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Data Center Power Market (By Component: Solutions, Services; By Solutions: PDU, UPS, Busway, Others: By Services: Design & Consulting, Integration & Deployment, Support & Maintenance; By End-use: IT & Telecommunications, BFSI, Energy, Government, Healthcare, Retail, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis and Forecast 2025 to 2034

Data Center Power Market Size and Growth Factors 2025 to 2034

The global data center power market size was estimated at USD 20.34 billion in 2024 and is expected to be worth around USD 56.28 billion by 2034, expanding at a compound annual growth rate (CAGR) of 10.71% over the forecast period from 2025 to 2034. The data center power market is experiencing high growth and businesses are investing in sophisticated power solutions to maintain power continuity in the business, efficient power utilization, and minimizing carbon footprint. The increasing demands of cloud computing, AI, IoT infrastructure demand the provision of sustainable scalable and reliable energy systems. Recent data centers are incorporating renewable energy sources, energy efficient UPS system and highly intelligent energy management platforms to consume minimum energy and reduce operation costs.

Data Center Power Market Size 2025 to 2034

Data Center Power Market Report Highlights

  • North America: Led with 38.9% in 2025 as government incentives, strong cloud adoption, and advanced infrastructure support AI and high-density data centers. Consumer awareness and investment willingness further strengthen leadership. Robust tech ecosystems reinforce market dominance.
  • By Component, Solutions: Led with 72.5% in 2025 due to high demand for efficient power hardware and modular designs. It ensures reliable and scalable operations in modern data centers. Advanced PDUs and UPS systems further drive its adoption.
  • By Solutions, UPS: Led with 40.2% in 2025 as it provides uninterrupted power during outages, preventing downtime. Its reliability supports growing AI, cloud, and high-performance workloads. Widespread deployment in critical facilities boosts its market share.
  • By Services, Support & Maintenance: Led with 38.1% in 2025 because continuous monitoring and maintenance enhance performance and prevent failures. It extends the lifecycle of power systems and ensures high uptime. Organizations prioritize this service for operational reliability.
  • By End-Use, IT & Telecommunications: Led with 42.3% in 2025 due to rapid cloud expansion, AI workloads, and telecom infrastructure growth. High demand for reliable power solutions drives adoption. The sector represents the largest volume of data center operations globally.

What is Data Center Power?

Data center power is the technology and systems that is used to supply, store and operate all electric power to data centers to maintain constant power supply, energy load balancing, integration of renewable resources, and backup power when off-the-grid power is lost. Incremental leaps in battery technologies, including high-capacity lithium-ion, solid-state storage, and software-enabled energy management, are rendering these solutions less costly, more robust. The factors boosting adoption include government incentives, more stringent environmental controls, and the ESG, because these factors allow operators to decarbonize, centralize, and have circular energy systems suited to sustainability and efficiency targets.

  • Adoption of Advanced Nuclear Energy: The small modular reactor (SMRs) and microreactors are using next-generation nuclear technologies in order to supply on-demand and sustainable nuclear energy. In August of 2025, a large operator of data centers Equinix signed several deals to use more than 1 GW of the nuclear power in its operations. This comprises a 500-megawatt supply agreement with the California-based Oklo and reservation its 20 transportable microreactors with Radiant Nuclear. These efforts are meant to develop the growing energy needs of data centers caused by the use of technologies such as generative AI.
  • Industrial site reuse in data centres: Repurposing This refers to the process of repurposing of already existing industrial estates turning them into data center hubs; these old industries include coal plants in addition to other metallic industries like aluminum and others. August 2025 Equinix said that it was refurbishing a former aluminum plant in the U.S. into a data center. The strategy takes advantage of the current infrastructure to respond to the increasing demand in data center space and ensures sustainability.

Report Scope

Area of Focus Details
Market Size in 2025 USD 22.52 Billion
Estimated Market Size in 2034 USD 56.28 Billion
Registered CAGR 2025 to 2034 10.71%
Leading Region North America
Rapid Growth Region Asia-Pacific
Key Segments Component, Solutions, Services, End-use, Region
Key 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 & Co. KG, Schneider Electric, Vertiv Group Corp.

Data Center Power Market Dynamics

Market Drivers

  • AI and Cloud Computing Demand Boom: Data center resources have been in high demands due to the growth of the artificial intelligence (AI) applications and cloud computing services. CBRE noted the growth in the primary data center markets during February 2025, which noted one of the year-over-year growth of 34% in the available supply, influenced by the growing presence of big data technology and adoption of cloud services.
  • Renewable Integration Incentives by Government: Data centers are being influenced by government policies and incentives to adopt renewable energy thus achieving their goals in terms of sustainability. A report conducted by the U.S. Department of Energy which was published in December 2024 evaluated the rise of electricity demand due to data centers and specially highlighted the contribution of clean energy resources to cater to the demand.

