Data Center UPS Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Power Output (Below 500 kVA, 501-1000 kVA, 1001-1500 kVA, Above 1500 kVA), By Topology (Single-Phase UPS, Three-Phase UPS, Modular UPS), By Application (Data Centers, Telecom Centers, Industrial Applications, Healthcare Facilities, Oil & Gas Facilities), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 6.46 Billion
CAGR (2026-2031)	8.96%
Fastest Growing Segment	Modular UPS
Largest Market	North America
Market Size (2031)	USD 10.81 Billion

Market Overview

The Global Data Center UPS Market will grow from USD 6.46 Billion in 2025 to USD 10.81 Billion by 2031 at a 8.96% CAGR. A Data Center Uninterruptible Power Supply (UPS) is a vital infrastructure system designed to provide emergency power and electrical conditioning to IT equipment during utility disruptions. These units ensure operational continuity by bridging the gap between main power failure and backup generator activation, effectively safeguarding hardware from voltage instabilities. The market is fundamentally supported by the exponential growth of data volumes and the widespread adoption of high-performance computing. According to AFCOM, in 2025, 80% of data center professionals anticipated significant increases in capacity requirements specifically driven by artificial intelligence workloads. This surge in computational demand necessitates robust power protection to support increasingly dense server configurations.

However, market expansion faces a substantial challenge regarding the reliability and capacity of aging utility power grids. The inability of existing transmission infrastructure to keep pace with the rapid scaling of energy-intensive facilities often delays construction and complicates the deployment of high-power systems. This grid constraint creates a bottleneck for operators striving to meet the power demands of modern digital environments, potentially slowing the overall pace of infrastructure development.

Key Market Drivers

The rapid expansion of cloud computing and virtualization services acts as a primary catalyst for the Global Data Center UPS Market, necessitating advanced power backup systems to support massive hyperscale facilities. As major technology corporations aggressively scale their digital infrastructure to accommodate artificial intelligence and machine learning workloads, the requirement for high-density, reliable UPS units has intensified to prevent costly service interruptions. This trend is characterized by a significant escalation in investment towards facility development and hardware procurement. According to Cushman & Wakefield, in the '2025 Global Data Center Market Comparison' report, hyperscale capital expenditures increased by 58% year-over-year in 2024, underscoring the aggressive build-out of these mission-critical environments. Such financial commitment directly translates into the procurement of robust power protection systems to ensure uptime for continuously expanding cloud services.

Simultaneously, the rising demand for energy-efficient and sustainable power solutions is reshaping UPS procurement strategies. Operators are under increasing regulatory and social pressure to minimize carbon footprints while managing soaring power consumption, leading to the adoption of eco-friendly UPS technologies with higher efficiency ratings and grid-interactive capabilities. According to the International Energy Agency (IEA), April 2025, in the 'Energy and AI' special report, global electricity demand from data centers is projected to more than double to 945 TWh by 2030, driven largely by AI deployments. To manage this escalating load, facilities are rapidly expanding capacity. According to JLL, in 2025, the North American data center construction pipeline alone expanded to 7.8 GW, reflecting the immense scale of infrastructure requiring robust and efficient power protection.

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Key Market Challenges

The limited reliability and capacity of aging utility power grids stands as a substantial barrier to the Global Data Center UPS Market. As operators attempt to scale facilities to support high-density AI workloads, they are frequently met with transmission infrastructure that cannot support the necessary load requirements. This physical limitation forces significant delays in new data center construction and the expansion of existing sites. Since UPS systems are deployed as integral components of these facilities during the build phase, any stagnation in physical infrastructure development results in a direct deferral of hardware procurement, preventing potential demand from converting into actual market revenue.

The magnitude of this constraint is evidenced by the widening gap between industrial energy requirements and available generation capacity. According to the North American Electric Reliability Corporation (NERC), in its 2025 Summer Reliability Assessment, aggregated peak electricity demand was forecast to increase by over 10 gigawatts (GW) compared to the prior year, with rapid data center expansion identified as a primary driver of this grid strain. This inability of utility grids to keep pace with the sector's explosive energy needs creates a hard ceiling on market growth, effectively restricting the deployment volume of power protection systems.

Key Market Trends

The rapid transition from Valve-Regulated Lead-Acid (VRLA) to lithium-ion battery technology is significantly influencing the Global Data Center UPS Market. This shift is driven by the superior energy density of lithium-ion chemistry, which allows operators to reduce the physical footprint of backup systems and allocate more space to revenue-generating IT equipment. Furthermore, substantial reductions in manufacturing costs have accelerated this replacement cycle, making the technology's total cost of ownership highly competitive. According to Business Green, December 2024, in the 'Global lithium-ion battery prices hit record low in 2024' article, the average global price of lithium-ion batteries declined by approximately 20% over the previous year, a financial incentive that is fast-tracking their adoption across hyperscale and colocation facilities.

Simultaneously, the proliferation of compact UPS solutions is expanding to support the growing edge computing landscape. As latency-sensitive applications like artificial intelligence inference require processing closer to the data source, operators are deploying decentralized micro-data centers that demand specialized, space-saving power protection. These units must operate reliably in space-constrained environments with minimal support infrastructure. According to Data Center Frontier, January 2025, in the '8 Trends That Will Shape the Data Center Industry In 2025' article, edge computing deployments were projected to account for 30% of total data center capacity growth for the year, creating a robust market for modular UPS systems tailored to distributed networks.

Segmental Insights

The Modular UPS segment is currently the fastest growing category within the Global Data Center UPS Market due to its inherent scalability and operational flexibility. Unlike traditional static systems, modular architectures allow data center operators to increase power capacity incrementally, which aligns infrastructure investment directly with actual demand. This design significantly reduces maintenance requirements and ensures continuous operations through easily replaceable components. Furthermore, as organizations strive to meet rigorous energy efficiency standards established by entities like the U.S. Department of Energy, the high efficiency of modular units continues to drive their rapid adoption.

Regional Insights

North America maintains a dominant position in the Global Data Center UPS Market due to the high concentration of hyperscale data centers and colocation facilities across the United States and Canada. This regional leadership is driven by the extensive presence of major technology firms and cloud service providers requiring continuous power availability. Furthermore, the market is influenced by stringent energy efficiency standards established by the United States Department of Energy, which necessitate the adoption of compliant power protection systems. These regulatory requirements and infrastructure demands ensure sustained investment in reliable power backup solutions throughout the region.

Recent Developments

• In June 2025, Eaton announced a strategic collaboration with Siemens Energy to accelerate the deployment of new data center capacity through integrated onsite power solutions. This partnership focused on combining Eaton’s electrical power management portfolio, including uninterruptible power supplies and switchgear, with Siemens Energy’s scalable power generation technologies. The initiative aimed to address the urgent industry demand for reliable, grid-independent energy supplies, enabling data center operators to bypass grid constraints. The joint offering was designed to facilitate rapid construction and commissioning of modular data centers, ensuring they could meet the rising energy needs of AI and cloud computing workloads.
• In May 2025, ABB expanded its power protection portfolio by launching two new single-phase uninterruptible power supply products tailored for enterprise data centers and sensitive IT networks. The newly released PowerValue 11RT G3 and PowerValue 11/31/33T G2 models were designed to provide reliable, clean power to small and medium-sized infrastructure critical to digital operations. These systems incorporated advanced features to ensure data integrity and operational continuity during power disturbances. The launch highlighted the company's commitment to supporting the growing need for resilient and efficient power security across various commercial and industrial data processing environments.
• In March 2025, Schneider Electric launched the Galaxy VXL, a modular three-phase uninterruptible power supply system developed to meet the escalating power demands of artificial intelligence and hyperscale data centers. This innovative platform delivered exceptional power density and was capable of supporting substantial critical loads within a single frame, with the ability to scale further through parallel unit configurations. The system was designed to optimize energy efficiency and minimize floor space requirements. It also offered compatibility with multiple battery technologies, including lithium-ion, to enhance operational resilience and support sustainability goals for large-scale electrical workloads.
• In December 2024, Vertiv introduced the PowerUPS 9000, a high-power density uninterruptible power supply system designed specifically for large data centers and critical digital infrastructure. This new solution was engineered to support a wide range of IT applications, spanning from traditional computing to high-density requirements. The system featured a compact footprint that was significantly smaller than previous generations, allowing for efficient space utilization in constrained environments. It offered high energy efficiency in double-conversion mode and was made available globally in various capacity models to ensure reliable power protection for mission-critical operations.

Key Market Players

• Siemens AG
• ABB Ltd.
• Schneider Electric SE
• Huawei Technologies Co. Ltd.
• Vertiv Holdings Co.
• Eaton Corporation plc
• Emerson Electric Co.
• Mitsubishi Electric Corporation
• AMETEK, Inc.
• Delta Electronics, Inc.

By Power Output	By Topology	By Application	By Region
Below 500 kVA 501-1000 kVA 1001-1500 kVA Above 1500 kVA	Single-Phase UPS Three-Phase UPS Modular UPS	Data Centers Telecom Centers Industrial Applications Healthcare Facilities Oil & Gas Facilities	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Data Center UPS Market, By Power Output:

• Below 500 kVA
• 501-1000 kVA
• 1001-1500 kVA
• Above 1500 kVA

• Data Center UPS Market, By Topology:

• Single-Phase UPS
• Three-Phase UPS
• Modular UPS

• Data Center UPS Market, By Application:

• Data Centers
• Telecom Centers
• Industrial Applications
• Healthcare Facilities
• Oil & Gas Facilities

• Data Center UPS 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