DC Powered Servers Market Size & Outlook, 2025-2033

Dc Powered Servers Market Size

The global DC-powered servers market size was valued at USD 1.52 billion in 2024 and is projected to grow from USD 1.65 billion in 2025 to USD 3.12 billion by 2033, growing at a CAGR of 8.3% during the forecast period (2025-2033).

The global DC-powered servers market is witnessing steady growth, driven by rising demand for energy-efficient, high-density computing infrastructure across data centres, telecom hubs, and hyperscale cloud providers. DC-powered servers are gaining momentum due to their ability to reduce energy conversion losses, streamline power architectures, and support greener, more resilient IT environments. These systems are particularly attractive in edge computing sites, modular data centres, and mission-critical facilities where uptime, space optimisation, and thermal efficiency are paramount. As the global focus intensifies on carbon footprint reduction and data centre sustainability, DC-powered servers are increasingly being adopted as an alternative aligned with ESG mandates and next-gen infrastructure needs.

Dc Powered Servers Market Trend

Shift to Direct Current Infrastructure Driven by Energy Efficiency Demand

The accelerating shift toward high-voltage direct current (HVDC) power architectures in AI-optimised data centres is driven by the need for greater energy efficiency, scalability, and alignment with green infrastructure goals. As AI, IoT, and edge computing workloads surge, operators are moving beyond traditional 48 V DC and AC systems to adopt HVDC designs that offer superior performance and higher power density.

• For example, in April 2024, tech giants including Microsoft, Meta, and Google began implementing high-voltage DC (400–800 V) systems in their AI data centres to enhance energy efficiency and support next-generation server densities. The Mount Diablo initiative, spearheaded under the Open Compute Project, promotes 400V DC distribution as a new standard, boosting power efficiency and enabling up to 1 MW per rack.

This transition marks a critical inflexion point in data infrastructure design, reflecting a broader move toward DC-native systems that enable compact, scalable, and energy-optimised server environments.

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Market Growth Factor

Advanced Power Delivery Tech Enables Scalable Dc Servers

The rapid emergence of new power delivery technologies, specifically voltage regulators and modular DC systems, is designed to optimise energy delivery from meter to chip. These innovations enable data centres, particularly AI-focused hyperscale facilities, to reduce conversion losses, simplify infrastructure, and improve thermal efficiency.

• For instance, in February 2025, startup Claros emerged from stealth with USD 9.75 million in seed funding to commercialise direct current power delivery systems tailored to AI workloads. According to Axios, Claros has developed integrated voltage regulators and modular data center designs that deliver DC power directly to server processors. This eliminates multiple AC-to-DC conversion stages prevalent in traditional infrastructures.

By enabling end-to-end DC delivery, companies like Claros are shaping the future of server architecture, making DC-powered systems increasingly viable at scale.

Dc-Powered Servers Market Restraint

Legacy Infrastructure and Interoperability

Integrating high-voltage direct current (HVDC) infrastructure into legacy data centres originally designed for alternating current (AC) systems is a significant hurdle in market growth. Most existing server rooms and colocation facilities operate on standardised 208V or 480V AC power grids, and retrofitting them to accommodate 400–800V DC infrastructure involves significant redesigns, often requiring new cabling, power conversion systems, and safety protocols. These changes come with high capital expenditure and complex downtime planning, which many operators are reluctant to take on unless building new facilities from scratch.

Moreover, many critical components, such as UPS (uninterruptible power supply) systems, PDUs (power distribution units), and cooling equipment, are still optimised for AC configurations. This limits plug-and-play compatibility and increases vendor lock-in, especially for hyperscalers and colocation providers aiming to transition incrementally.

Market Opportunity

Modular off-Grid Dc Systems Enable Rapid, Scalable Deployment

Integrating modular, off-grid DC power solutions is designed to meet the rising demand for fast-tracked server deployments in areas facing grid limitations or long utility lead times. These systems eliminate dependency on traditional alternating current (AC) infrastructure and enable direct current (DC) server operations from alternative, on-site energy sources.

• For instance, in January 2025, DC Grid announced a strategic partnership with Liberty Energy to deliver turnkey DC power platforms for data centres and electric vehicle (EV) charging hubs. The collaboration utilises Liberty’s mobile generation fleet, powered by natural gas, renewable natural gas (RNG), and hydrogen, to provide scalable, site-specific DC power without requiring grid interconnection.

By bypassing conventional grid dependencies and reducing conversion losses, such solutions unlock new deployment models for cloud providers and colocation firms under pressure to scale quickly.

Regional Analysis

Asia-Pacific dominates the market due to its aggressive expansion of hyperscale data centres and renewable energy integration, especially in China, India, Japan, and Southeast Asia. DC-powered infrastructure is favoured for compatibility with solar and battery systems, reducing energy losses common in AC-DC conversions. Governments in the region actively support green digitalisation, with initiatives such as India’s Data Centre Policy and China’s carbon neutrality roadmap accelerating deployment. Lower labour and operational costs, rapid digital growth and 5G expansion make Asia-Pacific an ideal ecosystem for DC-powered server technologies. This confluence of industrial, regulatory, and environmental incentives fuels the region's continued market leadership.

Chinese Market Trends

China is rapidly scaling up DC-powered server deployments, driven by national energy efficiency targets and a booming digital economy. The government encourages operators to reduce electricity consumption by incentivising the shift toward DC systems, particularly in high-cost urban hubs like Shanghai and Shenzhen. Major state-owned carriers such as China Unicom pilot 240V DC-based infrastructure in data centers and 5G edge networks, streamlining power architecture. Additionally, the push for unified telecom-server power systems transforms the country’s power delivery ecosystem, reinforcing China's strategic intent to lead the green digital infrastructure space.

Japanese Market Trends

Japan’s shift to DC-powered servers is driven by its national carbon neutrality agenda and unique spatial constraints in urban IT infrastructure. Companies like NTT Communications are investing in rack-level DC bus systems to enhance power efficiency and reduce cooling loads. Japan’s global leadership in power electronics supports domestic innovation and export opportunities, especially to ASEAN countries. The integration of DC power with advanced cooling systems and battery-backed redundancy is making Japan a strategic player in building resilient, energy-efficient, and compact data infrastructure.

North America: Fastest-Growing Region

North America is poised to record the fastest CAGR in the DC-powered servers market, backed by a strong push for energy efficiency and green technology. Key drivers include federal funding initiatives like the U.S. Department of Energy's 2025 program supporting modular DC data centers and the EPA's findings that DC systems can reduce energy losses by up to 30%. Tech giants, including Google, Microsoft, and Meta, are transitioning to 380V DC infrastructure to improve power usage effectiveness (PUE). Regulatory mandates for carbon reduction and enterprise ESG commitments reinforce adoption, while regional focus on edge computing further accelerates DC-powered modular deployment across North America.

United States Market Trends

The United States leads the global DC-powered servers market thanks to large-scale investments in hyperscale data centres and advanced server technologies. Companies like Equinix and Meta actively deploy 380V DC systems to minimise conversion inefficiencies and simplify backup integration. Public-private partnerships, like the Liberty Energy–DC Grid collaboration, are innovating mobile, fuel-agnostic DC generation for remote and edge data centres. The increasing convergence of AI workloads and green infrastructure goals propels OEMs to develop optimised DC servers with high energy efficiency.

Canada is witnessing increasing traction in the DC-powered servers market, driven by national clean energy goals, favourable climate conditions for passive cooling, and strong governmental support for digital infrastructure modernisation. Provinces like Quebec and British Columbia offer abundant hydroelectric power, making DC systems ideal for renewable-backed data centres. With the government funding green infrastructure and the tech sector’s focus on reducing PUE, Canada is becoming a regional leader in environmentally responsible server deployment strategies.

Europe: Significant Growth Region

Europe is witnessing robust growth in the DC-powered servers market, anchored by strong environmental regulations and energy efficiency mandates under the EU’s Green Deal and Digital Agenda. Leading countries such as Germany, Sweden, and the Netherlands are phasing out legacy AC infrastructure in favour of grid-compatible DC power frameworks. The region’s focus on building grid-interactive, energy-positive data centres aligns well with DC integration, especially with battery storage and renewables. Government incentives supporting net-zero IT operations and increased demand from AI and cloud workloads are accelerating market expansion. Furthermore, European operators emphasise modular server designs that optimise heat management and reduce cooling loads—areas where DC systems outperform traditional AC alternatives.

Germany's Market Growth Factors

Germany stands at the forefront of Europe’s DC-powered server transformation, driven by its strong commitment to sustainable IT infrastructure and smart grid development. Enterprises in cities like Frankfurt and Munich are pioneering high-efficiency DC data centres, experimenting with modular server room layouts that eliminate traditional AC-DC-AC conversion loops. Germany's sustainability regulations and innovation-driven market landscape position it as a central force in Europe’s transition to DC-powered server ecosystems.

The UK is emerging as a forward-looking market for DC-powered servers, encouraged by its legally binding net-zero targets and the UK Government’s Digital Strategy. Data centre operators in London and Manchester are exploring DC architectures to reduce operational emissions and simplify UPS (uninterruptible power supply) integration. Furthermore, innovation hubs like Cambridge and Bristol host pilot projects funded by Innovate UK to test energy-efficient, DC-native modular server designs. The push for energy security and grid responsiveness makes DC power a strategic element of the UK's next-generation digital infrastructure roadmap.

