Data Center Power Market Size, Share & Industry Forecast (2025 - 2030)

Data Center Power Market Analysis

The Data Center Power Market size is estimated at USD 26.00 billion in 2025, and is expected to reach USD 36.25 billion by 2030, at a CAGR of 6.87% during the forecast period (2025-2030).

The data center power industry is experiencing unprecedented growth driven by the exponential increase in data generation and digital transformation across sectors. According to Edge Delta, current data generation has reached approximately 120 zettabytes globally, with daily data generation reaching 337,080 petabytes. This massive surge in data creation has led to the rapid expansion of data center facilities worldwide, with Cloud Scene reporting over 5,375 data centers in the United States alone as of September 2023. The integration of advanced technologies like artificial intelligence, machine learning, and edge computing has fundamentally transformed data center power management operations, necessitating more sophisticated power management solutions.

The industry is witnessing a significant shift toward sustainable and energy-efficient power solutions, particularly in response to increasing environmental concerns and regulatory pressures. According to Natural Resources Canada, approximately 50% of data center energy is consumed by computing servers, while cooling systems account for another 40%. This has prompted major industry players to invest in innovative data center green energy technologies and green energy solutions. For instance, in January 2024, Google announced plans to expand its 24/7 clean energy matching for data centers globally, partnering with Flexidao to match electricity purchase agreements against actual power usage times.

Major technology companies are making substantial investments in data center power infrastructure, indicating strong market confidence and growth potential. In January 2024, AWS announced plans to invest USD 35 billion in multiple cloud data center campuses in Virginia by 2040, while also committing USD 15 billion to expand its Japanese data center regions by 2027. Similarly, Google revealed plans for a USD 1 billion investment in a new UK data center, demonstrating the industry's robust expansion trajectory and increasing power requirements.

The financial services sector has emerged as a crucial driver of data center power demand, with the FDIC reporting 4,135 FDIC-insured commercial banks in the United States as of May 2023. This has led to significant investments in power infrastructure reliability and redundancy. In Southeast Asia, substantial investments are being made to establish new data center facilities, exemplified by EdgeConneX's USD 403.8 million investment announced in September 2023 for expanding its Indonesian data center footprint to over 120 data center megawatts capacity, focusing on implementing sustainable power solutions and enhanced safety measures.

Data Center Power Market Trends

Rising Adoption of Mega Data Centers and Cloud Computing

The adoption of cloud computing services by end-users to gain better business insights and increase organizational business process efficiencies is driving the demand for cloud hosting and cloud-native solutions in the market, fueling the growth of data centers worldwide. The expansion of data center capacities is increasing the demand for input power at the data center premises to make the setup operational and fuel the data center power market during the forecast period.

The emergence of machine learning and artificial intelligence technology-based cloud solutions in the industrial landscape is fueling the growth of data centers because they serve as the backbone to support this growth by providing the IT infrastructural support for these cloud solutions. Cloud computing solutions need high-power server infrastructure, raising the demand for the construction of hyperscale and mega data centers with high server capabilities, which would fuel the need for data center power requirements and drive market growth. For instance, in August 2023, JLL published its 2023 North American Data Center Report stating that AI requirements, along with continued adoption of cloud services, are the main drivers of hyperscale expansion, driving record growth in the data center sector.

Increasing Demand to Reduce Operational Costs

The increasing cost of energy generation, supply, and distribution is making data center operators worldwide implement energy-saving and efficient distribution strategies in powering their DC infrastructures. This is driving the demand for DC power solutions and services in the market due to their application in minimizing the operational expenditure of DCs by effectively using power supplies in the DC premises. The priority in reducing expenses on data center power consumption in the DCs by implementing smart energy management solutions is creating an opportunity for market vendors, including Cisco Technology, ABB Ltd, and Eaton.

For instance, in September 2023, Equinix, a global data center operator, planned to implement an energy management platform with AI to optimize temperature ranges of its data centers to automatically manage temperature controls within chiller units. Additionally, in November 2023, Legrand planned to introduce intelligent, innovative, and cost-effective Linkeo DC PDUs specially designed to address the data center power management needs of sustainable data centers, which would provide DC operators the ability to reduce their energy expenditure and drive the demand for DC power solutions in the future.

