Data Center Power Market Size, Share and Trends 2025 to 2034

What is the Data Center Power Market Size?

The global data center power market size is accounted at USD 22.93 billion in 2025 and predicted to increase from USD 25.97 billion in 2026 to approximately USD 70.21 billion by 2034, expanding at a CAGR of 13.24% from 2025 to 2034. The market is driven by the rising demand for reliable, energy-efficient, and scalable power infrastructure to support growing digitalization and cloud computing.

Data Center Power Market Key Takeaways

• In terms of revenue, the global data center power market was valued at USD 20.25 billion in 2024.
• It is projected to reach USD 70.21 billion by 2034.
• The market is expected to grow at a CAGR of 13.24% from 2025 to 2034.
• North America dominated the global data center power market with a share of 38% in 2024.
• Asia Pacific is anticipated to witness the fastest growth during the forecasted years.
• By component, the uninterruptible power supply (UPS) segment captured the biggest market share of 30% share in 2024.
• By component, the power distribution units (PDU) segment is anticipated to show considerable growth over the forecast period.
• By power source, the utility power segment contributed the highest market share of 70% in 2024.
• By power source, the renewable energy segment is anticipated to show considerable growth over the forecast period.
• By power rating, the 500–1,000 KVa segment held the maximum market share of 32% in 2024.
• By power rating, the above 2,000 KVa segment is anticipated to show considerable growth during the forecast period.
• By data center type, the hyperscale data centers segment contributed the highest market share of 40% in 2024.
• By data center type, the edge data centers segment is anticipated to show considerable growth over the forecast period.
• By end-use industry, the IT and telecom segment generated the major market share of 35% in 2024.
• By end-use industry, the BFSI (banking, financial services, insurance) segment is anticipated to show considerable growth over the forecast period.

Strategic Overview of the Global Data Center Power Industry

The data center power market can be defined as the specific systems, equipment, and solutions that facilitate effective power supply, power management, and power optimization in the data center. They contain such valuable elements as uninterruptible power supply systems, power distribution units, generators, transfer switches, busways, and energy storage solutions. The market is gradually trending towards modular and flexible designs, uptake of renewable energy, advanced monitoring equipment, and energy efficiency solutions to keep operation costs down and carbon footprints minimal.

One of the most notable growth drivers in the data center power market is the increasing need to find power solutions that are highly reliable and resilient to avoid downtimes and to maintain business continuity without a hitch. It also includes a global sustainability agenda and stricter governmental policies that are enforcing data centers to implement green power, lithium-ion UPS, and intelligent administration solutions. These are increasing the speed of transition to advanced power infrastructure and are becoming one of the keystones of modern information center development and online development.

Artificial Intelligence: The Next Growth Catalyst in Data Center Power

The data center power market is transformed by artificial intelligence (AI) integration that allows smarter, more efficient, and predictive data center power management. The AI will learn about the equipment failures, optimize the loads, and improve the performance of UPS, which is trustworthy and available to the machine, all with the help of big data analysis. The AI program also increases the forecast demand and uptake of renewable energy and reduces operating costs and environmental performance. As the numbers of hyperscale data centers and colocation centers continue to grow worldwide, the use of AI-distributed power management is gaining momentum. More companies are starting to see AI as a competitive advantage to achieve their sustainability objectives, at the same time remaining efficient and cost-effective.

What Factors are Fueling the Rapid Expansion of the Data Center Power Market?

• Raising Digitalization and Cloud Computing: The sheer volume of data generated due to the massive growth in cloud computing, AI, and IoT is increasing the necessity to possess an advanced data center. An effective system to support a high workload is a factor that should be considered to enable a sustained operation.
• Increasing Energy and Sustainability Demands: Operators are designing new high-end energy-efficient systems that are power-efficient and with UPS, renewable integration, and smart monitoring. This transformation is being driven by regulatory and corporate sustainability pressures, and green power and efficient solutions are becoming the major drivers of market growth.
• Growing Colocation and Hyperscale Data Centers: Hyperscale and colocation facilities are increasing their power needs. The need to adopt modern power management systems is on the increase as enterprises shift to a common infrastructure format and as the market is experiencing a fast-growing rate.

Market Outlook:

• Market Growth Overview: The Data Center Power market is expected to grow significantly between 2025 and 2034, driven by the integration of renewables and smart grids, surging power demand from AI, growth in cloud and edge data centers, and the evolution of power management technologies.
• Sustainability Trends: Sustainability trends involve renewable energy integration and 24/7 carbon-free goals, adoption of energy-efficient hardware and cooling, and circular economy practices and heat reuse.
• Major Investors: Major investors in the market include Vontier Corporation and Fortive Corporation, Dover Corporation, Eaton Corporation plc., Schneider Electric SE, ABB Ltd., and Amazon (AWS).
• Startup Economy: The startup economy is focused on venture capital and strategic investment, circular economy solutions, and edge and modular power.

Market Scope

Market Dynamics

Drivers

Increasing Focus on Renewable Energy Integration

One of the driving forces in the data center power systems market is the growing interest in the integration of renewable energy. Due to the exponential growth in the volume of data being sent, the power consumption in data centers is skyrocketing as electricity is becoming more expensive, and this is raising environmental concerns. Integration of renewable energy could reduce carbon footprint, while significantly improving resiliency since its energy sources are varied. As hyperscale and colocation data centers increase in size, renewable-supported power systems are becoming increasingly marketable, implementing clean energy as a critical instrument to future-proof the operations and promote the further evolution of the market.

Restraint

High Initial Investment Cost for Advanced Power Systems

The biggest restraint in the data center power market is the huge initial expenses of complex infrastructure. They are not affordable and are not available to be used by many, especially small and medium enterprises (SMEs). Unlike the large hyperscale operators, who can counter the investment by reducing future costs with savings, energy, and sustainability benefits, smaller players might be challenged by the expensive investment. This is an economic problem that makes it difficult to popularize advanced power technologies and enter the market. These systems can provide operational savings and regulatory advantages over the long term, yet high start-up costs remain a significant inhibitor to growth across many sectors of the market.

Opportunity

Rising Adoption of Modular Power Systems

Modular power designs are increasingly becoming popular as more designers need to be able to scale rapidly and use their space optimally and efficiently. Modular units can be deployed easily and expanded easily as per demand, unlike traditional large-scale setups that require time to deploy and expand. This enables the operators to save a lot of resources and provide power without creating a lot of redundancy. Modular systems also reduce the amount of time and money needed to install and initialize the system, hence they are appealing in new facilities as well as retrofits. Modular power systems are becoming a groundbreaking opportunity that can drive sustainable and future-ready data center expansion by simplifying how their operators balance efficiency, scalability, and reliability.

• In July 2024, Vertiv launched a high-density prefabricated modular data center solution that can be used to roll out AI computing at a rapid scale globally. This configuration reduces the footprint of the power systems, since the UPS and switchgear are tightly coupled, and can be scaled to AI-driven loads.
  (Source: https://www.vertiv.com)

Component Insights

Why did the UPS Systems Segment Lead the Data Center Power Market in 2024?

The uninterruptible power supply (UPS) segment led the market while holding a 30% share in 2024. This can be attributed to the role of UPS systems in ensuring uninterrupted operations in data centers due to backup power whenever data centers experience a failure, unstable voltage, or a system outage. As the amount of data generated grows exponentially, cloud computing and hyperscale computing, business organizations have become increasingly dependent on UPS systems to reduce outages and safeguard mission-critical workloads. A UPS solution is smart monitoring technologies, energy-efficient technologies to optimise performance and minimise operation cost. The increasing adoption of modular and scalable UPS architecture is helping operators respond to changing demand with greater speed.

The power distribution units (PDU) segment is expected to grow at a significant CAGR over the forecast period, due to the growing demand for efficiency, flexibility, and sustainable operation in contemporary data centres. The PDUs play a vital role in the successful supply of electricity to racks and servers to provide a steady supply of power, and some new intelligent PDUs can now be remotely monitored, load-balanced, as well as remotely controlled to optimise the use of energy. The energy storage solutions are becoming increasingly popular as data centers start to move towards renewable integration and demand-response programs, which allow operators to retain excess energy and maintain continuity when the load peaks or malfunctions. Lithium-ion and more advanced battery technologies are more popular due to increased energy density, increased recharge rates, and reduced maintenance.

Power Source Insights

How did the Utility Power Segment Capture the Largest Data Center Power Market Share?

The utility power segment was the industry leader, as it is the primary and most reliable source of data center power in the world. Utility power provides the stability and reliability needed to power cloud services, artificial intelligence workloads, and hyperscale computing as the workloads in data centers increase in power consumption. Colocation facilities and large enterprises are highly dependent on utility grids, which are cost-effective and can supply interruption-free, high-capacity power. This has driven grid-modernization investments and utility alliances to negotiate long-term energy deals.

