Data Center Power Market Size (2024 - 2029)

Data Center Power Market Analysis

The Data Center Power Market size is estimated at USD 24.33 billion in 2024, and is expected to reach USD 33.92 billion by 2029, growing at a CAGR of 6.87% during the forecast period (2024-2029).

The need for data centers has increased as the population grows increasingly connected and dependent on digital infrastructure. The amount of digital data produced globally is growing rapidly.

• As networks evolve and coverage expands, 5G is expected to play the role of a major enabler of emerging edge use cases that need high-bandwidth and low-latency data transmission. Hyper-scale providers seek next-generation automation with power distribution units (PDUs) to evolve to accommodate the shift. With rising capacities and lower space, PDUs are being constructed with a focus on modularity and providing extra safety.
• The need to increase storage capacity has become critical for almost every major enterprise, as there is a continuous rise in data and its respective applications. According to the Edge Delta, the amount of data generated is around 120 zettabytes, which includes 337,080 petabytes (PB) of daily data generation.
• Further, the incorporation of Al, robotics, IoT, and other technologies is also expected to increase. This aspect will support the development of data centers in remote places. Critical components such as PDUs and UPS can assist data center operators in decreasing data outages and ensuring systematic management of the power requirement. As data centers grow in popularity, the use of backup power solutions is also expected to grow.
• The demand for DC power solutions is raising the need for installation and maintenance costs of the power components, including the power distribution units, switches, and UPS, in the DC environment, which can be a major challenge for the DC operators worldwide to adopt the advance DC power solutions due to their limited CAPEX budget, which could hinder the market's growth in the future.

Data Center Power Industry Segmentation

The data center power market is expanding with the growth of the adoption of advanced power distribution and management solutions by various data center designers, aiming to achieve energy efficiency with lower power usage effectiveness (PUE) ratios. Many facilities across the global market are adopting 2N redundant UPS systems to cope with the various feed designs of the facility and frequent failures, including energy-efficient solutions in other segments such as PDUs and busways.

The data center power market is segmented by type (solutions (power distribution unit, UPS, busway, and other solutions), services (consulting, system integration, and professional service)), end-user application (information technology, manufacturing, BFSI, government, telecom, and other end-user applications), size (small and medium and large), and geography (North America (United States and Canada), Europe (United Kingdom, Germany, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, Singapore, Australia, India, and Rest of Asia-Pacific), and Rest of World. The market size and forecasts are provided in terms of value (USD) for all the above segments.