According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the data center physical infrastructure (DCPI) market grew 17% year-over-year in 1Q 2025.
This marks the fourth consecutive quarter of double-digit growth, fueled by continued investment from hyperscalers and colocation providers building out capacity to cope with the demand of AI workloads.
“The shift to accelerated computing is reshaping the data center landscape,” said Alex Cordovil, Research Director at Dell’Oro Group. “AI is more than a tailwind—it’s a structural force driving demand for new infrastructure paradigms. Liquid cooling is gaining traction fast, and high-density power architectures are evolving rapidly, with racks expected to reach 600 kW soon and 1 MW configurations already being under consideration.”