Q2 Datacentre Infrastructure Market Up

The Q2 Data Centre Physical Infrastructure (DCPI) market grew 18% YoY to $8.9 billion in manufacturer revenue – the third consecutive quarter of high-teens growth, says Dell’Oro.

“Hyperscalers and colocation providers are scaling capacity at an unprecedented pace, and direct liquid cooling has consolidated as the technology of choice, moving quickly from early adoption to mainstream design,” says Dell’Oro’s Alex Cordovil, “this is creating a structural uplift across power and cooling architectures that will shape the data center landscape for years to come. With AI viewed as existential to competitiveness, we expect data center infrastructure growth to remain exceptionally strong through 2026.”

Thermal Management expanded 29 percent Y/Y, with Direct Liquid Cooling surging 156 percent Y/Y as it emerges as the de facto standard for large AI clusters.

Power distribution markets grew 26 percent Y/Y, driven by the rapid adoption of overhead busways and intelligent rack PDUs to support higher-density racks.

UPS revenue rose 13 percent Y/Y to $3.3 billion, with demand strongest in large three-phase systems of 251 kVA and above.

North America led with 23 percent Y/Y growth as record-breaking gigawatt-scale campus announcements accelerated, while EMEA and Asia Pacific trailed but are expected to pick up momentum.

Hyperscalers and colocation providers accounted for more than 80 percent of expansion, underscoring their central role in fueling the AI supercycle.

Vendors across the spectrum benefitted from the AI surge, from large infrastructure powerhouses like Vertiv to specialized cooling players such as Munters.