Data Center Power Market Size, Share & Trends Analysis Report By Component (Solutions, Services), By Solutions (PDU, UPS, Busway), By Services (Design & Consulting, Integration & Deployment), By End-use, By Region, And Segment Forecasts, 2025 - 2030

Data Center Power Market Size & Trends

The global data center power market size was valued at USD 20.21 billion in 2024 and is anticipated to grow at a CAGR of 13.2% from 2025 to 2030, driven by the rising demand for data storage, cloud computing, and digital transformation across industries. With the expansion of hyper scale and colocation data centers, there is an increasing need for efficient and reliable power solutions to support continuous operations. Businesses are shifting towards scalable and high-performance computing environments, which require robust power infrastructure, including uninterruptible power supplies (UPS), generators, and power distribution units (PDU).

Energy efficiency and sustainability concerns are also playing a crucial role in shaping the data center power market. Companies are prioritizing green energy solutions such as renewable energy sources, advanced cooling technologies, and energy-efficient power management systems. Governments and regulatory bodies worldwide are enforcing stricter guidelines to reduce carbon footprints, pushing data center operators to invest in eco-friendly power infrastructure. Innovations such as liquid cooling, AI-driven power management, and modular power solutions are becoming essential to meet both performance and environmental goals. A survey conducted by The Register,a British technology news provider, revealed that more than a third of enterprises (38.3%) plan to implement liquid cooling technologies by 2026, up from 20.1% in early 2024. Liquid cooling is favored for its efficiency in managing heat in high-performance computing and dense server configurations.

The increasing demand for reliable and resilient power solutions to prevent downtime and ensure business continuity also contributes to the growth of the market. With data centers handling mission-critical workloads, even a minor power failure can result in substantial financial losses. As a result, data center operators are investing in redundant power systems, smart grid technology, and real-time power monitoring to enhance reliability. The growing frequency of extreme weather events and natural disasters further emphasizes the need for resilient power backup systems, including microgrids and on-site power generation.

Moreover, the expansion of 5G networks and the growing use of edge data centers are influencing power requirements. As edge computing brings data processing closer to users, smaller but highly efficient power systems are needed to support localized data centers. This shift is driving the demand for compact, modular, and AI-powered power solutions that can optimize energy consumption while ensuring high availability. With the increasing digitalization of industries and the proliferation of connected devices, the data center power market is expected to continue growth in the coming years.

Component Insights

The solutions segment dominated the market and accounted for a revenue share of over 72.0% in 2024, driven by the rising adoption of AI-driven power management systems. With artificial intelligence and machine learning being integrated into power distribution and monitoring solutions, data centers can optimize energy consumption, predict failures, and enhance overall efficiency. Smart power management tools allow real-time monitoring of power usage, helping operators reduce energy wastage and improve sustainability.

The services segment is anticipated to grow at a CAGR of 14.9% during the forecast period, driven by the increasing complexity of power infrastructure and the need for continuous monitoring, maintenance, and optimization. As data centers expand to support cloud computing, AI workloads, and high-performance computing, operators are relying more on specialized service providers to ensure power reliability, efficiency, and compliance with regulatory standards.

Solutions Insights

The uninterruptible power supply (UPS) segment dominated the market in 2024. The growing focus on disaster recovery and power resilience is leading data centers to invest in redundant and high-availability UPS configurations. As extreme weather events and power grid instabilities become more frequent, businesses are prioritizing dual-conversion, online UPS systems, and N+1 or 2N redundancy models to minimize risks. The integration of UPS with microgrid and hybrid power solutions is also becoming a key trend, enhancing resilience against grid failures.

The busway segment is expected to grow at a significant CAGR over the forecast period owing to the increasing deployment of edge data centers. These smaller, decentralized data centers require power distribution solutions that are both compact and modular. Busway systems are ideal for edge applications, as they can easily be adapted to fit various site conditions, from remote locations to urban environments.

Services Insights

The integration & deployment segment dominated the market in 2024 owing to the growing demand for customized and efficient power infrastructure. The shift toward modular and prefabricated data center power solutions is accelerating the growth of the segment as businesses opt for faster, cost-effective, and scalable deployment models. Moreover, regulatory compliance and sustainability initiatives are playing a critical role in shaping the integration and deployment landscape. Governments and industry bodies are enforcing stricter energy efficiency and carbon footprint regulations, pushing data center operators to deploy eco-friendly power solutions.

The support & maintenance segment is expected to grow at a significant CAGR over the forecast period due to the increasing complexity of power systems. Data centers mainly rely on a variety of power components, including UPS systems, busways, backup generators, and battery storage solutions. The integration of these systems requires continuous monitoring, regular testing, and periodic maintenance to ensure that each component functions optimally. Given the scale of modern data centers, with some facilities housing tens of thousands of servers, proactive and efficient maintenance is essential to prevent system failures that can cause outages.

End-use Insights

The BFSI segment dominated the market in 2024 due to the growing volume of digital transactions and data storage. With the rise of mobile banking, online transactions, and fintech services, financial institutions are handling massive volumes of sensitive data that must be stored securely and processed rapidly. This surge in data volume requires robust and reliable power systems to maintain 24/7 availability.

