Data Center Power Market Size, Share & Trends Analysis Report By Type (Solutions, Services), By End-User (Mid-Size Data Centre, Enterprise Data Centre, Large Data Centre), By Vertical (BFSI, Energy, Government & Defense, Healthcare, Manufacturing, Research & Academia, Retail, Telecommunications & IT, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Global Data Center Power Market Size and Trends

The global data center power market size was valued at USD 23.34 billion in 2023 and reached USD 25.75 billion in 2024. It is expected to reach USD 56.58 billion in 2032, growing at a CAGR of 10.34% over the forecast period (2024-32). As businesses increasingly rely on cloud computing for data storage, processing, and software services, the demand for data centers that can support these services with reliable power supply grows. This demand is a significant driver for investments in data center power infrastructure.

The global data center power market is on a significant upswing due to the increasing need for data storage and processing capabilities across industries. Reliable power solutions in data centers are essential as businesses become more dependent on digital infrastructure. The market is marked by a surge in data traffic, widespread adoption of cloud computing, and the proliferation of internet-connected devices.

One of the key factors driving this market is the growing demand for energy-efficient solutions to address the environmental impact of data centers. Organizations are actively seeking power management systems and technologies that ensure uninterrupted operations and align with sustainability goals. Moreover, concerns about rising operational costs have prompted businesses to invest in innovative power management solutions that optimize energy consumption.

There is a noticeable shift in the market towards modular and scalable designs for data centers, allowing for better flexibility and cost-effectiveness in power infrastructure. Data center operators are deploying advanced power distribution and cooling technologies to meet the increasing demand for higher computational capacity. The adoption of renewable energy sources like solar and wind power is gaining traction as a way to achieve greener and more sustainable data center operations.

Data Center Power Market Growth Factors

Increasing Focus on Energy Efficiency, Carbon Reduction, and Sustainability Measures

Data centers are under increasing scrutiny due to their significant electricity consumption, accounting for about 2% of the world's total electricity usage. The concept of Power Usage Effectiveness (PUE) has gained widespread acceptance as an indicator of energy efficiency, and reducing PUE is seen as a means to cut operating costs and carbon emissions.

The growth of the data center power market is driven by a focus on energy efficiency, particularly the reduction of Power Usage Effectiveness (PUE). This emphasis aligns with global carbon reduction goals and is reinforced by commitments to carbon neutrality by major economies. As part of this shift, data centers are adopting low-carbon practices and transitioning to green energy sources like solar and wind power. Policies promoting renewable energy use, innovative conservation measures, and initiatives like the "Eastern Data, Western Computing" project contribute to this transition. Moreover, the data center power industry is evolving its sustainability approach beyond carbon benchmarks to include comprehensive indicators such as Renewable Energy Utilization, Water Usage Effectiveness (WUE), and Grid Usage Effectiveness (GUE). The integration of energy conservation technologies is a key driver for achieving sustainability goals.

In pursuit of carbon neutrality and enhanced energy efficiency, data centers are increasingly adopting renewable energy and advanced conservation technologies, broadening their sustainability metrics to include WUE and GUE.

Rising Adoption of Cloud Computing

The meteoric rise of cloud computing has fundamentally reshaped the landscape of digital information consumption and storage.

The recent rise in generative AI applications has emerged as a new demand driver for a different type of computing, placing fresh demands on data centers to be able to provide immense computing power for processing and analyzing vast and complex datasets.

As businesses and individuals increasingly pivot towards cloud-based services and data storage solutions, the demand for resilient and scalable infrastructure has surged to unprecedented heights. This results in increased construction and expansion projects, leading to higher demand for power infrastructure. Cloud-based services, AI, and IoT applications often have high power density requirements. This necessitates advanced PDUs that can efficiently distribute power to various IT equipment within data centers.

Moreover, the data center power market is expected to grow in the next five years due to increasing computing demands and technological advancements. It is expected that the power density per IT rack will increase from 6-8 kW to 12-15 kW due to the proportional rise in power consumption caused by increasingly powerful chips and servers. The evolution of IT technologies, including chip upgrades every 2–3 years and the introduction of innovative technologies like core stacking, contributes to a 30% annual growth in power consumption.

With cloud data centers projected to represent over 70% of operating data centers by 2027, the surge in data and computing volumes is surpassing current resource capacities, especially in tier-1 cities. Therefore, to address this, data center facilities are expected to adopt high-density design principles to maximize resource efficiency and accommodate growing computing demands.

In conclusion, the surge in cloud computing and advanced AI applications is driving a significant shift in data center infrastructure, necessitating higher power densities and scalable solutions. To accommodate these growing demands and maximize resource efficiency, data centers must embrace high-density designs and technological advancements.

Data Center Power Market Opportunities

5G Growing Edge Center Investments

For mission-critical communications, 5G network connectivity offers fast data transmission rates. IoT, robots, and AI applications, among others, can all benefit from 5G Live TV's extensive broadband capabilities, which enable high-speed connections. Compared to 4G, 5G delivers much higher connection density, lower latency, and better bandwidth. Edge computing, which brings IT and cloud-based services closer to end users and devices, is gaining popularity with the development and implementation of 5G. Considering their proximity to end consumers and their capacity for processing, moving, and storing data, edge data centers are smaller in size but have a more extensive range of applications. Edge computing is developing faster than ever, and its implementation necessitates quick, intelligent answers.

Edge data centers are being eagerly sought after for locations on tower sites by organizations like American Tower and SBA Communications. Businesses would collaborate to establish Edge Data Center and Cloud Solutions at carefully chosen distribution centers. To support the increased need for power and IT infrastructures, such as rack PDUs of >10 kW and rack-level UPS systems, there will be an increasing need for high-density racks and power infrastructure. More UPS systems and generators will be purchased due to the need for data centers with enhanced power reliability and redundancy. With more modular infrastructure options available, edge deployment will continue to push advancements in the data center power sector.

Regional Analysis

Emerging Regions and Countries for Data Center Power

Asia-Pacific is an emerging region in the data center power market, which is driven by several factors, such as the growing number of internet users, increased use of social media, elevated smartphone penetration, increased adoption of cloud services, and the need for enterprises to migrate from server room environments to data centers, The rising demand for colocation services due to the COVID-19 pandemic, which led to a strong use of existing facilities and the announcement of new data center providers across the market in 2020 and 2021.

Moreover, the increasing investments in data center infrastructure by internet and cloud service providers, such as Alibaba, Amazon Web Services, Google, Microsoft, and Tencent, as well as by telecommunication operators, such as China Mobile, China Telecom, China Unicom, NTT Communications, and Singtel. Moreover, the growing adoption of advanced technologies, such as artificial intelligence, big data, the Internet of Things, and 5G, which require high-performance computing and low-latency connectivity, drives the demand for efficient and reliable data center power solutions.

The government initiatives and policies to support the data center industry's development include:

1. The Three-year Action Plan for New Data Centre Development (2021-2023) in China.
2. The Digital India program in India.
3. The Smart Nation program in Singapore.

Some of the instances that help the region to grow in the data center power market are:

• Major cloud service providers and colocation providers, such as Equinix, Digital Realty, GDS, and Chindata, are developing hyperscale and edge data centers to cater to the increasing demand for cloud-based services and applications.
• The integration of renewable energy sources and green power solutions by data center operators to reduce their carbon footprint and energy costs and comply with sustainability standards and regulations.
• Adopting innovative and efficient power infrastructure, such as modular UPS systems, lithium-ion batteries, fuel cells, and busway systems, improves data center facilities' power density, reliability, scalability, and maintainability.

The emergence of new data center markets, such as Indonesia, Malaysia, Thailand, and Vietnam, which offer attractive opportunities for data center investors and developers due to the availability of land, power, and skilled workforce, as well as the growing demand for data center services from local enterprises and consumers.

Data Center Power Market Regional Trends

Data Center Power Market Trends in North America

North America maintains its position as the leading market for data center power solutions, driven by the region's high concentration of data centers and rapid adoption of cutting-edge technologies such as cloud computing, big data analytics, and artificial intelligence. As of H1 2023, the region's total data center power capacity reached 4,525.6 MW, surpassing the combined capacity of Europe, Asia-Pacific, and Latin America. 

Key trends shaping the North American data center power market include:

• Increasing adoption of IoT and cloud computing technologies, fueling market demand
• Significant investments by hyperscale data center operators, such as Facebook, Google, Microsoft, and AWS, driving the adoption of rack-level UPS systems with capacities of ≤500 kVA
• Growing edge data center deployments across the region
• Introduction of innovative power solutions and advanced cooling systems to meet the evolving needs of modern data centers

The COVID-19 pandemic has further accelerated the demand for data center services and equipment as enterprises shifted to digital platforms to maintain operations remotely. This shift has put additional pressure on data center service and equipment providers to manage increased data traffic, driving the need for efficient and reliable power solutions.

Asia-Pacific Data Center Power Market: Growth Drivers and Trends

The Asia-Pacific region is experiencing rapid growth in the data center power market, driven by the expansion of the IT and telecom sectors, emergence of new data center hubs, and increasing investments in data center infrastructure. Key opportunities in this market include:

• Adoption of innovative data center technologies and UPS battery technologies
• Growing use of renewable energy sources, particularly in India
• Development of 5G and edge data center deployments across the region
• Increasing adoption of software-defined power solutions
• Emergence of fuel cell generators

The region has witnessed significant activity, with around 160 data center projects under construction or newly built. China, Japan, India, and Singapore are the major countries driving growth in this market. Notably, data center solutions provider Legrand has acquired prominent manufacturers like Raritan and Server Technology, enhancing its position in the industry.

Recent developments include Fuji Electric's expansion of its 7500WX Series high-capacity UPS systems, introducing a new product with a single-unit capacity of 2,400 kVA. This product features a high-efficiency mode (HE mode) that achieves a power conversion efficiency of 98.5%, contributing to CO2 reduction and significantly lowering running costs high-efficiency mode (HE mode) that allows operation with commercial power sources when the commercial power supply is stable, achieving a power conversion efficiency of 98.5%. It contributes to CO2 reduction and significantly reduces running costs.

Segmental Analysis

The global Data Center Power Market share is segmented by Type, End-User, and Vertical

Based on type, the global market is segmented into Solutions and Services

Solutions includes power distribution, power monitoring, power backup, and cabling infrastructure. Power distribution solutions ensure that electrical power is effectively allocated throughout the data center, while power monitoring systems help track and manage energy usage, enhancing efficiency. Power backup solutions, such as uninterruptible power supplies (UPS) and generators, are essential for maintaining operations during outages. Cabling infrastructure is crucial for the reliable and organized transmission of power and data. Services encompasses various support activities, including installation, maintenance, and consulting services that help data centers optimize their power management systems and ensure continuous, reliable operation.

Based on End-user, the global market is segmented into Mid-Size Data Centre, Enterprise Data Centre and Large Data Centre

Mid-Size Data Centres facilities typically serve medium-sized businesses and require power solutions that balance efficiency and cost-effectiveness. Enterprise Data Centres caters to large organizations, these data centers demand robust and scalable power solutions to support extensive IT infrastructure and critical business operations. Large Data Centres serves major corporations and cloud service providers, these facilities need highly advanced and resilient power systems to handle massive data volumes and ensure high availability.

Based on vertical, the global market is segmented into BFSI, Energy, Government & Defense, Healthcare, Manufacturing, Research & Academia, Retail, Telecommunications & IT and Others

Data centers in BFSI (Banking, Financial Services, and Insurance) sector prioritize security and reliability, demanding rigorous power management to support critical financial transactions and data protection. Energy sector data centers manage large datasets related to resource management, requiring stable power solutions to avoid disruptions in operations and data analysis. Government & Defense data centers need secure and resilient power systems to support sensitive government and defense operations. In healthcare, data centers must ensure uninterrupted power to manage patient records, imaging data, and other critical healthcare information.

Manufacturing data centers support automation and production processes, necessitating reliable power to minimize downtime and maintain productivity. Retail sector data centers manage large volumes of transaction data and customer information, requiring efficient power systems to support continuous operations. Data centers in Telecommunications & IT vertical support extensive communication networks and IT services, needing highly reliable power solutions to ensure seamless connectivity and service delivery.

Investment Trends and Cost Considerations in Data Center Power Market

Data center power market players invest in CAPEX to acquire, upgrade, or maintain physical assets such as power distribution units, uninterruptible power supplies, generators, transformers, and cooling systems. CAPEX investments are usually large, long-term, and require high upfront costs. However, they can also result in lower operating expenses, higher efficiency, and better performance in the long run.

Investors seeking unparalleled opportunities in the technology infrastructure sector should turn their attention to the booming market of data center generators. This surge is driven by a confluence of transformative trends, including the widespread adoption of cutting-edge generators, the rapid deployment of edge data centers fueled by 5G, and the integration of automation and remote monitoring technologies. In the wake of the pandemic, global digitalization efforts prompted nations to embrace technologies like IoT, Big Data, and 5G, resulting in substantial investments by cloud service providers.

