- Surging AI-driven capacity growth is increasing the physical security market and changing threat models within data halls.
- Multi-layered and internal security mechanisms — from authenticated rack access to integrated video analytics — are becoming essential as internal risk exposure rises.
What happened: Internal risk rises as AI densifies data halls
In recent years, the architecture and function of data centres have shifted dramatically in response to artificial intelligence and cloud demand, increasing physical density at the rack and equipment level. Industry research shows the global data centre physical security market, which encompasses surveillance, access control and internal monitoring, is projected to grow strongly from 2025 to 2033, driven in part by hyperscale build-outs and more complex facilities requiring advanced protections beyond perimeter fences.
Historically, physical security focused on external perimeter defences — fencing, barriers, and manned gates — to prevent unauthorised entry. However, in high-density AI facilities where hundreds or thousands of GPU-laden racks operate, internal movement between equipment and datasets presents a greater risk surface. Experts emphasise that effective protection now demands authenticated access as deep as the rack itself, as well as integrated monitoring systems throughout the data hall, to address insider threats and equipment theft.
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Why it’s important
The convergence of AI and physical security reflects a broader shift in risk models. As data centre compute scales — with rack markets predicted to expand alongside AI infrastructure — the value of individual servers and components has risen, making them attractive targets for theft or tampering.
Market analysts note that this change isn’t simply about adding more cameras or guards; it’s about embedding security controls at every level of the facility. Multi-factor authentication, biometric access, and real-time analytics tied to video surveillance are now integral in protecting the data hall and, crucially, the rack zone where sensitive systems operate.
This transition aligns with evolving best practices in engineering and resilience — as data centre designs increasingly treat security as part of infrastructure planning rather than an afterthought. Operators recognise that once an intruder bypasses the outer perimeter, damage potential is concentrated inside the rack rows, where high-density AI gear and networking equipment reside.