The renewable energy segment is expected to grow at a significant CAGR over the forecast period because of the growing global interest in sustainability and carbon neutrality. The data centers can be quite power-hungry, and they are shifting towards renewable energy sources like solar, wind, and hydro to lower their dependency on the traditional utility grid and decrease their environmental footprint. To be more precise, fuel cells are quickly gaining momentum due to the ability to offer efficient and low-emission, and scalable on-site power generation solutions, rendering them resilient and sustainable. The change drives down the carbon footprint, but improves the energy security over time; therefore, renewable energy and fuel cells are the most significant growth drivers of the market.

Power Rating Insights

Why did the 500–1,000 kVA Segment Lead the Data Center Power Market in 2024?

The 500–1,000 KVa segment held around 32% share in the market in 2024, as this segment is suitable to power medium- to large-sized data centers and shared facilities. The power range provides the appropriate combination of capacity, efficiency, and cost-effectiveness and is suitable for enterprises that have predictable growth in computing and storage requirements. The segment data centers are capable of supporting high-density workloads, cloud computing, and sensitive IT operations at acceptable levels without over-investment in infrastructure. They create a data center pillar supporting an expanding data center ecosystem due to their sustainability in dependency, power performance, and environmental friendliness.

The above 2,000 KVa segment is expected to grow substantially in the data center power market, as the number of hyperscale data centers and cloud service providers that demand massive power capacities continues to increase. As enterprises across the globe keep speeding up digital transformation and AI-based processes, the number of facilities that operate at ultra-large scales grows exponentially, requiring increased power ratings to support thousands of servers and storage devices. Over 2,000 KVA solutions provide the robustness and efficiency needed to maintain continuous operations in mission-critical environments. The adoption is driven by an increase in investments by global technology giants in hyperscale infrastructures and multi-tenant colocation facilities.

Data Center Type Insights

What Factors Enabled the Dominance of Hyperscale Data Centers in the Data Center Power Market?

The hyperscale data centers segment led the market in 2024. Hyperscale data centers are typically operated by technology powerhouses and cloud computing service providers, and need high-density power systems to operate continuously and scale on thousands of servers. To effectively address increasing energy demands, these data centers are making heavy investments in new technology power solutions, including modular UPS systems, intelligent PDUs, and large capacity backup generators. In addition, major players are making sustainability promises that are driving the integration of renewable energy, energy-efficient cooling, and intelligent monitoring technologies.

The edge data centers segment is expected to grow at a significant CAGR over the forecast period, driven by the high-speed implementation of 5G networks and IoT applications. In contrast to centralized hyperscale facilities, edge data centers are smaller, distributed facilities that are closer to end-users and thus can process data much faster with minimal latency. Growing numbers of connected devices, autonomous systems, and real-time analytics are driving the need to build these so-called localized centers, especially within healthcare, manufacturing, retail, and smart cities. Edge data center power infrastructure should be focused on efficiency, flexibility, and compactness to enable operation in a wide range of geographic locations. Additional solutions such as lithium-ion UPS systems, smart PDUs, and storage systems with renewable integration are also being deployed to deliver reliable, scalable, and sustainable energy delivery.

End-Use Industry Insights

Why did the IT and Telecom Segment Lead the Data Center Power Market in 2024?

The IT and telecom segment held around 35% share in the market in 2024, led by the increasing use of flexible and modular power products that are scalable and easy to implement. The need to maintain a rapid responsiveness to workload changes in businesses is growing as companies move to more modular, or edge-based, IT infrastructure. Such resources demand bespoke systems capable of being easily expanded to respond to changing performance requirements, including small, localized networks and large high-performance computing systems. The initial adopters of cloud services, 5G development, and AI integration, the IT and telecom sector demands uninterrupted connectivity and stability, thus making resilient power infrastructure the top-priority item in the list of priorities. The use of energy in the form of modular UPS systems, lithium-ion batteries, and smart PDUs underlies the introduction of new technologies.

