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Data Center Power Market Research Report Information By Component (Solution And Service), By Data Center Size (Small Size Enterprise, Medium Size Enterprise And Large Size Enterprise), By End-User (IT & Telecommunication, BFSI, Government And Power & Energy) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032.

ID: MRFR/ICT/4420-HCR | 100 Pages | Author: Aarti Dhapte| May 2024

Data Center Power Market Overview

The Data Center Power Market is projected to grow from USD 20.42 billion in 2024 to USD 31.6 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.60% during the forecast period (2024 - 2032). Additionally, the market size for Data Center Power was valued at USD 19.2 billion in 2023.

Availability of instrumented, intelligent, and interconnected solutions and increasing demand from emerging markets and ization are the key market drivers enhancing the market growth.

Figure 1: Data Center Power Market Size, 2024 - 2032 (USD Billion)

Data Center Power Market Overview

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Data Center Power Market Trends

Increasing need for intelligent PDUs to balance loads and supply rack power to boost market growth

Companies use sophisticated power management tools like intelligent rack power distribution units (PDU), smart uninterruptible power supplies (UPS), and battery monitoring systems to lower the power use efficiency (PUE) ratio and boost efficiency. During the forecast period, it is expected that this aspect will favour market expansion. Markets CAGR for data center power-driven technology and services have experienced unheard-of market growth. High computational power is needed for technologies like cloud computing, but they have advantages like improved scalability, efficiency, and flexibility of business operations. As a result, many medium-sized businesses now have efficient data centres like colocation and cloud web hosting facilities. Mega & cloud data centres are becoming more popular as a result of increased data centre utilisation. For peak data-intensive activities, these data centres need a lot of power, which raises the demand for UPS and PDUs.

Due to the spread of technology, there will be a blast in data during forecast period, which will raise the demand for processing and storing data and necessitate the development of both large & small data centres. Data generation has increased steadily as a result of the rollout of 4G and 5G networks, Industry 4.0 technology, and Internet of Things (IoT) devices. Additionally, faster 5G deployments encourage more data generation, which makes it possible to set up edge and micro data centres.

Additionally, Hyperscale and edge data centers will attract investments from businesses in North America and Asia-Pacific (APAC), fueling these areas' rapid growth. Demand for and development of smart data center technologies will be fueled by the competition between China and the US for technological supremacy in both areas. The trend toward bringing data processing closer to clients will encourage the adoption of edge data centers, while automation and artificial intelligence (AI) will increase productivity and reduce operating costs for operators. Enterprise data centers will continue account for a sizeable portion of data center spending, but cloud computing will outpace them in terms of investment. Thus, driving the data center power market revenue.

Latest Industry Update for Data Center Power Market

May 2023- Researchers from OSU and Baylor University announce a breakthrough in the computer chip energy efficiency which might reduce the need for data centre power.

Researchers from Baylor University and Oregon State University claim to have made progress in lowering the energy requirements of photonic chips utilized in data centers and supercomputers.

The results are significant because, according to the U.S. Department of Energy, a data centre may use up to about 50 times surplus energy per square foot of the floor space than a conventional office building.

An organization's information technology operations & infrastructure are housed in a data centre, which also processes, distributes, and stores data and applications. According to the DOE, data centers utilize around 2% of all the power consumed in the US.

The U.S. International Trade Commission reports that as data demand has increased, the number of data centers has increased quickly. There are over 2,600 data centers in the United States, which is home to several businesses that generate and consume enormous quantities of data, including Amazon, Microsoft, Facebook, and Google.

The breakthrough was made by John Conley of the Oregon State University College of Engineering, his former Oregon State colleague Alan Wang, who is now at Baylor, & OSU graduate students Ben Kupp, Wei-Che Hsu, and Nabila Nujhat. It incorporates a brand-new, incredibly energy-efficient technique to account for temperature fluctuations that weaken photonic chips.

These chips will form high-speed communication backbone of the future data centers and supercomputers," according to Conley.

Photons, which are light particles, are used in the circuitry of photonic chips instead of the electrons that go through the circuitry of traditional computer chips. Photons, which travel in the speed of light, allow for highly quick and energy-efficient data transmission.

The problem with the photonic chips is they have up to now required a lot of energy to maintain a constant temperature and great performance. But the Wang-led team has demonstrated that it is possible to cut the energy required for temperature regulation by more than a million times.

Their method is highly acceptable for the planet, Conley continued. One day, it will enable data centers to continue advancing in speed and power while consuming less energy, allowing them to use ever-more-powerful machine learning-driven services like ChatGPT without feeling guilty.

Data Center Power Market Segment Insights

Data Center Power Component Insights

The data center power market segmentation, based on component includes solution and service. The solution sector is further broken down into three sub-segments: cabling infrastructure, power distribution, and measurement. The key markets are dominated by the Power backup solution segment since data centers cannot operate without it. Power backup reduces unforeseen outages and provides power to data centers using batteries and UPS power.

Data Center Power market by Data Center Size Insights

The data center power market segmentation, based on data center size, includes small size enterprise, medium size enterprise and large size enterprise.  Large size enterprise will have a larger share than small & medium-sized centers during the 2022-2032 period. Profusing the number of industries and digital technology, acceleration in urbanization, and cost-effective data center solutions are the traits aiding the transformation of the market.

Figure1: Data Center Power Market, by Data center size, 2022 & 2032 (USD billion)

Data Center Power Market, by Data center size, 2022 & 2032

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Data Center Power End-User Insights

The data center power market segmentation, based on end-user, includes IT & telecommunication, BFSI, government and power & energy. From 2022 to 2032, the IT & telecoms industry is expected to increase at the fastest rate of more than 10%. Over the forecast period, demand is expected to be driven by the rapid expansion and installation of IT infrastructure. Furthermore, the expanding telecommunications infrastructures need data storage facilities to manage massive amounts of data.

Data Center Power Regional Insights

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America had the highest revenue share of more than 37.85% in 2022, owing to the region's abundance of data centers. Governments and regulatory agencies have created and implemented a variety of rules and laws to minimize carbon footprints and energy usage. As a result, effective power management technologies have been widely adopted, driving regional demand.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.



Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe’s data center power market accounts for the second-largest market share due to the increasing growth of this market is mainly attributed to the substantial expansion of mobile broadband, along with huge growth in big data analytics and cloud computing in this region. Further, the German data center power market held the largest market share, and the UK data center power market was the fastest-growing market in the European region

The Asia-Pacific Data Center Power Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the predominantly growing adoption of advanced technologies, like AI and IoT. Moreover, China’s data center power market held the largest market share, and the Indian data center power market was the fastest-growing market in the Asia-Pacific region.

Data Center Power Key Market Players & Competitive Insights

Leading market players are spending a lot of money on R&D to broaden their product offerings, which will spur further expansion of the data center power market. Market participants are also engaging in a range of strategic initiatives to broaden their worldwide reach. Significant market developments include new product launches, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Data center power industry must provide reasonably priced goods if it is to grow and thrive in a more competitive and challenging market environment.

One of the most important business strategies employed by manufacturers in the data center power industry to assist customers and expand the market sector is local manufacturing to reduce operational costs. One of the most important benefits to medicine in recent years has come from the data center power industry. Major players in the data center power market, such as Server Technology Inc. (U.S.), Tripp Lite (U.S.), CyberPower System (Taiwan), Black Box Corporation (U.S.), Caterpillar Inc (U.S.), HP Enterprise Company (U.S.), and others, are attempting to boost market demand by investing in research and development activities.

Tripp Lite is an American manufacturer of power protection and electrical connectors. It was established in 1922 and is based in Chicago, Illinois. The company employs over 450 individuals and has a sales presence in over 80 countries. UPS systems, UPS replacement batteries, surge protectors, electrical cables and connectors, power inverters, KVM switches, power strips, PDUs, racks and rack cooling systems, power management software, laptop accessories, and audio/video solutions are all manufactured by Tripp Lite. [buzzword] Tripp Lite has ISO 9001 certification. In January 2022, Eaton's Tripp Lite provides practical solutions for connecting and operating network equipment in tough industrial settings such as factories and warehouses.

Equinix, Inc. is a worldwide American corporation based in Redwood City, California that specializes in Internet connectivity and data centers. With 248 data centers in 27 countries across five continents, the business leads the colocation data center market share[3]. It is traded on the NASDAQ under the ticker name EQIX and had over 12,000 employees worldwide as of December 2022. The corporation changed its name to a real estate investment trust (REIT). In  October 2022, Equinix, Inc., a digital infrastructure company, has announced plans for a USD 74 million International Business Exchange (IBX) data center in Jakarta.

Key Companies in the data center power market include

  • ABB (Switzerland)

  • Emerson Electric Company (U.S.)

  • Schneider Electric (France)

  • General Electric (U.S.)

  • Eaton (Ireland)

  • Delta Power Solutions (Taiwan)

  • Raritan Inc. (U.S.)

  • Rittal GmbH & Co. KG (U.S.)

  • Server Technology Inc. (U.S.)

  • Tripp Lite (U.S.)

  • CyberPower System (Taiwan)

  • Black Box Corporation (U.S.)

  • Caterpillar Inc. (U.S.)

  • HP Enterprise Company (U.S.)

Data Center Power Industry Developments

In October 2022:Intel Corp. and Alphabet Inc.'s Google Cloud announced a co-designed chip that can improve the security and efficiency of data centers. The E2000 chip, codenamed Mount Evans, takes over data packing for networking from the more expensive central processing units (CPU) that conduct the core computation. It also improves security across diverse customers sharing CPUs in the cloud.

In August 2022:Microsoft has announced the establishment of a new data center area in Qatar. The data center area will be crucial in providing Qatar's companies, consumers, and partners with access to robust, high-availability, and reliable cloud services, driving digital transformation, and promoting more cloud adoption.

In May 2022:NTT, a technology services provider, has launched the first data center, NAV1A, on its hyper scale data centre complex in Navi Mumbai. This data center can easily accommodate 5,000 racks and handle more than 30 MW of IT load.

Data Center Power Market Segmentation

Data Center Power Market By Component Outlook

  • Solution

  • Service

Data Center Power Market By Data Center Size Outlook

  • Small Size Enterprise

  • Medium Size Enterprise

  • Large Size Enterprise

Data Center Power Market By End-User Outlook

  • IT & Telecommunication:

  • BFSI

  • Government

  • Power & Energy

Data Center Power Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

Report Attribute/Metric Details
Market Size 2023 USD 19.2 billion
Market Size 2024 USD 20.42 billion
Market Size 2032 USD 31.6 billion
Compound Annual Growth Rate (CAGR) 5.60% (2024-2032)
Base Year 2023
Market Forecast Period 2024-2032
Historical Data 2019- 2021
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Component, data center size, end-user, and Region
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled  ABB (Switzerland), Emerson Electric Company (U.S.), Schneider Electric (France), General Electric (U.S.), Eaton (Ireland), Delta Power Solutions (Taiwan), Raritan Inc. (U.S.), Rittal GmbH & Co. KG (U.S.), Server Technology Inc. (U.S.), Tripp Lite (U.S.), CyberPower System (Taiwan), Black Box Corporation (U.S.), Caterpillar Inc (U.S.), HP Enterprise Company (U.S.).
Key Market Opportunities Increasing the efficiency by renovating data centers.
Key Market Dynamics High initial investment.

Frequently Asked Questions (FAQ) :

The data center power market size was valued at USD 19.2 Billion in 2023.

The market is projected to grow at a CAGR of 5.60% during the forecast period, 2024-2032.

North America had the largest share in the market

The key players in the market are Server Technology Inc. (U.S.), Tripp Lite (U.S.), CyberPower System (Taiwan), Black Box Corporation (U.S.), Caterpillar Inc (U.S.), HP Enterprise Company (U.S.).

The Large size data center power category dominated the market in 2023.

The IT & telecoms had the largest share in the market.

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