The rapid proliferation of cloud computing, AI (artificial intelligence), edge computing, and digital services is causing a major shift in the data center industry’s infrastructure. With increased computing power, the facilities are encountering greater rack density and heat generation, thereby demanding better air flow and cooling solutions. The containment systems at the data centers help segregate the hot and cold airflows, enhance cooling efficiency, and make efficient use of white space.
As per SNS Insider, the global Data Center Containment Market size is expected to reach a valuation of USD 4.57 billion in 2032 from USD 1.97 billion in 2024, exhibiting a CAGR of 11.11% between 2025-2032. Increasing energy prices, the growth of hyperscale and colocation facilities, AI and HPC adoptions and the need for sustainability are some of the factors fueling the growth of the industry. Containment solutions can help achieve a rack density of up to 60%, making the best use of the available data center space.
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Below are 5 Companies Making Significant Contributions to Innovation in The Global Data Center Containment Market.
Schneider Electric
Schneider Electric is one of the key companies providing technologies of data center infrastructures and energy management. The company provides containment technologies that aim at optimizing the airflow and thermal processes. This technology is appropriate for modern data centers which face the problems of increased computing density and higher energy needs. The technologies provided by the company are especially useful for the hyperscale and high-performance computing facilities where it is necessary to maintain steady temperature conditions and decrease unnecessary cooling needs. Schneider Electric announced its new Prefabricated Modular EcoStruxure Pod Data Center and EcoStruxure Rack Solutions in June 2025.
Vertiv Group Corp.
The company designs integrated infrastructure technologies that include cooling, power, racks and containment systems for use in the data centers. The modular design of its solutions gives the operators flexibility in adding to infrastructure or enhancing thermal management features. Due to increasing amounts of heat produced by artificial intelligence and other workloads with high density, the company concentrates on developing infrastructure capable of handling higher rack power needs while still delivering reliable performance. Vertiv purchased Great Lakes Data Racks & Cabinets in July 2025 for approximately USD 200 million.
Eaton Corporation
In the data center infrastructure industry, Eaton is involved through products that provide power management, thermals optimization, and overall system efficiency. The containment solutions offered by Eaton are meant to enable separation of heated exhaust air and improve efficiency of cooling systems. Hot Aisle Containment may help in setting up controlled thermal zones without mixing hot and cool air. In light of increased importance being attached to energy usage and running costs for high density computing environments and hyperscale facilities, Eaton’s solutions may enable better PUE performance and cooling efficiency for data center operators.
Legrand
Legrand offers a comprehensive set of technologies for data center infrastructure, including containment systems which are tailored according to the facility setup and workloads. With hybrid containment systems, Legrand offers more flexibility to manage those environments where racks with different densities and cooling needs have to be managed. With the increase in the use of cloud-based infrastructure, AI, and edge facilities, there is a greater need for scalable thermal management systems which can adapt to changes in the data center environment.
nVent Electric plc
nVent Electric designs infrastructures that play a vital role in improving the reliability of data centers, protecting equipment, providing thermal management services, and enclosures. The technology provided by nVent can be considered useful in cases where increasing equipment density makes the need for controlling the environment significant. Due to the rise in processing capacity in data centers, there is a need for the company’s infrastructure which can help in providing the necessary thermal conditions and protect the equipment from failure.
The Road Ahead
Data Center Containment Market is set to sustain robust growth due to increasing processing power and heat generation at the rack level owing to growing use of AI, cloud computing, IoT, and high-performance computing. AI accelerator modules such as GPUs and TPUs need better thermal management, which drives the implementation of hot aisle, cold aisle, hybrid, modular, and rack-level containment systems. Monitoring and airflow management solutions are also becoming increasingly important by allowing real-time monitoring of temperature and cooling capabilities. Modular containment segment held 42.6% revenue share in 2024, whereas rack-level containment is set to witness a CAGR of 11.43% up until 2032. High performance computing facilities are estimated to achieve a CAGR of 11.97%.
In regional terms, North America was seen as the top contributor for the period 2024, accounting for 36.2% revenues on the back of hyperscale data centers, cloud data centers, investments made in AI data centers, and rising demands for energy efficiency. The forecasted revenues for the USA market are expected to grow from USD 0.56 billion in 2024 to USD 1.27 billion in 2032 at a rate of 10.85% CAGR. The region of Asia Pacific is expected to have the highest growth rate at 12.53% CAGR till 2032 due to growth of cloud infrastructure in countries like China, India, and Southeast Asia.
