Data Center Power Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Solution (Power Distribution Units (PDUs), Uninterruptible Power Supply (UPS) Systems, Generators, TRANSFER SWITCHES AND SWITCHGEARS, Power Cables and Connectors), By Component (Hardware, Software and Services), By End-User Industry (IT and Telecom, BFSI (Banking, Financial Services, and Insurance, Healthcare, Government, Manufacturing, Others), By Region, and By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 12.74 Billion
CAGR (2026-2031)	7.93%
Fastest Growing Segment	Power Cables and Connectors
Largest Market	North America
Market Size (2031)	USD 20.14 Billion

Market Overview

The Global Data Center Power Market will grow from USD 12.74 Billion in 2025 to USD 20.14 Billion by 2031 at a 7.93% CAGR. The global data center power market encompasses the specialized electrical infrastructure required to distribute, manage, and reserve energy within critical computing facilities. This sector includes essential components such as uninterruptible power supplies, power distribution units, and backup generators designed to ensure continuous uptime and operational stability. The primary drivers fueling market growth include the exponential increase in data generation and the widespread migration of enterprise workloads to cloud computing platforms. Additionally, the intensifying demand for high performance computing to support artificial intelligence applications necessitates robust power configurations capable of handling server environments of higher density.

Despite these favorable growth conditions, the market faces a significant challenge regarding the capacity of existing utility grids to accommodate surging energy demands while adhering to strict environmental sustainability mandates. Infrastructure limitations often delay facility commissioning and increase operational costs for providers seeking to expand in saturated regions. This strain on energy resources is substantiated by recent consumption figures which highlight the scale of demand. According to the International Energy Agency, in 2024, global data centers consumed approximately 415 terawatt-hours of electricity. Consequently, addressing power availability and efficiency remains a critical hurdle for industry stakeholders aiming to sustain rapid expansion.

Key Market Drivers

The surge in AI and Generative AI computational demands serves as a primary 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 escalated, forcing operators to upgrade uninterruptible power supplies and distribution units to prevent outages. This trend is quantified by financial projections analyzing the sector's trajectory. 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 expansion of hyperscale and colocation facilities further propels 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.

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Key Market Challenges

The limited capacity of utility grids to accommodate surging energy demands serves 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.

Furthermore, 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.

Key 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.

Segmental Insights

Based on market analysis, the Power Cables and Connectors segment is currently the fastest-growing category within the Global Data Center Power Market. This rapid expansion is primarily driven by the escalating power density requirements of modern facilities hosting Artificial Intelligence and high-performance computing workloads. As server racks consume significantly more electricity, operators must replace legacy wiring with specialized, high-amperage cables and modular connectors capable of managing intense thermal loads and voltage shifts. This industry-wide modernization to ensure safety compliance and operational efficiency is fueling the exceptional demand for robust power transmission infrastructure.

Regional Insights

North America holds the leading share in the global data center power market due to the high concentration of hyperscale data centers and the presence of major cloud service providers. The region benefits from substantial investments in infrastructure to support the rising demand for data storage and processing capabilities. Furthermore, emphasis on sustainability has accelerated the integration of renewable energy solutions within these facilities. Collaborative efforts with institutions like the U.S. Department of Energy to improve energy efficiency standards also drive market growth, ensuring the region maintains its established dominance in the sector.

Recent Developments

• In October 2025, ABB launched its next-generation MNS low voltage switchgear integrated with the SACE Emax 3 air circuit breaker to enhance the resilience of AI-ready data centers. Unveiled at an industry event in Singapore, the solution incorporated advanced sensing and real-time data analytics to monitor power quality and minimize the risk of outages. The system was designed to manage the complex and rising power demands of artificial intelligence infrastructure while meeting rigorous cybersecurity standards. The Head of Low Voltage Systems at ABB Electrification explained that the technology provided a robust, future-proof foundation for critical electrical distribution.
• In June 2025, Eaton and Siemens Energy announced a strategic collaboration to accelerate the delivery of new data center capacity through a fast-track approach using integrated onsite power generation. The partnership combined Eaton’s electrical equipment, including switchgear and busways, with Siemens Energy’s modular 500 MW power plant concept featuring gas turbines and battery storage. This initiative aimed to provide reliable, grid-independent energy supplies to meet the surging demand for cloud and artificial intelligence computing. The Global Segment Leader for Data Centers at Eaton noted that the joint solution offered developers unprecedented flexibility in managing power infrastructure.
• In December 2024, Schneider Electric launched the Galaxy VXL, a compact and high-density uninterruptible power supply (UPS) specifically engineered for artificial intelligence and large-scale electrical workloads. The modular solution delivered scalable power capacity in a significantly reduced footprint, supporting the dynamic load profiles and rugged peak power capabilities required by AI training. Alongside this product, the company introduced a new reference design developed with NVIDIA to support liquid-cooled AI clusters. A senior executive at Schneider Electric highlighted that these innovations addressed the critical need for integrated infrastructure that could handle extreme thermal loads and rapid scaling.
• In November 2024, Vertiv released a complete 7MW reference architecture co-developed with NVIDIA for the GB200 NVL72 platform, capable of transforming traditional data centers into AI factories. This new architecture supported liquid-cooled rack-scale platforms with densities of up to 132kW per rack, offering an end-to-end design that optimized deployment speed, energy efficiency, and scalability. The Chief Executive Officer of Vertiv stated that the collaboration enabled customers to deploy high-performance power and cooling infrastructure faster to address the unique requirements of densification and dynamic AI workloads.

Key Market Players

• 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

By Solution	By Component	By End-User Industry	By Region
Power Distribution Units (PDUs) Uninterruptible Power Supply (UPS) Systems Generators TRANSFER SWITCHES AND SWITCHGEARS Power Cables and Connectors	Hardware Software and Services	IT and Telecom BFSI (Banking, Financial Services, and Insurance, Healthcare, Government, Manufacturing, Others)	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Data Center Power Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Data Center Power Market, By Solution:

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

• Data Center Power Market, By Component:

• Hardware
• Software and Services

• Data Center Power Market, By End-User Industry:

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

• Data Center Power Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE