Data Center Power Market Research Report By Power Type (Uninterruptible Power Supply, Backup Generators, Power Distribution Unit, Power Monitoring Solutions, Renewable Energy Solutions), By Data Center Type (Enterprise Data Centers, Colocation Data Centers, Hyperscale Data Centers, Edge Data Centers), By Application (Cloud Computing, Big Data Analytics, Internet of Things, Artificial Intelligence, Content Delivery Networks), By End Use (IT and Telecommunications, BFSI, Government, Healthcare, Retail) and By Regional (North America, Europe,

Data Center Power Market Summary

As per MRFR analysis, the Data Center Power Market Size was estimated at 48.99 (USD Billion) in 2023.The Data Center Power Market Industry is expected to grow from 51.54 (USD Billion) in 2024 to 90.02 (USD Billion) by 2035. The Data Center Power Market CAGR (growth rate) is expected to be around 5.2% during the forecast period (2025 - 2035). The market is driven by the increasing demand for cloud services, energy efficiency, and sustainability in data center operations.

Key Market Trends & Highlights

Key trends shaping the Data Center Power Market include technological advancements and regulatory focus on energy efficiency.

• Cloud services usage has increased by approximately 32% in recent years, driving demand for efficient power solutions.
• The Uninterruptible Power Supply (UPS) segment is expected to grow from 20.51 USD Billion in 2024 to 34.0 USD Billion by 2035.
• Governments are pushing for greener technology, with regulations aimed at reducing carbon footprints and promoting energy-efficient solutions.
• The Asia-Pacific region is projected to grow from 12.0 USD Billion in 2024 to 20.0 USD Billion by 2035, reflecting rapid digital transformation.

Market Size & Forecast

2023 Market Size: USD 48.99 Billion

2024 Market Size: USD 51.54 Billion

2035 Market Size: USD 90.0 Billion

CAGR (2025-2035): 5.2%

Largest Regional Market Share in 2024: North America.

Major Players

Key players in the Data Center Power Market include ABB, IBM, Dell Technologies, Schneider Electric, and Microsoft.

Key Data Center Power Market Trends Highlighted

The Data Center Power Market is undergoing a number of substantial trends that are being influenced by the growing demand for data processing and storage capabilities. The increasing prevalence of cloud computing and digital services is a significant market driver, resulting in a rise in the number of data centers worldwide.

The increasing dependence on artificial intelligence (AI) and machine learning (ML) technologies further augments this demand, thereby necessitating more durable power solutions. Operators are prioritizing the improvement of energy efficiency and the reduction of operational costs in order to comply with global sustainability objectives and regulations concerning carbon emissions in response to these developments.

The development of renewable energy sources for data centers, such as solar and wind power, presents an opportunity for exploration. This transition not only aligns with corporate obligations to environmental stewardship but also addresses regulatory pressures. The implementation of energy-efficient technologies, including sophisticated cooling systems and power management solutions, can result in substantial operational savings.

Additionally, advancements in battery technology for energy storage offer additional opportunities to minimize disruptions and ensure consistent power supplies. In recent years, there has been a widespread trend toward the adoption of edge computing, which involves the processing of data in close proximity to the end user in order to enhance efficiency and speed.

This method presents new challenges and opportunities in the power segment of the data center market, as it requires localized power solutions. Furthermore, hybrid cloud environments are gaining popularity as businesses pursue data solutions that are both scalable and adaptable, enabling the seamless integration of on-premise and cloud resources. These converging trends are indicative of a dynamic landscape in the Data Center Power Market, which is motivated by the desire for sustainability and optimization.

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

Data Center Power Market Drivers

Growing Demand for Cloud Computing Services

The increasing adoption of cloud computing services globally is a significant driver for the Data Center Power Market Industry. With organizations migrating their operations to the cloud, there is a growing need for data centers to manage a vast amount of information securely and efficiently. According to the International Data Corporation, global spending on cloud services is expected to surpass 500 billion USD by 2025. This shift towards cloud technologies requires enhanced power solutions for data centers to ensure high availability and redundancy in power sources.

