Data Center Power Market

Data Center Power Market Synopsis

The Global Data Center Power Market was valued at USD 18.2 billion in 2023 and is expected to grow from USD 19.9 billion in 2024 to USD 44.3 billion by 2033, reflecting a CAGR of 9.0% over the forecast period.

Data center power market can be described as the systems and the infrastructure which are used to deliver reliable efficacious and scalable power supply to data centers which are considered very essential in the storage processing and handling of large amounts of digital information. Due to the growing importance of data centers in supporting cloud computing environments, artificial intelligence (AI) workload, and hyperscale applications, the need to use high-performance power solutions, including uninterruptible power supplies (UPS), power distribution units (PDUs), generators, and next-generation energy storage systems is also increasing. The market is experiencing a driver in form of the exponentially-growing internet use, digitalization of industries, and the implementation of 5G and edge computing.

Data Center Power Market Driver Analysis

Rapid Growth of Cloud Computing and AI Workloads

The demand in hyperscale and enterprise data centers witness an extraordinary increase as organizations continue to turn to cloud services and AI-powered applications. Hyperscale data centers are the facilities run by large cloud providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud, and are optimized to handle large quantities of data processing and storage efficiently and at scale. Enterprise data centers are also being modernized at the same time to support more advanced workloads associated with machine learning, big data analytics and automation. This growth is being driven by the rapid digital transformation of the finance, healthcare, retail and manufacturing sectors where companies are demanding faster computing power, greater storage capacities and real time processing capabilities.

Data Center Power Market Restraint Analysis

Environmental Regulations and Power Consumption Concerns

The need to meet stricter energy efficiency standards and ever increasing sustainability targets, is starting to affect how data centers are designed and operated which in turn may restrict the use of traditional power options. The increasing regulations on carbon emission and energy use by governments and regulatory agencies around the globe are forcing data center operators to minimize their effect on the environment. Because of this, the use of traditional diesel generators and poor power distribution systems is increasingly becoming unviable. The operators are now being pressurized to move to cleaner and more energy efficient options like renewable energy sources, high efficiency UPS systems and improved cooling technology.

Data Center Power Market Opportunity Analysis

Smart Power Monitoring and Management Solutions

The use of AI (Artificial Intelligence) and IoT (Internet of Things) in the data center power systems is transforming the real-time monitoring and optimization of energy consumption. Sensors and other devices that are connected to the IoT constantly measure many power parameters, including voltage, temperature, and load throughout the facility. AI algorithms then processes this data to identify inefficiencies and anticipate equipment failures and recommend or automatically take energy-saving actions. Due to the ability to provide precise control and make smart predictions, AI and IoT can optimize energy distribution, minimize waste, and increase power efficiency in general. The integration is also dynamically supportive of workload management that regulates power supply according to the real-time demand, which reduces operational costs and enhances sustainability.

Data Center Power Market Trend Analysis

Adoption of Lithium-ion Batteries Over Traditional Lead-Acid

The trend in the data center power market is toward lighter, more efficient, longer life battery technologies, especially lithium-ion batteries. The lithium-ion battery has a number of benefits compared to the conventional lead-acid battery, such as greater energy density, quicker charging, less maintenance, and extended life cycle. These characteristics tend to make them particularly well-suited to uninterruptible power supply (UPS) systems in contemporary data centers, where space utilization and dependability are paramount. Also, the lithium-ion batteries have a higher operating temperature range and can aid more sophisticated battery management systems, improving safety and performance.

Data Center Power Market Segment Analysis

The Data Center Power Market is segmented on the basis of Component, Solution, and Service.

By Component

o   Solutions

o   Services

By Solution

o   UPS

o   PDU

o   Busway

o   Other Solutions

By Service

o   Integration & Deployment

o   Design & Consulting

o   Support & Maintenance

By End-Use

o   BFSI

o   IT & Telecommunications

o   Government

o   Healthcare

o   Energy

o   Retail

o   Other End-Uses

By Region

o   North America (U.S., Canada, Mexico)

o   Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)

o   Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)

o   Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)

o   Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)

o   South America (Brazil, Argentina, Rest of SA)

By Component, Solutions Segment is Expected to Dominate the Market During the Forecast Period

The components discussed in this research study, the solutions segment is expected to account for the largest market share of data center power market in the forecast period. Uninterruptible power supply (UPS) systems, power distribution units (PDUs), generators, transfer switches and battery systems are the solutions which are essential to keeping operations running smoothly, ensuring uptime and safeguarding equipment against power anomalies. With the increasing complexity and scale of data centers, particularly the emergence of hyperscale and edge computing, operators are prioritizing multi- faceted power solutions that can provide reliability, scale, and be remotely monitored.

By Solution, the Uninterruptible Power Supply (UPS) Segment is Expected to Held the Largest Share

The uninterruptible power supply (UPS) segment is likely to dominate the market. PS systems play a very crucial role in data centers, as they ensure the instantaneous backup power supply in case of an outage and safeguard the sensitive IT loads against voltage variations, surges, and interruptions. As the business reliance on digital services, cloud platforms, and real-time data processing grows, even short-term power outages can result into substantial operation and financial losses. Therefore, high-performance UPS systems are the main concern of data center operators as they guarantee stable system operation and availability of power.

By Service, the Integration & Deployment Segment is Expected to Held the Largest Share

By Service, the integration & deployment segment is expected to hold the largest share of the data center power market during the forecast period. This is mainly contributed by the fact that power infrastructure has become quite complex in the current data center and therefore needs an expert touch in planning, configuration as well as installation in order to achieve optimum performance and scalability. Integration and deployment services include installation of the key power infrastructure including UPS systems, PDUs, backup generators, switchgear and monitoring devices.

By End-Use, the BFSI Segment is Expected to Held the Largest Share

By end-use, the BFSI (banking, financial services, and insurance) segment is expected to hold the largest share of the data center power market during the forecast period. BFSI sector depends a lot on real time data processing, secure transaction and continued online services, which demand very reliable and resilient data center infrastructure. Power failure may result in huge financial losses, loss of image as well as imposition of penalty by the regulatory bodies, and hence the need to have reliable power solution. Consequently, a lot of financial institutions are spending huge sums of money in implementing high-availability power systems, such as enhanced UPS units, standby generators, and automated power management solutions.

Data Center Power Market Regional Insights

North America is Expected to Dominate the Market Over the Forecast period 

North America is expected to dominate the data center power market over the forecast period due to the strong presence of major cloud service providers, technology giants, and a well-established digital infrastructure. The area counts numerous hyperscale and colocation data centers, which creates enormous demand in terms of advanced, energy-efficient power solutions. Also, growing investments in AI, 5G, IoT, and edge computing are also driving the demand of dependable and scalable power infrastructure. The North America region is as well blessed with high awareness on energy efficiency and sustainability, which has led to the introduction of green power technologies like lithium-ion battery, renewable energy integration, and smart power management systems. Favourable government policies, labour talent and unremitting innovation of power technologies further strength the leadership of the region in the data center power market of the world.

Recent Development

In March 2025, ABB announced the acquisition of a minority stake in DG Matrix, a North Carolina-based company, to accelerate the commercialization of solid-state power electronics tailored for generative AI data centers and renewable energy microgrids.

In February 2025, Schneider Electric launched new data center and microgrid testing laboratories at its Global R&D Center in Massachusetts, U.S. The facility includes a Power Distribution Unit (PDU) lab with three dedicated testing bays, allowing the company to evaluate high-voltage systems specifically engineered to meet the demands of the rapidly expanding AI data center market.

Active Key Players in the Data Center Power Market

o   ABB

o   CyrusOne

o   Black Box

o   Eaton

o   Schneider Electric

o   Equinix Inc.

o   GDS Holdings

o   General Electric Company

o   Generac Power Systems, Inc.

o   Huawei Technologies Co., Ltd.

o   Rittal GmbH & Co. KG,

o   Legrand

o   Raman Power Technologies

o   Other Key Players

Global Data Center Power Market Scope