Data Center Power Market Report 2025

The data center power market size has grown strongly in recent years. It will grow from $24.18 billion in 2024 to $25.55 billion in 2025 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to increasing data center demand, rising data traffic, data center consolidation initiatives, focus on energy efficiency, government regulations for energy efficiency, green data center initiatives.

The data center power market size is expected to see strong growth in the next few years. It will grow to $36.12 billion in 2029 at a compound annual growth rate (CAGR) of 9%. The growth in the forecast period can be attributed to energy storage integration, remote management and monitoring, deployment of modular data centers, focus on power quality and reliability, regulatory support for sustainable practices, demand for scalable power infrastructure. Major trends in the forecast period include advanced power distribution and management systems, hybrid and multi-cloud environments, high-density computing and cooling solutions, enhanced monitoring and analytics, collaboration for innovation.

The growing demand for cloud data storage is driving the expansion of the data center power market. Cloud storage is a cloud computing model that allows data to be stored on the Internet via a cloud service provider that manages and operates the storage as a service. For organizations, a data center contains servers and/or data storage, encompassing the hardware, the physical space it occupies, power systems, backup systems, environmental controls, and all other components necessary to keep the servers operational. For instance, in April 2024, the European Commission, a Belgium-based government agency, reported that 77.6% of large enterprises utilized cloud computing services in 2023, a 6 percentage point increase from 2021. Additionally, 59% of medium-sized enterprises purchased cloud services in 2023, up from 53% in 2021. The share among small businesses increased by 3.8 percentage points to 41.7% during the same period. Consequently, the rising need for cloud data storage is driving the growth of the data center power market.

The ongoing trend of digital transformation is expected to contribute to the growth of the data center power market. Digital transformation involves leveraging digital technologies to fundamentally change how organizations operate and interact with stakeholders. Data center power plays a crucial role in facilitating digital transformation by providing the backbone for modern technological advancements. As businesses embrace initiatives like cloud computing, IoT devices, and artificial intelligence, the demand for robust and scalable power solutions intensifies. A November 2022 report from Zippia highlighted that global spending on digital transformation reached $1.5 trillion in 2021 and is projected to hit $6.8 trillion by 2023. The increasing pace of digital transformation initiatives is a key driver for the data center power market.

Technological advancements play a crucial role in the data center power market. Leading companies in this sector are focused on developing innovative solutions to maintain their competitive edge. For example, in March 2024, MaxLinear Inc., a US-based technology company, introduced the 200G/lane PAM4 SERDES (Serializer/Deserializer) and Rushmore DSP. This development represents a significant leap in performance, power efficiency, and density, enabling data center operators and cloud providers to handle the increasing demand for data traffic, the transition to higher-speed networks, and the essential power efficiency requirements of AI/ML networks. Building on the technical and commercial success of the Keystone family of 5nm 100G/lane DSPs, Rushmore doubles data rates, reduces latency for Big Data and AI/ML applications, and introduces enhanced functionality and performance. Combined with co-optimized, in-house SERDES, the Rushmore DSP family offers leading power efficiency and performance.

Major players in the data center power market are introducing cutting-edge products, including Uninterruptible Power Supply (UPS) solutions, to maintain their market position. UPS solutions are designed to provide a continuous and stable power supply to electronic systems, ensuring operational continuity during power outages or fluctuations. For example, in July 2023, ABB Ltd. launched MegaFlex DPA, a UPS solution tailored for the Indian market. The MegaFlex UPS range, with power ratings up to 1.5 and 1.6 MW, boasts a reduced footprint of up to 45%. This UPS solution offers enhanced availability and reliability, making it up to 45% smaller than competitor models of equal power rating. ABB's MegaFlex contributes to efficiency improvements and significant cost savings for data centers in a sustainable manner, reflecting the continuous innovation within the data center power market.

In June 2024, Legrand, a France-based company specializing in electrical and digital building infrastructure, acquired Davenham and VASS for an undisclosed amount. These acquisitions are expected to enhance Legrand's presence in the white space (server rooms) while establishing a strong foothold in the grey space (technical rooms). This strategy positions Legrand to take advantage of the rapidly growing and highly promising data centers segment. Davenham is an Ireland-based manufacturer of data center power products, while VASS is a Spain-based manufacturer of busbars primarily designed for data centers.

Major companies operating in the data center power market are ABB Ltd., Anord Mardix Inc., Delta Electronics Inc., Eaton Corporation PLC, Huawei Technologies Co Ltd., Schneider Electric SE, Siemens AG, Toshiba Corporation, ZincFive Inc., Cyber Power Systems, General Electric company, N1 Critical Technologies Inc., PDU Experts solutions, Socomec Group S.A., AEG Power Solutions, Alpha Technologies, Ametek Powervar, Black Box Corporation, Caterpillar Inc., Cummins Inc., Cyberex, Emerson Network Power, Fuji Electric Co. Ltd., Generac Power Systems, Hitec Power Protection, Legrand SA, Mitsubishi Electric Corporation, MTU Onsite Energy, Piller Power Systems, Power Innovations International Inc.

Asia-Pacific was the largest region in the data center power market in 2024. Asia-Pacific is expected to be the fastest-growing region in the data center power market report during the forecast period. The regions covered in the data center power market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the data center power market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Data center power management is a comprehensive process designed to enable the effective management, measurement, and monitoring of power production, consumption, and optimization within a data center facility. It involves identifying, implementing, and overseeing processes aimed at enhancing power efficiency in the data center, addressing both hardware and software aspects.

The primary products associated with data center power management include the power distribution unit (PDU), uninterruptible power supply (UPS), busway, and other related products. Busway, in this context, refers to a dedicated lane for the exclusive use of commuter buses. The components encompass solutions and services, adhering to tier standards such as tiers I and II, tier III, and tier IV. UPS systems are categorized by capacity (< =500kVA, 500-1,000kVA, and >1,000 kVA) and find applications in IT and telecommunications, Banking, Financial Services and Insurance (BFSI), government, energy, healthcare, retail, and other end-user sectors.

The data center power market research report is one of a series of new reports that provides data center power market statistics, including data center power industry global market size, regional shares, competitors with a data center power market share, detailed data center power market segments, market trends and opportunities, and any further data you may need to thrive in the data center power industry. This data center power market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The data center power market includes revenues earned by entities through power distribution, power monitoring, power backup, cabling infrastructure, design and consulting, integration, deployment, support, and maintenance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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