Data Center Infrastructure Market Reaches $14 Billion as AI Demand Grows

Dell'Oro Group said in a press release that global data center physical infrastructure revenue rose 27% year over year to $14 billion in the second quarter of 2026. Demand for AI data center capacity continued to exceed supply.

Thermal management revenue grew more than 40%, led by direct liquid cooling and heat rejection systems. Revenue from uninterruptible power supplies increased about 20%, with growth concentrated in large three phase systems used in AI data halls.

Colocation providers were the largest customer segment, followed by hyperscalers. Other cloud providers, including AI cloud operators and model developers, recorded the fastest growth. Dell'Oro identified siting and permitting as the main near term constraint, citing power access, equipment delays and community opposition.

The figures come from the Dell'Oro 2Q 2026 Data Center Physical Infrastructure Quarterly Report. Dell'Oro is a paid research publisher that sells its market reports to vendors, operators and investors.