Press Release

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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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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