Omdia projects Open Rack enclosures to become the de facto standard in AI data centers by 2030

October 17, 2025 | Siraj Aziz, Vladimir Galabov and Manoj Sukumaran

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Omdia projects Open Rack enclosures to become the de facto standard in AI data centers by 2030

The rack market will go through a fundamental technology shift. By 2030, 21-inch Open Rack Enclosures will make up over 70% of the annual shipments as all major data center operators and server OEMs embrace the design. 19-inch, EIA-310 Rack Enclosures, will be used predominantly by enterprises, especially those not running AI applications. In this analysis note, we discuss the factors that have influenced the accelerated transition.

Leading OEMs embraced 21-inch Open Rack Designs

Dell and HPE have embraced the modular server design architecture proposed by the Open Compute Project, dubbed the Data Center Modular Hardware System, DC-MHS. They are the leading voices in the development of this standard. This has closely aligned their design work with Open Compute Project designs and principles. Studying the Dell product roadmap, Omdia has concluded that up to 90% of new server shipments could be in 21-inch Open Rack Enclosures. One contributing factor is that Dell is increasingly designing compute and storage at the rack level.

AI servers drive demand for Advanced Rack infrastructure

AI-optimized rack-scale reference designs have thousands of copper connectivity cables, manifolds to enable direct-to-chip liquid cooling and high-capacity power distribution. These benefit from the extra space that 21-inch racks provide.

Cloud providers drive adoption of 21-inch racks

All the large cloud service providers including Microsoft, Amazon, Meta, Google, ByteDance, Huawei and Oracle, are now using 21-inch racks as the standard. ODMs to the top cloud service providers have given conclusive guidance to Omdia that the accelerated pace of investment seen in 2024 and 2025 is the new normal. Wiwynn’s chairwoman, Emily Hong, indicated the company’s AI server backlog is so strong that it needs to aggressively build more factories. Wiwynn has indicated it already has AI server order visibility through 2027.

21-inch Open Rack Enclosures have additional engineering benefits

Some of the additional engineering benefits of 21-inch Open Rack Enclosures, which are influencing higher levels of adoption, include better airflow for more optimal thermal management due to wider air intake and the ability to fit larger fan arrays. This also future-proofs the design. Servers built using the modular DC-MHS design enable the replacement and upgrading of computing components while maintaining the same I/O. This requires servers to be compatible with higher-power processors, as those may be installed later.

Nearly all servers designed for 19-inch, EIA-310 Rack Enclosures can fit into a 21-inch Open Rack Enclosure. The reverse is not possible. This also makes the latter more future-proof.

The overall growth of the data center rack market is accelerating

As the transition from 19-inch EIA-310 Rack Enclosures to 21-inch Open Rack Enclosures takes hold of the data center rack market, we expect accelerated shipments and revenue growth. Replacement will organically grow as rack-scale server designs become a de-facto standard for cloud service providers. In such cases an entire rack of IT equipment would be wheeled into the data center. Despite a strong rack renew-and-reuse movement in the data center, we expect 19-inch EIA-310 Rack Enclosures to be completely scrapped in the process.

Data center rack enclosures will consistently grow faster than servers for the first time in a decade. Omdia has raised its rack enclosure shipment CAGR for the period 2023 to 2028 from 6% to 13%. Looking at the period from 2025 to 2030, Omdia also anticipates a compound annual growth rate of 11% in rack shipments. The average sale price of a rack has consistently increased in recent years. The requirement to house AI-optimized servers, which are liquid-cooled and have more components, making them heavier, has meant that shipments of higher-end racks are also accelerating as a share of the overall mix. As this continues, Omdia expects the average sale price of data center rack enclosures to continue to grow. As a result, the projected revenue CAGR for the period from 2023 to 2030 is 15% with the rack market surpassing $4.1B in 2030.

To read more insights and analysis covering market trends and industry forecasts prepared by Omdia’s Enterprise practice, click here.

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Siraj Aziz

Analyst, Cloud and Data Center

Siraj focuses on the data center infrastructure market, covering modular data centers, data center racks, and rack power distribution units (PDUs). Siraj has over five years of experience in the technology research industry, providing extensive desk research and end-to-end content creation across various topics such as smart cities, artificial intelligence (AI), and Internet of Things (IoT).

Prior to joining Omdia (previously IHS Markit) in July 2018, Siraj worked as a research assistant at the University of Malaya, Kuala Lumpur, Malaysia. He also had brief assignments as a research intern at the Institute for Democracy and Economic Affairs (IDEAS) and Securities Commission Malaysia. Siraj earned a master’s degree in development studies from the University of Malaya, Kuala Lumpur, Malaysia, in 2019 and a bachelor’s degree in economics from the University of Kent, Canterbury, UK, in 2015

Vladimir Galabov

Senior Research Director, Enterprise Infrastructure

Vlad is responsible for the enterprise infrastructure teams at Omdia, including the cloud and data center research practice and the cybersecurity research practice. He guides the teams’ research strategy and produces research with a focus on disruptive trends, such as infrastructure upgrades necessary to enable broad adoption of AI, as well as the impact of AI on the enterprise infrastructure stack.

Vlad joined Omdia, formerly IHS Markit Technology, in 2016. He assumed the responsibility for the cloud and data center research practice in 2021, developing many of its unique, industry-leading technical analyses, including its flagship “single source of truth” data center capex and capacity model. He held senior positions at Intel and Ciena, where his data-led insights served as a central input into the companies’ strategies. Key market models he developed include an in-depth analysis of telecommunications network operations costs, a PC inventory tracker, and an actionable IoT market forecast. Vlad’s work has even facilitated decision-making in the British Parliament. He holds a Bachelor of Science degree in economics and management from Aston University, the UK.

Manoj Sukumaran

Principal Analyst, Data center IT

Manoj is Omdia’s data center computing and networking expert. He covers trailblazing technologies such as processors that enable the programmability of compute and networking hardware, edge computing, composable infrastructure, and the adoption of open compute hardware. He has over 15 years of experience in engineering and financial services, consulting, and research.

Before joining Omdia, Manoj was the founder and director of QWave India, a hardware engineering services company that specializes in designing data center hardware for clients such as Facebook and LinkedIn. His team delivered Facebook’s first three open compute switches, pioneering the bare metal switching technology that has revolutionized the data center. He also worked on the architecture and design of Open19’s first switch and server. Manoj has also held senior positions in financial services, consulting, and media companies. He holds two bachelor’s degrees—one in physics and one in information technology—and an MBA from India’s Mahatma Gandhi University.

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