Data Center Infrastructure Grows 18% in Q2 2025

September 11, 2025
The Data Center Physical Infrastructure market saw an 18% year-over-year growth in Q2 2025, driven by AI demand, according to Dell'Oro Group.

The Data Center Physical Infrastructure (DCPI) market experienced an 18% year-over-year growth in the second quarter of 2025, reaching $8.9 billion in manufacturer revenue, announced in a press release by Dell'Oro Group. This marks the third consecutive quarter of high growth, fueled by the ongoing expansion in AI technologies.

Direct liquid cooling technology has surged by 156% year-over-year, becoming the standard for large AI clusters. This shift is part of a broader trend where hyperscalers and colocation providers are rapidly scaling their capacities. The power distribution market also saw a 26% increase, driven by the adoption of overhead busways and intelligent rack PDUs.

North America led the regional growth with a 23% increase, while EMEA and Asia Pacific are expected to gain momentum. Hyperscalers and colocation providers accounted for over 80% of the expansion, highlighting their pivotal role in the AI-driven growth of data center infrastructure. Dell'Oro Group continues to provide comprehensive insights into these market dynamics.

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