Offsite Data Center Power Infrastructure Market is Expected to grow at a robust CAGR of 17.82% through 2030F
The increasing global offsite data
center power infrastructure market is driven by adoption of lithium-ion
batteries over traditional VRLA, Integration of AI and machine learning in
power monitoring during the forecast period 2026-2030F.
According to TechSci Research report, “Offsite Data Center Power
Infrastructure Market – Global Industry Size, Share, Trends, Competition
Forecast & Opportunities, 2020-2030F”, The Global Offsite Data
Center Power Infrastructure Market was valued at USD 13.52 Billion in 2024 and
is expected to reach USD 36.49 Billion by 2030 with a CAGR of 17.82% during the
forecast period. One of the most prominent trends reshaping offsite data center
power infrastructure is the growing replacement of Valve Regulated Lead-Acid
(VRLA) batteries with lithium-ion battery systems. As data centers strive to
increase energy efficiency and reduce operating costs, lithium-ion technology
is gaining favor due to its superior lifecycle, reduced space requirements, and
lower total cost of ownership.
Lithium-ion batteries offer 2–3 times
longer lifespan than VRLA batteries—typically lasting 10–15 years compared to
3–5 years for VRLA. Their 60% smaller footprint and 40% lighter weight make
them ideal for space-constrained offsite or edge facilities. They also tolerate
higher operating temperatures, reducing cooling requirements and improving
system reliability. Furthermore, integrated battery monitoring systems allow
real-time status checks, enhancing predictive maintenance capabilities.
Additionally, lithium-ion batteries
charge faster (up to 75% quicker) than lead-acid batteries, improving power
availability during brief outages. Many UPS providers have now standardized
lithium-ion compatibility in modular and rack-mount UPS designs. Though initial
costs remain higher, data center operators are increasingly adopting long-term
ROI-focused procurement strategies, favoring lithium solutions for
high-availability facilities.
The shift is particularly strong in
colocation and hyperscale environments where power density and operational
efficiency are prioritized. Some facilities are even pairing lithium systems
with renewable sources to create hybrid energy storage setups, supporting
sustainability goals and regulatory compliance. As battery technology improves
and costs decline further, lithium-ion is expected to become the default choice
for most new deployments in offsite power infrastructure.
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Offsite Data Center Power Infrastructure Market"
Based on data center type, hyperscale
data centers is the fastest growing segment in the global Offsite Data Center
Power Infrastructure market during the forecast period driven by the explosive growth in digital services, artificial
intelligence (AI), and cloud computing. These large-scale facilities, operated
by tech giants such as Amazon Web Services (AWS), Microsoft Azure, Google
Cloud, and Meta, require immense and highly resilient power infrastructure to
support mission-critical operations at scale.
Hyperscale data centers often exceed 50 MW of IT load
capacity and are designed for rapid scalability, high redundancy (N+1 or 2N
configurations), and round-the-clock operation. As these companies continue
expanding their global cloud regions and AI capabilities—particularly for
energy-intensive tasks like large language model training and data
analytics—the demand for robust offsite power infrastructure accelerates. This
includes high-capacity UPS systems, smart PDUs, switchgear, power transformers,
and modular backup generators.
One of the key growth factors is the increasing shift
toward AI workloads, which can consume up to 3x more power per rack than
traditional computing. To accommodate this, hyperscale operators are investing
in liquid-cooled racks and power systems with enhanced load-balancing
capabilities. Many are also incorporating lithium-ion battery solutions to
improve efficiency and reduce floor space compared to traditional VRLA
batteries.
Furthermore, hyperscale players are aggressively
pursuing sustainability goals, including carbon neutrality, which drives
adoption of renewable-integrated power systems, grid-interactive UPS, and software-defined
power architectures. These initiatives further differentiate hyperscale data
centers from traditional or colocation facilities.
With rapid global expansion, hyperscale operators
often build in multiple phases, requiring modular and scalable power
infrastructure that aligns with long-term growth. Their massive capital
investment capacity, innovation-driven architecture, and high-performance
requirements make them the fastest-growing contributors to the offsite power
infrastructure market during the forecast period.
Based on region, Asia Pacific is the fastest
growing region in the Global Offsite Data Center Power Infrastructure Market during
the forecast period driven by rapid digital transformation, cloud
adoption, and surging data demand across developing and developed economies.
Countries such as India, China, Singapore, Australia, Japan, and South Korea
are witnessing an unprecedented rise in data center investments by global
hyperscalers and regional colocation providers.
One of the primary drivers is the expansion of cloud
services and AI-powered applications, which require low-latency infrastructure
and robust power backup systems. The region's growing middle class, widespread
internet penetration, and 5G rollouts have fueled demand for streaming, gaming,
fintech, and e-commerce platforms—all of which rely on data centers with
resilient power systems such as high-capacity UPS, modular switchgear, and
lithium-ion battery storage.
Governments across Asia Pacific are also promoting
digital economies through data localization laws and smart city initiatives.
These developments are creating a favorable regulatory environment and
encouraging both local and foreign investments in offsite data center
infrastructure. For instance, India’s data center market is expected to double
in capacity, while China continues to lead in hyperscale expansions, accounting
for a growing share of global data center footprints.
Moreover, space constraints and high real estate costs
in metro cities are pushing operators to build offsite and edge data centers in
Tier 2 and Tier 3 cities, where power infrastructure plays a critical role in
ensuring reliability. The region also shows increased emphasis on green energy,
with operators integrating renewable sources like solar and wind, alongside smart
power distribution systems to meet ESG goals.
With rising cloud demand, regulatory support, growing
enterprise digitalization, and strategic investments in power efficiency, Asia
Pacific is expected to maintain the highest growth momentum in offsite data
center power infrastructure throughout the forecast period.
Key market players in the Global Offsite
Data Center Power Infrastructure market are: -
- Schneider Electric SE
- Eaton Corporation plc
- Vertiv Holdings Co
- ABB Ltd.
- Siemens AG
- Legrand SA
- Mitsubishi Electric Corporation
- Huawei Technologies Co., Ltd.
- Cummins Inc.
- Caterpillar Inc
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“The global Offsite Data Center Power Infrastructure
market presents significant opportunities driven by the surging demand for edge
and modular data centers, particularly in emerging economies. Rising AI, IoT,
and 5G adoption creates a need for scalable, energy-efficient power systems.
Opportunities also lie in renewable energy integration, such as solar and wind,
along with next-gen lithium-ion and solid-state battery systems. Growth in data
localization regulations and green data center initiatives further expands
prospects for advanced power management technologies. Additionally, increasing investments
by hyperscale and colocation providers in underserved regions offer strong
potential for power infrastructure vendors and solution integrators.Top
of Form” said
Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global
management consulting firm.
“Offsite
Data Center Power Infrastructure Market - Global Industry Size, Share, Trends,
Opportunity, and Forecast, Segmented By Data Center Type (Colocation Data
Centers, Hyperscale Data Centers, Modular/Containerized Data Centers, Edge Data
Centers, Disaster Recovery Data Centers), By Power Capacity (Below 500 kW, 500
kW – 1 MW, 1 – 5 MW, Above 5 MW), By End-User Industry (IT & Telecom, BFSI,
Healthcare, Government & Public Sector, Retail & E-commerce, Others),
By Region & Competition, 2020-2030F,” has evaluated the future
growth potential of Global Offsite Data Center Power Infrastructure Market and
provides statistics & information on market size, structure, and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Global Offsite Data Center Power
Infrastructure Market.
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