According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, Data Center Physical Infrastructure (DCPI) revenue growth continued to decelerate in 4Q 2023, but maintained double-digit year-over-year (Y/Y) growth. This capped off a record year of 16 percent revenue growth.
"In my nearly decade-long coverage of the DCPI market, 2023 marked the highest year of revenue growth I've observed. This growth was primarily the result of vendors fulfilling pandemic induced backlogs delayed by supply chain constraints, with a marginal contribution from sales linked to AI workloads," said Lucas Beran, Research Director at Dell'Oro Group. "This is because building new data center facilities generally takes 18 – 24 months, and new purpose-built facilities to support AI workloads are expected to start materializing in the second half of 2024.
"Evidence indicates that these deployments are nearing. Vertiv, the market share leader in data center thermal management, secured its first quarter of notable liquid cooling deployments, which is correlated to higher TDP processors associated with accelerated computing. This is only the beginning, as Vertiv plans to increase liquid cooling manufacturing capacity by 45 times in 2024. This underscores the critical role that data center power and cooling systems play in our increasingly digital world," continued Beran.