Major players such as Amazon Web Services and Microsoft have significantly increased their data center investments to meet these rising demands, further driving the power market. Additionally, research conducted by Gartner underscores that 80% of enterprises will be using a cloud service by 2025, highlighting the vast potential for growth in the Data Center Power Market.

Increasing Digital Transformation Initiatives

The advancement and acceleration of digital transformation initiatives across various sectors contribute positively to the Data Center Power Market Industry. Organizations are redefining their operational frameworks to integrate digital technologies, a shift that requires robust data management solutions and efficient power usage. According to a report by the World Economic Forum, digital transformation is projected to add 13 trillion USD to the global economy by 2030, driving the need for data centers to adapt and scale their power requirements accordingly.

Companies, including Google and IBM, are at the forefront of leading digital transformations, influencing the demand for specialized power infrastructure within data centers as they expand their capabilities. The need for reliable power solutions in the face of digital evolution is essential for supporting both current operations and future growth.

Rising Energy Efficiency Regulations

The implementation of stricter energy efficiency regulations worldwide is significantly impacting the Data Center Power Market Industry. Governments and regulatory bodies are focusing on reducing carbon footprints and improving energy efficiency within data centers to address environmental concerns. For instance, the European Union's Green Deal aims to make Europe the first climate-neutral continent by 2050, which includes initiatives to enhance energy efficiency in data centers.

Statistics from the U.S. Department of Energy indicate that data center energy consumption is expected to grow by 4% annually until 2030, highlighting the need for efficient power solutions. Major corporations like Facebook and Google are actively investing in renewable energy sources to power their data centers, aligning themselves with these regulatory movements and driving market demand for efficient power solutions.

Data Center Power Market Segment Insights

Data Center Power Market Power Type Insights

The Data Center Power Market, categorized under Power Type, encompasses critical components essential for efficient and reliable power management in data centers. As of 2024, this market is valued at approximately 51.54 USD billion and spans several categories, each playing a vital role in ensuring operational continuity and energy efficiency.

Notably, the Uninterruptible Power Supply market, valued at 15.0 USD Billion in 2024, serves as a fundamental backbone, providing immediate backup power to data centers during outages, which is crucial for data integrity and business continuity.

Following closely, the Backup Generators segment, projected to be valued at 10.5 USD Billion in the same year, is also significant in providing an additional layer of power security, allowing facilities to maintain operations even during prolonged outages.

The Power Distribution Unit holds a valuation of 12.0 USD Billion in 2024, acting as a central component that ensures the efficient distribution of electricity within a data center, optimizing energy use and reducing wastage. Meanwhile, the Power Monitoring Solutions segment, valued at 8.0 USD billion in 2024, is rapidly gaining importance as organizations focus on energy management and sustainability initiatives, offering analytics and insights that help maximize energy efficiency.

Lastly, the Renewable Energy Solutions segment, with a valuation of 6.04 USD billion in 2024, reflects the growing trend towards sustainability and green energy adoption within the data center industry, enabling facilities to reduce their carbon footprint while ensuring power reliability. Collectively, these segments highlight the increasing demand and investment in advanced power solutions, driven by the growing reliance on data services, the need for energy efficiency, and the emphasis on sustainable practices within the global context of the data center power industry.

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

Data Center Power Market Data Center Type Insights

The Data Center Power Market is experiencing robust growth, with a market value expected to reach 51.54 USD billion by 2024, driven by the increasing demand for data storage and processing capabilities across various industries. Within the Data Center Type segment, there are significant categories including Enterprise Data Centers, Colocation Data Centers, Hyperscale Data Centers, and Edge Data Centers. Enterprise Data Centers cater primarily to single organizations, focusing on customized solutions, while Colocation Data Centers allow multiple clients to share facilities, offering flexibility and cost-efficiency.

Hyperscale Data Centers, characterized by their large-scale and efficient infrastructure, dominate the market as businesses increasingly migrate towards cloud-based solutions. Additionally, Edge Data Centers are becoming critical as they enable quick data processing and reduce latency, thus enhancing the speed of services.

The ongoing shift towards digital transformation, along with government initiatives promoting energy-efficient solutions, supports the market's growth trajectory, positioning the Data Center Power Market as a pivotal industry in the technology landscape.

This segmentation reflects a broader industry trend towards optimizing infrastructure and meeting the diversifying needs of global data consumption.

