Converged Data Center Infrastructure Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented, By Deployment (Reference Architecture, Pre-Racked Configuration), By Component (Computational Devices, Storage Devices, Networking Devices), By Facility (On-Premises, Colocated Data Center), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 6.49 Billion
CAGR (2026-2031)	24.26%
Fastest Growing Segment	Colocated Data Center
Largest Market	North America
Market Size (2031)	USD 23.89 Billion

Market Overview

The Global Converged Data Center Infrastructure Market will grow from USD 6.49 Billion in 2025 to USD 23.89 Billion by 2031 at a 24.26% CAGR. Global Converged Data Center Infrastructure comprises integrated systems that combine compute, storage, networking, and virtualization resources into a unified platform. This architecture replaces siloed hardware environments to facilitate centralized management and rapid scalability. The market is primarily supported by the critical need for enterprises to reduce operational complexity and minimize the capital expenditures associated with managing disparate systems. Furthermore, the growing requirement for efficient infrastructure that supports hybrid cloud environments acts as a robust catalyst, driving organizations toward these consolidated solutions to enhance business agility and resource utilization.

One significant challenge impeding market expansion is the inability of legacy facility infrastructure to support the high thermal and power demands of dense converged units. Many existing data centers lack the cooling capacity necessary to operate these powerful systems without incurring substantial retrofit costs. According to AFCOM, in 2024, 38% of data center operators reported that their current cooling solutions were inadequate to meet their needs. This physical infrastructure gap presents a barrier to widespread implementation as organizations must weigh the benefits of convergence against the significant expense of upgrading physical sites.

Key Market Drivers

The surge in data-intensive AI and machine learning workloads is rapidly accelerating the adoption of converged data center infrastructure. As organizations integrate resource-heavy applications, they require unified platforms that offer high-performance computing and low-latency storage within a compact footprint. Converged systems resolve the bottlenecks of traditional disparate architectures by optimizing resource allocation for complex model training and real-time inference tasks. This shift toward high-density computing is evidenced by the massive power requirements driving infrastructure expansion. According to JLL, May 2024, in the '2024 Global Data Center Outlook', consumer and enterprise demand for generative AI is projected to add between 3 and 4 gigawatts of demand in 2024 alone. This escalating power consumption necessitates the operational efficiency and density that converged infrastructure provides to sustainable support advanced computational needs.

Concurrently, the acceleration of digital transformation and legacy IT modernization compels enterprises to adopt converged solutions to replace rigid silos with agile, software-defined environments. Modern businesses prioritize infrastructure that supports seamless application mobility and centralized management to respond quickly to market changes. Converged solutions streamline these operations by eliminating the complexity of managing separate servers, storage, and networking components. According to Nutanix, March 2024, in the '6th Annual Enterprise Cloud Index', 95% of organizations moved applications between environments in the past year to improve security and integration. This high level of workload mobility requires the consistent underlying architecture that converged systems offer. Reflecting the broader physical expansion supporting these modern deployments, according to CBRE, in 2024, data center construction activity in primary North American markets increased by 69% year-over-year to reach record levels.

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Key Market Challenges

The inability of legacy facility infrastructure to sustain the high thermal and power densities of converged units constitutes a primary obstacle to market expansion. Converged platforms consolidate massive computing resources into compact footprints, generating concentrated heat loads that frequently exceed the design limitations of older data centers. Consequently, potential buyers cannot simply deploy these systems; they must often undertake expensive and disruptive capital projects to upgrade cooling and power distribution systems first. This requirement for substantial physical site modernization significantly inflates the total cost of ownership and extends deployment timelines, causing enterprises to delay or scale back their investment in converged solutions.

The prevalence of this infrastructure gap is evident in the industry's slow transition toward the advanced thermal management technologies required for such high-density environments. According to AFCOM, in 2024, only 17% of data center operators had implemented liquid cooling solutions, despite these systems being essential for efficiently managing the heat output of modern dense infrastructure. This low adoption rate indicates that the vast majority of facilities remain reliant on traditional cooling methods, rendering them ill-equipped to support the Global Converged Data Center Infrastructure Market without significant retrofitting.

Key Market Trends

The Expansion of Converged Systems into Edge Computing Environments is transforming the Global Converged Data Center Infrastructure Market as enterprises seek to process data closer to the source of generation. This decentralized approach addresses the latency and bandwidth limitations inherent in centralized models, utilizing compact converged units to deliver high-performance computing in remote and space-constrained locations. By deploying integrated stacks at the edge, organizations can support real-time applications such as industrial automation and autonomous systems without relying on distant core facilities. This structural shift toward distributed architectures is quantified by industry projections; according to Equinix, February 2024, in the 'Global Interconnection Index (GXI) 2024' report, edge infrastructure is expected to expand at over two times the rate of core infrastructure through 2026, reflecting the critical priority businesses place on proximity-based processing.

The Transition to Consumption-Based Infrastructure-as-a-Service Models represents a fundamental evolution in how organizations procure and manage data center resources. By moving away from rigid capital expenditure cycles to flexible operational expenditure frameworks, businesses can align infrastructure costs directly with actual usage and rapidly scale resources on demand. This model mitigates the financial risk of overprovisioning and enables enterprises to access the latest converged technologies without significant upfront investment. The accelerating adoption of these flexible payment structures is evident in the financial performance of major market players; according to Hewlett Packard Enterprise, February 2024, in its 'Fiscal 2024 First Quarter Results', the Annualized Revenue Run-Rate (ARR) for its GreenLake platform grew 41% year-over-year, underscoring the robust enterprise demand for pay-per-use converged solutions.

Segmental Insights

The Colocated Data Center segment constitutes the fastest-growing category in the Global Converged Data Center Infrastructure Market driven by the increasing enterprise preference for reduced capital expenditure. Organizations are shifting away from building private facilities to minimize the operational costs and maintenance burdens associated with traditional data centers. This transition encourages the adoption of colocation services where providers utilize converged infrastructure to offer scalable and integrated resources. By deploying these consolidated systems, colocation facilities can efficiently manage high-density workloads and support the expanding demand for flexible off-premise data management solutions.

Regional Insights

North America dominates the Global Converged Data Center Infrastructure Market, primarily due to the region's aggressive adoption of cloud computing, artificial intelligence, and virtualization technologies. The high concentration of leading technology enterprises and hyperscale operators drives the demand for integrated, scalable systems that simplify data center management and reduce operational complexity. Additionally, strict energy efficiency initiatives by the U.S. Department of Energy encourage the transition from legacy hardware to optimized converged solutions. This cohesive ecosystem of technological innovation, significant infrastructure investment, and regulatory support for sustainability ensures the region remains the undisputed market leader.

Recent Developments

• In September 2024, NetApp announced the general availability of the NetApp AIPod, a converged infrastructure solution engineered in collaboration with Lenovo. This platform integrated NetApp’s intelligent data management software with Lenovo ThinkSystem servers for NVIDIA OVX, specifically targeting generative artificial intelligence workloads. The solution was designed to address the complexity of deploying AI infrastructure by providing a pre-validated, cohesive system for retrieval-augmented generation and inferencing. This launch highlighted the industry's focus on creating specialized converged environments that merge high-performance computing, storage, and networking to support the rapidly growing data demands of enterprise AI applications.
• In August 2024, Dell Technologies and Nutanix expanded their global partnership to introduce new collaborative solutions for the hyperconverged infrastructure market. The companies revealed plans to integrate Dell’s PowerFlex storage specifically with the Nutanix Cloud Platform, enabling a disaggregated architecture where compute and storage could scale independently. This cooperation aimed to provide customers with greater choice and flexibility in managing hybrid multicloud environments. Additionally, the partnership encompassed the development of a turnkey hyperconverged appliance, combining the strengths of both vendors to address complex workload requirements and offer a robust alternative to existing virtualization infrastructure options.
• In May 2024, Hewlett Packard Enterprise unveiled significant updates to its HPE GreenLake portfolio, enhancing its position in the converged infrastructure sector. The company announced that HPE GreenLake for Private Cloud Business Edition would support HPE Alletra MP and HPE SimpliVity Gen11, enabling a modern disaggregated hyperconverged architecture. This release was designed to simplify virtual machine management and mobility across hybrid cloud environments. By integrating these technologies, the company offered enterprises a unified operational experience that streamlined data protection and provided scalable, high-availability resources for demanding applications in both edge and core data centers.
• In March 2024, Cisco Systems formally ended the sale of its HyperFlex hardware components, signaling a definitive shift in its approach to the converged data center infrastructure market. The company transitioned its strategy away from proprietary hyperconverged platforms to focus on the Cisco Compute Hyperconverged with Nutanix solution. This strategic pivot allowed the organization to leverage a partner-led software ecosystem while continuing to supply the underlying server infrastructure. The move was significant for the market, as it demonstrated a trend towards disaggregated hardware and software models to enhance hybrid cloud flexibility and operational resilience for enterprise customers.

Key Market Players

• Dell Technologies Inc.
• Hewlett Packard Enterprise Company
• Cisco Systems, Inc.
• Nutanix, Inc.
• VMware, Inc.
• Equinix, Inc.
• Digital Realty Trust, Inc.
• International Business Machines Corporation
• Lenovo Group Limited
• Huawei Technologies Co., Ltd.

By Deployment	By Component	By Facility	By Region
Reference Architecture Pre-Racked Configuration	Computational Devices Storage Devices Networking Devices	On-Premises Colocated Data Center	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Converged Data Center Infrastructure Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Converged Data Center Infrastructure Market, By Deployment:

• Reference Architecture
• Pre-Racked Configuration

• Converged Data Center Infrastructure Market, By Component:

• Computational Devices
• Storage Devices
• Networking Devices

• Converged Data Center Infrastructure Market, By Facility:

• On-Premises
• Colocated Data Center

• Converged Data Center Infrastructure Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE