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Data Center Server Market to grow by USD 169.3 Billion (2024-2028), driven by investments in scaling up in-house data centers, Report with AI-powered market evolution – Technavio

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NEW YORK, Jan. 29, 2025 /PRNewswire/ — Report on how AI is driving market transformation – The global data center server market size is estimated to grow by USD 169.3 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  18.52%  during the forecast period. Investments in scaling up in-house data centers is driving market growth, with a trend towards use of server disaggregation to improve utilization rates. However, server workload optimization  poses a challenge. Key market players include Atos SE, Cisco Systems Inc., Dell Technologies Inc., Digital Realty Trust Inc., Egenera Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Hitachi Ltd., Huawei Technologies Co. Ltd., Inspur Systems Inc., International Business Machines Corp., IRON Global Inc., Lenovo Group Ltd., NEC Corp., Oracle Corp., Quanta Computer Inc., Schneider Electric SE, Super Micro Computer Inc., Trend Micro Inc., and Unisys Corp..

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Data Center Server Market Scope

Report Coverage

Details

Base year

2023

Historic period

2018 – 2022

Forecast period

2024-2028

Growth momentum & CAGR

Accelerate at a CAGR of 18.52%

Market growth 2024-2028

USD 169.3 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

15.18

Regional analysis

North America, APAC, Europe, South America, and Middle East and Africa

Performing market contribution

APAC at 37%

Key countries

US, China, UK, Australia, and Japan

Key companies profiled

Atos SE, Cisco Systems Inc., Dell Technologies Inc., Digital Realty Trust Inc., Egenera Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Hitachi Ltd., Huawei Technologies Co. Ltd., Inspur Systems Inc., International Business Machines Corp., IRON Global Inc., Lenovo Group Ltd., NEC Corp., Oracle Corp., Quanta Computer Inc., Schneider Electric SE, Super Micro Computer Inc., Trend Micro Inc., and Unisys Corp.

Market Driver

The Data Center Server Market is experiencing significant growth due to technology advancements and the increasing adoption of cloud computing for digital services. Businesses require more data storage and better scalability, leading to trends like green data centers, energy-efficient solutions, and the development of broadband internet infrastructure. The 5G network and edge computing are also driving demand for smaller, more distributed data centers like micro and portable data centers. Key players in the market include CPU, GPU, and memory drive manufacturers, as well as virtual machine providers. Power usage efficiency is a major focus, with initiatives like solar, wind, and hydroelectric power being adopted for sustainability. AI, machine learning, and big data analytics are also transforming the market, with high-functioning servers and blade servers gaining popularity. However, challenges like hardware failure and cybersecurity risks remain, necessitating continued innovation in areas like power usage efficiency, CPU performance, and cybersecurity solutions. The market is expected to continue growing, with mega data centers and hyperscale data centers leading the way. IoT technologies and hybrid, multicloud architectures are also expected to shape the future of the data center server market. 

Data centers face a significant challenge as their power consumption increases due to the expanding use of cloud computing, AI, machine learning, and IoT workloads on servers. To address this issue, data centers are exploring methods to enhance server utilization rates and decrease power consumption. One such solution is server disaggregation, which allows for greater flexibility in resource allocation and improved server utilization. By increasing the efficiency of server usage, fewer servers are needed to handle existing workloads, thereby reducing overall power consumption. 

