Data Center Power Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Data Center Power Market is projected to expand from USD 12.74 Billion in 2025 to USD 20.14 Billion by 2031, reflecting a CAGR of 7.93%. This market encompasses the specialized electrical infrastructure needed to distribute, manage, and reserve energy within critical computing facilities. The sector involves essential components such as uninterruptible power supplies, power distribution units, and backup generators, all engineered to guarantee continuous uptime and operational stability. Key drivers propelling this growth include the explosive rise in data generation and the widespread transfer of enterprise workloads to cloud computing platforms. Furthermore, the growing need for high-performance computing to support artificial intelligence applications requires robust power configurations capable of managing increasingly dense server environments.

Despite these favorable conditions for growth, the market encounters a major challenge regarding the capacity of existing utility grids to meet surging energy needs while complying with rigorous environmental sustainability standards. Limitations in infrastructure frequently delay facility commissioning and raise operational expenses for providers attempting to expand in saturated regions. This pressure on energy resources is confirmed by recent consumption statistics. According to the International Energy Agency, global data centers consumed approximately 415 terawatt-hours of electricity in 2024. Consequently, addressing power availability and efficiency remains a crucial obstacle for industry stakeholders aiming to maintain rapid expansion.

Market Drivers

The rapid rise in AI and Generative AI computational requirements acts as a major catalyst for the market, necessitating advanced electrical configurations to support energy-intensive graphics processing units. As data centers shift from traditional workloads to high-performance computing, the power density per rack has increased, compelling operators to upgrade uninterruptible power supplies and distribution units to prevent outages. This trend is quantified by financial forecasts analyzing the sector's path. According to Goldman Sachs, April 2024, in the 'Generational Growth: AI, Data Centers and the Coming US Power Demand Surge' report, data center power demand is projected to grow 160% by 2030 solely to accommodate these intensifying artificial intelligence workloads.

The growth of hyperscale and colocation facilities further drives the need for reliable power infrastructure as providers race to build capacity in key digital hubs. These massive facilities require complex redundant power systems to maintain service level agreements and support the rapid scaling of cloud services. This construction boom is evident in recent real estate development figures.

According to JLL, August 2024, in the 'H1 2024 North America Data Center Report', there were a record 5.3 gigawatts of capacity under construction in primary markets, underscoring the physical infrastructure investment fueling the power equipment sector. The overall strain on the grid from this growth is becoming increasingly visible at a national level. According to the Electric Power Research Institute, in 2024, data centers are projected to consume up to 9% of total United States electricity generation by 2030, highlighting the critical role of efficient power management solutions.

Market Challenges

The restricted capacity of utility grids to handle escalating energy requirements acts as a primary constraint on the Global Data Center Power Market. As facility operators transition toward high-density configurations for artificial intelligence, they encounter power networks that lack the transmission infrastructure to support such intense loads. This bottleneck creates significant delays in facility commissioning, as completed sites often sit idle in interconnection queues for months or years. These delays directly impede the deployment of power management systems and backup generators, causing inventory stagnation and deferring revenue for equipment providers.

Moreover, the necessity to adhere to strict environmental mandates narrows the options for rapid capacity expansion, as fossil-fuel-based bridging solutions are increasingly non-viable. The magnitude of this grid strain is illustrated by consumption forecasts in major hubs. According to the Electric Power Research Institute, in 2024, data center electricity consumption in the United States was projected to reach up to 9% of the nation's total generation by 2030, a figure that highlights the acute gap between demand and available infrastructure. This scarcity effectively places a hard cap on the market’s immediate growth potential.

Market Trends

The emergence of small modular reactors and nuclear power partnerships represents a critical strategic shift as hyperscale operators seek to bypass utility grid bottlenecks and secure consistent, carbon-free energy. To guarantee continuous uptime for energy-intensive artificial intelligence workloads, major technology companies are moving beyond traditional power purchase agreements to directly acquire nuclear-powered infrastructure. This direct-connect approach allows facilities to operate independently of constrained municipal networks while strictly adhering to sustainability mandates. The scale of this transition is evident in recent high-value transactions; according to Talen Energy Corporation, March 2024, in the 'Talen Energy Sells Cumulus Data Center Campus' press release, the company sold its 960 megawatt nuclear-powered data center campus to Amazon Web Services for $650 million, underscoring the immense market valuation placed on reliable, on-site nuclear generation.

Simultaneously, the market is undergoing a rapid transition to lithium-ion battery energy storage systems, replacing legacy lead-acid configurations to optimize floor space and enhance operational efficiency. These advanced storage solutions offer significantly higher energy density and faster recharge capabilities, which are essential for managing the variable load spikes associated with high-performance computing. The reduction in physical footprint allows operators to deploy more revenue-generating server racks within the same facility envelope, directly improving capital efficiency for providers. This technological displacement is substantiated by industry adoption rates; according to the Uptime Institute, July 2024, in the 'Global Data Center Survey 2024' report, 62% of data center operators have now adopted lithium-ion batteries for their centralized uninterruptible power supply systems, marking a decisive move toward this modernized storage architecture.

Key Players Profiled in the Data Center Power Market

• Schneider Electric SE
• Eaton Corporation PLC
• ABB Ltd.
• Vertiv Co.
• General Electric Company
• Delta Electronics, Inc.
• Legrand SA
• Mitsubishi Electric Corporation
• Huawei Technologies Co., Ltd.
• Siemens AG

Report Scope

In this report, the Global Data Center Power Market has been segmented into the following categories:

Data Center Power Market, by Solution:

• Power Distribution Units (PDUs)
• Uninterruptible Power Supply (UPS) Systems
• Generators
• TRANSFER SWITCHES AND SWITCHGEARS
• Power Cables
• Connectors

Data Center Power Market, by Component:

• Hardware
• Software
• Services

Data Center Power Market, by End-User Industry:

• IT and Telecom
• BFSI (Banking
• Financial Services,
• Insurance
• Healthcare
• Government
• Manufacturing
• Others)

Data Center Power Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Data Center Power Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.