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The Data Center Infrastructure Market Promises Big Investment Opportunities

4 Min Read

By Stephanie Merchant - Client Services Manager

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Expanding Data Solution Needs Show No Signs of Slowing

In today’s fast-moving world of digital data, organizations across all industries are looking for data storage and processing solutions. Trends like cloud-based computing, artificial intelligence (AI), and big data analytics drive the demand for safe and reliable data storage solutions.

Data Center Infrastructure Management (DCIM) involves managing a data center’s operations and efficiency by integrating IT resources and building functions. It helps administrators improve efficiency and is essential for meeting the demands of data storage and processing, making it a key component of today’s successful enterprise IT operations.

The current DCIM market size is $3.06 billion and is anticipated to grow at a compound annual growth rate (CAGR) of 17.3% from 2025 to 2030. With increasing expansion to cloud-based solutions, along with hybrid and multi-cloud environments, DCIM will continue to grow in demand, as businesses look for new ways to safely and effectively store and manage their data.1

Data Center Infrastructure Management Investor Insights

Growing Demand Drives DCIM Market Share

  • More Data, More Demand: The global professional services company Accenture notes that over the last two years, 86% of companies report increases in their cloud initiatives. With more businesses migrating to cloud-based data storage, and the rising interest in AI, there’s an increase in the need for DCIM solutions that can ensure safe, efficient, and effective performance. Many organizations are struggling to keep up and quickly outgrowing the ability to operate their own data centers. This is reflected in North American DCIM growth numbers, with the current market share now over 40% in the region.2
  • Data Center Construction: To support rapid expansion, businesses are looking to partner with bigger data centers with established DCIM solutions. Because of this, AFCOM, a leading membership association for data center professionals, predicts we’re entering a data center construction boom, with projects increasing six-fold over the coming three years.3
  • Supporting Opportunities: Beyond investing in data center property or data center infrastructure, there are other investment opportunities to consider in this sector. For example, the four main components that make up data centers (the facility, equipment, IT hardware, and software), are all part of a value chain that holds promising investment potential. According to a recent McKinsey & Company report, these high-demand support systems—like green power, cooling systems, modular, or carbon-free solutions for edge data centers (small, decentralized facilities that process data closer to the end users and devices they serve)—hold strong opportunities worth investors’ consideration.4

DCIM Industry Landscape and Challenges

Competitive Landscape:

  • Key Players: The top organizations in the global DCIM market today are:5
    • ABB
    • Cisco Systems, Inc.
    • Device42, Inc.
    • Eaton
    • NT GmbH
    • Huawei Technologies Co., Ltd
    • IBM
    • Schneider Electric
    • Siemens
    • Sunbird Inc. 

Several additional players in the hyperscaler and colocation sectors should also be noted:

  • Hyperscalers: This space is defined by cloud-computing companies that provide data storage to both businesses and individuals alike, including:
    • Microsoft
    • Amazon
    • Google
    • Apple and Meta
  • Colocation Companies: Organizations that put their own servers in third-party-owned and operated data centers include:
    • Equinix
    • Digital
    • Reality
    • Iron Mountain
    • Edge
  • A Notable Player to Watch: Oracle has found success in the DCIM market in recent years, taking a strong, innovative position. The company currently holds 160+ data centers. While some are smaller in size (25 kW), others are closer to 800 megawatts (MW) and house infrastructures with CPUs and GPUs in RDMA network configuration. Oracle also has an autonomous operating system and database configurations across applications, including Fusion ERP, HCM, CX, NetSuite, and other industries.6
  • Competitive Differentiators: The key players have earned their top spots by focusing on building out their customer base to stay ahead. Mergers, acquisitions, and partnerships—as well as exploring AI solutions—are part of that success strategy.7

This summer, Cisco Systems joined forces with NVIDIA (a U.S.-based multinational corporation and technology company) to launch a new data center infrastructure solution with AI features. This partnership has shown early success in simplifying the deployment of generative AI, and providing IT visibility and analytics across the entire AI infrastructure stack.

    Risks and Restraints:

    • Power: The biggest concern and limiting factor in the development of any new data center is the availability and reliability of power. New data centers require so much power that they must obtain both state and government approval to access a grid, a process that can take years to secure.9
    • Alternative Sources: Due to power grid limitations, other energy sources are currently being explored, including:
      • Microgrids: These independent networks pull energy from onsite sources, like wind, solar, and fuel cells or battery storage systems. Last year Microsoft announced a partnership with Enchanted Rock and U.S. Energy to power their new San Jose, California, data center during grid outages.10
      • Nuclear Energy: Amazon Web Services (AWS) announced its acquisition of a 960-MW data center campus in Pennsylvania in March 2024. The center will be directly powered with nearby nuclear energy and Talen Energy will supply direct-connect nuclear power from its Susquehanna power plant to the AWS campus under a long-term power purchase agreement.11

    Data Center Infrastructure Growth Offers Ongoing Investment Opportunities

    The data center infrastructure market is experiencing notable growth, with no sign of waning. Fueled by the demand for bigger storage solutions and AI developments, the industry offers promising opportunities for investors and private equity firms. Get in touch with us today to learn more.

    Resources:
    1 Data Center Infrastructure Management Market Size, Share, & Trends Analysis Report by Component, by Data Center, by Deployment, by Enterprise Size, by Application, by End Use, by Region, and Segment Forecasts, 2025 – 2030. Grand View Research.
    2 Ibid.
    3 A Data Center Building Boom Is About to Begin. BizTech Magazine.
    4 Investing in the rising data center economy. McKinsey & Company.
    5 Data Center Infrastructure Management Market Size, Share, & Trends Analysis Report by Component, by Data Center, by Deployment, by Enterprise Size, by Application, by End Use, by Region, and Segment Forecasts, 2025 – 2030. Grand View Research.
    6 Oracle Hits Every Major Cloud via AWS, Reveals Plans for Gigawatt Triple SMR Data Center. Data Center Frontier.
    7 Data Center Infrastructure Management Market Size, Share, & Trends Analysis Report by Component, by Data Center, by Deployment, by Enterprise Size, by Application, by End Use, by Region, and Segment Forecasts, 2025 – 2030. Grand View Research.
    8 Ibid.
    9 A Data Center Building Boom Is About to Begin. BizTech Magazine.
    10 Microgrids Help Create Data Centers that Don’t Break the Grid or the Environment. Microgrid Knowledge.
    11 Amazon buys nuclear-powered data center from Talent. Nuclear Newswire.