Data Center Transformer Global Market Report 2025

The data center transformer market size has grown rapidly in recent years. It will grow from $8.4 billion in 2024 to $9.29 billion in 2025 at a compound annual growth rate (CAGR) of 10.5%. The growth in the historic period can be attributed to rising demand for energy-efficient power distribution, increasing need for uninterrupted electricity in data centers, growing deployment of hyperscale and colocation data centers, rising adoption of renewable energy sources within data centers, and increasing emphasis on transformer safety and reliability.

The data center transformer market size is expected to see rapid growth in the next few years. It will grow to $13.66 billion in 2029 at a compound annual growth rate (CAGR) of 10.1%. The growth in the forecast period can be attributed to rising demand for compact and high-density transformers, increasing need for energy-efficient and low-loss transformers, growing digitalization across enterprises, and rising adoption of hybrid and multi-cloud architectures. Key trends in the forecast period include integration of internet of things (IoT)-based monitoring and predictive maintenance, advancements in liquid-immersed transformer cooling efficiency, innovations in dry-type transformer safety, adoption of modular and scalable transformer designs, and developments in compact high-capacity transformers for edge facilities.

The increasing adoption of cloud computing is expected to propel the growth of the data center transformer market. Cloud computing refers to delivering computing resources, such as storage, servers, and software, over the internet, enabling scalable, on-demand access without physical infrastructure. The rise in cloud computing adoption is due to its scalability and flexibility, as it allows businesses to adjust resources on demand without heavy upfront infrastructure costs. Data center transformers support cloud computing by providing efficient and reliable power distribution, ensuring uninterrupted operation of servers and storage systems. They enhance energy efficiency and scalability, enabling seamless performance for expanding cloud infrastructure. For instance, in December 2023, according to Eurostat, a Luxembourg-based government agency, 45.2% of enterprises purchased cloud computing services. Therefore, the increasing adoption of cloud computing and digital services is driving the growth of the data center transformer market.

Key companies operating in the data center transformer market are focusing on developing technologically advanced solutions, such as transient voltage protection (TVP) technology, to enhance reliability, operational safety, and resilience against transient overvoltages. Transient voltage protection (TVP) technology refers to an advanced system designed to safeguard transformers from sudden voltage spikes and electrical transients while improving insulation performance, reliability, and operational lifespan in high-stress power environments. For instance, in November 2023, Hitachi Energy Ltd., a Switzerland-based power technology company, launched a new range of liquid-filled transformers equipped with transient voltage protection (TVP) technology, marking a significant advancement in transformer design. This innovation improves insulation performance, protects equipment from harmful voltage transients, enhances reliability, and extends service life, supporting growing demands in data centers, renewables, and utilities for stable and efficient energy systems.

In August 2025, Eaton Corporation plc, an Ireland-based intelligent power management company, acquired Resilient Power Systems Inc. for an undisclosed amount. Through this acquisition, Eaton Corporation plc aims to strengthen its advanced power management portfolio by integrating Resilient Power Systems’ solid-state transformer technology, enhancing energy efficiency, power reliability, and operational resilience in data center and critical infrastructure environments. Resilient Power Systems Inc. is a US-based energy solutions company that provides solid-state transformer technology for data centers.

Major players in the data center transformer market are Hitachi Ltd., General Electric Company, Schneider Electric SE, Mitsubishi Electric Corporation, Siemens Energy AG, ABB Ltd., Toshiba Corporation, Eaton Corporation Public Limited Company, Legrand SA, Fuji Electric Co. Ltd., Bharat Heavy Electricals Limited, HD Hyundai Electric Co. Ltd., Virginia Transformer Corporation, Ormazabal Electric S.L.U., Hammond Power Solutions Inc., MGM Transformer LLC, Hyosung Heavy Industries Corporation, Kirloskar Electric Company Limited, JCL Energy LLC, and Wilson Power Solutions Limited.

North America was the largest region in the data center transformer market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in data center transformer report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the data center transformer market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid rise in U.S. tariffs and the subsequent trade frictions in spring 2025 are having a major impact on the electrical and electronics sector, with semiconductors, display panels, and rare-earth metals (essential for batteries and motors) subject to steep duties. Consumer electronics brands face profit erosion, as competitive markets limit their ability to pass costs to buyers. Industrial electronics manufacturers, meanwhile, grapple with delayed projects due to shortages of tariff-impacted components like printed circuit boards. Companies are responding by relocating assembly to tariff-exempt countries, increasing inventory buffers, and redesigning products to reduce dependency on restricted materials.

The data center transformer market research report is one of a series of new reports that provides data center transformer market statistics, including data center transformer industry global market size, regional shares, competitors with a data center transformer market share, detailed data center transformer market segments, market trends and opportunities, and any further data you may need to thrive in the data center transformer industry. This data center transformer market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

A data center transformer is specialized electrical equipment designed to step down high-voltage power to safe, usable levels for servers and critical IT infrastructure, ensuring stable and efficient energy distribution within data facilities. Its primary goal is to provide consistent, reliable power while minimizing energy loss, supporting uninterrupted operations, and preventing electrical failures. It also enhances overall energy performance, reduces overheating risks, supports load management, and contributes to the long-term reliability and sustainability of data centers.

The key types of data center transformer are liquid-immersed transformer and dry-type transformer. Liquid-immersed transformer refers to transformers that use insulating oil for cooling and insulation, offering high efficiency, durability, and load-handling capacity suitable for large-scale data center operations. It is categorized by cooling type into oil-cooled and air-cooled systems. It finds applications in step-up transformers and step-down transformers, serving end users including enterprise data centers, colocation data centers, hyperscale data centers, and edge data centers.

The data center transformer market consists of sales of modular and compact transformers, oil-free eco-friendly transformers, isolation and converter transformers, medium voltage transformers, and cast resin transformers. Values in this market are ‘factory gate’ values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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