North America Data Center Equipment Market Analysis and Forecast by Size, Share, Growth, Trends 2031

The North America data center equipment market size is expected to reach US$ 3,30,610.88 million by 2031 from US$ 1,12,148.41 million in 2024. The market is estimated to record a CAGR of 16.8% from 2025 to 2031.

Executive Summary and North America Data Center Equipment Market Analysis:

The North America data center equipment market is segmented into the US, Canada, and Mexico. The rise in investments in data centers fuels the demand for data center equipment as businesses expand their digital infrastructure. This growth drives the need for more powerful servers, cooling systems, and networking devices to handle increasing data traffic and storage requirements. A few recent developments in the region to boost the data center industry are mentioned below:

• In January 2025, President-elect Donald Trump announced a US$ 20 billion foreign investment to build new data centers across the US. The first phase of the plan will take place in Texas, Arizona, Oklahoma, Louisiana, Ohio, Illinois, Michigan, and Indiana.

• As stated by Mexico's government and Amazon in January 2025, Amazon will invest more than US$ 5 billion in a data center in central Mexico.

• In December 2024, the Canadian government announced the investment of US$ 169 million to help Toronto-based AI startup Cohere to expand its data center AI computing capacity. This new data center will use Nvidia GPUs and involve New Jersey-based CoreWeave in construction.

Thus, government support and investment play a key role in driving the data center equipment market.

Companies in the region are working to establish facilities for artificial intelligence and cloud hyperscale businesses. This effort drives the market by creating specialized data centers that fulfill the high demands of performance, scalability, and energy efficiency required by these technologies. The rise of artificial intelligence (AI) workloads is transforming the data center sector, creating an unprecedented need for power-intensive infrastructure. AI organizations are rapidly affecting site selection, design, and operational needs, with a focus on markets that offer scalable power capacity and innovative connectivity solutions. For example, in March 2025, Related Companies, L.P, a US real estate company, launched a new data center development unit and plans to build out gigawatts of capacity across the US and Canada. Related claims a near-term US$ 45 billion development pipeline totaling 5GW across the US and Canada. As AI and cloud computing require vast amounts of computational power and storage, data centers must be equipped with cutting-edge infrastructure, such as high-density servers and advanced cooling systems. This specialized focus accelerates the demand for data center equipment, such as advanced servers, networking devices, and energy-efficient solutions, which, in turn, fuels the market's growth.

North America Data Center Equipment Market: Strategic Insights

North America Data Center Equipment Market Segmentation Analysis:

Key segments that contributed to the derivation of the North America data center equipment market analysis are equipment type and tier type.

• By equipment type, the North America data center equipment market is segmented into servers, storage devices, cooling equipment, power distribution units (PDUs), racks, enclosures, and others. The servers segment held the largest share of the market in 2024.

• By tier type, the North America data center equipment market is segmented into tier 3, tier 4, tier 1, and tier 2. The tier 3 segment held the largest share of the market in 2024.

North America Data Center Equipment Market Players Density: Understanding Its Impact on Business Dynamics

The North America Data Center Equipment Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

North America Data Center Equipment Market Outlook

The world's data generation and consumption are increasing exponentially, driven by big data analytics, artificial intelligence, cloud computing, and the Internet of Things (IoT). This necessitates more data centers to store, process, and distribute this data, leading to a rising investment in data centers. Businesses are increasingly investing in building and expanding their data center infrastructure to meet the growing demands for data storage, processing, and management. A few instances are given below.

• In January 2025, a joint venture among OpenAI, Softbank, and Oracle planned to invest US$ 100 billion in artificial intelligence infrastructure, with the potential to scale up to US$ 500 billion. This investment includes the construction of 10 data centers, including one already under construction in Abilene, Texas. Each facility will span about 500,000 square feet.

• In January 2024, Amazon Web Services (AWS) announced plans to invest US$ 10 billion to build two data center complexes, marking the single largest capital investment in Mississippi's history.

Due to the significant increase in investments in building new data centers, these facilities will need advanced equipment such as servers, storage devices, cooling systems, and power distribution units (PDUs). These components are essential for effectively storing, processing, and distributing large volumes of data, driving growth in the data center equipment market.

North America Data Center Equipment Market Country Insights

Based on country, the North America data center equipment market comprises the US, Canada, and Mexico. The US held the largest share in 2024.

The demand for edge computing, machine learning, and AI is growing in the US. This rising demand needs a solution for faster development timelines, lower costs, and better capacity optimization, which Compact data centers offer. Market players are increasingly launching modular data centers in the country. For example, in March 2024, Eaton- the US power management company-announced the launch of its new modular data center solution. Eaton's SmartRack modular data center combines racks, cooling, and service enclosures to withstand up to 150kW of equipment load. These modular data centers can be installed in a matter of days in facilities such as enterprises, colos, manufacturing facilities, and warehouses. The demand for data centers by organizations generates the requirement for various equipment such as PDUs, storage devices, cooling equipment, and others. Moreover, innovations in data center technologies are generating the demand for data center equipment that exhibits energy-efficient characteristics. In December 2024, Amazon Web Services (AWS) launched a series of new data center components to make its data centers better equipped to handle the next generation of artificial intelligence (AI) workloads. AWS developed a novel mechanical cooling solution using direct-to-chip cooling in its new and existing data centers.

North America Data Center Equipment Market Company Profiles

Some of the key players operating in the market include ABB Ltd, Legrand SA, Schneider Electric SE, Rittal GmbH and Co KG, Eaton Corp Plc, Dell Technologies Inc, Honeywell International Inc, Vertiv Group Corp., Delta Electronics Inc, and Cisco Systems Inc., among others. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

North America Data Center Equipment Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.

• Industry trade journals and other relevant publications.

• Government documents, statistical databases, and market reports.

• News articles, press releases, and webcasts specific to companies operating in the market.

Note:

All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.

• Enhance the expertise and market understanding of the analysis team.

• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers

• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise