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BENCHMARK REPORTS THIRD QUARTER 2024 RESULTS

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2 years ago

on

TEMPE, Ariz., Oct. 30, 2024 /PRNewswire/ — Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the third quarter ended September 30, 2024.

Third quarter 2024 results(1):

Revenue of $658 millionGenerated net cash provided by operations of $39 million and positive free cash flow of $29 millionGAAP and non-GAAP gross margin of 10.1% and 10.2%, respectivelyGAAP and non-GAAP operating margin of 4.3% and 5.3%, respectivelyGAAP and non-GAAP earnings per share of $0.42 and $0.57, respectively

Three Months Ended

September 30,

June 30,

September 30,

(Amounts in millions, except per share data)

2024

2024

2023

Sales

$

658

$

666

$

720

Net income

$

15

$

16

$

20

Income from operations

$

28

$

27

$

30

Net income – non-GAAP(1)

$

21

$

21

$

23

Income from operations – non-GAAP(1)

$

35

$

34

$

37

Diluted earnings per share

$

0.42

$

0.43

$

0.57

Diluted earnings per share – non-GAAP(1)

$

0.57

$

0.57

$

0.65

Operating margin

4.3

%

4.1

%

4.2

%

Operating margin – non-GAAP(1)

5.3

%

5.1

%

5.2

%

 

(1)     A reconciliation of non-GAAP results to the most directly comparable GAAP measures and a discussion of why management believes these non-GAAP results are useful are included below.

 

“Our third quarter results represent the 16th consecutive quarter of non-GAAP operating margin expansion on a year-over-year basis.  These results coupled with our focused working capital initiatives, has enabled us to deliver $245 million of positive free cash flow over the last 12 months,” said Jeff Benck, Benchmark’s President and CEO.

Benck continued “I would again like to welcome our new CFO, Bryan Schumaker, to the company. I am confident with his background and experience he will play a key role in helping drive continued operational excellence as we embark on our next phase of growth.”

Cash Conversion Cycle

September 30,

June 30,

September 30,

2024

2024

2023

Accounts receivable days

51

51

60

Contract asset days

26

25

24

Inventory days

89

90

100

Accounts payable days

(54)

(52)

(53)

Advance payments from customers days

(22)

(24)

(26)

Cash conversion cycle days

90

90

105

 

Third Quarter 2024 Industry Sector Update

Revenue and percentage of sales by industry sector were as follows.

September 30,

June 30,

September 30,

(In millions)

2024

2024

2023

Semi-Cap

$

188

28

%

$

172

26

%

$

165

23

%

Complex Industrials

151

23

142

21

154

21

Medical

107

16

111

17

149

21

A&D

102

16

109

16

100

14

AC&C

110

17

132

20

152

21

Total

$

658

100

%

$

666

100

%

$

720

100

%

 

Revenue decreased quarter over quarter primarily due to decreases in Advanced Computing and Communications (AC&C) sales, which were partially offset by an increase in Semi-Cap sales.  Revenue decreased year-over-year primarily due to decreases in Medical and AC&C sales, which were partially offset by increases in Semi-Cap and A&D sales.

Fourth Quarter 2024 Guidance

Revenue between $640 million – $680 millionDiluted GAAP earnings per share between $0.40 – $0.46Diluted non-GAAP earnings per share between $0.53 – $0.59Non-GAAP earnings per share guidance excludes stock-based compensation expense, amortization of intangible assets and restructuring charges and other costs.

In the fourth quarter of 2024, stock-based compensation expense is expected to be $3.5 million, amortization of intangible assets is expected to be $1.2 million and restructuring and other charges are expected to be approximately $1.0 million.

Third Quarter 2024 Earnings Conference Call

The Company will host a conference call to discuss the results today at 5:00 p.m. Eastern Time. The live webcast of the call and accompanying reference materials will be accessible by logging on to the Company’s website at www.bench.com. A replay of the broadcast will also be available on the Company’s website.

About Benchmark Electronics, Inc.

Benchmark provides comprehensive solutions across the entire product life cycle by leading through its innovative technology and engineering design services, leveraging its optimized global supply chain and delivering world-class manufacturing services in the following industries: semiconductor capital equipment, complex industrials, medical, commercial aerospace, defense, and advanced computing and communications. Benchmark’s global operations include facilities in seven countries and its common shares trade on the New York Stock Exchange under the symbol BHE.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts and may include words such as “anticipate,” “believe,” “intend,” “plan,” “project,” “forecast,” “strategy,” “position,” “continue,” “estimate,” “expect,” “may,” “will,” “could,” “predict,” and similar expressions of the negative or other variations thereof. In particular, statements, express or implied, concerning the Company’s outlook and guidance for fourth quarter and fiscal year 2024 results, future operating results or margins, the ability to generate sales and income or cash flow, expected revenue mix, the Company’s business strategy and strategic initiatives, the Company’s repurchases of shares of its common stock, the Company’s expectations regarding restructuring charges, stock-based compensation expense, amortization of intangibles, award of any tax incentives and capital expenditures, and the Company’s intentions concerning the payment of dividends, among others, are forward-looking statements. Although the Company believes these statements are based on and derived from reasonable assumptions, they involve risks, uncertainties and assumptions that are beyond the Company’s ability to control or predict, relating to operations, markets and the business environment generally, including those discussed under Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and in any of the Company’s subsequent reports filed with the Securities and Exchange Commission. Events relating to the possibility of customer demand fluctuations, supply chain constraints, continuing inflationary pressures, the effects of foreign currency fluctuations and high interest rates, geopolitical uncertainties including continuing hostilities and tensions, trade restrictions and sanctions, or the ability to utilize the Company’s manufacturing facilities at sufficient levels to cover its fixed operating costs, may have resulting impacts on the Company’s business, financial condition, results of operations, and the Company’s ability (or inability) to execute on its plans. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes, including the future results of the Company’s operations, may vary materially from those indicated. Undue reliance should not be placed on any forward-looking statements. Forward-looking statements are not guarantees of performance. All forward-looking statements included in this document are based upon information available to the Company as of the date of this document, and the Company assumes no obligation to update.

Non-GAAP Financial Measures

Management discloses certain non‐GAAP information to provide investors with additional information to analyze the Company’s performance and underlying trends. These non-GAAP financial measures exclude restructuring charges, stock-based compensation expense, amortization of intangible assets acquired in business combinations, certain legal and other settlement losses (gains), customer insolvency losses (recoveries), asset impairments, other significant non-recurring costs and the related tax impacts of all of the above. A detailed reconciliation between GAAP results and results excluding certain items (“non-GAAP”) is included in the following tables attached to this document. In situations where a non-GAAP reconciliation has not been provided, the Company was unable to provide such a reconciliation without unreasonable effort due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. Management uses non‐GAAP measures that exclude certain items in order to better assess operating performance and help investors compare results with our previous guidance. This document also references “free cash flow”, a non-GAAP measure, which the Company defines as cash flow from operations less additions to property, plant and equipment and purchased software. The Company’s non‐GAAP information is not necessarily comparable to the non‐GAAP information used by other companies. Non‐GAAP information should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as a measure of the Company’s profitability or liquidity. Readers should consider the types of events and transactions for which adjustments have been made.

Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2024

2023

2024

2023

Sales

$

657,747

$

719,695

$

1,999,218

$

2,147,622

Cost of sales

591,006

650,618

1,797,119

1,947,556

Gross profit

66,741

69,077

202,099

200,066

Selling, general and administrative expenses

36,636

35,509

111,990

111,379

Amortization of intangible assets

1,205

1,592

3,613

4,775

Restructuring charges and other costs

795

1,635

5,609

6,348

Income from operations

28,105

30,341

80,887

77,564

Interest expense

(6,569)

(8,475)

(20,747)

(23,183)

Interest income

2,811

1,343

7,329

4,223

Other (expense) income, net

(3,952)

2,384

(7,452)

280

Income before income taxes

20,395

25,593

60,017

58,884

Income tax expense

5,021

5,181

15,113

12,121

Net income

$

15,374

$

20,412

$

44,904

$

46,763

Earnings per share:

Basic

$

0.43

$

0.57

$

1.25

$

1.32

Diluted

$

0.42

$

0.57

$

1.23

$

1.30

Weighted-average number of shares used in
   calculating earnings per share:

 Basic

36,051

35,647

35,970

35,535

 Diluted

36,629

35,876

36,469

35,879

 

Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In Thousands)
(UNAUDITED)

September 30,

December 31,

2024

2023

Assets

Current assets:

Cash and cash equivalents

$

324,423

$

277,391

Restricted cash

—

5,822

Accounts receivable, net

372,276

449,404

Contract assets

186,538

174,979

Inventories

581,901

683,801

Prepaid expenses and other current assets

43,569

44,350

Total current assets

1,508,707

1,635,747

Property, plant and equipment, net

224,164

227,698

Operating lease right-of-use assets

122,117

130,830

Goodwill and other long-term assets

294,009

280,480

Total assets

$

2,148,997

$

2,274,755

Liabilities and Shareholders’ Equity

Current liabilities:

Current installments of long-term debt

$

6,751

$

4,283

Accounts payable

356,038

367,480

Advance payments from customers

145,350

204,883

Accrued liabilities

130,992

136,901

Total current liabilities

639,131

713,547

Long-term debt, net of current installments

272,000

326,674

Operating lease liabilities

114,181

123,385

Other long-term liabilities

21,009

32,064

Total liabilities

1,046,321

1,195,670

Shareholders’ equity

1,102,676

1,079,085

Total liabilities and shareholders’ equity

$

2,148,997

$

2,274,755

 

Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(UNAUDITED)

Nine Months Ended

September 30,

2024

2023

Cash flows from operating activities:

Net income

$

44,904

$

46,763

Depreciation and amortization

34,578

34,103

Stock-based compensation expense

10,740

12,331

Accounts receivable

76,479

12,937

Contract assets

(11,559)

(6,472)

Inventories

102,540

1,789

Accounts payable

(16,107)

(24,420)

Advance payments from customers

(59,533)

(8,879)

Other changes in working capital and other, net

(38,733)

(30,938)

Net cash provided by operating activities

143,309

37,214

Cash flows from investing activities:

Additions to property, plant and equipment and software

(24,221)

(66,713)

Other investing activities, net

483

588

Net cash used in investing activities

(23,738)

(66,125)

Cash flows from financing activities:

Share repurchases

(5,101)

—

Net debt activity

(52,596)

107,194

Other financing activities, net

(23,507)

(23,306)

Net cash (used in) provided by financing activities

(81,204)

83,888

Effect of exchange rate changes

2,843

(1,647)

Net increase in cash and cash equivalents and restricted cash

41,210

53,330

Cash and cash equivalents and restricted cash at beginning of year

283,213

207,430

Cash and cash equivalents and restricted cash at end of period

$

324,423

$

260,760

 

Benchmark Electronics, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Results
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)

 

Three Months Ended

Nine Months Ended

Sept 30,

June 30,

March 31,

Dec 31,

Sept 30,

Sept 30,

2024

2024

2024

2023

2023

2024

2023

Income from operations (GAAP)

$

28,105

$

27,253

$

25,529

$

32,100

$

30,341

$

80,887

$

77,564

Restructuring charges and other costs

795

1,471

3,343

2,054

1,437

5,609

5,227

Stock-based compensation expense

4,379

4,185

2,176

2,955

3,674

10,740

12,331

Amortization of intangible assets

1,205

1,204

1,204

1,204

1,592

3,613

4,775

Asset impairment

—

—

—

—

198

—

1,121

Legal and other settlement loss (gain)

367

317

855

—

—

1,539

—

Customer insolvency (recovery)