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 Market Challenges

The Data Center Server Market is facing several challenges in today’s business landscape. With technology advancements, there is a constant need for upgrading hardware, such as CPUs, servers, storage devices, GPUs, and memory drives, to keep up with the latest trends. Cloud computing adoption is increasing, leading to the development of new data centers, including mega data centers and hyperscale data centers. Businesses require scalability and efficiency, driving the demand for green data centers, energy-efficient solutions, and sustainability initiatives using renewable energy sources like solar, wind, and hydroelectric. The rise of 5G networks, edge computing, micro data centers, and portable data centers is also transforming the market. However, challenges persist, including power usage efficiency, hardware failure, cybersecurity risks, and the integration of artificial intelligence, machine learning, big data analytics, IoT technologies, and hybrid, multicloud architectures. The market must adapt to these changes while addressing the growing data storage needs and the environmental focus.With the increasing adoption of advanced technologies like big data analytics and artificial intelligence, businesses analyze vast amounts of detailed data to gain valuable insights into various aspects of their operations (production, customers, distribution, and supply chain). To manage these complex workloads, enterprises and data center providers require powerful and efficient servers. However, upgrading existing infrastructure to accommodate these demanding workloads can lead to underutilized computing capacity, power and space constraints in data centers, and unforeseen increases in enterprise server capacity demands. These challenges necessitate the need for high-performance, scalable, and energy-efficient servers to optimally handle the growing workload demands.

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Segment Overview 

This data center server market report extensively covers market segmentation by  

Application 1.1 Commercial server1.2 Industrial serverType 2.1 Rack server2.2 Blade server2.3 Tower server2.4 Microserver2.5 Open compute project (OCP) serverGeography 3.1 North America3.2 APAC3.3 Europe3.4 South America3.5 Middle East and Africa

1.1 Commercial server-  Data centers consist of servers, switches, firewalls, storage systems, and routers, delivering processing power, memory, local storage, and network connectivity for applications. The infrastructure shift from on-premises physical servers to virtual networks and multi-cloud environments is driving market growth. Companies like Dell, Cisco, and Fujitsu are investing in new data centers, such as Cisco’s expansion for WebEx services in India. Digital transformation necessitates flexible, agile data centers to accommodate changing business needs, making commercial servers an attractive choice with on-demand resources and flexible pricing. This ongoing digital transformation will fuel the demand for data centers and, consequently, the data center server market.

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Research Analysis

The Data Center Server Market is experiencing significant growth due to technology advancements, including the integration of Artificial Intelligence (AI) and Machine Learning (ML) in servers, virtual machines, and GPU technology. Cloud computing adoption is driving the demand for data centers, enabling businesses to scale efficiently and reduce costs. Digital services, such as streaming and e-commerce, are increasing data storage needs, leading to the development of hyperscale data centers. Energy efficiency is a key focus, with the adoption of green data centers, energy-efficient solutions, and renewable energy sources like solar, wind, and hydroelectric power. The market is also witnessing the emergence of edge computing, micro data centers, portable data centers, and modular data centers for decentralized processing. Servers, including rack servers, blade servers, micro servers, and tower servers, are essential components of data centers. Storage devices, such as memory drives, are also critical for data processing and management. The market is also witnessing the adoption of CPU, GPU, and virtual machines to enhance processing power and efficiency. However, challenges such as hardware failure and cybersecurity risks remain, necessitating continuous innovation and investment in data center infrastructure. The 5G network is expected to further revolutionize the market by enabling faster data transfer and processing, making data centers more agile and responsive.

Market Research Overview

The Data Center Server Market is experiencing significant growth due to technology advancements, including the adoption of cloud computing, digital services, and the integration of Artificial Intelligence (AI), Machine Learning (ML), and Big Data Analytics. Businesses are increasingly relying on data centers to meet their data storage needs and ensure scalability. Green data centers and energy-efficient solutions are gaining popularity due to their environmental focus and cost savings. The market is also witnessing the development of broadband internet infrastructure, leading to the construction of mega data centers and hyperscale facilities. The emergence of 5G networks, edge computing, micro data centers, and portable data centers is further driving growth. Power usage efficiency is a critical factor, with CPU, servers, storage devices, GPU, memory drives, virtual machines, and environmental focus all playing essential roles. Renewable energy sources, such as solar, wind, and hydroelectric, are being integrated into data centers as part of sustainability initiatives. Hardware failure and cybersecurity risks are significant challenges, necessitating the use of high-functioning servers, blade servers, rack servers, micro servers, tower servers, small, medium, large, industrial, and commercial servers. The market is also witnessing the development of new data centers, hybrid, and multicloud architectures, as well as the integration of IoT technologies.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ApplicationCommercial ServerIndustrial ServerTypeRack ServerBlade ServerTower ServerMicroserverOpen Compute Project (OCP) ServerGeographyNorth AmericaAPACEuropeSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Infiniti Research, Inc.

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Trive Capital Announces Sale of EarthLink

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DALLAS, Oct. 20, 2026 /PRNewswire/ — Trive Capital (“Trive”) is pleased to announce that it has closed on the sale of EarthLink, LLC (“EarthLink” or the “Company”) to a family office consortium consisting of WaveDivision Capital (“Wave”), The Pritzker Organization (“TPO”) and Stephens Capital Partners (“SCP”), in partnership with EarthLink’s management team. Headquartered in Atlanta, Georgia, EarthLink is one of the largest internet service providers in the United States, serving over 500,000 internet and managed services customers nationwide. Through partnerships with several of the nation’s largest fiber and 5G providers, EarthLink has built an asset-light, nationwide network that can offer fiber internet service to more than 68 million homes.

Since Trive’s investment in EarthLink in 2018 as part of a corporate carveout, the Company has transformed from a legacy DSL and email business in precipitous decline to an asset-light connectivity platform serving over 500,000 consumers and small businesses nationwide. The Company has grown and will continue to grow based on its expanded fiber and 5G internet solutions and commitment to customer service for consumers and small businesses.

Shravan Thadani, Partner at Trive, stated, “EarthLink has been a true partnership between management and Trive in every sense of the word. The team built a differentiated, asset-light platform that gives consumers and small businesses real choice in how they get connected, and did so while standing up every function of the platform outside of its former, public parent. We are proud to have been a part of such an iconic brand’s journey and will continue to support Wave, TPO and SCP as they work with management to accelerate growth in the coming years.”

“During our partnership with Trive, we have taken one of the most trusted brands in the internet space and turned it into a trusted option for consumers and small businesses nationwide,” commented Glenn Goad, Chief Executive Officer of EarthLink. “As internet access has become one of the most important utilities in a consumer’s life, EarthLink has a renewed focus on making it easier for our customers to access the best internet options at affordable prices. Trive was critically important through and after the carve-out, and we are excited to partner with Wave, TPO and SCP to continue to grow EarthLink alongside our trusted fiber and 5G partners. Our collective goal remains the same: to provide the right technology at the right price, supported by a world-class customer experience.”

About EarthLink

EarthLink is an internet service provider offering fiber and 5G internet solutions for homes and businesses nationwide. With a focus on dependable connectivity, flexible plans, and customer-focused service, EarthLink provides broadband options designed to meet the needs of modern households and businesses. EarthLink is headquartered in Atlanta, Georgia and serves over 500,000 customers. To learn more, visit earthlink.net.

About Trive Capital

Trive Capital is a Dallas, Texas based private equity firm with more than $8 billion of regulatory assets under management. Trive focuses on investing equity and debt in what it sees as strategically viable middle-market companies with the potential for transformational upside through operational improvement.

The Trive team is comprised of seasoned investment professionals who have been involved in over 250 middle-market transactions representing in excess of $10 billion in revenue across Trive’s targeted industry sectors and situations.

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SOURCE Trive Capital

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Rondo Energy and Rio Tinto Advance Australia’s Largest Thermal Energy Storage Project

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GLADSTONE, Australia, Oct. 20, 2026 /PRNewswire/ — Rondo Energy and Rio Tinto have started front-end engineering and design on the project for a 360 MWh storage / 30 MW discharge Rondo Heat Battery, supported by a grant from the Australian Renewable Energy Agency (ARENA).

ARENA’s funding for the project will be provided in stages, with an initial $3.6 million to complete front-end engineering and design work. Following successful completion of that study, ARENA will provide up to $38 million for deployment. ARENA has also approved up to $33.3 million in conditional contingency support, which would only be made available in defined circumstances to manage specific project risks, including cost overruns and electricity costs. 

