Data Center Energy Management Market Global Report 2026

The data center energy management market size has grown rapidly in recent years. It will grow from $11.72 billion in 2025 to $13.44 billion in 2026 at a compound annual growth rate (CAGR) of 14.7%. The growth in the historic period can be attributed to increasing data center electricity consumption, rising energy costs, growing need to reduce operational costs, increasing deployment of power monitoring systems, and rising demand for cooling efficiency.

The data center energy management market size is expected to see rapid growth in the next few years. It will grow to $22.94 billion in 2030 at a compound annual growth rate (CAGR) of 14.3%. The growth during the forecast period can be attributed to increasing power requirements from high-density computing, rising demand for real-time energy optimization, growing adoption of liquid cooling technologies, expanding deployment of smart energy meters, and increasing need for carbon emissions monitoring. Major trends during the forecast period include rising adoption of intelligent power distribution systems, increasing use of predictive energy optimization, growing deployment of advanced cooling management systems, increasing integration of real-time energy monitoring, and rising adoption of automated power usage effectiveness optimization.

The rising energy costs are expected to propel the growth of the data center energy management market going forward. Energy costs refer to the expenses incurred for purchasing electricity and other energy sources required to operate facilities and equipment. Energy costs are increasing due to the rising global demand for electricity, which places greater pressure on power generation and transmission infrastructure, resulting in higher energy prices. As rising energy costs increase the operational expenditure of data centers, organizations are placing greater emphasis on advanced energy management strategies to optimize power consumption, improve efficiency, and maintain cost-effective operations. For instance, in October 2023, according to Eurostat, a Luxembourg-based statistical office of the European Union, household electricity prices in the EU continued to rise during the first half of 2023 compared with the same period in 2022, increasing from USD 27.4 (€25.3) per 100 kWh to USD 31.3 (€28.9) per 100 kWh. Therefore, the rising energy costs are driving the growth of the data center energy management market.

Major companies operating in the data center energy management market are concentrating on developing innovative solutions, such as next-generation data center infrastructure management (DCIM) software, to improve energy efficiency, infrastructure monitoring, operational resilience, sustainability, and carbon footprint management. Next-generation DCIM software is an advanced digital management platform that combines monitoring, automation, analytics, and modeling capabilities to manage physical IT infrastructure across centralized data centers, edge locations, and hybrid IT environments, providing greater visibility and control than traditional data center management tools. For instance, in November 2023, Schneider Electric SE, a France-based energy management and automation company, launched EcoStruxure IT DCIM 3.0, an enhanced data center infrastructure management solution designed to simplify the monitoring and management of complex hybrid IT environments. The platform enables organizations to manage infrastructure across multiple locations, including core data centers, cloud environments, and edge deployments, through flexible on-premise and cloud-based deployment options. It provides enhanced capabilities for real-time monitoring, infrastructure planning, energy consumption measurement, sustainability tracking, and carbon footprint management. The solution also improves operational resilience, security, and energy optimization by connecting IT assets and delivering actionable insights for efficient data center operations.

In January 2026, Jabil Inc., a US-based manufacturing and technology services company, acquired Hanley Energy Group Limited for $783 million. Through this acquisition, Jabil Inc. aimed to expand its intelligent infrastructure capabilities by incorporating Hanley Energy Group Limited’s critical power and energy management solutions, strengthening its rack-level data center infrastructure offerings, enhancing its ability to support AI-driven data center expansion, and providing end-to-end power optimization, deployment, and lifecycle management solutions for hyperscale and enterprise customers. Hanley Energy Group Limited is an Ireland-based energy management technology company specializing in mission-critical power systems, energy optimization solutions, and data center infrastructure services.

Major companies operating in the data center energy management market are Huawei Technologies Co. Ltd., Siemens AG, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Eaton Corporation plc, Johnson Controls International plc, Delta Electronics Inc., Vertiv Holdings Co., Legrand SA, STULZ GmbH, Panduit Corp., FNT GmbH, Sunbird Software Inc., Iceotope Technologies Limited, Modius Inc., EkkoSense Ltd., Green Revolution Cooling Inc.

North America was the dominant region in the data center energy management market in 2025. Asia-Pacific is expected to be the rapidly growing region in the forecast period. The regions covered in the data center energy management market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the data center energy management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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