Data centre infrastructure demand remains resilient

According to a recently published report from Dell’Oro Group, Data Center Physical Infrastructure (DCPI) revenues grew 9 percent year-over-year in 2Q 2022, driven by average selling price increases and marginal improvement in unit shipments.

Supply chain constraints are expected to linger into 2023 but minor improvements are forecast to lead to increasing unit shipments, alongside continued price realization in 2H 2022. These factors have led the 2022 full-year outlook for data center physical infrastructure to be raised by nearly 2 percent year-over-year (Y/Y).

 

“The Data Center Physical Infrastructure market remained resilient in 2Q 2022, despite Russia’s invasion of Ukraine and COVID-related lockdowns in China resulting in global macroeconomic uncertainty,” said Lucas Beran, Principal Analyst at Dell’Oro Group. “Furthermore, the global trends of electrification and digitalization, inherently linked to sustainability, are solidifying themselves as major DCPI market drivers, both in the short and long term. Historically high DCPI vendor backlogs provide the market with a strong runway into 2023. However, growing macroeconomic uncertainty and waning price realization are expected to moderate DCPI growth in 2023, particularly in the enterprise market segment.”

 

Additional highlights from the 2Q 2022 Data Center Physical Infrastructure Quarterly Report:

Eaton, Cyberpower, Huawei, and Schneider Electric gained revenue share in 2Q 2022.

North America and Asia Pacific (excluding China) were the fastest growing regions, at double-digit growth rates, in 2Q 2022. China was the only region to decline Y/Y, due to COVID-related lockdowns.

Product growth was broad-based, with shorter sale cycle products such as single-phase UPS and rPDU growing at double-digit rates, while longer sale cycle products such as three-phase UPS and cabinet power distribution grew at slightly lower rates.

Worldwide DCPI revenue growth is forecast above 10 percent in 2022, driven by double-digit cloud and colocation service provider growth and mid-single-digit enterprise growth.

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