The BFSI (banking, financial services, insurance) segment is expected to grow substantially in the data center power market, due to the acceleration in the rate of digitization and the requirements of strict compliance. The increasing use of electronic medical records, telemedicine, and AI-based diagnostics in the healthcare sector is generating high volumes of sensitive patient information that have to be stored and processed safely and reliably. Similarly, online banking, digital transactions, and fintech are booming in the BFSI industry, and this is causing an unprecedented demand to create a robust IT infrastructure. This has made it difficult to develop superior and powerful systems that can help do 24/7 operations further. Healthcare and BFSI are now becoming key growth drivers in the global data center power ecosystem as more people become digital.

Regional Insights

U.S. Data Center Power Market Size and Growth 2025 to 2034

The U.S. data center power market size is exhibited at USD 6.26 billion in 2025 and is projected to be worth around USD 19.55 billion by 2034, growing at a CAGR of 13.46% from 2025 to 2034.

Why is North America Leading the Data Center Power Market?

North America led the global market with the highest share of 38% in 2024. Large technology players such as Google, Microsoft, Amazon, etc. are actively increasing the number of their data centers in the region to serve the increasing demand for digital services, artificial intelligence, and cloud storage. With the increase in these data centers, there is a rising demand for effective, efficient, and reliable power management systems. A fully developed IT ecosystem, the presence of skilled labour, and strong power infrastructure also enhance the leadership in the region. This transition to sustainability and efficiency will empower the North American leadership and be the backbone of the data center power market expansion worldwide.

North America: U.S. Data Center Power Market Trends

It is expected that the data center power market is growing tremendously in the U.S. as the demand for environmentally friendly and energy-saving data center power solutions keeps increasing. Governments are promoting the adoption of renewable energy through incentives, subsidies, and regulatory policies that are bound to reduce carbon emissions in data centers. This regulatory impetus is in line with corporate sustainability objectives, where operators are encouraged to implement solar, wind, and battery storage as part of their energy portfolio.

Why is Asia Pacific Undergoing the Fastest Growth in the Data Center Power Market?

Asia Pacific is estimated to grow at the fastest CAGR during the forecast period, due to the rapid digitalization, the implementation of 5G networks, and the growing use of cloud services. Hyperscale cloud providers and local operators are investing significantly in the region because they are increasing data center capacity to meet the growing demand in digital services, streaming platforms, and e-commerce. This expansion has created a growing need to have reliable, efficient, and viable power infrastructure capable of supporting high-density workloads. Advanced technologies like AI-based power management systems, smart UPS, and high-density power distribution units are getting embraced to deliver performance, scalability, and energy efficiency.

Asia Pacific: Japan Data Center Power Market Trends

Japan is a significant contributor to the overall trend of the data center power market in the Asian Pacific region, due to its technological development, sustainability goals, and a thriving digital economy. Direct current (DC) solutions, battery storage improvements, and renewable energy integration are stealing the show among the operators who want to achieve maximum efficiency at low operation costs. The demands on the facilities that provide advanced power infrastructure are growing as the government strives to become carbon-neutral and business invests their substantial financial resources in digital growth.

Value Chain Analysis of the Data Center Power Market

• Core Infrastructure Hardware Manufacturing
  This foundational stage involves the design and production of critical power infrastructure components, including uninterruptible power supplies (UPS), generators, switchgear, power distribution units (PDU), and battery energy storage systems.
  Key Players: Eaton Corporation plc, Schneider Electric SE, Vertiv Holdings Co., and Cummins Inc.
• Software Development and Analytics (DCIM)
  This stage focuses on developing the intelligence and management layers to monitor, manage, and optimize power infrastructure through Data Center Infrastructure Management (DCIM) software.
  Key Players: Companies specializing in software and analytics include Schneider Electric (EcoStruxure IT), Vertiv (Vertiv Environet), and ABB Ltd. (power management solutions).
• Integration and Solution Design/Assembly
  This stage involves integrating diverse hardware and software components into a cohesive, customized power management solution tailored to specific data center requirements.
  Key Players: System integrators, engineering procurement construction (EPC) firms, and specialized service providers, often local partners of major OEMs, are crucial for this stage. AECOM and Black & Veatch Holding Company.
• Distribution and Sales
  This stage encompasses the marketing, selling, and delivery of data center power solutions to end-user clients such as hyperscalers, colocation providers, and enterprise data centers.
  Key Players: Eaton, Schneider Electric, Vertiv, and Anixter International Inc.
• Service, Support, and Maintenance
  The final stage ensures the continuous, reliable operation and longevity of the power systems after installation.
  Key Players: Eaton Corporation plc, Vertiv Holdings Co., and Schneider Electric SE.

