Permitting Becomes Top Risk as DCPI Revenue Hits $14B, Up 27%
Redwood City – October 14, 2026 -- The worldwide Data Center Physical Infrastructure (DCPI) market grew 27% year-over-year to $14 billion in manufacturer revenue in the second quarter of 2026, according to Dell'Oro Group. Growth has now run above 20% for consecutive quarters as demand for AI data center capacity outpaces supply. Dell'Oro attributes the modest slowdown from 1Q 2026 to a tougher comparison base, not weaker demand.
The research firm now ranks siting and permitting as the most serious near-term brake on the market. "The quieter and more consequential one is whether it will be permitted," said Alex Cordovil, Research Director at Dell'Oro, contrasting the issue with the louder debate over project cancellations. He said power availability, long-lead equipment and community opposition are stretching project timelines. He added that the timing of permits and grid interconnections is harder to forecast than the demand behind them.