The IT and telecommunications segment is expected to grow at a significant CAGR over the forecast period due to the growing adoption of modular and flexible power solutions that are scalable and easy to deploy. As businesses increasingly adopt modular, containerized, or edge-based IT infrastructure, the need for flexible power solutions that can support a wide range of applications is growing. These modular data centers require customized power solutions that can be quickly scaled to meet changing requirements, from small, localized networks to large-scale, high-performance systems.

Regional Insights

North America data center power market held a significant share of over 37.0% in 2024, driven by the rapid expansion of hyperscale data centers and increasing investments in cloud computing infrastructure. Major technology companies, including Google, Microsoft, and Amazon, are expanding their data center footprints, leading to higher demand for advanced power management solutions. According to CBRE's North America Data Center Trends report for the latter half of 2024, the power supply in key data center markets expanded by 34%, reaching 6,922.6 megawatts (MW). This growth exceeded the 26% increase recorded in 2023. Additionally, the report noted a record-breaking 6,350 MW of capacity under construction by the end of 2024, more than twice the 3,077.8 MW reported at the close of 2023 highlighting strong market demand.

U.S. Data Center Power Market Trends

The data center power market in the U.S. is expected to grow significantly at a CAGR of 13.3% from 2025 to 2030. The demand for sustainable and energy-efficient power solutions is a significant driver for the data center power market. The federal government and several states have introduced incentives and policies promoting renewable energy integration in data centers. Companies are increasingly investing in solar, wind, and battery storage solutions to reduce operational costs and meet carbon neutrality goals, driving the adoption of next-generation power systems.

Europe Data Center Power Market Trends

The data center power market in Europe is anticipated to register considerable growth from 2025 to 2030 due to stringent energy efficiency regulations and the region’s strong focus on green data centers. The European Union’s sustainability initiatives, including the Climate Neutral Data Centre Pact, are pushing operators to invest in energy-efficient power infrastructure. Additionally, the increasing adoption of colocation data centers, especially in countries like the Netherlands and France, is further driving demand for reliable and cost-effective power solutions.

The U.K. data center power market is expected to grow rapidly in the coming years, owing to the country’s aggressive digital transformation strategies and the rising demand for high-performance computing. The increasing shift towards hybrid IT environments and colocation services is creating the need for advanced power backup systems, including modular UPS and battery storage solutions.

The data center power market in Germany held a substantial market share in 2024, driven by its strong industrial base and focus on Industry 4.0 technologies, which require robust and resilient data center operations. The country’s commitment to phasing out nuclear power and transitioning to renewable energy sources is influencing data center power strategies, leading to higher investments in energy storage solutions and grid modernization.

Asia Pacific Data Center Power Market Trends

The data center power market in Asia Pacific is expected to register the highest CAGR of 13.8% from 2025 to 2030, driven by rapid digitalization, the expansion of 5G networks, and the growing adoption of cloud services for reliable data center power infrastructure. The increasing presence of hyperscale cloud providers and local colocation data center operators is creating a need for innovative power solutions, including AI-driven power management and high-density power distribution units.

Japan data center power market is expected to grow rapidly in the coming years due to the country’s increasing reliance on cloud computing, fintech, and e-commerce platforms. With space constraints and high energy costs, Japanese data centers are focusing on high-efficiency power solutions, including direct current (DC) power systems and advanced battery storage technologies.

The data center power market in China held a substantial market share in 2024 due to the government’s emphasis on digital infrastructure as part of its “New Infrastructure” policy. The rising deployment of AI, big data, and blockchain technologies is increasing power consumption, driving demand for efficient and intelligent power management systems.

Key Data Center Power Company Insights

Key players operating in the data center power industry are ABB., Eaton, Schneider Electric, Vertiv Group Corp., and Rittal GmbH & Co. KG. The companies are focusing on various strategic initiatives, including new product development, partnerships & collaborations, and agreements to gain a competitive advantage over their rivals. The following are some instances of such initiatives.

• In March 2025, ABB announced the acquisition of a minority stake in North Carolina-based DG Matrix to accelerate the commercialization of solid-state power electronics for generative AI data centers and renewable microgrids. DG Matrix’s Power Router platform offers advanced energy solutions that improve energy efficiency, reduce grid strain, and cut energy costs. By integrating multiple AC and DC energy sources and loads, the platform combines 10 to 20 electrical devices into a single, more efficient, and cost-effective system.

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

• In December 2024, Eaton introduced its Eaton Samsung Gen 3 lithium-ion battery system, designed to deliver backup power for data centers, medical facilities, and industrial sectors. The system provides energy storage and emergency power backup for UPS, ensuring uninterrupted operation of IT infrastructure during critical times.

Data Center Power Market Report Scope

Global Data Center Power Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the data center power market report based on component, solution, services, end-use, and region.

• Component Outlook (Revenue, USD Billion, 2018 - 2030­)

  • Solutions

  • Services

• Solutions Outlook (Revenue, USD Billion, 2018 - 2030­)

  • PDU

  • UPS

  • Busway

  • Others

• Services Outlook (Revenue, USD Billion, 2018 - 2030­)

  • Design & Consulting

  • Integration & Deployment

  • Support & Maintenance

• End-use Outlook (Revenue, USD Billion, 2018 - 2030­)

  • IT & Telecommunications

  • BFSI

  • Government

  • Energy

  • Healthcare

  • Retail

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030­)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Argentina

  • Middle East & Africa (MEA)

    • UAE

    • Saudi Arabia

    • South Africa