Segment Analysis: By Solutions

Power Distribution Unit Segment in Data Center Power Market

The Power Distribution Unit (PDU) segment dominates the global data center power market, commanding approximately 36% market share in 2024. This significant market position is driven by the increasing adoption of intelligent PDUs that enable real-time monitoring of data center power and remote management capabilities in data centers. The segment's growth is further bolstered by the rising demand for high-density computing environments and the need for efficient distribution of data center power solutions. Major industry players like Schneider Electric, Eaton, and Vertiv are continuously innovating their PDU offerings with advanced features such as outlet-level monitoring, environmental sensors, and enhanced security protocols. The segment is also benefiting from the rapid expansion of hyperscale data centers and the growing trend toward modular data center designs, which require sophisticated power distribution solutions for data centers to maintain optimal performance and reliability.

UPS Segment in Data Center Power Market

The Uninterruptible Power Supply (UPS) segment is emerging as the fastest-growing segment in the data center power market, with a projected growth rate of approximately 8% during 2024-2029. This accelerated growth is primarily attributed to the increasing focus on ensuring uninterrupted power supply for data centers and protecting critical data center infrastructure from power disruptions. The adoption of lithium-ion UPS systems for data centers is gaining significant traction due to their superior performance, longer lifespan, and reduced maintenance requirements compared to traditional lead-acid batteries. The segment is witnessing substantial innovations in modular UPS designs for data centers, which offer enhanced scalability and efficiency for data center operations. Additionally, the integration of smart UPS systems with advanced monitoring and predictive maintenance capabilities is driving the segment's growth, particularly in regions experiencing rapid digital transformation and data center expansion.

Remaining Segments in Data Center Power Solutions Market

The remaining segments in the power solutions for data centers market, including Busway and Other Solutions, play crucial roles in providing comprehensive power infrastructure solutions. The Busway segment offers efficient data center power distribution through innovative busbar systems, particularly beneficial for large-scale data centers requiring flexible and scalable power distribution architectures. Other Solutions encompass various power components such as switchgear, generators, and power monitoring systems, which are essential for maintaining reliable data center operations. These segments are experiencing steady growth driven by the increasing complexity of data center power requirements and the need for integrated power management solutions. The adoption of these solutions is particularly strong in regions with mature data center markets and among organizations prioritizing power efficiency and infrastructure reliability.

Segment Analysis: By Services

Professional Services Segment in Data Center Power Market

Professional services dominate the data center power services market, commanding approximately 56% of the total market share in 2024. This significant market position is attributed to the growing complexity of data center operations requiring specialized expertise in maintenance, assessment, and support services. The segment's strength is driven by the increasing demand for infrastructure assessment services that include inspection of hardware, firmware, and software components, along with recommendations for necessary upgrades. Professional service providers are focusing on delivering comprehensive training sessions and support for power infrastructure management, helping organizations optimize their data center operations while ensuring compliance with evolving industry standards and regulations.

System Integration Segment in Data Center Power Market

The system integration segment is emerging as the fastest-growing segment in the data center power services market, projected to grow at approximately 6.5% during 2024-2029. This growth is primarily driven by the increasing complexity of data center power infrastructures and the need for seamless integration of various power components. The segment's expansion is further supported by the rising demand for efficient power distribution systems, particularly in new data center constructions and modernization projects. System integrators are increasingly focusing on providing end-to-end solutions that encompass power supply configuration, distribution setup, and comprehensive installation services, making them crucial partners for data center operators looking to optimize their power infrastructure.

Remaining Segments in Data Center Power Services Market

The consulting segment plays a vital role in the data center power services market by providing strategic guidance and expertise in power infrastructure planning and optimization. Consulting services are particularly crucial in the early stages of data center development, offering custom designing services and helping organizations optimize their operational efficiency. These services are increasingly focusing on sustainability and energy efficiency considerations, helping organizations develop environmentally conscious power strategies while maintaining optimal performance. The segment's importance is further emphasized by its role in modular data center implementations and power optimization strategies.

Segment Analysis: By End-User Application

Information Technology Segment in Data Center Power Market

The Information Technology segment dominates the global data center power market, commanding approximately 35% market share in 2024, while also exhibiting the highest growth trajectory with a projected growth rate of around 7.5% during 2024-2029. This segment's prominence is driven by the IT industry's increasing reliance on data centers for both on-premise private storage and hyperscale facilities, varying according to organizational size. The widespread adoption of cloud storage has surged significantly due to the growth of SaaS providers, compelling cloud storage providers to expand their capacities. Major cloud providers like AWS, Microsoft, and Google are making substantial investments in hyperscale facilities to meet growing demands. For instance, in January 2024, AWS announced plans to invest USD 35 billion to build multiple cloud data center campuses in Virginia by 2040 and another USD 15 billion into its two existing data center regions in Japan by 2027. The increasing data load from these expansions necessitates more robust power solutions for data centers, driving significant growth in the IT segment of the data center power market.

