Data Center Power Market (By Component: Solutions and Services; By Data Center Size: Mid-Size Data Centre, Enterprise Data Centre, and Large Data Centre; By End-User: BFSI, Energy, Healthcare, Government, IT and Telecommunication, Retail, and Others and By Region: North America, Europe, Asia-Pacific, Latin America, and MEA)

Data Center Power Market Highlights

• The global data center power market is projected to reach USD 20.48 billion by 2032, with a CAGR of 8.1% from 2024 to 2032
• North America's data center power market was valued at approximately USD 3.84 billion in 2023
• The Asia-Pacific data center power market is expected to grow at a CAGR of over 8.8% from 2024 to 2032
• In 2023, the solutions component sub-segment accounted for 63% of the market share
• The BFSI sector held 28% of the market share based on end-users in 2023
• Advancements in modular and scalable power systems for flexibility is the data center power market trend that fuels the industry demand 

A data center is a self-contained physical facility that houses computing infrastructure such as processors as well as other components like networks, telephony, and storage systems. Every entity that generates or consumes data, including governments, educational institutions, financial institutions, small and large merchants, digital data providers, networking websites, and many more, requires data centers. Every data center will very definitely use both alternating current (AC) and direct current (DC) power because AC is routinely converted to DC and vice versa.

Global Data Center Power Market Dynamics

Market Drivers

• Growing global power consumption by data centers
• Rising demand for advanced power management solutions
• Emergence of modular data centers
• Expanding use of over-the-top (OTT) content driving data center capacity needs

Market Restraints

• Escalating costs of raw materials and skilled labor
• High initial capital investments
• Complexities in upgrading legacy power infrastructure

Market Opportunities

• Increasing adoption of cloud computing and the internet of things (IoT)
• Rapid infrastructure development in emerging markets
• Expansion of green and sustainable data center technologies

Data Center Power Market Report Coverage

Data Center Power Market Insights

Data centers require a substantial amount of power to manage, optimize, and monitor their data. To effectively deal with power outages and maintain an uninterrupted supply of power, modern data centers include smart UPS systems and intelligent power distribution systems. UPS systems are utilized in data centers to ensure the proper operation of servers and other networking devices. In the event of power fluctuations, low-voltage electricity is routed through the UPS system to provide short-term power during the failure of the input power source. The fundamental purpose of UPS and other power solutions is to safeguard data center components against voltage spikes, harmonic distortion, and other power issues.

The primary drivers of the worldwide data center power market include rapid growth in enterprise data generation, a large increase in power consumption in data centers, and the desire for organizations to reduce operational expenses. For instance, according to India Brand Equity Foundation, power consumption in India increased by 9.5% in FY23, reaching 1,503.65 billion units (BU). The expanding digitization and use of cloud computing, together with an increase in the number of data centers throughout the world, are driving the data center power industry. The expansion of IT infrastructure and the creation of hyper-scale facilities have hastened the growth of the data center power market.

The increasing demand for edge facilities fuels market expansion. Rising adoption of modular power infrastructure, increased rack power density in facilities, and rising power consumption are all likely to fuel market expansion throughout the forecast period. Rising demand from emerging economies, technological developments, and increased adoption of automation and monitoring systems are all projected to create significant growth prospects in the future years. For instance, according to the Center for Economic and Policy Research, automation of manufacturing processes is a primary driver of adoption across all technologies.  The percentage of the US workforce exposed to automation-related usage of modern technology is approximately 30.4%. According to theory, organizations with greater labor expenses are more inclined to employ advanced automation technologies.

Data Center Power Market Segmentation

The worldwide market for data center power is split based on component, data center size, end-user, and geography.

Data Center Power Component

• Solutions
  • PDU
  • UPS
  • Busway
  • Others
• Services
  • Design & Consulting
  • Integration & Deployment
  • Support & Maintenance

According to the data center power industry analysis, the solution segment held the greatest market share in 2023. The solution portion is further dominates by UPS sector.This dominance is due to increasing usage of cloud computing, combined with the fast developing demand for omnipresent and sensitive data, benefited the sub-segment. The growing use of cloud computing, combined with the need for secure and ubiquitous data, has pushed the implementation of such a device. The use of portable UPS systems in applications such as Software as a Service (SaaS), online gaming, high-performance computing, and online multimedia streaming has also helped to drive the segment's growth.

Data Center Power Data Center Size

• Mid-Size Data Centre
• Enterprise Data Centre
• Large Data Centre

The large data centre segment is expected to be a largest data center size category in the data center power market as demand for high-capacity data storage and processing grows. These facilities are critical for delivering cloud services, big data analytics, and OTT content, all of which demand a strong infrastructure and consistent power supply. Large data centers also benefit from economies of scale, which reduces the cost of managing massive amounts of data. As digitalization progresses, global demand for these large-scale infrastructures grows.

Data Center Power End-User

• BFSI
• Energy
• Healthcare
• Government
• IT and Telecommunication
• Retail
• Others

According to the data center power market forecast, the banking, financial services, and insurance (BFSI) industry leads the market because it requires secure and uninterrupted data processing and storage. Financial organizations manage massive volumes of sensitive data, necessitating high-performance data centers with reliable power systems to assure operational continuity and data security. The BFSI sector's increasing use of digital banking, mobile transactions, and fintech solutions has raised need for reliable data center infrastructure. As the digital financial set grows, the BFSI sector has a strong hold on the data center power market.

Data Center Power Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Data Center Power Market Regional Analysis

For several reasons, North America had the most market share in 2023. This expansion is linked to the region's developing data centers, as well as the IT and telecom industries. For instance, T-Mobile stated in January 2024 that it has completed major network modifications to provide 5G service throughout more than 48,000 square miles of Upstate New York. Notable sites that have received 5G as part of this project include Fort Drum, Albany Airport, Lake Placid, and Clarkson University, among many others. This multi-year investment has resulted in the addition of over 400 new cell sites, as well as renovations to over 800 existing towers in the region. Governments and regulatory agencies have created and implemented a diverse set of rules and policies to minimize carbon footprints and energy usage. As a result, effective power management systems have become widely adopted, driving regional market growth.

The Asia-Pacific area is the fastest-growing market for data center power, owing to rapid digital transformation, increased cloud computing adoption, and rising internet consumption. Furthermore, increased investments in data center infrastructure by global tech corporations and local businesses are driving this growth. For instance, in July 2023, ABB India's Electrification introduced MegaFlex DPA UPS solutions designed exclusively for the Indian market. This innovative, sustainable UPS system is part of ABB EcoSolutions and follows ABB's circularity paradigm. Designed for high-density computer settings, it has the best efficiency rating and the shortest footprint. As businesses rely more on SaaS (Software as a Service) and IaaS (Infrastructure as a Service) applications, data center stability has become critical.

Data Center Power Market Players

Some of the top data center power companies offered in our report include ABB Group, Eaton, Cyber Power Systems, Inc., Black Box Corporation, Generac Power Systems, Inc., Rittal GmbH & Co. KG, GDS Holdings, Delta Electronic Inc., Schneider Electric, and General Electric