The data center networking market is expected to grow at a CAGR of 16.5% during the forecast period, from USD 55.64 billion in 2025 to USD 139.08 billion in 2031. The global data center networking market is witnessing steady expansion, driven by rapid cloud adoption, hyperscale data center buildouts, and increasing east-west traffic generated by virtualized and containerized workloads. Enterprises are modernizing network architectures to support high-bandwidth, low-latency, and scalable connectivity across on-premises, colocation, and multi-cloud environments. The shift toward leaf-spine architectures, 400G/800G switching, and software-defined networking is enabling greater agility, improved traffic visibility, and simplified network operations.
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The data center networking market is driven by the rapid expansion of hyperscale data centers, increasing deployment of AI and HPC workloads, and rising demand for high-bandwidth, low-latency connectivity. Modern cloud environments require scalable leaf-spine architectures, high-speed switching (400G/800G and beyond), and advanced routing platforms to efficiently handle massive east-west traffic. The growing integration of AI accelerators and GPU clusters is intensifying the need for high-performance networking fabrics, SmartNICs, and DPUs to optimize workload performance and reduce bottlenecks.
The shift toward software-defined and automated networking architectures is further accelerating market growth. Enterprises and cloud providers are adopting network automation, observability, and programmable networking solutions to improve agility, operational efficiency, and security. Increasing data center investments, sovereign cloud initiatives, and interconnection requirements are driving infrastructure upgrades globally. Additionally, industries that rely on large-scale digital platforms, edge computing, and hybrid cloud deployments are driving demand for resilient, secure, and scalable data center networking solutions.
The services segment is expected to register the highest growth rate during the forecast period
InfiniBand switches are expected to register the fastest growth rate during the forecast period. InfiniBand switches are projected to witness the highest growth in the data center networking market, driven primarily by the rapid expansion of AI and HPC workloads. Large-scale AI training clusters, generative AI models, and GPU-intensive computing environments require ultra-low latency, high bandwidth, and efficient east-west traffic handling—capabilities that InfiniBand architectures are purpose-built to deliver. With native RDMA support and optimized GPU-to-GPU communication, InfiniBand significantly reduces latency and improves data transfer efficiency compared to traditional Ethernet-based fabrics in highly synchronized, accelerator-intensive computing environments. As hyperscale operators and AI infrastructure providers scale deployments from thousands to tens of thousands of accelerators, deterministic performance, advanced congestion control, and predictable latency become critical requirements. The growing establishment of AI supercomputing facilities and large language model training clusters is accelerating adoption, positioning InfiniBand switches as the fastest-growing segment within the overall data center networking market.
In network infrastructure, data center switches are projected to hold the largest market share during the forecast period
Data center switches continue to account for the largest share of the data center networking market, as they play a central role in enabling high-performance connectivity in modern data centers. Switches form the backbone of leaf-spine and Clos architectures, facilitating massive east-west traffic flows generated by cloud computing, virtualization, storage networking, and AI workloads. Hyperscale and colocation facilities require high-density switching platforms with 400G and 800G port speeds to support scalable, low-latency environments. As data center capacities expand and rack power densities increase, switching infrastructure must scale accordingly to ensure seamless communication between servers, accelerators, and storage systems. Additionally, ongoing refresh cycles from legacy 10G/40G environments to higher-speed architectures further strengthen switch demand. The critical position of switches within the network fabric, combined with continuous technology upgrades and hyperscale expansion, ensures that data center switches maintain the largest market share within the network infrastructure segment throughout the forecast period.
North America accounts for the largest market during the forecast period
North America holds the largest share of the data center networking market due to the strong presence of hyperscale cloud providers, advanced digital infrastructure, and early adoption of high-performance networking technologies. The region leads in AI and HPC deployments, driving significant demand for 400G and 800G switching, InfiniBand fabrics, and advanced network interface hardware. A high concentration of hyperscale data centers, particularly in the United States, supports continuous infrastructure expansion and large-scale network upgrades. This region is home to major hyperscaler providers’ data centers, further strengthening networking investments. Additionally, strong investments in AI research, enterprise cloud transformation, and colocation expansion contribute to sustained demand for scalable, low-latency networking architectures. Supportive regulatory frameworks, mature fiber connectivity, and significant capital expenditure by leading technology companies position North America as the dominant regional market throughout the forecast period.
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Unique Features in the Data Center Networking Market
Modern data center networking is built for AI and high-performance workloads. Architectures such as spine-leaf and Clos topologies reduce latency and remove bottlenecks. High-speed Ethernet at 100G, 200G, 400G and now 800G is becoming standard. Vendors like Arista Networks and Cisco are pushing ultra-low latency switching tailored for AI clusters and large-scale cloud environments.
The shift to software-defined networking gives operators centralized control and automation. Policy, provisioning, and traffic engineering are managed through controllers and APIs instead of manual CLI work. Platforms from VMware and Juniper Networks enable intent-based networking, where admins define outcomes and the system enforces them automatically.
Data center networks now extend beyond a single facility. Enterprises need consistent connectivity across private data centers and public clouds such as Amazon Web Services and Microsoft Azure. This has driven adoption of hybrid networking models, virtual overlays, and secure interconnect services that support workload mobility and distributed applications.
Major Highlights of the Data Center Networking Market
AI workloads are changing traffic patterns inside the data center. East-west traffic now dominates. This requires non-blocking fabrics, ultra-low latency, and high bandwidth density. Vendors such as NVIDIA and Arista Networks are building AI-focused Ethernet and accelerated networking solutions to support GPU clusters at scale.
Enterprises and hyperscalers are moving beyond 100G. 400G is becoming mainstream in large facilities, and 800G adoption is starting in AI-driven environments. This shift is driven by higher data volumes, cloud growth, and distributed applications. Suppliers like Cisco and Broadcom are advancing high-speed switching silicon to meet this demand.
Hyperscale operators such as Amazon Web Services, Microsoft Azure, and Google Cloud continue expanding global data center footprints. Their need for scalable, programmable, and automated networks is driving consistent capital expenditure in switching, routing, and optical interconnects.
Manual configuration does not scale. Centralized control, automation, and intent-based management are becoming default requirements. Platforms from Juniper Networks and VMware enable policy-driven network orchestration across physical and virtual environments.
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Top Companies in the Data Center Networking Market
The major players in the data center networking market include Cisco Systems (US), Arista Networks (US), Huawei Technologies (China), NVIDIA (US), HPE (US), Extreme Networks (Taiwan), Dell Technologies (US), Nokia (Finland), H3C (China), and Marvell Technology (US).
NVIDIA
NVIDIA is a well-known brand supplying graphics processing units across the gaming, professional visualization, data centers, and automotive markets. The GeForce GP product line, established by NVIDIA as the gaming industry benchmark with advanced functions and a high level of performance, is one of the leading product lines within the company. In terms of professional and high-performance computing needs, NVIDIA released the Quadro and TITAN series, respectively. Of late, NVIDIA has been contributing a lot to artificial intelligence and deep learning sectors, and its GPUs are being used for preferential development of AI training and inferencing tasks. NVIDIA is engaged in diversified areas such as gaming, professional visualization, AI and machine learning, and high-performance computing.
Arista Networks
Arista Networks is an innovative cloud networking company that has developed large data center equipment, providing high returns to high-frequency traders. The product line includes high-performance network switches and an extensible operating system, EOS, rich in programmability and modularity. Other important aspects of their solutions relate to high availability, super scalability, and ultra-low latency, targeting the largest clients in the technology, financial services, and service provider spectrum. Arista Networks focuses on further developing products and services, innovation, investment, customer relationships, etc. Therefore, it has been able to maintain the lead in networking. Geographically, it operates in the Americas, EMEA, and APJC regions. Arista Networks is one of the fastest-growing data center networking solutions vendors. It offers leading products designed for high-speed and large-scale data centers.
Dell
Founded by Michael Dell in 1984, Dell Technologies is an American multinational technology company headquartered in Round Rock, Texas. The company develops, sells, repairs, and supports personal computers (PCs), servers, data storage devices, network switches, software, and computer peripherals. Initially recognized for its direct-to-consumer PC sales, Dell has expanded into IT services and enterprise solutions. In 2016, Dell acquired EMC Corporation, enhancing its capabilities in data storage and information security. As of 2024, Dell is the world’s third-largest PC vendor by unit sales, following Lenovo and HP. The company operates in over 180 countries, with approximately half of its revenue derived from IT infrastructure. Dell has also positioned itself as a significant player in the AI sector, building and selling powerful servers to companies globally.
Cisco
Established in 1984 by Leonard Bosack and Sandy Lerner, Cisco Systems is an American multinational technology conglomerate headquartered in San Jose, California. The company specializes in networking hardware, software, and telecommunications equipment. Cisco is renowned for pioneering Internet Protocol (IP)-based networking technologies, contributing significantly to the development of the internet. Its product portfolio includes routers, switches, cybersecurity solutions, and collaboration tools like Webex. Cisco operates in various tech markets, including the Internet of Things (IoT), domain security, and energy management. As of 2024, the company employs approximately 90,400 people worldwide.
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