Market Restraints

  • Soaring Energy Expenses Attributed to AI Activities: AI data centers require intense energy operations, which Aritcle.com claims to be one of the contributors to the climbing costs of energy. In August 2025, the Washington Post reported of the climbing electricity bills on the US. The data centers were marked as the offenders of the soaring energy demand, the straining infrastructure, and costs.
  • Lack of Power Availability in Core Markets: Focus on core data center markets still consider power to be a significantly constrained area. In June 2025, CBRE reported limited power availability as a driving force to a constrained supply in the ke6 markets which in turn gives filldo new opportunities in fresh hotspots like Richmond, Santiago, and even Mumbai.

Market Challenges

  • Infrastructure Stress Resulting from Development Acceleration: The growing construction of data centers is stressing current infrastructure. McKinsey emphasized in August 2025 that the United States data center energy requirements are projected to increase by 460 terawatt-hours from 2023 to 2030, which is tripling the current consumption level, creating immense strain on the grid and infrastructure operations planning.
  • Ensuring Grid Reliability While Incorporating Renewables: Reliability is a problem while attempting to incorporate renewable energy sources into data center operations. The Minnesota Center for Environmental Advocacy, in October 2024, talked about the problems of renewable energy grid supply and demand especially when the energy is supplied during peak times, resulting in problems of grid and supply efficiency.

Market Opportunities

  • Development of Advanced Energy Storage Solutions: Shifts in power requirements create a compelling case for researching and developing advanced energy storage technologies. In their September 2024 post, McKinsey highlighted the collaboration opportunities between data centers and the energy sector, focusing on developing advanced energy storage technologies that align with the AI data centers' power requirements while ensuring reliability and sustainability.
  • Investment in Grid Modernization and Flexibility: Investment in the modernization and flexibility of the grid can improve flexibility as well as aid in more efficient operations in data centers. In their December 2024 publication, the U.S. Department of Energy pointed out the need for grid modernization in addressing flexibility and energy consumption for data centers, especially during the shift to cleaner energy resources.

Data Center Power Market Regional Analysis

Why does North America lead the data center power market?

  • The North America data center power market size was estimated at USD 7.91 billion in 2024 and is expected to hit  around USD 21.89 billion by 2034.

North America Data Center Power Market Size 2025 to 2034

The North America is boosted by the presence of favorable policies, corporate environment, social and governance requirements, and clean power investments. In July of 2025 the U.S. DOE invested 0.1 billion on upgrading UPS, PDU, and modular power systems in hyperscale data centers. The states of California and New York will spearhead the use of energy-efficient power solutions by offering incentives. The growth of cloud operations, artificial intelligence and 5G installations are increasing the need to have dependable infrastructures that can scale. Tech companies and utility agencies are working collectively in modernizing grids and energy distribution.

Which factors are driving the Europe data center power market?

  • The Europe data center power market size was valued at USD 5.92 billion in 2024 and is projected to surpass around USD 16.38 billion by 2034.

Strict climate policies, renewable energy targets, and energy efficiency incentives help Europe to achieve market growth. In May 2025, the EU Commission advocated the use of modular and renewable-integrated power in commercial data centers. The use of PDU and UPS is being proposed in Germany, the U.K. and the Netherlands to take up green field and retro-fit projects. Increasing costs of electricity and decarbonization objectives are influence operators to seek energy-efficient systems. Smart monitoring and integration technologies are moving forward due to collaborative programs.

Data Center Power Market Share, By Region, 2024 (%)

Region Revenue Share, 2024 (%)
North America 38.90%
Europe 29.10%
Asia-Pacific 26.70%
LAMEA 5.30%

Why is Asia-Pacific experiencing rapid growth in the data center power market?

  • The Asia-Pacific data center power market size was accounted for USD 5.43 billion in 2024 and is reported around USD 15.03 billion by 2034.

Asia-Pacific is growing in government programs, adoption of cloud, and smart energy data center management. In May 2025, only in Japan, UPSs and PDUs were subsidized in order to improve efficiency and grid stability. An increase in production and an endorsement of smart power solutions can be identified in China, South Korea, and Australia. Adoption is facilitated by frequent power cuts and increased demand of electricity. The area is becoming a ground of sustainable and resilient data center power systems.

What are th growth factors of LAMEA data center power market?

  • The LAMEA data center power market was valued at USD 1.08 billion in 2024 and is expected to reach around USD 2.98 billion by 2034.

Renewable energy integration, energy access, and the introduction of modern infrastructure are the drivers that promote the growth of LAMEA in the marketplace. UPS and PDU systems were installed at hyperscale data centers in Brazil in April 2025. Solar powered off-grid solutions in the Middle East counties are combining with such systems in Africa. The initiatives create resilience, minimize the emissions, and promote energy independence. Adoption is increasing through the investments of both the government and the individuals in projects in ITs, telecom and marketing.

Data Center Power Market Segmental Analysis

Component Analysis

Solutions: Proposed solutions in the data center power market encompass equipment used to control, distribute, and backup power and it includes hardware to maintain consistent operations. They are needed to promote reliability, efficiency, and scalability in contemporary data centers. UPS systems took up 36.5% of the U.S. market share in June 2025, thus their significance. In early 2025, PDUs were increasingly adopted in areas where they are used to manage the load efficiently. In March 2025 busway systems were installed in modular formations. In May 2025, modular and renewable-integrated power became available, sustainable and scalable infrastructure.

Data Center Power Market Share, By Component, 2024 (%)

Component Revenue Share, 2024 (%)
Solutions 27.50%
Services 72.50%

Services: Services involve design, consulting, mix, installation and maintenance of information center power structure to ensure its optimal functionalities. Their use makes the operation less prone to downtimes, more energy-efficient, and increases equipment life. In July 2025, one of the largest consulting firms introduced energy optimization services in data centers. Hyperscale deployments of UPS were done in the month of August 2025 and there was 24/7 support and preventive maintenance programs initiated in June 2025. In April 2025 training was carried out to put operational staff through system upkeep. In May 2025, energy audits and advisory services were launched to increase performance and reliability.

Solution Analysis

PDU (Power Distribution Unit): PDUs divide the power received in the main power source to the servers and other devices so as to deliver power safely and efficiently. They play an important role in load management and modular data center designs. PDUs became common to work in U.S. hyperscale data centres in the efficient distribution in June 2025. In April 2025, high density upgrades were done to busway-compatible PDUs in the European facilities. In May 2025, the Modular PDUs were tested to increase scalability. Globally practices were applied with remote monitoring PDUs in July 2025. This demonstrates a trend towards smarter and smarter, more agile power management.

UPS (Uninterruptible Power Supply): The UPS segment has registered highest revenue share in the market. UPS systems use backup power whenever there is loss of power or in fluctuations of power to avoid data loss and downtime. They are critical to the mission operations. In June 2025 the UPS systems had a U.S. market share of 36.5%. In August of 2025, modular UPS systems were installed in a hyperscale cloud provider. More energy efficient models of lithium-ion UPS were launched in May 2025. Remote monitoring of UPS was adopted by Asian data centers in March 2025.

Data Center Power Market Share, By Solutions, 2024 (%)

Busway: Busway is an encapsulated, modular power conductor which transmits power through racks and floors. They take less time to install and have the maximum use of space. Early 2025 saw U.S. data centers rolling up the use of busways in modular installation. European plants were able to update busways in April 2025, conducting high density deployments. In March 2025, prefabricated busway segments were fitted in Asian data centres. New renewable-compatible busways came to be in June 2025. They are well suited to data centers with scalable, energy efficiency.

Others: This would entail modular power, renewable-integrated solutions that would complement PDU, UPS, and busways. These are essential when it comes to green and flexible data centers. To increase scalability, modular and renewable-integrated systems would be implemented in U.S. facilities in May 2025. Power solutions that made use of energy storage were implemented in April 2025. In March 2025, pilot programs were being done in Europe to test the integration of smart energy.

Service Analysis

Design & Consulting: Design and consulting services can make sure power infrastructure is efficient, scalable and reliable. They save on operations costs and other energy wastes. One of the leading consultancies in July 2025 opened services on energy efficient data centers. In May 2025, renewable integration advice was given. The June of 2025 saw the introduction of new software in capacity planning. In April 2025, modular deployments feasibility studies were conducted. In March 2025, specialist audits increased the stability of the system.

Integration & Deployment: Integration and deployment focuses on installing and commissioning of power systems as a way of guaranteeing smooth operations. They make the design plans reality by creating operational infrastructure. The UPS deployment (hyperscale data center) was performed large scale in August 2025. Integration of Modular PDUs took place in June 2025. High-density layout should be commissioned in April 2025 with busway systems. Renewable-integrated systems came in place in May 2025. Lithium-ion-based UPSs were implemented along with the integration support in July 2025.