If progressed, the project would be delivered at Rio Tinto’s Yarwun alumina refinery near Gladstone, Queensland and would be one of the first large-scale demonstrations of thermal energy storage for industrial process heat globally, and a world-first for the alumina industry.

Rondo Heat Batteries use abundant, low-cost midday electricity to charge, storing energy as high-temperature heat in refractory brick, and supplying energy as 24/7 continuous process heat to industry. Typically, the heat is delivered as steam, directly into an industrial facility’s steam network. Australia regularly has 4-6 hours of surplus solar-generated renewable electricity in the middle of the day, but industrial facilities need heat 24 hours a day, not just when the sun is shining. By charging when electricity is cheap and abundant and discharging continuously, Rondo Heat Batteries turn short periods of low-cost electricity into 24/7 delivery of low-cost steam. 

For energy-intensive industries such as alumina refining, Rondo Heat Batteries create a pathway to electrification that addresses both emissions and energy costs. Because the heat battery slots into the existing steam network, the facility’s processes run exactly as before — the only thing that changes is the energy for that heat: no longer from fossil fuels, but sourced from low cost electricity instead. The Yarwun study will assess the technical and economic viability of integrating the technology into refinery operations.

“This project shows how Australia’s abundant energy can become a competitive advantage for industry,” said Dr. Kira Rundel, Rondo’s Head of Australia. “Heat batteries allow manufacturers to use low-cost electricity to produce the reliable, round-the-clock heat their operations need. Australia’s largest heat battery will show how factories can cut emissions without increasing energy costs, helping Australian industry to increase global competitiveness and supporting local manufacturing jobs.”

Rio Tinto Pacific Operations Managing Director Armando Torres said: “Reducing emissions from alumina refining is complex, particularly when it comes to generating the high-pressure steam needed for our operations.

“This study will help us determine whether thermal energy storage can provide a technically and economically viable alternative to fossil fuels for part of Yarwun’s steam requirements.

“The best way to tackle challenges of this scale is through collaboration between industry, government, and technology partners. We welcome ARENA and Rondo’s support as we assess technologies that could help reduce our Scope 1 emissions while maintaining reliable operations at Yarwun.”

About Rondo Energy

Rondo Energy delivers firm heat and power, including combined heat and power (CHP), to heavy industry and provides power solutions and long duration storage to data centers. For industrial heat applications, Rondo Heat Batteries convert 4-6 hours of low-cost electricity into continuous 24-hour, high-temperature heat, delivered as steam or hot air up to 1,000°C. The heat delivered integrates directly with existing industrial equipment and processes, eliminating on-site emissions and running on lower cost energy. Rondo heat storage can integrate with steam turbines to deliver combined heat and power (CHP) for industry, and long duration power-to-power solutions for large energy consumers such as data centers. Built on proven refractory brick as the thermal storage medium, Rondo’s platform is engineered for multi-decade operation in the most demanding industrial environments.

Rondo Heat Batteries have been delivering firm heat and power at scale since 2023, with operational facilities serving customers in fuels and cement (including steam driving turbines for electricity) in the United States and in Asia. The next unit will come online shortly – a 100 MWh Rondo Heat Battery under construction in Europe for a chemical plant. Rondo is a global company based in California, with teams across North America, Europe, the Middle East, and Australia. Providing heat and power solutions to the alumina industry is an area of focus for the company due to the strong fit of Rondo’s technology with the heat and power needs of the alumina industry.

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SOURCE Rondo Energy

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14 Organizations Earn CHIME’s Highest Digital Health Most Wired Designation for 2026

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ANN ARBOR, Mich., Oct. 20, 2026 /PRNewswire/ — The College of Healthcare Information Management Executives (CHIME), the leading professional organization for digital health leaders, today announced 14 organizations have achieved Level 10 in the 2026 CHIME Digital Health Most Wired (DHMW) survey. Powered by Digital Health Analytics (DHA), the survey is CHIME’s global assessment of digital health excellence, with Level 10 as its highest designation.

Representing health systems across the U.S., this year’s Level 10 organizations demonstrated exceptional performance across the enterprise digital ecosystem, leveraging technologies, data, infrastructure, and strategic practices shaping modern care delivery. The prestigious designation recognizes organizations that have moved beyond technology implementation to integrate digital investment across clinical and operational environments, producing measurable value for their health systems, patients, and providers.

The 2026 DHMW survey maintains a rigorous scoring methodology designed to account for differences in organizational size, complexity, risk, and resources, creating an equitable measure of performance across diverse healthcare environments. The model evaluates organizations across 10 distinct segments, measuring both the foundational elements required for digital maturity and the advanced practices that demonstrate broader adoption, integration, and value.

“Healthcare is experiencing extraordinary technological acceleration, driven in large part by the rapid adoption of AI and increasingly sophisticated digital capabilities,” said Russ Branzell, President and CEO of CHIME. “As that pace intensifies, the Digital Health Most Wired Survey continues to provide a rigorous benchmark for evaluating whether technology is translating into meaningful progress. It gives leaders a data-driven view of performance, critical gaps, and opportunities for high-impact investment while setting an industry standard of excellence for responsible technology adoption. The Level 10 organizations recognized this year exemplify the leadership and innovation required to turn digital investment into measurable improvements in care delivery.”

The 2026 Digital Health Most Wired survey includes data from more than 45,000 facilities worldwide, offering a global view of technology adoption, investment and performance across healthcare organizations and the evolving role of digital health in care delivery, operations and the patient and provider experience.

Each participating organization received a customized benchmarking report through the Digital Health Analytics (DHA) portal, offering detailed insights into performance metrics across 10 key segments:

InfrastructureSecurityAdministrationSupply chainAnalytics and data managementInteroperabilityPopulation healthPatient engagementInnovationClinical quality and safety

Fourteen healthcare organizations achieved Level 10 distinction, the highest designation awarded through the 2026 CHIME Digital Health Most Wired survey. The recipients are Baptist Health System (Jacksonville, Florida); Bon Secours Mercy Health (Ohio); MetroHealth Medical Center (Ohio); MultiCare Health System (Washington); Northeast Georgia Health System (Georgia); NYU Langone Health (New York); Parkview Health (Indiana); Roper St. Francis Healthcare Services, Inc. (South Carolina); Stanford Health Care (California); UCHealth (Colorado); UNC Health (North Carolina); University Health (Texas); University of Utah Health (Utah); and UPMC (Pennsylvania).

Collectively, the 2026 Level 10 designees reflect a healthcare environment in which digital performance increasingly depends on the alignment of technology strategy, data, infrastructure, and organizational priorities with strong leadership and a sustained commitment to innovation. Their results demonstrate how leading health systems are converting digital investment into measurable gains across clinical and operational environments while establishing the foundations required to responsibly adopt emerging technologies at scale.

CHIME will formally recognize these distinguished Level 10 honorees on November 12, 2026, during the CHIME26 Fall Forum in Denver, CO, which runs from November 11-14.

For additional details on the 2026 Digital Health Most Wired survey and the complete list of all Level 7-10 award recipients, visit dhanalytics.org.

About CHIME 
The College of Healthcare Information Management Executives (CHIME) is the leading professional organization for digital health executives and leaders. CHIME provides a trusted, collaborative environment where members and partners connect, share best practices, advance professional development, and advocate for the effective use of information and technology to improve health and care in the communities they serve. For more information, please visit chimecentral.org.

About Digital Health Analytics (DHA)
Digital Health Analytics provides healthcare organizations, technology companies, and academic researchers with the data, benchmarking, and market intelligence they need to lead digital transformation — 365 days a year. Powered by the College of Healthcare Information Management Executives (CHIME), DHA helps provider organizations supercharge their digital health transformation capabilities. For more information about DHA, visit dhanalytics.org.

For media inquiries, please contact:

Calli Dretke
Executive Vice President & Chief Digital and Marketing Officer
CHIME
734.665.0000
cdretke@chimecentral.org

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SOURCE College of Healthcare Information Management Executives (CHIME)

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