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TAT Technologies Grows Revenue by 34%, Net Income by 139%, and Adjusted EBITDA by 67% for the full year of 2024

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Company Delivers 9th Consecutive Quarter of Expanding Revenues

NETANYA, Israel, March 26, 2025 /PRNewswire/ — TAT Technologies Ltd. (TASE: TAT Tech) (NASDAQ: TATT) (“TAT” or the “Company”), a leading provider of products and services to the commercial and military aerospace and ground defense industries, today reported its unaudited results for the three and 12 months ended December 31, 2024 (Q4’24).

Financial Highlights for the 12 Months Ended December 31, 2024:

Revenue increased by 34% to $152.1 million, compared to $113.8 million for the same period in 2023.Gross profit increased by 47% to $33 million (21.7% of revenue) up from $22.5 million (19.7% of revenues) in the prior year.Net lncome increased by 139% to $11.2 million, or $1.0 per diluted share, compared to $4.7 million, or $0.51 per diluted share, in 2023.Adjusted EBITDA increased by 67% to $18.6 million, compared to $11.1 million in the prior year.Cash flow from operations was negative ($5.8) million compared to a positive $2.3 million in 2023.

Mr. Igal Zamir, CEO and President of TAT Technologies commented: “TAT Technologies continues to deliver solid execution, marking our ninth consecutive quarter of revenue growth and improved profitability. This positive momentum reflects the early impact of the strategic growth engines introduced over the past years, which we believe will continue to drive our results in the years ahead.”

“In the fourth quarter, we launched our strategic ‘Customer First’ initiative, which is our key goal for 2025,” continued Mr. Zamir. “Our commitment is to deliver exceptional customer service and best-in-class performance, even as the industry continues to face supply chain challenges. As part of this effort, we strategically increased our parts and rotatable inventory in areas where the supply chain is unstable, anticipating continued revenue growth in 2025. While this investment in inventory had a negative effect on our operational cash flow, it positions us to mitigate supply chain risks as we move forward”.

“Also in the fourth quarter, TAT won contracts and new orders totaling $47 million, increasing our backlog to a record high of $429 million, and validating our continued confidence in the company’s growth trajectory,” added Mr. Zamir.

“In 2024, we expanded our engagement with the US and Israeli investors community, which contributed to a successful $10 million overnight capital raise and a 153% increase in our share price. We remain optimistic about the outlook for 2025. In addition to pursuing continued revenue growth, we are advancing several initiatives to improve our operational efficiency and our cost structure, which we expect to begin delivering results during 2025″. 

Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with GAAP, the Company also presents Adjusted EBITDA.  The adjustments to the Company’s GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company’s underlying operational results, trends and performance. Adjusted EBITDA is calculated as net income excluding the impact of: the Company’s share in results of affiliated companies, share-based compensation, taxes on income, financial (expenses) income, net, and depreciation and amortization. Adjusted EBITDA, however, should not be considered as alternative to net income and operating income for the period and may not be indicative of the historic operating results of the Company; nor it is meant to be predictive of potential future results. Adjusted EBITDA is not measure of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. See reconciliation of Adjusted EBITDA in pages 13 below.

Investor Call Information

TAT Technologies will host two webcasts to review its financial results and provide a business update, on Thursday, March 27, 2025, at 7:30 a.m. ET a call in Hebrew, followed by an additional call at 8:30 a.m. ET in English. Interested investors can register for the webcast at the links below or visit the investor relations section of the Company’s website at https://tat-technologies.com/investors/. 

Conference call in EnglishConference call in Hebrew

About TAT Technologies LTD

TAT Technologies Ltd. is a leading provider of services and products to the commercial and military aerospace and ground defense industries. TAT operates under four segments: (i) Original equipment manufacturing (“OEM”) of heat transfer solutions and aviation accessories through its Gedera facility; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary. TAT controlling shareholders is the FIMI Private Equity Fund.

TAT’s activities in the area of OEM of heat transfer solutions and aviation accessories primarily include the design, development and manufacture of (i) broad range of heat transfer solutions, such as pre-coolers heat exchangers and oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems on board commercial, military and business aircraft; (ii) environmental control and power electronics cooling systems installed on board aircraft in and ground applications; and (iii) a variety of other mechanical aircraft accessories and systems such as pumps, valves, and turbine power units.

TAT’s activities in the area of MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO of heat transfer components and to a lesser extent, the manufacturing of certain heat transfer solutions. TAT’s Limco subsidiary operates an FAA-certified repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers and the military.

TAT’s activities in the area of MRO services for aviation components include the MRO of APUs, landing gears and other aircraft components. TAT’s Piedmont subsidiary operates an FAA-certified repair station, which provides aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military.

TAT’s activities in the area of overhaul and coating of jet engine components includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps.

For more information of TAT Technologies Ltd., please visit our website:  www.tat-technologies.com

Contact:
Mr. Eran Yunger
Director of IR
erany@tat-technologies.com

 

 

TAT TECHNOLOGIES LTD.

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

December 31,

2024

2023

ASSETS

CURRENT ASSETS:

   Cash and cash equivalents

$       7,129

$       15,979

   Accounts receivable, net of allowance for credit losses of $400
   and $345 thousand as of December 31, 2024 and 2023 respectively

29,697

20,009

   Restricted deposit

–

661

   Other current assets and prepaid expenses

7,848

6,397

   Inventory

68,540

51,280

   Total current assets

113,214

94,326

NON-CURRENT ASSETS:

   Restricted deposit

305

302

   Investment in affiliates

2,901

2,168

   Funds in respect of employee rights upon retirement

654

664

   Deferred income taxes

877

994

Property, plant and equipment, net

41,576

42,554

Operating lease right of use assets

2,282

2,746

Intangible assets, net

1,553

1,823

    Total non-current assets

50,148

51,251

   Total assets

163,362

145,577

 

 

TAT TECHNOLOGIES LTD. 

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

December 31,

2024

2023

LIABILITIES AND SHAREHOLDERS ‘EQUITY

CURRENT LIABILITIES:

  Current maturities of long-term loans

$          2,083

$          2,200

  Short term loans

4,350

12,138

   Accounts payable

12,158

9,988

   Accrued expenses and other

18,594

13,952

   Current maturities of operating lease liabilities

939

1,033

   Total current liabilities

38,124

39,311

NON-CURRENT LIABILITIES:

   Long-term loans

10,938

12,886

   Liability in respect of employee rights upon retirement

986

1,000

   Operating lease liabilities

1,345

1,697

   Total non-current liabilities

13,269

15,583

COMMITMENTS AND CONTINGENCIES (NOTE 11)

Total liabilities

51,393

54,894

SHAREHOLDERS ‘EQUITY:

Ordinary shares of NIS 0 par value and NIS 0.9 par value
at December 31, 2024 and at December 31, 2023
respectively:

Authorized: 13,000,000 shares at December 31, 2024
and at December 31, 2023; Issued: 11,214,831 and
10,377,085 shares at December 31, 2024 and at
December 31, 2023 respectively; Outstanding:
10,940,358 and 10,102,612 shares at
December 31, 2024 and at December 31, 2023
respectively

–

3,140

Additional paid-in capital

89,697

76,335

Treasury shares, at cost, 274,473 shares at
December 31, 2024 and 2023

(2,088)

(2,088)

Accumulated other comprehensive income

(76)

27

Retained earnings

24,436

13,269

Total shareholders’ equity

111,969

90,683

Total liabilities and shareholders’ equity

163,362

145,577

 

 

TAT TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands

Year ended December 31,

2024

2023

2022

Revenue:

Products

$    47,710

$    35,241

$   25,460

Services

104,406

78,553

59,096

152,116

113,794

84,556

Cost of revenue, net:

Products

33,986

30,517

21,631

Services

85,116

60,809

46,997

119,102

91,326

68,628

Gross profit

33,014

22,468

15,928

Operating expenses:

Research and development, net

1,248

715

479

Selling and marketing, net

7,746

5,523

5,629

General and administrative, net

11,901

10,588

9,970

Other income

(383)

(433)

(90)

Restructuring expenses, net

–

1,715

20,512

16,393

17,703

Operating income (loss)

12,502

6,075

(1,775)

Interest expenses

(1,472)

(1,683)

(902)

Other financial income (expenses), net

(477)

353

1,029

Income profit (loss) before taxes on income

10,553

4,745

(1,648)

Taxes on income

195

576

98

Profit (Loss) before share of equity investment

10,358

4,169

(1,746)

Share in profit of equity investment of affiliated companies

809

503

184

Net income (loss)

$    11,167

$    4,672

$    (1,562)

 

 

TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands, except share and per share data

Year ended December 31,

2024

2023

2022

Net income (loss)

$    11,167

$    4,672

$  (1,562)

Net income (loss) per share basic

$     1.08

$     0.52

$    (0.175)

Net income (loss) per share diluted

$     1.00

$     0.51

$    (0.175)

Weighted average number of shares outstanding:

10,363,978

8,961,689

8,911,546

Basic

 Diluted

11,215,827

9,084,022

8,911,546

 

 

TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

U.S. dollars in thousands

Year ended December 31,

2024

2023

2022

Net income (loss)

$    11,167

$     4,672

$      (1,562)

Other comprehensive income (loss), net

Net unrealized gains (losses) from derivatives

(27)

53

(89)

Change in foreign currency translation

Adjustments

(76)

–

–

Reclassification adjustments for loss from derivatives included in net income

–

–

30

Total other comprehensive income (loss)

(103)

53

(59)

 

Total comprehensive income (loss)

$    11,064

$     4,725

$     (1,621)

 

 

TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY

U.S. dollars in thousands, except share data

Ordinary shares

Number of
shares issued

Amount

Additional
paid-in
capital

Accumulated
other
comprehensive
income (loss)

Treasury
shares

Retained
earnings

Total equity

BALANCE AT DECEMBER 31, 2021

9,149,169

$            2,809

$       65,871

$            33

$            (2,088)

$          10,159

$            76,784

CHANGES DURING THE YEAR ENDED DECEMBER 31, 2022:

Comprehensive income

(59)

–

(1,562)

(1,621)

Exercise of Options

36,850

33

156

189

Share based compensation

218

218

BALANCE AT DECEMBER 31, 2022

9,186,019

$            2,842

$       66,245

$           (26)

$            (2,088)

$            8,597

$            75,570

CHANGES DURING THE YEAR ENDED DECEMBER 31, 2023:

Comprehensive income

–

–

–

53

–

4,672

4,725

Exercise of Options

32,466

8

157

–

–

165

Issuance of common shares net of issuance costs of $141  thousands

1,158,600

290

9,774

–

–

10,064

Share based compensation

159

–

–

159

BALANCE AT DECEMBER 31, 2023

10,377,085

$            3,140

$     76,335

$              27

$            (2,088)

$          13,269

$            90,683

CHANGES DURING THE YEAR ENDED DECEMBER 31, 2024:

Comprehensive income(loss)

–

–

–

(103)

–

11,167

11,064

Exercise of Options

164,406

12

(12)

–

–

–

–

Cancel of shares par value )see note 12a(

(3,152)

3,152

–

–

–

–

Issuance of common shares net of issuance costs of $162 thousands

673,340

–

9,827

–

–

–

9,827

Share based compensation

–

395

–

–

–

395

BALANCE AT DECEMBER 31, 2024

11,214,831

–

$     89,697

$            (76)

$            (2,088)

$           24,436

$        111,969

 

 

TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

Year ended December 31,

2024

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$    11,167

$     4,672

$    (1,562)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization

5,455

4,710

3,706

Loss (gain) from change in fair value of derivatives

22

(9)

8

Change in funds in respect of employee rights upon retirement

10

116

377

Net change in operating right of use asset and operating lease liability

18

22

(82)

Non cash financial expenses

(187)

(172)

(902)

Decrease in restructuring plan provision

(63)

(126)

(467)

Change in allowance for credit losses

55

(182)

138

Share in results of affiliated companies

(809)

(503)

(184)

Share based compensation

395

159

218

Liability in respect of employee rights upon retirement

(14)

(148)

(356)

Capital gain from sale of property, plant and equipment

(478)

(530)

(90)

Deferred income taxes, net

117

235

23

Changes in operating assets and liabilities:

    Increase in trade accounts receivable

(9,743)

(4,205)

(2,659)

Increase in other current assets and prepaid expenses

(1,473)

(341)

(1,836)

    Increase in inventory

(17,165)

(5,400)

(5,069)

    Increase (decrease) in trade accounts payable

2,170

(245)

1,143

    Increase in accrued expenses and other

4,705

4,202

2,727

Net cash provided by (used in) operating activities from continued operation

$  (5,818)

$      2,255

$      (4,867)

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sale of property and equipment

1,275

2,002

93

Purchase of property and equipment

(5,126)

(5,102)

(16,213)

Purchase of intangible assets

–

(479)

–

Net cash used in investing activities from continued operations

$   (3,851)

$    (3,579)

$    (16,120)

 

 

TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP)  (UNAUDITED)

U.S. dollars in thousands

Year ended December 31,

2024

2023

2022

CASH FLOWS FROM FINANCING ACTIVITIES:

 Repayments of long-term loans

(2,016)

(1,701)

(1,071)

Net change in short term credit from banks

(7,650)

1,000

–

Proceeds from long-term loans received

–

712

16,680

Proceeds from issuance of common shares, net

9,827

10,064

–

Exercise of options

–

165

189

Net cash provided by financing activities from continued operations

$         161

$      10,240

$     15,798

Net increase (decrease) in cash and cash equivalents and

restricted cash

(9,508)