Data Center Power Market Application Insights

The Data Center Power Market is projected to reach a value of USD 51.54 billion in 2024, showcasing its robust growth trajectory fueled by various applications. Within this segment, Cloud Computing plays a crucial role as it continues to dominate due to the increasing demand for scalable and flexible IT solutions.

Big Data Analytics is another vital application, driving the need for data-intensive processing capabilities, thus propelling power requirements in data centers. The Internet of Things is also significantly impacting market dynamics, as the proliferation of connected devices demands enhanced processing power and energy efficiency.

Artificial Intelligence is emerging as a transformative force, necessitating higher computational power and more advanced energy management. Content Delivery Networks contribute to the overall market by enabling efficient data distribution and improving accessibility, which in turn drives energy consumption patterns within data centers.

These applications collectively underscore the importance of energy management and operational efficiency within the Data Center Power Market, with each segment playing a pivotal role in shaping its growth and sustainability.

Data Center Power Market End Use Insights

The Data Center Power Market end-use segmentation is critical in understanding the varying demands across industries, with each sector relying heavily on efficient power solutions to support their operations. The IT and Telecommunications sector dominates this market due to its extensive need for data processing, storage, and transmission infrastructure, driving innovations in power management.

Similarly, the BFSI (Banking, Financial Services, and Insurance) industry recognizes the importance of data centers for handling large transaction volumes and sensitive information securely, making it a significant segment. Government entities utilize data centers for maintaining public records, enhancing service delivery, and supporting e-governance initiatives, thus reinforcing their position in the market.

The Healthcare sector increasingly invests in data centers to manage vast amounts of patient data and ensure compliance with regulations. At the same time, the Retail industry relies on real-time data analytics and customer management systems, further solidifying its role in the Data Center Power Market.

As industries focus on sustainability and energy efficiency, the demand for advanced power solutions within these sectors continues to rise, presenting numerous opportunities while also posing challenges related to infrastructure costs and energy consumption.

Data Center Power Market Regional Insights

The Data Center Power Market is set to experience substantial growth across various regions, reflecting the increasing demand for data centers and their energy needs. In 2024, North America leads the market with a valuation of 18.0 USD billion, showcasing its majority holding due to a robust technological infrastructure and high data consumption.

Europe follows closely with a valuation of 15.0 USD Billion, benefiting from stringent energy regulations and investments in sustainable technologies. Meanwhile, Asia Pacific is poised for significant growth, valued at 10.0 USD billion in 2024, driven by the rapid expansion of internet users and cloud services.

South America, while smaller, is evolving with a market value of 3.0 USD billion and opportunities for growth based on emerging technologies. The Middle East and Africa hold a valuation of 5.54 USD billion, with a significant push towards the modernization of data infrastructure.

The Data Center Power Market statistics reveal that each region contributes uniquely to the overall market dynamics, with regional investments in infrastructure and renewable energy sources being pivotal growth drivers, as organizations seek to improve efficiency and sustainability in their operations.

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

Data Center Power Market Key Players and Competitive Insights

The Data Center Power Market is characterized by intense competition driven by the increasing demand for data processing and storage capabilities across various sectors. As organizations strive to enhance their IT infrastructure efficiency, the market has seen a surge in innovative solutions aimed at power management and distribution. The expansion of cloud computing, big data, and IoT has triggered the need for upgraded data center facilities that can accommodate rising energy demands without compromising on performance or reliability.

As a result, numerous players are vying for a share of this market, showcasing diverse products and services designed to optimize energy consumption, increase uptime, and reduce operational costs. Competitive strategies include technological advancements, mergers and acquisitions, strategic collaborations, and expanding geographical footprints to cater to a broad clientele while navigating challenges such as regulatory standards and sustainability concerns.

ABB has established itself as a formidable player in the Data Center Power Market with a significant market presence and notable strengths. The company is well known for its extensive portfolio of digital and automation solutions that improve power distribution and energy efficiency in data centers. ABB’s strengths lie in its innovation-driven approach, complete with advanced technologies that support modularization and scalable power solutions.