Support & Maintenance: The support and maintenance segment has dominated the market. Support and maintenance service solutions observes and services power systems avoiding the costs of downtime, as well as lengthening the service life cycle of the equipment. They provide quality operations on 24-hour basis. In June 2025, data center power systems had started a 24/7 support service. Schedules of preventive maintenance were installed in May 2025. PDUs and UPS systems began to be remotely monitored in July 2025. To fix this problem, emergency repair teams were deployed in April 2025. Maintenance staff training was done in March 2025.

End User Analysis

IT & Telecommunications: The IT & telecommunications segment has dominated the market. The networks that have data centers that drive cloud services and 5G networks need a stable and scalable source of electricity. They play a vital role in continuity of the network. In March 2025, one of the telecom giants migrated data center power systems to 5G. In April 2025, European cloud centers were increased in capacity. In May 2025, edge data centers implemented the modular UPS system. In June 2025, the Asian hubs started to use PDUs that could be monitored remotely. In July 2025, energy-efficient solutions became available.

Energy: Energy sector data centres are used in grid management and integration of renewables where they need utmost reliability. One of the firms that have invested in renewable-powered data centers was in February 2025. UPS systems configured to connect to the smart grid have gotten deployed in March 2025. In April 2025, busway upgrades were realised. In May 2025, modular PDU was put in use. Connection to solar installations was done in June 2025.

Healthcare: Patient data in hospitals and clinics are kept in health care data centres, and requires continuous power to ensure safety and compliance. In January 2025, one of the hospital networks enhanced UPS and PDU systems. March in 2025, the remote monitoring systems were introduced. Redundant power configurations came into existence in April 2025. May 2025 is when Busway installations maximized space. The emergencies maintenance procedures are adopted in June 2025.

Retail: Data centers support e-commerce and point-of-sale (POS) units in the retail world and demand reliable electricity that can scale. A retail chain was powered up its data centers to meet the peak season demand in December 2024. In January 2025, the UPS systems were improved. In February 2025 the installation of PDUs occurred. In March 2025 busway solutions enhanced flexibility. Integration of renewable energy was done in April 2025.

Other sectors: Other industries also comprise of government, finance, and education data centers, which require safe and stable power. A state organization has updated its power systems in November 2024. UPS and PDUs were upgraded on January 2025 by banks. Modular busways came into use in February 2025 in educational centers. In March 2025 renewable-powered solutions were tested. Remote monitoring services have been introduced in April 2025.

Data Center Power Market Top Companies

Recent Developments

  • In August 2024, Black Box, an Essar Group subsidiary, is pursuing partnerships and acquisitions to expand in India’s booming data centre market, aiming for $2 billion revenue in four years. The company is reorganizing to focus on its top 250 clients, raised Rs 410 crore last month to support global expansion and AI demand, and leverages its global project expertise to improve margins. Despite a June 2024 revenue dip, profits rose, reflecting resilience amid strategic changes.
  • In May 2025, NTT is acquiring its IT services arm, NTT Data, for $16.4 billion to fully privatize and streamline operations, focusing on AI, cloud, and next-gen communications. Coupled with a $10 billion investment through 2027 and nearly 1GW of global data center expansion, NTT aims to lead in sustainable digital infrastructure. Operating 150+ data centers worldwide, it will deliver AI-powered solutions while advancing net-zero and energy efficiency goals across Europe, Japan, and India.

Market Segmentation

By Component

  • Solutions
  • Services

By Solutions

  • PDU
  • UPS
  • Busway
  • Others

By Services

  • Design & Consulting
  • Integration & Deployment
  • Support & Maintenance

By End-use

  • IT & Telecommunications
  • BFSI
  • Energy
  • Government
  • Healthcare
  • Retail
  • Others

By Region

  • North America
  • APAC
  • Europe
  • LAMEA
...
...

FAQ's

The global data center power market size was reached at USD 20.34 billion in 2024 and will reach to USD 56.28 billion by 2034.

The global data center power market is registered at a compound annual growth rate (CAGR) of 10.71% from 2025 to 2034.

The top companies operating in data center power market are 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 & Co. KG, Schneider Electric, Vertiv Group Corp. and others.

AI and cloud computing demand boom and renewable integration incentives by government are the driving factors of data center power market.

The North America is boosted by the presence of favorable policies, corporate environment, social and governance requirements, and clean power investments.

Data center power is the technology and systems that is used to supply, store and operate all electric power to data centers to maintain constant power supply, energy load balancing, integration of renewable resources, and backup power when off-the-grid power is lost.