaller carbon footprints,” says Markus Lutz, a member of the Forbes Technology Council.

“Today’s leading colocation and cloud service providers are committed to sustainable goals and practices and are implementing green data centers that leverage state-of-the-art, eco-friendly systems.”

Benefits of Data Center Equipment

The benefits of using data center technology, whether in-house or as ready-for-you services, are numerous and indispensable. On their own, data centers drastically improve work efficiency, reduce costs, and enhance data security.

When it comes to data center hardware, choosing the most suitable and high-quality options in the market also comes with benefits, whether it’s for in-house use or customers.

  • Hardware compatibility
  • Off-network scalability
  • Longevity and reliability
  • Network capacity
  • Environmental sensitivity
  • Improved flexibility and agility

“A regular data center contains hardware units catering to the computing, data storage, and networking needs of the system. They are designed to centralize data processing and keep processes running with as little downtime as possible,” says Hardy Racks, a server rack manufacturer in Chennai, India.

“Maintenance and management of the physical hardware requires the strict adherence to certain policies and procedures that need to be followed. This could include scheduled servicing, downtime protocols, or even housekeeping.”

Data Center Equipment Use Cases

As the primary building blocks of a data center system, specialized hardware can be used in a wide selection of ways to achieve specific goals:


Datanet is a London-based connectivity and data hosting provider. It uses virtual network technology in its services and allows its clients to rapidly provision and scale for advanced security services.

Its aging network was no longer able to keep up with the demand for greater speed and security integration. Seeking to upgrade network capacity from 1 G bps to 10 Gbps on a budget, Datanet needed to get creative.

Switching vendors to work with Juniper Networks, Datanet built a fully redundant data center network using Juniper’s routers, switches, and a firewall. Keeping processes in-house, it simulated the network inside its facilities.

“Deploying firewalls as a virtualized network function is much more efficient, and we can provision them immediately, without any hardware deployment cycle,” says Conleth McCallan, managing director, Datanet.

“Planning and testing were really important, especially as we were switching vendors. But the Juniper experience has been a really good one. They are focused on producing carrier-grade systems and are ideal for providers like us with highly demanding and dynamic needs.”

With the increased network bandwidth, Datanet was able to win over new clients in the cloud, hosting, and backup and recovery offerings. Additionally, it was able to boost its network performance using less of its data center resources.

Cloud Company

The cloud company provides numerous cloud storage, processing, and computing services to its clients all over the country, based in Santa Clara, California.

Looking to rebuild its infrastructure on a strict budget, the company sought out an experienced IT and structured cabling partner. First focusing on its data center in Santa Clara, the company was looking to install new equipment, maximize the use of resources and plan for future upgrades and purchases.

Partnering with Mirapath, the company chose its experienced project management team to design, procure, and install its high-density data center infrastructure components.

Working at multiple stages, Mirapath designed the infrastructure design from scratch and procured over 80 servers, networks, and cabinets for the company.

“Mirapath differentiates itself through reliability, quality of service, and competitive pricing. For years, the support and professionalism from the Mirapath team has been exceptional and consistently met or exceeded our expectations,” says the senior data center manager at the cloud company.

Mirapath’s team was responsible for managing the offers of multiple vendors for the data center build. It also offered technical, white-glove services to ensure the project was completed within the time scope and budget.

Health Care Company

This Massachusetts hospital is one of the country’s largest pediatric medical centers. It also ranks nationally for its patient care.

Rapidly running out of hardware storage, the hospital needed a solution it could adopt to increase capacity. Since increasing the capacity through an OEM was above the hospital’s budget, it looked elsewhere for in-house storage solutions.

Working with ReluTech, the hospital was able to upgrade its data center hardware at a lower cost than expected. Finding a suitable offer, ReluTech was able to offer the facility four times the amount of storage it could’ve received with an OEM solution.

“Working on one of the largest children’s cancer research facilities in the country, I know that every dollar I save in our data center can be repurposed towards research that will one day save many young lives,” says the hospital’s director of infrastructure.

Partnering with ReluTech, the hospital was able to save 75% on hardware and maintenance costs. 

Data Center Equipment Providers

Some of the leading providers of data center equipment and hardware in the market include:

  • IBM
  • AWS
  • Digital Reality
  • NTT Communications
  • Verizon
  • Cisco
  • Juniper Networks
  • Extreme Networks
  • Equinix
  • Coresite

See more: The Edge Data Center Market

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