Telecom Segment in Data Center Power Market

The Telecom segment represents a significant portion of the data center power market, with substantial growth potential driven by the increasing demand for content delivery, mobile services, and cloud infrastructure. The sector's power requirements are particularly intensive due to the need for interconnecting data centers and WAN connectivity, which create substantial network demands requiring high storage resources with considerable energy consumption. The advent of 5G technology is expected to significantly impact power consumption patterns, with the GSMA projecting global mobile 5G connections to reach 1.8 billion by 2025. Telecommunications companies are actively adopting advanced power solutions for their data centers to optimize power consumption, with many implementing hybrid power controllers, solar panels, batteries, and diesel generators to reduce operational expenses at their sites. The segment's growth is further supported by major telecom providers expanding their data center capabilities, as evidenced by NTT DATA's launch of a new hyperscale data center campus in Chennai in 2023 to address the demands of the region's thriving digital ecosystem.

Remaining Segments in Data Center Power Market End-User Applications

The data center power market encompasses several other crucial segments including BFSI, Manufacturing, Government, and other end-user applications, each contributing uniquely to market dynamics. The BFSI sector demonstrates strong demand due to the critical nature of financial data storage and the increasing adoption of digital banking services. The manufacturing segment's requirements are driven by Industry 4.0 initiatives and the growing implementation of smart factory solutions. Government sector demand is influenced by digital transformation initiatives and e-governance programs, while other applications include healthcare, education, and retail sectors, each requiring specialized power solutions for their data center operations. These segments collectively contribute to the market's diversity and stability, with each having specific requirements for power reliability, efficiency, and management capabilities in their data center operations.

Segment Analysis: By Data Center Size

Large Segment in Data Center Power Market

The large data center segment dominates the global data center power market, commanding approximately 68% of the total market share in 2024. This segment's prominence is driven by the increasing adoption of cloud computing, big data analytics, and artificial intelligence applications that require substantial computing power and infrastructure. Large data centers, which typically span over 25,000 sq. ft of space, are witnessing significant growth due to the rising demand from hyperscale providers and enterprise customers. The segment is expected to grow at the highest rate of around 7% during 2024-2029, driven by substantial investments from major cloud service providers and increasing data center construction activities worldwide. Companies like Amazon Web Services, Google Cloud, and Microsoft Azure are continuously expanding their hyperscale facilities to meet the growing demand for cloud services, contributing significantly to this segment's growth. The trend towards consolidation of multiple smaller facilities into larger, more efficient data centers is also fueling the segment's expansion, as organizations seek to optimize operational costs and achieve better economies of scale.

Small and Medium Segment in Data Center Power Market

The small and medium data center segment continues to play a vital role in the global data center power market, particularly serving the needs of small and medium-sized enterprises, edge computing applications, and regional data processing requirements. These facilities, covering less than 25,000 sq. ft of space, are essential for organizations requiring localized data processing and storage capabilities. The segment is witnessing steady growth driven by the increasing adoption of edge computing technologies, which require smaller, distributed data center facilities closer to the point of data generation and consumption. Small and medium data centers are particularly prevalent in tier 2 and tier 3 cities, where they serve as critical infrastructure for local businesses, educational institutions, and government organizations. The segment's growth is also supported by the rising demand for edge computing applications in retail, healthcare, and manufacturing sectors, where low-latency data processing is crucial. Additionally, the trend towards hybrid cloud architectures is creating opportunities for small and medium data centers to serve as local processing hubs while maintaining connections to larger cloud facilities.

Data Center Power Market Geography Segment Analysis

Data Center Power Market in North America

North America represents a dominant force in the global data center market, driven by rapid digital transformation and extensive cloud computing adoption. The region benefits from advanced technological infrastructure, particularly in the United States and Canada. The presence of major technology companies, coupled with increasing investments in data center facilities, continues to fuel growth in the data center power market. The region's focus on energy-efficient solutions and sustainable practices in data center operations has led to innovative power management approaches and the adoption of renewable energy sources.

Data Center Power Market in United States

The United States leads the North American market as the largest country segment, commanding approximately 89% of the regional data center power market share in 2024. The country's dominance is attributed to its extensive network of data centers, with over 5,375 facilities operational across various states. The US market benefits from the presence of major cloud service providers, extensive digital infrastructure, and continuous technological advancements. The Department of Energy's initiatives focusing on data center efficiency and the growing adoption of edge computing solutions further strengthen the market position. The country's emphasis on modernizing power grids and implementing green IT practices has created substantial opportunities for power solution providers.

Data Center Power Market in Canada

Canada emerges as a significant market with a projected growth rate of approximately 5% during 2024-2029. The country's data center landscape is evolving rapidly, particularly in major cities like Toronto and Montreal. Canada's favorable climate conditions, which naturally assist in cooling data centers, provide a unique advantage for power efficiency. The government's commitment to reducing carbon emissions has encouraged data center operators to adopt energy-efficient power solutions. The country's focus on renewable energy sources and the implementation of advanced power management systems continue to attract investments from both domestic and international players.

Data Center Power Market in Europe

Europe represents a mature market in the global data center market, characterized by stringent energy efficiency regulations and sustainable practices. The region's market is primarily driven by countries like Germany, the United Kingdom, France, Italy, and Spain. The European Union's emphasis on data sovereignty and environmental sustainability has significantly influenced the power infrastructure choices in data centers. The region's focus on renewable energy integration and the implementation of advanced power management solutions continues to shape trends in the data center power market.

Data Center Power Market in Germany

Germany stands as the largest market in Europe, holding approximately 21% of the regional data center power market share in 2024. The country's position is strengthened by its robust industrial base and technological infrastructure. Germany's data center landscape is particularly concentrated in Frankfurt, which serves as one of Europe's primary digital hubs. The country's emphasis on energy efficiency and sustainable practices, coupled with strict regulations on power usage effectiveness (PUE), has driven the adoption of advanced power solutions. The German government's initiatives towards green data centers and energy-efficient operations continue to influence market growth.

Data Center Power Market in Italy

Italy demonstrates the highest growth potential in the European region, with a projected growth rate of approximately 8% during 2024-2029. The country's data center market is experiencing significant transformation, particularly in major cities like Milan and Rome. Italy's strategic position in the Mediterranean and its improving digital infrastructure have attracted substantial investments in data center facilities. The country's focus on modernizing its power infrastructure and adopting energy-efficient solutions has created new opportunities for market players. The government's initiatives to promote digital transformation and sustainable energy practices continue to drive market expansion.

Data Center Power Market in Asia-Pacific

The Asia-Pacific region represents a rapidly evolving market in the global data center market, characterized by diverse market dynamics across countries including China, Japan, Australia, Singapore, and India. The region's digital transformation initiatives, coupled with increasing internet penetration and cloud adoption, drive substantial growth in data center infrastructure. The market is particularly influenced by government initiatives promoting digital economy development and sustainable energy practices.

Data Center Power Market in China

China dominates the Asia-Pacific market as the largest country segment, driven by its extensive digital infrastructure and rapid technological advancement. The country's position is strengthened by significant investments in data center facilities, particularly in major technology hubs like Shanghai and Beijing. China's focus on digital transformation and the development of smart cities has created substantial demand for reliable power infrastructure. The government's initiatives towards green data centers and energy efficiency continue to shape the landscape of the data center power market.

Data Center Power Market in India

India emerges as the fastest-growing market in the Asia-Pacific region, driven by rapid digitalization and increasing adoption of cloud services. The country's data center market is experiencing significant transformation, particularly in cities like Mumbai, Chennai, and Bangalore. India's favorable government policies, including initiatives for digital infrastructure development and data localization requirements, have attracted substantial investments in data center facilities. The country's focus on renewable energy integration and sustainable practices in data center operations continues to drive growth in the data center power market.

Data Center Power Market in Rest of the World

The Rest of the World region, encompassing the Middle East, Africa, and Latin America, demonstrates significant potential in the global data center power market. These regions are experiencing increased investments in digital infrastructure, driven by growing internet penetration and digital transformation initiatives. The market is particularly influenced by the emergence of new data center hubs in countries across these regions. The focus on modernizing power infrastructure and adopting energy-efficient solutions continues to shape dynamics in the data center power market. The region's growth is supported by government initiatives promoting digital economy development and sustainable energy practices.