Data center power market players spend on OPEX to cover the ongoing costs of running and maintaining their power infrastructure, such as electricity bills, maintenance fees, repair costs, and labor expenses. OPEX investments are usually smaller, recurring, and more flexible than CAPEX investments. However, they can also result in higher total costs, lower efficiency, and lower reliability in the long run. The average OPEX cost per kilowatt-hour (kWh) of data center power in the US is USD 0.10, which is higher than the average OPEX cost of USD 0.07 in Europe and USD 0.06 in Asia.

Country-wise Investment Trends in Data Center Power Market

The data center power market is geographically segmented into North America, Europe, Asia-Pacific, and Rest of the World. Some of the geographical hotspots for investments in the data center power market include:

China: China is the largest and the most dynamic market for data center power in Asia-Pacific, driven by the rapid growth of cloud computing, e-commerce, gaming, and artificial intelligence industries, as well as the government's initiatives to promote digital transformation and green development.

USA: The US is the largest and the most mature market for data center power in North America, driven by the presence of leading co-location and cloud service providers, such as Equinix, Digital Realty, Amazon Web Services, and Google Cloud, as well as the increasing demand for edge computing, 5G, and Internet of Things applications.

Germany: Germany is the largest and the most advanced market for data center power in Europe, driven by the high adoption of cloud services, especially among small and medium-sized enterprises, as well as the government's policies to support renewable energy sources and energy efficiency.

*In-depth analysis and data points will be provided in the full report

Competitive Landscape in the Data Center Power Market

The data center power market is characterized by intense competition among key players, driving continuous innovation in power management solutions. This includes the development of intelligent monitoring and control systems, as well as advancements in uninterruptible power supply (UPS) technologies. Market players are focused on providing comprehensive solutions encompassing power distribution, backup systems, and energy-efficient cooling mechanisms.

Delta Electronics: A Leader in Data Center Power Solutions

Delta Electronics has established itself as a significant player in the data center power market, leveraging its expertise in power electronics and automation. With a strong commitment to research and development, Delta has consistently allocated over 8% of its annual sales revenues to innovation and sustainability. This has resulted in a range of energy-efficient power products for data centers, known for their reliability and compliance with international standards.

Recent developments at Delta Electronics include:

• Recognition as a Top 100 Global Innovator by Clarivate for two consecutive years (2022-2023)
• A patent count surpassing 15,000, with 1,070 patents approved in 2022 alone
• Launch of new UPS solutions, such as the Modulon and Ultron series, designed to meet varying data center requirements
• Expansion of its data center infrastructure suite, including power management, precision cooling, and rack and accessories

Schleifenbauer: An Emerging Player in the Data Center Power Market

Schleifenbauer, a European PDU manufacturer since 2008, has been gaining traction in the data center power market. The company specializes in tailored rack PDUs and intelligent energy meters, prioritizing customer needs and adaptability to various data center infrastructures.

Recent developments at Schleifenbauer include:

• Expansion of production and office space in 's-Hertogenbosch in 2022, reflecting the company's commitment to meeting evolving market needs
• Launch of new PDU solutions with enhanced energy monitoring and control capabilities
• Growing partnerships with key data center operators and technology providers

This report provides a detailed examination of the top companies in the data center power market, including:

• Financial Performance: In-depth financial analysis, including revenue, profitability, and growth trends
  • Product and Solutions Portfolio: Detailed overview of each company's product and solutions offerings, including data center power solutions, UPS systems, and energy-efficient technologies
• Key Developments: Insights into recent developments, such as mergers and acquisitions, partnerships, and product launches
• SWOT Analysis: Comprehensive SWOT analysis, highlighting each company's strengths, weaknesses, opportunities, and threats

Recent Developments

• June 2024 - Infineon introduced many additional power supply unit (PSU) options to provide AI data centers with the energy they require. Accompanying the 3kW PSU that the chip manufacturer currently offers, users will soon have access to 3.3kW, 8kW, and 12kW PSUs.
• March 2024 - Conapto, a Swedish colocation data center provider, hired Vertiv to deploy a grid-interactive UPS system. The businesses have outfitted Conapto data centers with Vertiv Liebert EXL S1, an Uninterruptible Power Supply (UPS) system that offers an integrated solution for crucial power protection and grid support capabilities.