Top Companies in the Data Center Power Market & Their Offerings:

• ABB: ABB provides a broad range of power and automation technologies for data centers, including uninterruptible power supplies (UPS), switchgear, and advanced power management software.
• Black Box: Black Box contributes by providing a wide array of data center infrastructure solutions, including power distribution units (PDU), power protection, and backup systems.
• CyrusOne: As a major data center operator, CyrusOne contributes to the power market by investing heavily in the design, build, and management of large-scale, high-performance data centers. Their contributions focus on developing innovative and efficient power delivery and cooling solutions to support their clients' critical IT infrastructure.
• Eaton: Eaton is a key player in the data center power market, offering a comprehensive portfolio of power management solutions, including UPS systems, switchgear, and software. The company focuses on maximizing uptime and enhancing efficiency through intelligent power management technologies.
• Equinix Inc.: Equinix operates a global network of interconnected data centers and contributes to the power market through its significant investment in developing and operating highly reliable power infrastructure. It focuses on integrating sustainable power sources to meet the energy demands of its interconnected ecosystems.
• GDS Holdings: A leading developer and operator of high-performance data centers in China, GDS Holdings contributes by building and managing large-scale, energy-efficient data center facilities. The company focuses on robust power infrastructure and services to support China's growing digital economy.
• Generac Power Systems, Inc.: Generac is a major supplier of backup power generation systems, including gas and diesel generators, for data centers. The company ensures power reliability and continuity for data centers during outages, making it a critical component of their power infrastructure.
• General Electric Company: GE provides specialized power conversion and protection solutions for data centers, including critical power systems and power distribution units. While its presence has shifted, GE's technology legacy contributes to efficient and reliable data center power delivery.
• Huawei Technologies Co., Ltd.: Huawei offers a wide range of data center solutions, including smart power systems and modular data center infrastructure. The company integrates its expertise in power electronics and digital technology to provide efficient and reliable power for data centers.
• Legrand: Legrand provides critical infrastructure products for data centers, such as racks, power distribution units (PDU), and cable management systems. Its focus on connectivity and power distribution contributes to the physical layer of data center power solutions.
• N1 Critical Technologies: N1 Critical Technologies specializes in critical power and thermal solutions for data centers, offering UPS systems, generators, and cooling solutions. It provides customized and reliable power infrastructure solutions to prevent data center downtime.
• NTT Global Data Centers: As a global provider of data center services, NTT contributes by building and managing energy-efficient and scalable data center facilities.
• Raman Power Technologies: This company provides power backup solutions, including UPS systems and industrial batteries, for data center applications. It supports the market by offering reliable and efficient power protection for critical infrastructure.
• Rittal GmbH and Co. KG: Rittal provides enclosure systems, power distribution, and climate control solutions essential for housing and powering data center IT equipment. Its products ensure a secure and controlled environment for the power infrastructure.
• Schneider Electric: Schneider Electric is a major provider of integrated hardware and software for data center power management, including UPS, EcoStruxure software, and power distribution units.
• Vertiv Group Corp.: Vertiv is a leading supplier of critical infrastructure for data centers, offering a wide range of power and thermal management solutions.

Data Center Power Market Companies

• ABB
• Black Box
• CyrusOne
• Eaton
• Equinix Inc.
• GDS Holdings
• Generac Power Systems, Inc.
• General Electric Company
• Huawei Technologies Co., Ltd.
• Legrand
• N1 Critical Technologies
• NTT Global Data Centers
• Raman Power Technologies
• Rittal GmbH and Co. KG,
• Schneider Electric
• Vertiv Group Corp.

Segment Covered in the Market

By Component

• Uninterruptible Power Supply (UPS)
• Power Distribution Units (PDU)
• Generators
• Transfer Switches and Switchgear
• Busway
• Others (cabling, energy storage, etc.)

By Power Source

• Utility Power
• Renewable Energy (solar, wind, fuel cells)
• Energy Storage Systems (batteries, flywheels)

By Power Rating

• Below 500 kVA
• 500–1,000 kVA
• 1,000–2,000 kVA
• Above 2,000 kVA

By Data Center Type

• Enterprise Data Centers
• Colocation Data Centers
• Hyperscale Data Centers
• Edge Data Centers

By End-Use Industry

• IT and Telecom
• BFSI (Banking, Financial Services, Insurance)
• Government and Defense
• Healthcare
• Manufacturing
• Retail and E-Commerce
• Media and Entertainment
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa