The AI boom is spurring unprecedented demand for data centers. With capacity projected to more than double in the U.S. alone from 2025 to 2027, data center systems now constitute one of the fastest growing segments of IT spending. Firms and analysts expect trillions of dollars to continue flowing into the global market as companies sprint to meet the computing demands of AI-driven workloads, governments drive investment in infrastructure to achieve digital sovereignty goals, and as the needs of an increasingly digitized global economy continue to evolve.
Another race is playing out in parallel — one in which manufacturers compete to tap into a fast-emerging growth opportunity.
As the Wall Street Journal recently reported, manufacturers are reorienting their businesses to capitalize on the appetite for new data centers. The rapid buildout is raising demand for industrial equipment and materials, providing a welcome counterbalance to contraction elsewhere in the manufacturing sector. It’s also driving dealmaking, as companies from power management firms to flow-control manufacturers pursue strategic acquisitions to expand their role in the data center value chain.
To meet the moment, companies are creating entirely new business units, expanding plants and standing up training programs. Some companies are already experiencing data center-driven growth as in-depth reports highlight the payoff that can come from pursuing the data center business as a strategic market.
But breaking into a new market — or expanding a once-minor focus — requires more than interest. Modern data centers are intricate aggregates of power, cooling, networking and computing infrastructure, assembled from thousands of interconnected components from specialized vendors. Entering this tightly managed supply chain requires delivering at scale on demanding timelines, which can prove challenging in an industry used to years-long product development cycles.
What’s more, many manufacturers are already finding it difficult to keep up with change. Our research shows that more than half of manufacturing leaders say their organizations struggle to match the pace of technological advances. Foundational technology issues may also hold companies back as they look to break into new markets, with some 54% of manufacturing leaders reporting that innovation is delayed by foundational tech-stack issues.
Yet with demand projected to remain strong and developers eager to reduce delays, these challenges are worth overcoming. We’re seeing the growth potential firsthand as we draw from decades of experience managing data centers and working with a broad ecosystem of partners to help manufacturers evolve their go-to-market strategies so they can get ahead of the curve.
Through our collaboration with one leading valve and flow-control products manufacturer, the company was able to turn data centers into a structured strategic growth market. We helped leaders deepen their understanding of market trends, prioritize where their products and capabilities could create the greatest value, and align teams around a focused go-to-market approach. We also helped the manufacturer build relationships with key stakeholders across the data center value chain, creating new pathways to market.
As AI scales, manufacturers have a rare opportunity to help build the infrastructure behind the future.
Through our collaboration with one leading valve and flow-control products manufacturer, the company was able to turn data centers into a structured strategic growth market. We helped leaders deepen their understanding of market trends, prioritize where their products and capabilities could create the greatest value, and align teams around a focused go-to-market approach. We also helped the manufacturer build relationships with key stakeholders across the data center value chain, creating new pathways to market.
This structured support can be invaluable as companies seek to gain greater understanding of current and future trends in a fast-changing industry. Today’s data center ecosystem is complex and interconnected, with decisions shaped by engineers, builders, operators and technology-driven infrastructure requirements. When manufacturers begin to see the market through the lens of these stakeholders, they can better map how their industrial strengths translate to the specific needs of data center operators, colocation providers and hyperscalers.
The good news is that many of the mechanical systems and advanced materials manufacturers already produce are applicable to data center development. Buildings require steel beams, fabricated metal components and power equipment. Modern cooling systems rely on pumps, valves and miles of piping to circulate water and dissipate heat. And the vast cable networks that connect servers and power systems depend on materials like copper, plastic, insulation and high-tech coatings that optimize heat transfer.
As manufacturers identify where their greatest opportunities lie, they may need to evolve strategy across business units — as well as organizational structures themselves. The right approach will align leadership and teams around a shared vision that guides production, product development and investment priorities. With capacity expansion and facility construction often requiring years of planning and execution, manufacturers must also anticipate future demand while ensuring they have the right talent and technology in place to support increasingly AI-driven operations.
Manufacturers that act now have a critical opportunity to not only boost sales and drive revenue but also play a significant role in supplying the physical backbone that will help power the global economy. And in many ways, this opportunity plays into their strengths. Those that know where their capabilities create the greatest value, invest in long-term strategic opportunities, and prepare to adapt to the needs of a fast-evolving market will position themselves as indispensable partners in building the next generation of digital infrastructure.
