2025-12-08 15:36Summary of Global Data Centre Equipment Market Conference Call Industry Overview - The report focuses on the Global Data Centre Equipment market, providing an updated outlook and analysis of key players across the value chain [2][3]. Market Growth Forecast - The Data Centre equipment market (including grey, white, and cooling segments) is projected to grow by 20-25% in 2026, 15-20% in 2027, and 10-15% annually from 2028 to 2030. The estimated growth for 2025 is around 25-30% [3][39]. - The Cooling segment is expected to grow at a CAGR of approximately 20% until 2030, with Liquid Cooling projected to grow by 45% [3][39]. Pricing Dynamics - A 20% increase in market $/MW is anticipated due to higher power density rack architectures, primarily driven by cooling and grey space [4][28]. - The IT equipment $/MW is expected to rise by 3-4 times, which explains the rapid capital expenditure (capex) ramp by hyperscalers and reduces price sensitivity towards facility costs [4][28]. AI Adoption and Monetization - There is evidence of rapid adoption of Generative AI (GenAI), with an annual recurring revenue (ARR) of $17 billion, representing 6-7% of the current total SaaS market [5][26]. - Hyperscalers' Capex/Sales ratio is projected to more than double compared to 2023, reaching 25-30%, raising questions about sustainability. However, even with 2026 estimates, capex is expected to represent 75% of the industry's operating cash flow [5][26]. Key Players and Stock Recommendations - In Europe, preferred companies include Schneider, Halma, Siemens, Prysmian, and Wartsila. - In the US, favored companies are Vertiv, Eaton, nVent, GE Vernova, and Comfort Systems. - In Asia, Delta Electronics and Envicool are highlighted as key players [6][39]. Capacity and Demand Insights - The Global Data Centre Capacity is expected to grow significantly, with 24% year-over-year growth in 2026 and a 21% CAGR from 2025 to 2029 [50][56]. - The Tech 6 companies (Amazon, Microsoft, Google, Meta, Oracle, and Apple) are projected to account for 10% of total US electricity demand by 2030, with their incremental demand surpassing the entire US utility-scale solar industry by 2028 [56][58]. Challenges and Risks - Potential risks include project delays, cancellations, and the need for stable grid connections, particularly in Europe where connections are quoted into the 2030s [57][58]. - The industry has faced equipment shortages, particularly in electrical equipment, but this has returned to normal as manufacturers ramped up capacity [57]. Conclusion - The Global Data Centre Equipment market is poised for significant growth driven by AI adoption, increased demand for cooling solutions, and substantial capital investments from hyperscalers. However, challenges related to infrastructure and supply chain must be monitored closely to ensure sustainable growth [5][56][57].