8,916

(5,189)

Cash and cash equivalents and restricted cash at

beginning of period 

16,942

8,026

13,215

Cash and cash equivalents and restricted cash at end of

period

7,434

16,942

8,026

 

SUPPLEMENTARY INFORMATION ON INVESTING ACTIVITIES NOT INVOLVING CASH FLOW:

Purchase of property, plant and equipment on credit

–

–

196

Additions of operating lease right-of-use assets and operating lease liabilities

983

1,345

318

Reclassification of inventory to property, plant and equipment

155

68

284

Capital contribution to equity method investee

–

–

787

 

Supplemental disclosure of cash flow information:

Interest paid

(1,400)

(1,438)

(796)

Income taxes received (paid), net

$          (39)

$               –

$               –

 

 

TAT TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP)  (UNAUDITED)

U.S. dollars in thousands

Year ended

December 31,

2024

2023

Net income

$11,167

$4,672

Adjustments:

Share in results and sale of equity

investment of affiliated companies

(809)

(503)

Taxes on income (tax benefit)

195

576

Financial expenses (income), net

1,949

1,330

Depreciation and amortization

5,717

4,902

Share based compensation

395

159

Adjusted EBITDA

$ 18,614

$11,136

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TAT TECHNOLOGIES LTD.

(Registrant)

By: /s/ Ehud Ben-Yair
Ehud Ben-Yair
Chief Financial Officer

Date: March 26, 2025

 

 

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SOURCE TAT Technologies Ltd

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Healthcare Data Center Market to Reach USD 37.11 Billion by 2035 as AI Genomics, EHR Resilience and Hosted Capacity Reshape Healthcare Infrastructure – DC Market Insights

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Market grows at a 9.15% CAGR from USD 15.46 billion in 2025; AI genomics and research computing expands 16.71% a year, while North America holds 46.0% of spending

LONDON, Oct. 23, 2026 /PRNewswire/ — The “Healthcare Data Center Market – Growth, Share, Opportunities & Competitive Analysis, 2026-2035” report has been added to the DC Market Insights offering. The global Healthcare Data Center Market was valued at USD 15.46 billion in 2025, is estimated at USD 17.34 billion in 2026, and is projected to reach USD 37.11 billion by 2035, growing at a CAGR of 9.15% from 2025 to 2035. DC Market Insights finds that healthcare infrastructure is splitting between general-purpose EHR workloads that increasingly move to hosted environments and higher-value AI, imaging, research and resilience workloads that require dedicated or colocated capacity.

Healthcare Data Center Market at a Glance

Metric

Value (DC Market Insights estimate)

Market size, 2020

USD 9.77 billion

Market size, 2025 (base year)

USD 15.46 billion

Market size, 2026

USD 17.34 billion (+12.16% year on year)

Market size, 2030

USD 25.10 billion

Market size, 2035

USD 37.11 billion

CAGR 2025-2035

9.15% (low case 7.13%, high case 10.69%)

Largest component

IT hardware, 70.7% of 2025 value

Fastest-growing workload

AI genomics and research computing, 16.71% CAGR

Leading region

North America, 46.0% (USD 7.11 billion)

Fastest-growing region

Asia Pacific, 11.72% CAGR

Largest end user

Hospitals and health systems, 47.0% of 2025 value

Key Takeaways

IT hardware accounts for USD 10.93 billion, or 70.7% of 2025 market value, reflecting the high server, storage and accelerator content of clinical and research workloads.AI genomics and research computing is the fastest workload, rising 16.71% a year from USD 2.30 billion in 2025 to USD 10.78 billion by 2035.Hospitals and health systems remain the largest end user at USD 7.27 billion in 2025, while pharmaceutical and life sciences grows fastest among end users at 11.61% a year.On-premises owned sites hold 60.0% of 2025 value, but wholesale and build-to-suit grows 14.01% a year as research and AI clusters move into purpose-built capacity.North America leads with 46.0% of 2025 spending, while Asia Pacific grows fastest at 11.72%; India is the fastest-growing large country at 18.37% a year.

Scope & Segmentation – Healthcare Data Center Market

The report analyzes the market across the following segments:

Component: IT Hardware; Colocation and Hosting Services; Electrical and Mechanical Infrastructure; Construction and Fit-OutEnd User: Hospitals and Health Systems; Pharmaceutical and Life Sciences; Payers and Health Insurers; Health IT and Medtech Vendors; Public Health and Research InstitutesWorkload: EHR and Clinical Applications; Medical Imaging and PACS; AI Genomics and Research Computing; Claims and Revenue Cycle; Backup and Disaster Recovery; Collaboration and Other WorkloadsDeployment Model: On-Premises Owned Sites; Retail Colocation; Wholesale and Build-to-Suit; Vendor-Hosted Private CloudGeography: North America; Europe; Asia Pacific; Latin America; Middle East and Africa, with 12 country forecasts

Report Updated: Oct. 22, 2026

Get Free Sample Report – Healthcare Data Center Market

“Healthcare data center demand is moving in two directions at once: hospitals are reducing general-purpose owned halls while AI, imaging, research and cyber-resilience requirements add denser, higher-value infrastructure. Our model shows AI genomics and research computing growing 16.71% a year and wholesale or build-to-suit capacity growing 14.01%, while the owned-site share falls from 60.0% in 2025 toward 45.0% by 2035. That makes compliant hosted capacity, AI-ready infrastructure and recoverability the strongest growth pools through the forecast period.”

— Amit Jain, Senior Consultant, ICT & Emerging Technologies, DC Market Insights, report author

Why This Report Matters
Healthcare data centers sit at the intersection of patient-data availability, clinical application performance, medical imaging, pharmaceutical research and cyber resilience. The report helps health systems, life sciences companies, colocation operators, cloud and hosting providers, equipment vendors and investors size infrastructure demand while separating public-cloud migrations that leave the market from leased and owned capacity that remains in scope.

Key Attributes

Report attribute

Details

Historical Period

2020-2024

Base Year

2025

Forecast Period

2026-2035

Market Size 2025

USD 15.46 billion

Market Size 2026

USD 17.34 billion

Market Size 2035

USD 37.11 billion

CAGR 2025-2035

9.15% (low 7.13%, high 10.69%)

Leading Region

North America, 46.0%

Report Format

PDF + Excel

How Big Is the Healthcare Data Center Market in 2026?
DC Market Insights values the Healthcare Data Center Market at USD 17.34 billion in 2026, 12.16% above 2025, as backup sites, AI clusters for drug discovery and leased halls for electronic health records are added faster than hospital server rooms close. The model places healthcare IT load at 3,300 MW in 2025 and projects it to double to 6,600 MW by 2035, with accelerator racks taking a larger share of the mix.

Year

Market size

2020

USD 9.77 billion

2025

USD 15.46 billion

2026

USD 17.34 billion (+12.16% year on year)

2030

USD 25.10 billion

2035

USD 37.11 billion

Source: DC Market Insights, Healthcare Data Center Market report, Oct. 22, 2026.

Why Do AI and Research Workloads Raise Healthcare Data Center Spend?
AI infrastructure changes the value of each megawatt. DC Market Insights estimates a conventional healthcare MW carries about USD 3.05 million a year of hardware, while an AI MW carries about USD 8.30 million. That premium comes from GPU systems, high-speed networking, large research datasets and the supporting power and cooling required for accelerated computing. The result is that market value grows faster than healthcare IT load as the accelerator share rises from about 5% in 2025 toward 22% by 2035.

Which Component Leads Healthcare Data Center Spending?
IT hardware remains the largest component, but colocation and hosting services grow faster as providers absorb EHR, imaging, backup and research workloads that institutions no longer want to operate in ageing hospital server rooms.

Component

2025 value

Share 2025

2035 value

CAGR

IT Hardware

USD 10,931.24M

70.7 %

USD 24,479.40M

8.40 %

Colocation and Hosting Services

USD 3,136.32M

20.3 %

USD 9,496.08M

11.72 %

Electrical and Mechanical Infrastructure

USD 967.87M

6.3 %

USD 2,058.14M

7.84 %

Construction and Fit-Out

USD 427.77M

2.8 %

USD 1,078.98M

9.69 %

DC Exclusive: Hospital Data Center Exit Tracker
DC Market Insights tracks 14 named healthcare infrastructure moves from 2014 through 2026. Ten moved workloads to public cloud, two went to colocation and two built new owned sites. The pattern explains why owned data centers can lose share even while the overall market expands: general-purpose EHR estates leave older halls, while AI and research clusters arrive as new owned, wholesale or colocated capacity. The model therefore takes the owned-site share from 60.0% in 2025 toward 45.0% by 2035.

Workload

2025 value

Share 2025

2035 value

CAGR

EHR and Clinical Applications

USD 4,638.95M

30.0 %

USD 8,907.02M

6.74 %

Medical Imaging and PACS

USD 2,783.38M

18.0 %

USD 6,309.14M

8.53 %

AI Genomics and Research Computing

USD 2,297.83M

14.9 %

USD 10,777.50M

16.71 %

Claims and Revenue Cycle

USD 2,010.22M

13.0 %

USD 4,082.39M

7.34 %

Backup and Disaster Recovery

USD 2,164.85M

14.0 %

USD 4,453.51M

7.48 %

Collaboration and Other Workloads

USD 1,567.97M

10.1 %

USD 2,583.04M

5.12 %

Which Region Leads the Healthcare Data Center Market?

North America leads because the United States combines a large installed hospital base, near-universal certified EHR adoption and significant pharmaceutical research infrastructure. Asia Pacific grows fastest as India, China and other markets add local capacity under health-data localization and digital-health programs.

Indicator

2025 / Base

Outlook

Leading region

North America, 46.0% (USD 7.11B)

USD 15.77B by 2035; remains the largest regional spending pool

Fastest-growing region

Asia Pacific, 11.72% CAGR

Reaches USD 9.83B by 2035 as India and China add domestic health-data capacity

Fastest large country

India, 18.37% CAGR

USD 247.41M in 2025 to USD 1.34B by 2035

Largest country

United States, USD 6.49B in 2025

Remains the largest national market through the forecast

How Could the 2035 Forecast Change?

The 2035 outcome depends on how quickly hospital EHR estates move to public cloud, how much pharmaceutical AI is purchased as cloud capacity rather than dedicated infrastructure, and how strongly resilience rules push institutions to maintain recoverable private or colocated capacity.

Scenario

Assumption

2035 value

CAGR 2025-2035

Low

Faster EHR migration to public cloud; more pharma AI bought as cloud capacity

USD 30.80B

7.13 %

Base

Healthcare IT load reaches 6,600 MW; 22% on AI racks; 55% leased

USD 37.11B

9.15 %

High

Stricter 72-hour restore requirements and more drug makers build owned AI factories

USD 42.68B

10.69 %

Competitive Landscape and Recent Developments
The five largest colocation providers account for about 31% of the USD 3.14 billion healthcare colocation and hosting market in 2025, leaving the sector fragmented. Competition spans colocation, EHR hosting, cloud services, AI hardware and the power and cooling systems required for hospital and life-sciences infrastructure.

Companies profiled include:

Equinix; Digital Realty; Iron Mountain Data Centers; CyrusOne; NTT DATA; Epic Systems (Epic Hosting); Oracle (Oracle Health); Microsoft (Nuance); Amazon Web Services; Google Cloud; Dell Technologies; Hewlett Packard Enterprise; NVIDIA; Cisco Systems; Schneider Electric; Vertiv.

In July 2026, WellSpan Health completed the move of more than 300 applications and 7.5 PB of data to AWS in 17 weeks.In April 2026, the U.S. Department of Veterans Affairs requested USD 4.2 billion for its EHR in fiscal 2027, including USD 745 million for infrastructure readiness.In February 2026, Eli Lilly’s LillyPod AI factory with more than 9,000 petaflops went live in Indianapolis.In February 2026, five Ontario hospitals in Transform Shared Service Organization moved their EHR to Oracle Cloud Infrastructure, cutting page-load time by 71%.In January 2026, NVIDIA and Eli Lilly agreed to invest up to USD 1 billion over five years in an AI co-innovation lab.In November 2025, India notified the DPDP Rules with an 18-month phased timeline.

Frequently Asked Questions

What is the size of the Healthcare Data Center Market?
USD 15.46 billion in 2025 and USD 17.34 billion in 2026, projected to reach USD 37.11 billion by 2035 at a 9.15% CAGR.

Which component leads the market?
IT hardware, with USD 10.93 billion or 70.7% of 2025 spending.

Which workload grows fastest?
AI genomics and research computing, at 16.71% a year through 2035.

Which healthcare end user spends the most?
Hospitals and health systems, with USD 7.27 billion or 47.0% of 2025 market value.

Which region leads?
North America with USD 7.11 billion or 46.0% of 2025 value; Asia Pacific grows fastest at 11.72% a year.

Who are the leading suppliers?
Equinix, Digital Realty, Iron Mountain Data Centers, CyrusOne and NTT DATA are among the leading colocation providers, alongside major healthcare hosting, cloud, hardware and infrastructure vendors.

Methodology

DC Market Insights builds the healthcare data center market bottom-up from 3,300 MW of healthcare IT load in 2025 and spending per MW for hardware, colocation and hosting, electrical and mechanical infrastructure, and construction and fit-out. The model separates conventional and AI MW, applies leased-capacity economics, and reconciles end-user, workload, deployment, regional and country splits to the total market before applying forecast assumptions.

Download Sample Report – Healthcare Data Center Market

Related Reports from DC Market Insights
Data Center Colocation Market
AI Data Center Market
Data Center Outsourcing Market
Multi-Tenant Data Center Market
Data Center Virtualization Market

DC Market Insights Data & Tools

Explore live datasets and decision tools used across DC Market Insights research:

Data Center Database
Data Center Map
Data Center Operators
Global Capacity Tracker
Deal Tracker
Power & Policy Tracker
PUE Calculator
Construction Pipeline
Deal Comps
Site Risk
Electricity Rates
Data Center Footprint

About DC Market Insights

DC Market Insights is a dedicated research and consulting firm that empowers data center leaders with actionable intelligence. We combine rigorous market research, advanced analytics and practical advisory support to help organizations make confident decisions in an increasingly complex digital infrastructure landscape. Our goal is to transform data into clarity, giving clients the ability to act decisively on strategy, investment and execution.

Contact Us
DC Market Insights
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Email: sales@dcmarketinsights.com
United States: +1 628 262 7656
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Web: www.dcmarketinsights.com

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Technology

City of Hope Cancer Center Chicago Unites Industry Leaders for Health Technology Innovation Roundtable

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CHICAGO, Oct. 23, 2026 /PRNewswire/ — Faster access to care, more affordable treatment and policies that support innovation were central themes of a Health Technology Innovation Roundtable convened by City of Hope® Cancer Center Chicago on Thursday, October 15, at its hospital in Zion.

The discussion brought together Congressman Brad Schneider (IL-10) and leaders from City of Hope, Vantive and Zocdoc to examine how technology can help bend the health care cost curve, connect patients with care sooner and expand access to specialized treatment.

“Thank you to City of Hope in Zion for graciously hosting our recent roundtable to discuss how emerging health technologies are shaping patient care, access, and affordability,” said Schneider. “I am proud to represent a district where so many people work in the life sciences field to advance innovation. This convening was an important opportunity to hear directly from health technology innovators about the progress they are making to better connect patients with lifesaving care and how we can work together. I will continue to partner with City of Hope and the health technology experts throughout our district to ensure more people have access to the cutting-edge treatment and testing they deserve.”

The conversation spanned digital appointment scheduling, home dialysis, surgical robotics, artificial intelligence and remote monitoring. Zocdoc’s digital marketplace connects patients with available appointments, helping fill openings that might otherwise go unused. Vantive’s work in kidney care, including home dialysis, illustrated how technology can expand options for where and how patients receive treatment.  City of Hope’s experience with advanced surgery and wearable devices highlighted opportunities to bring specialized expertise closer to patients and support recovery at home.

“Technological advancements continue to evolve rapidly, and keeping up with them can feel like a job unto itself,” said Pete Govorchin, president of City of Hope Chicago. “Having an opportunity to pause and reflect on the progress we have seen thus far, as well as look ahead to what’s next alongside a distinguished panel of respected professionals, is critical.”

The discussion also addressed barriers that can keep innovation from reaching patients, including state licensing requirements, limited broadband, outdated regulations and reimbursement challenges. Access for rural communities and veterans was a recurring concern, alongside the need to measure how new technologies improve outcomes and reduce avoidable costs.

“As both a developer and adopter of advanced surgical technologies, City of Hope is well positioned to provide practical, evidence-based insights into how robotic surgery and other procedures, delivered remotely, could improve access, enhance quality, and support the future of patient-centered care,” said Dr. Yuman Fong, a City of Hope surgical oncologist.

Joining Schneider, Govorchin and Fong were Chris Toth, CEO of Vantive; Kyle Jackson, Vantive’s executive director of government affairs and market development; and Ilyssa Meyer, Zocdoc’s director of government affairs.

“I was proud to be part of an important convening of health technology experts discussing how we can continue to work together to connect more patients to care and innovative treatment. Rep. Schneider’s leadership on the bipartisan, bicameral Health ACCESS Act is an important next step in turning the innovations discussed at the recent roundtable into broader access to care,” added Meyer. “By reducing barriers to digital health services and online appointment scheduling, the bill can help connect more patients with the care they need.”

About City of Hope

City of Hope’s mission is to make hope a reality for all touched by cancer and diabetes. Founded in 1913, City of Hope has grown into one of the largest and most advanced cancer research and treatment organizations in the United States, and one of the leading research centers for diabetes and other life-threatening illnesses. City of Hope research has been the basis for numerous breakthrough cancer medicines, as well as human synthetic insulin and monoclonal antibodies. With an independent, National Cancer Institute-designated comprehensive cancer center that is ranked among the nation’s top cancer centers by U.S. News & World Report at its core, City of Hope’s uniquely integrated model spans cancer care, research and development, academics and training, and a broad philanthropy program that powers its work. City of Hope’s growing national system includes its Los Angeles campus, Orange County, California, campus, a network of clinical care locations across Southern California and cancer treatment centers and outpatient facilities in the Atlanta, Chicago and Phoenix areas. City of Hope’s affiliated group of organizations includes Translational Genomics Research Institute and AccessHope™. For more information about City of Hope, follow us on Facebook, X, YouTube, Instagram and LinkedIn.  

View original content to download multimedia:https://www.prnewswire.com/news-releases/city-of-hope-cancer-center-chicago-unites-industry-leaders-for-health-technology-innovation-roundtable-302917568.html

SOURCE City of Hope Cancer Center Chicago

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Technology

Kin Becomes First U.S. Home Insurer to Enable WebMCP for AI Shopping

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Consumers can now use ChatGPT to efficiently shop Kin’s digital home insurance experience

CHICAGO, Oct. 23, 2026 /PRNewswire/ — Building on its recent announcement that AI shopping agents like Meta’s Muse are welcome to shop on Kin.com, Kin is making its digital home insurance experience even easier for AI to shop. Kin, the direct-to-consumer provider of insurance and home finance solutions for homeowners, today announced that it has enabled WebMCP in its digital quoting experience. The new capability gives ChatGPT a faster and more efficient way to interact with Kin.com on a consumer’s behalf.

Homeowners can go from their AI agent prompt to a customized Kin home insurance quote ready for purchase in minutes due to the data-informed Kin.com quoting process.

“We said that Kin will win the AI shopping experience, and we meant it,” said Kin Founder and CEO Sean Harper. “People are going to increasingly ask AI to do the tedious work of shopping for them. We want someone to be able to tell ChatGPT, ‘Help me shop for home insurance,’ and make it incredibly easy for that AI agent to shop Kin.”

Unlike plug-ins that require installation, WebMCP is an open web standard which lets AI agents work directly with Kin.com, creating a more efficient way to interact with Kin’s digital experience, and making it easier for them to help consumers shop for home insurance. For consumers, that means AI can do more of the repetitive work involved in insurance shopping, while Kin makes its experience easier for those AI agents to navigate. 

Built for the Way Consumers Will Shop

The launch builds on Kin’s announcement that it would welcome Meta’s Muse and other AI shopping agents to Kin.com rather than block them. In Kin’s testing, Muse was able to retrieve home insurance quotes after asking consumers only a handful of questions. Likewise, with ChatGPT, Kin testing found consumers could easily price out home insurance in a clear side-by-side view with minimal questions. The technology improves daily, and Kin is committed to implementing open standards like WebMCP, which ChatGPT supports for paid users on its browser-based platform. While free ChatGPT accounts cannot use this protocol, consumers can still easily get a quote at kin.com.

Kin was built to sell home insurance directly to consumers through a digital experience, without relying on external agents. It also analyzes thousands of data points about individual homes, meaning much of the information needed to generate a quote can already be gathered without asking the homeowner.

“We didn’t have to reinvent Kin for AI shopping,” Harper said. “We already built a direct digital experience, we already have the data to answer most of the questions about a home, and we don’t depend on someone in the middle to sell the product. AI shopping rewards a lot of the things we’ve been building for years.”

A New Way to Shop for Insurance

Kin expects AI agents to become increasingly capable of helping consumers gather information, understand coverage and shop across insurance providers. As those capabilities improve, Kin plans to continue making its digital experience easier for both people and the AI agents working on their behalf.

“Five years from now, opening a bunch of browser tabs and filling out the same information over and over is going to seem pretty antiquated,” Harper said. “You’ll tell your AI what you need and it will go do the work. We’ve built Kin to win in that world.”

About Kin
Kin helps homeowners save money, simplify tasks, and protect their most valuable assets. By offering direct-to-consumer digital home and auto insurance alongside home finance services, the company focuses on supporting underserved homeowners in states with high catastrophic risk. Kin provides more convenient and affordable home and auto insurance coverage by eliminating the need for external agents and analyzing thousands of data points to provide transparent, accurate pricing. Kin’s AI-native technology platform delivers a seamless customer experience, customized options, and fast, high-quality service. To learn more, visit www.kin.com.

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SOURCE Kin Insurance, Inc.

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