
Data Center Rack Server Market
Data Center Rack Server Market Forecasts to 2030 - Global Analysis By Tier Type (Tier 1, Tier 2 and Tier 4), Data Center Type (Large Data Centers, Enterprise Data Centers and Mid-sized Data Centers), Deployment Model, Form Factor, Service, End User and By Geography

Years Covered |
2021-2030 |
Estimated Year Value (2023) |
US $88.47 BN |
Projected Year Value (2030) |
US $221.88 BN |
CAGR (2023 - 2030) |
14.0% |
Regions Covered |
North America, Europe, Asia Pacific, South America, and Middle East & Africa |
Countries Covered |
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa |
Largest Market |
North America |
Highest Growing Market |
Asia Pacific |
According to Stratistics MRC, the Global Data Center Rack Server Market is accounted for $88.67 billion in 2023 and is expected to reach $221.88 billion by 2030 growing at a CAGR of 14.0% during the forecast period. A data center rack server is a type of server designed to be mounted in a standard equipment rack within a data center environment. These servers are typically compact and powerful, optimized for high-density computing and efficient use of space. They feature a slim, rectangular form factor that allows them to be stacked vertically in racks, maximizing floor space utilization. Rack servers are commonly used for tasks such as web hosting, data storage, virtualization, and cloud computing. They offer scalability, easy maintenance, and centralized management, making them ideal for enterprise-level applications.
According to the World Development Report, worldwide internet activity in 2020 is expected to exceed three zettabytes, or 3,000,000,000,000 gigabytes (GB). According to the cloud scene, the United States has over 2500 data centers and Canada has over 250 data centers.
Market Dynamics:
Driver:
Growing demand for data storage and processing
The growing demand for data storage and processing is a key driver in the market. With the proliferation of digital content, cloud computing, IoT devices, and big data analytics, organizations are generating and handling unprecedented volumes of data. This surge necessitates robust infrastructure capable of storing and processing data efficiently. Data center rack servers offer scalable solutions, allowing businesses to expand their storage and processing capabilities as needed. Additionally, advancements in technologies such as virtualization and edge computing further fuel the demand for rack servers, enabling organizations to optimize resource utilization and enhance performance.
Restraint:
Power and cooling challenges
Power and cooling challenges represent significant restraints in the data center rack server market. As servers become more powerful and densely packed, they consume more electricity, leading to increased power demands and heat generation. This requires robust cooling systems to maintain optimal operating temperatures, which adds to operational costs and complexity. Additionally, inadequate cooling can lead to performance degradation and even hardware failures. Addressing these challenges becomes crucial for sustaining growth in the rack server market as data centers continue to scale and energy efficiency becomes paramount.
Opportunity:
Customization and specialized workloads
The opportunity for customization and specialized workloads in the data center rack server market allows businesses to tailor their infrastructure to specific requirements. Customization enables the configuration of servers with precise specifications, optimizing performance and efficiency. This flexibility caters to diverse needs, from high-performance computing to storage-intensive applications. Specialized workloads, such as AI, machine learning, and big data analytics, demand unique server architectures and capabilities. By catering to these needs, vendors can capitalize on niche markets and provide tailored solutions, enhancing customer satisfaction and driving market growth. Additionally, customization fosters innovation, enabling the development of cutting-edge technologies to address evolving demands in the data center ecosystem.
Threat:
Shift towards virtualization and software-defined infrastructure
The shift towards virtualization and software-defined infrastructure poses a threat to the traditional data center rack server market. Virtualization enables servers to run multiple virtual machines, reducing the need for physical servers and thereby shrinking the demand for rack servers. Software-defined infrastructure allows for more flexible and scalable resource allocation, making traditional rack servers less appealing. Furthermore, as businesses prioritize agility, cost-effectiveness, and scalability, they are increasingly turning to virtualization and software-defined solutions, potentially dampening the growth prospects of the rack server market.
Covid-19 Impact:
The COVID-19 pandemic significantly impacted the data center rack server market in several ways. Firstly, the sudden shift to remote work and increased online activity spurred higher demand for data storage and processing, driving up the need for rack servers. However, supply chain disruptions, manufacturing delays, and labor shortages hindered production, leading to inventory shortages and increased costs. Uncertainties surrounding economic conditions prompted some businesses to delay or scale back their IT investments, impacting market growth. Additionally, the pandemic also accelerated digital transformation efforts, particularly in cloud computing and data analytics, driving long-term demand for rack servers as organizations adapt to evolving business needs and consumer behaviour.
The large data centers segment is expected to be the largest during the forecast period
The segment growth in the data center rack server market is driven by the increasing demand for large data centers. These data centers require robust infrastructure to handle massive volumes of data processing and storage, fueling the demand for rack servers. Companies are investing heavily in expanding their data center capacities to accommodate the growing digital ecosystem, including cloud services, IoT, and AI applications. This expansion necessitates the deployment of more rack servers to support high-performance computing requirements. Additionally, advancements in technology, such as the adoption of virtualization and edge computing, further amplify the need for rack servers in data centers.
The banking, financial services and insurance (BFSI) segment is expected to have the highest CAGR during the forecast period
The Banking, Financial Services, and Insurance (BFSI) segment has been a significant driver of growth. With increasing digitization and the adoption of advanced technologies like cloud computing and big data analytics, BFSI companies are constantly expanding their data storage and processing needs. This has led to a surge in demand for efficient and scalable data center solutions, including rack servers. Moreover, stringent regulatory requirements necessitate robust data security and compliance measures, further fuelling investment in high-performance server infrastructure. Furthermore, as BFSI institutions continue to prioritize technological innovation to enhance customer experience and streamline operations, the demand for data center rack servers is expected to witness sustained growth in this segment.
Region with largest share:
The North American region has experienced significant growth in the data center rack server market due to the increasing demand for cloud services and the rapid adoption of advanced technologies such as AI, IoT, and big data analytics. The proliferation of data-intensive applications across various industries, including finance, healthcare, and e-commerce, has led to a surge in data center expansions and upgrades. Furthermore, the region's robust IT infrastructure, coupled with favourable government initiatives and investments in digital transformation, has created a conducive environment for market growth.
Region with highest CAGR:
The Asia-Pacific region has witnessed robust growth due to rapid digitization across various industries, increasing demand for cloud services, and the proliferation of IoT devices, that have driven the need for efficient data storage and processing solutions. Moreover, the expanding e-commerce sector and government initiatives towards digital transformation have further fuelled the demand for data centers and rack servers in the region. Furthermore, the emergence of emerging economies such as China, India, and Southeast Asian countries as major hubs for technology adoption has contributed significantly to the market's growth.
Key players in the market
Some of the key players in Data Center Rack Server market include HPE, Asus, Belden Inc., Black Box Corporation, Chatsworth Products, Cisco Systems, Dell , Fujitsu, Huawei, IBM, Inspur Systems Inc., Iron Systems, Lenovo , NEC Corporation, Oracle, Quanta Computer Inc., Rittal, Schneider Electric, Supermicro, Tripp Lite and Vertiv.
Key Developments:
In March 2024, ASUS Republic of Gamers (ROG) has introduced two new models in the ROG Strix series of gaming monitors, the XG27UCS and XG27ACS. These monitors are designed with an innovative stand that occupies less space and includes a groove for mobile devices, along with USB-C connectivity to minimize cable clutter. They incorporate AI-powered GamePlus technology for enhanced gaming performance.
In March 2024, Oracle and NVIDIA announced an expanded collaboration to deliver sovereign AI solutions to customers around the world. Oracle’s distributed cloud, AI infrastructure, and generative AI services, combined with NVIDIA’s accelerated computing and generative AI software, are enabling governments and enterprises to deploy AI factories.
Tier Types Covered:
• Tier 1
• Tier 2
• Tier 3
• Tier 4
Data Center Types Covered:
• Large Data Centers
• Enterprise Data Centers
• Mid-sized Data Centers
Deployment Models Covered:
• On-premises Servers
• Cloud-based Servers
Form Factors Covered:
• 1U
• 2U
• 4U
• Other Form Factors
Services Covered:
• Design and Consulting
• Support and Maintenance
• Installation and Deployment
End Users Covered:
• IT and Telecom
• Banking, Financial Services and Insurance (BFSI)
• Research and Academic
• Healthcare and Life Sciences
• Government and Defense
• Media and Entertainment
• Retail and eCommerce
• Energy and Utilities
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 End User Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Data Center Rack Server Market, By Tier Type
5.1 Introduction
5.2 Tier 1
5.3 Tier 2
5.4 Tier 3
5.5 Tier 4
6 Global Data Center Rack Server Market, By Data Center Type
6.1 Introduction
6.2 Large Data Centers
6.3 Enterprise Data Centers
6.4 Mid-sized Data Centers
7 Global Data Center Rack Server Market, By Deployment Model
7.1 Introduction
7.2 On-premises Servers
7.3 Cloud-based Servers
8 Global Data Center Rack Server Market, By Form Factor
8.1 Introduction
8.2 1U
8.3 2U
8.4 4U
8.5 Other Form Factors
9 Global Data Center Rack Server Market, By Service
9.1 Introduction
9.2 Design and Consulting
9.3 Support and Maintenance
9.4 Installation and Deployment
10 Global Data Center Rack Server Market, By End User
10.1 Introduction
10.2 IT and Telecom
10.3 Banking, Financial Services and Insurance (BFSI)
10.4 Research and Academic
10.5 Healthcare and Life Sciences
10.6 Government and Defense
10.7 Media and Entertainment
10.8 Retail and eCommerce
10.9 Energy and Utilities
10.10 Other End Users
11 Global Data Center Rack Server Market, By Geography
11.1 Introduction
11.2 North America
11.2.1 US
11.2.2 Canada
11.2.3 Mexico
11.3 Europe
11.3.1 Germany
11.3.2 UK
11.3.3 Italy
11.3.4 France
11.3.5 Spain
11.3.6 Rest of Europe
11.4 Asia Pacific
11.4.1 Japan
11.4.2 China
11.4.3 India
11.4.4 Australia
11.4.5 New Zealand
11.4.6 South Korea
11.4.7 Rest of Asia Pacific
11.5 South America
11.5.1 Argentina
11.5.2 Brazil
11.5.3 Chile
11.5.4 Rest of South America
11.6 Middle East & Africa
11.6.1 Saudi Arabia
11.6.2 UAE
11.6.3 Qatar
11.6.4 South Africa
11.6.5 Rest of Middle East & Africa
12 Key Developments
12.1 Agreements, Partnerships, Collaborations and Joint Ventures
12.2 Acquisitions & Mergers
12.3 New Product Launch
12.4 Expansions
12.5 Other Key Strategies
13 Company Profiling
13.1 HPE
13.2 Asus
13.3 Belden Inc.
13.4 Black Box Corporation
13.5 Chatsworth Products
13.6 Cisco Systems
13.7 Dell
13.8 Fujitsu
13.9 Huawei
13.10 IBM
13.11 Inspur Systems Inc.
13.12 Iron Systems
13.13 Lenovo
13.14 NEC Corporation
13.15 Oracle
13.16 Quanta Computer Inc.
13.17 Rittal
13.18 Schneider Electric
13.19 Supermicro
13.20 Tripp Lite
13.21 Vertiv
List of Tables
1 Global Data Center Rack Server Market Outlook, By Region (2021-2030) ($MN)
2 Global Data Center Rack Server Market Outlook, By Tier Type (2021-2030) ($MN)
3 Global Data Center Rack Server Market Outlook, By Tier 1 (2021-2030) ($MN)
4 Global Data Center Rack Server Market Outlook, By Tier 2 (2021-2030) ($MN)
5 Global Data Center Rack Server Market Outlook, By Tier 3 (2021-2030) ($MN)
6 Global Data Center Rack Server Market Outlook, By Tier 4 (2021-2030) ($MN)
7 Global Data Center Rack Server Market Outlook, By Data Center Type (2021-2030) ($MN)
8 Global Data Center Rack Server Market Outlook, By Large Data Centers (2021-2030) ($MN)
9 Global Data Center Rack Server Market Outlook, By Enterprise Data Centers (2021-2030) ($MN)
10 Global Data Center Rack Server Market Outlook, By Mid-sized Data Centers (2021-2030) ($MN)
11 Global Data Center Rack Server Market Outlook, By Deployment Model (2021-2030) ($MN)
12 Global Data Center Rack Server Market Outlook, By On-premises Servers (2021-2030) ($MN)
13 Global Data Center Rack Server Market Outlook, By Cloud-based Servers (2021-2030) ($MN)
14 Global Data Center Rack Server Market Outlook, By Form Factor (2021-2030) ($MN)
15 Global Data Center Rack Server Market Outlook, By 1U (2021-2030) ($MN)
16 Global Data Center Rack Server Market Outlook, By 2U (2021-2030) ($MN)
17 Global Data Center Rack Server Market Outlook, By 4U (2021-2030) ($MN)
18 Global Data Center Rack Server Market Outlook, By Other Form Factors (2021-2030) ($MN)
19 Global Data Center Rack Server Market Outlook, By Service (2021-2030) ($MN)
20 Global Data Center Rack Server Market Outlook, By Design and Consulting (2021-2030) ($MN)
21 Global Data Center Rack Server Market Outlook, By Support and Maintenance (2021-2030) ($MN)
22 Global Data Center Rack Server Market Outlook, By Installation and Deployment (2021-2030) ($MN)
23 Global Data Center Rack Server Market Outlook, By End User (2021-2030) ($MN)
24 Global Data Center Rack Server Market Outlook, By IT and Telecom (2021-2030) ($MN)
25 Global Data Center Rack Server Market Outlook, By Banking, Financial Services and Insurance (BFSI) (2021-2030) ($MN)
26 Global Data Center Rack Server Market Outlook, By Research and Academic (2021-2030) ($MN)
27 Global Data Center Rack Server Market Outlook, By Healthcare and Life Sciences (2021-2030) ($MN)
28 Global Data Center Rack Server Market Outlook, By Government and Defense (2021-2030) ($MN)
29 Global Data Center Rack Server Market Outlook, By Media and Entertainment (2021-2030) ($MN)
30 Global Data Center Rack Server Market Outlook, By Retail and eCommerce (2021-2030) ($MN)
31 Global Data Center Rack Server Market Outlook, By Energy and Utilities (2021-2030) ($MN)
32 Global Data Center Rack Server Market Outlook, By Other End Users (2021-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY

We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
Frequently Asked Questions
In case of any queries regarding this report, you can contact the customer service by filing the “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929
Yes, the samples are available for all the published reports. You can request them by filling the “Request Sample” option available in this page.
Yes, you can request a sample with your specific requirements. All the customized samples will be provided as per the requirement with the real data masked.
All our reports are available in Digital PDF format. In case if you require them in any other formats, such as PPT, Excel etc you can submit a request through “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929
We offer a free 15% customization with every purchase. This requirement can be fulfilled for both pre and post sale. You may send your customization requirements through email at info@strategymrc.com or call us on +1-301-202-5929.
We have 3 different licensing options available in electronic format.
- Single User Licence: Allows one person, typically the buyer, to have access to the ordered product. The ordered product cannot be distributed to anyone else.
- 2-5 User Licence: Allows the ordered product to be shared among a maximum of 5 people within your organisation.
- Corporate License: Allows the product to be shared among all employees of your organisation regardless of their geographical location.
All our reports are typically be emailed to you as an attachment.
To order any available report you need to register on our website. The payment can be made either through CCAvenue or PayPal payments gateways which accept all international cards.
We extend our support to 6 months post sale. A post sale customization is also provided to cover your unmet needs in the report.
Request Customization
We provide a free 15% customization on every purchase. This requirement can be fulfilled for both pre and post sale. You may send your customization requirements through email at info@strategymrc.com or call us on +1-301-202-5929.
Note: This customization is absolutely free until it falls under the 15% bracket. If your requirement exceeds this a feasibility check will be performed. Post that, a quote will be provided along with the timelines.
WHY CHOOSE US ?

Assured Quality
Best in class reports with high standard of research integrity

24X7 Research Support
Continuous support to ensure the best customer experience.

Free Customization
Adding more values to your product of interest.

Safe & Secure Access
Providing a secured environment for all online transactions.

Trusted by 600+ Brands
Serving the most reputed brands across the world.