Product Type Insights

Rack-mounted DC-powered servers hold a dominant share in the market due to their modular design, superior airflow management, and high compatibility with data centre infrastructures, aiming to optimise power efficiency. These servers are tailored for scalable deployment in high-density environments and are particularly favoured by colocation providers and hyperscalers that require seamless integration into existing rack systems. The DC architecture minimises AC-DC conversion losses, contributing to significant energy savings over time. Additionally, rack-mounted units are easier to maintain, upgrade, and standardise across facilities, making them ideal for facilities transitioning toward net-zero or low-carbon data centre models.

Application Insights

Edge computing is emerging as one of the most dynamic application areas for DC-powered servers, driven by the exponential rise in latency-sensitive services like autonomous vehicles, smart manufacturing, and immersive digital experiences. DC-powered servers are particularly well-suited for these conditions as they eliminate unnecessary AC conversions, reduce thermal output, and lower total power draw. Their ability to operate in harsh or remote settings and modular power delivery makes them instrumental in supporting real-time data processing close to the source. This application is gaining traction globally as telecom operators, industrial automation firms, and content delivery networks accelerate their edge buildouts.

Distribution Channel Insights

OEM partnerships dominate the distribution landscape for DC-powered servers, with major data centre equipment manufacturers integrating custom-configured DC servers directly into turnkey infrastructure solutions. These partnerships allow clients, especially hyperscalers and large enterprises, to deploy pre-tested, pre-certified systems with tailored power delivery specifications and pre-installed software environments. Vendors can offer bundled services such as remote diagnostics, firmware support, thermal modelling, and energy efficiency tuning optimised for DC architectures through OEM channels. The OEM model also supports faster procurement cycles and reduces integration risk, as servers are shipped with validated compatibility for existing cooling systems, rack configurations, and software stacks.

End-User Insights

Hyperscale data centre operators represent the most influential end-user segment driven by their relentless pursuit of operational efficiency, scalability, and sustainability. These operators, which include cloud giants and AI infrastructure providers, are rapidly shifting toward DC-powered architecture to lower energy losses, simplify power chain design, and meet internal carbon neutrality goals. Hyperscalers also explore integration with renewable energy microgrids and on-site hydrogen fuel cells, where DC power compatibility provides added design flexibility. As these operators build out next-generation AI and high-performance computing clusters, DC servers offer a future-ready foundation that supports high-density workloads with reduced electrical complexity.

Company Market Share

The DC-powered servers market remains moderately consolidated. Companies are at the forefront of innovation in energy-efficient infrastructure, edge computing support, and telecom-grade DC systems. Their competitive edge lies in proprietary power management technologies, integrated backup solutions, and strong vertical integration across cloud, colocation, and telecom environments.

Vertiv: Vertiv is a leading global provider of critical digital infrastructure and continuity solutions, including robust DC power systems. Their extensive portfolio focuses on energy efficiency, modularity, and reliability, addressing the growing demand for optimised power solutions in high-density and remote environments for 5G and beyond.

• In 2024, Vertiv launched its NetSure IPEseries, an integrated outdoor DC power platform tailored for 5G edge deployments and low-latency data nodes. The unit supports direct DC output up to 16kW and features modular lithium-ion battery backup, AI-based thermal regulation, and native remote diagnostics via Vertiv’s Environet Alert

List of key players in DC Powered Servers Market

1. Vertiv Group Corp.
2. Huawei Technologies Co., Ltd.
3. Delta Electronics, Inc.
4. ABB Ltd.
5. Schneider Electric SE
6. Eaton Corporation plc
7. AEG Power Solutions B.V.
8. Rittal GmbH & Co. KG
9. ZTE Corporation
10. Cummins Inc.
11. Vicor Corporation
12. Bel Power Solutions (a Bel Fuse Inc. company)
13. Eltek (Delta Group Subsidiary)
14. Tripp Lite (an Eaton brand)
15. Lite-On Technology Corporation

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Recent Developments

• July 2025- Empower Semiconductor, widely recognised as a leading innovator in integrated voltage regulators (IVRs), announced a significant strategic partnership with Marvell Technology to jointly develop state-of-the-art on-chip power delivery solutions tailored specifically for the demanding environments of AI and cloud data centres. This collaboration centers around Empower’s proprietary vertical voltage regulation technology, branded as FinFast™, which is designed to be integrated directly into Marvell’s advanced processor architectures.
• April 2025- LG Electronics, in partnership with Korea Electric Power Corporation (KEPCO) and Hanwha Construction, officially signed a memorandum of understanding to initiate a groundbreaking pilot project: the development of a 1-megawatt direct current (DC)-powered data centre situated within a larger 10-megawatt campus in South Korea.
• March 2025- Synapscom Telecoms S.A., a well-established telecommunications infrastructure company with a strong European presence, was formally announced as a key partner in the EU-funded DC-POWER consortium, a collaborative initiative dedicated to advancing direct current (DC) power technologies for data center applications.