U.S. Data Center Hardware Market Size
The U.S. data center hardware market was estimated at USD 80,837.2 million in 2025 and is forecasted to reach USD 1,03,774.1 million in 2028 with a CAGR of 8.7% over the forecast period.
Data center hardware constitutes the core infrastructure of a data center, and typically comprises of servers, storage and networking equipment, which are deemed essential for its operation.
Servers are high-performance systems equipped with versatile memory configurations and scalable storage devices that aid in processing and managing data. They are designed to operate continuously and handle high volumes of data-centric tasks, including hosting websites, managing databases, running enterprise software, and supporting cloud services.
Data center servers incorporate high-performance processors with large memory capacity optimised for reliability, scalability, and remote management, thus ensuring operational continuity and optimised performance under intensive workloads such as AI and HPC.
Network equipment, on the other hand, comprises switches, routers, firewalls, and others, ensuring efficient data flow and connectivity in the data centre, apart from providing security within a data centre by leveraging tools like firewalls and intrusion protection systems to defend against illicit access attempts and digital risks.
The rapid expansion of cloud computing and the utilisation of cloud storage platforms for storing data is leading to a surge in the demand for data centres, which in turn fuels the demand for data centre storage and allied hardware equipment. Moreover, the robust connectivity infrastructure coupled with the presence of notable technology companies like Google, Amazon, Microsoft and major cloud providers, which are expanding their footholds both in the domestic and international market in data center domain with extensive investments, leading to the increment in the demand for data center hardware in the country.
The Microsoft USD 80 billion investment in AI-enabled data centers, USD 65 billion investment declaration in the 2GW data center site in U.S., data center by Microsoft in Texas with a reported investment of USD 765 million or the investment by the foreign nations like the USD 20 billion investment by the UAE based DAMAC Properties in the U.S. south and mid-west regions and many other are creating avenues for the market growth and development of the data center hardware in the U.S.
Additionally, the implementation of strategic policies laid by the U.S. government targeted at capturing the leading spot in the global race for AI is further fuelling the demand for data centre hardware in the country. Project Stargate, allocation of federal land for data centre development, and many other state-specific policies propel the demand for data centre hardware in the country.