—

(316)

—

—

—

(316)

—

Non-GAAP income from operations

$

34,851

$

34,114

$

33,107

$

38,313

$

37,242

$

102,072

$

101,018

GAAP operating margin

4.3

%

4.1

%

3.8

%

4.6

%

4.2

%

4.0

%

3.6

%

Non-GAAP operating margin

5.3

%

5.1

%

4.9

%

5.5

%

5.2

%

5.1

%

4.7

%

Gross profit (GAAP)

$

66,741

$

67,950

$

67,408

$

71,004

$

69,077

$

202,099

$

200,066

Stock-based compensation expense

413

326

426

416

420

1,165

1,239

Customer insolvency (recovery)

—

(316)

—

—

—

(316)

—

Non-GAAP gross profit

$

67,154

$

67,960

$

67,834

$

71,420

$

69,497

$

202,948

$

201,305

GAAP gross margin

10.1

%

10.2

%

10.0

%

10.3

%

9.6

%

10.1

%

9.3

%

Non-GAAP gross margin

10.2

%

10.2

%

10.0

%

10.3

%

9.7

%

10.2

%

9.4

%

Selling, general and administrative expenses

$

36,636

$

38,022

$

37,332

$

35,646

$

35,509

$

111,990

$

111,379

Stock-based compensation expense

(3,966)

(3,859)

(1,750)

(2,539)

(3,254)

(9,575)

(11,092)

Legal and other settlement (loss) gain

(367)

(317)

(855)

—

—

(1,539)

—

Non-GAAP selling, general and administrative expenses

$

32,303

$

33,847

$

34,727

$

33,107

$

32,255

$

100,876

$

100,287

Net income (GAAP)

$

15,374

$

15,528

$

14,002

$

17,552

$

20,412

$

44,904

$

46,763

Restructuring charges and other costs

795

1,471

3,343

2,899

1,437

5,609

5,227

Stock-based compensation expense

4,379

4,185

2,176

2,955

3,674

10,740

12,331

Amortization of intangible assets

1,205

1,204

1,204

1,204

1,592

3,613

4,775

Asset impairment

—

—

—

—

198

—

1,121

Legal and other settlement loss (gain)

367

317

855

(37)

(3,375)

1,539

(4,530)

Customer insolvency (recovery)

—

(316)

—

—

—

(316)

—

Income tax adjustments(1)

(1,406)

(1,437)

(1,393)

(1,280)

(529)

(4,236)

(3,536)

Non-GAAP net income

$

20,714

$

20,952

$

20,187

$

23,293

$

23,409

$

61,853

$

62,151

Diluted earnings per share:

Diluted (GAAP)

$

0.42

$

0.43

$

0.38

$

0.49

$

0.57

$

1.23

$

1.30

Diluted (Non-GAAP)

$

0.57

$

0.57

$

0.55

$

0.65

$

0.65

$

1.70

$

1.73

Weighted-average number of shares used in calculating diluted earnings per share:

Diluted (GAAP)

36,629

36,497

36,401

35,956

35,876

36,469

35,879

Diluted (Non-GAAP)

36,629

36,497

36,401

35,956

35,876

36,469

35,879

Net cash provided by operations

$

39,036

$

55,816

$

48,457

$

137,079

$

37,583

$

143,309

$

37,214

Additions to property, plant and
equipment and software

(9,814)

(8,504)

(5,903)

(11,026)

(19,664)

(24,221)

(66,713)

Free cash flow (used)

$

29,222

$

47,312

$

42,554

$

126,053

$

17,919

$

119,088

$

(29,499)

 

(1)     This amount represents the tax impact of the non-GAAP adjustments using the applicable effective tax rates.

 

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SOURCE BENCHMARK ELECTRONICS

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Technology

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

Published

24 minutes ago

on

October 23, 2026

By

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
United Kingdom: +44 7453 598 606
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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24 minutes ago

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October 23, 2026

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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.  

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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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24 minutes ago

on

October 23, 2026

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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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