The company also emphasizes sustainability, providing products that not only enhance operational efficiency but also minimize the overall environmental impact. With strong global operations and a commitment to R&D, ABB continues to solidify its position in the market, focusing on strategic partnerships that enhance its offering and ensure its relevance in a rapidly evolving landscape.

Mitsubishi Electric has carved out a notable niche in the Data Center Power Market through a wide array of innovative products and services tailored to energy management and power distribution. The company offers solutions such as UPS systems, power conditioning equipment, and cooling technologies that meet the dynamic requirements of modern data centers.

With a reputation for reliability and high efficiency, Mitsubishi Electric has a strong global presence, especially in regions where data center infrastructures are expanding rapidly. The company has made strategic moves through mergers and acquisitions to enhance its technological capabilities and broaden its market reach. By focusing on sustainable energy practices and enhancing the efficiency of data center operations, Mitsubishi Electric continues to strengthen its competitive advantage while meeting the evolving demands of its global customers.

Key Companies in the Data Center Power Market Include

• ABB
• Mitsubishi Electric
• General Electric
• IBM
• Schneider Electric
• Delta Electronics
• Vertiv
• Honeywell
• Cisco Systems
• Siemens
• Eaton
• Nlyte Software
• Rackspace
• Emerson Electric

Data Center Power Market Industry Developments

The Data Center Power Market has witnessed significant developments, particularly in September 2023, when ABB announced its new data center power solution aimed at improving energy efficiency and sustainability.

ABB announced in March 2025 that it had acquired a minority stake in DG Matrix, a North Carolina-based company, in order to expedite the commercialization of solid-state power electronics for renewable microgrids and generative AI data centers. The Power Router platform from DG Matrix provides sophisticated energy solutions that enhance energy efficiency, alleviate grid strain, and reduce energy expenses. The platform consolidates 10 to 20 electrical devices into a single, more cost-effective, and efficient system by integrating multiple AC and DC energy sources and applications.

Schneider Electric established new data center and microgrid testing laboratories at its Global R&D Center in Massachusetts, U.S., in February 2025. The company is able to test high-powered voltage systems that are specifically designed for the expanding AI data center sector in the Power Distribution Unit (PDU) facility, which is equipped with three testing bays.

Eaton debuted its Eaton Samsung Gen 3 lithium-ion battery system in December 2024. This system is intended to provide reserve power for industrial sectors, medical facilities, and data centers. The system guarantees the uninterrupted operation of the IT infrastructure during critical periods by providing energy storage and emergency power support for UPS.

Data Center Power Market Segmentation Insights

• Data Center Power Market Power Type Outlook
  • Uninterruptible Power Supply
  • Backup Generators
  • Power Distribution Unit
  • Power Monitoring Solutions
  • Renewable Energy Solutions

• Data Center Power Market Data Center Type Outlook
  • Enterprise Data Centers
  • Colocation Data Centers
  • Hyperscale Data Centers
  • Edge Data Centers

• Data Center Power Market Application Outlook
  • Cloud Computing
  • Big Data Analytics
  • Internet of Things
  • Artificial Intelligence
  • Content Delivery Networks

• Data Center Power Market End Use Outlook
  • IT and Telecommunications
  • BFSI
  • Government
  • Healthcare
  • Retail

• Data Center Power Market Regional Outlook
  • North America
  • Europe
  • South America
  • Asia Pacific
  • Middle East and Africa

Report Attribute/Metric	Details
Market Size 2023	48.99(USD Billion)
Market Size 2024	51.54(USD Billion)
Market Size 2035	90.02(USD Billion)
Compound Annual Growth Rate (CAGR)	5.2% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	ABB, Mitsubishi Electric, General Electric, IBM, Schneider Electric, Delta Electronics, Vertiv, Honeywell, Cisco Systems, Siemens, Eaton, Nlyte Software, Rackspace, Emerson Electric
Segments Covered	Power Type, Data Center Type, Application, End Use, Regional
Key Market Opportunities	Renewable energy integration, Increased energy efficiency demand, Edge computing power solutions, Energy management software growth, and Hybrid cloud infrastructure expansion
Key Market Dynamics	rising energy consumption, renewable energy integration, regulatory compliance demands, technological advancements, virtualization, and cloud adoption
Countries Covered	North America, Europe, APAC, South America, MEA