PUBLISHER: Grand View Research | PRODUCT CODE: 1772478
PUBLISHER: Grand View Research | PRODUCT CODE: 1772478
Data Center Containment Market Summary
The data center containment market size was estimated at USD 2.38 billion in 2024 and is projected to reach USD 6.92 billion by 2033, growing at a CAGR of 12.7% from 2025 to 2033, driven by the growing demand for energy efficiency and cost-effective thermal management solutions in modern data centers.
As data centers become increasingly power-intensive due to the rise of AI, big data, and cloud computing, operators are under pressure to reduce energy consumption without compromising performance.
Containment systems offer a proven method to improve cooling efficiency by separating hot and cold airflows, minimizing mixing, and thus optimizing the performance of cooling infrastructure. This leads to substantial reductions in energy usage, operational costs, and carbon footprint, which are critical concerns for enterprises and colocation providers alike. The rapid expansion of hyperscale data centers and the adoption of modular and prefabricated data center designs also contribute to the growth of the data center containment industry. As businesses continue to digitize operations and migrate to the cloud, the need for high-density computing environments grows. Containment solutions enable these high-density environments to be effectively cooled and maintained, supporting scalable and flexible infrastructure deployment. Moreover, regulatory pressures and green building initiatives in several regions are encouraging the use of containment systems to meet energy efficiency standards such as those set by ASHRAE and other environmental guidelines.
For instance, in October 2024, Microsoft announced the construction of its first data centers using a hybrid of mass timber, steel, and concrete, aiming to lower carbon emissions linked to traditional building materials significantly. This approach is expected to cut the embodied carbon footprint by 35% compared to steel structures and 65% compared to precast concrete.
In addition, increasing awareness of sustainability and the total cost of ownership (TCO) in data center operations is pushing companies to invest in long-term infrastructure improvements. Containment technologies extend the lifespan of IT equipment by maintaining optimal temperature conditions, thereby reducing the frequency of hardware failures and maintenance needs. The proliferation of edge data centers, driven by the Internet of Things (IoT), 5G rollout, and latency-sensitive applications, is also contributing to market growth, as these compact facilities require innovative containment solutions to manage thermal loads in constrained spaces.
Global Data Center Containment Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global data center containment market report based on containment, component, data center, end use, and region: