Data Center Power Global Market Report 2024

The global data center power market has grown strongly in recent years. It will grow from $23.17 billion in 2023 to $24.75 billion in 2024 at a compound annual growth rate (CAGR) of 6.8%. The growth observed in the historical period can be attributed to the escalating demand for data centers, a surge in data traffic, initiatives for data center consolidation, a heightened focus on energy efficiency, government regulations emphasizing energy efficiency, and the implementation of green data center initiatives.

The global data center power market is expected to see strong growth in the next few years. It will grow to $32.84 billion in 2028 at a compound annual growth rate (CAGR) of 7.3%. The anticipated growth in the forecast period can be attributed to the integration of energy storage, the adoption of remote management and monitoring solutions, the deployment of modular data centers, a heightened focus on power quality and reliability, regulatory support for sustainable practices, and a growing demand for scalable power infrastructure. Prominent trends in the forecast period encompass advanced power distribution and management systems, the prevalence of hybrid and multi-cloud environments, the implementation of high-density computing and cooling solutions, enhanced monitoring and analytics capabilities, and increased collaboration for innovation.

The escalating demand for cloud storage is a driving force behind the growth of the data center power market. Cloud storage, a cloud computing model that involves storing data on the Internet through a provider managing storage as a service, is becoming increasingly vital for organizations. Data centers, as the physical entities facilitating cloud storage, house servers and storage infrastructure, along with necessary components like power systems and environmental controls. Notably, a June 2022 report from Cloudwards highlighted a significant increase in global cloud services infrastructure spending, reaching $41.8 billion in the first quarter of 2021, a 35% year-on-year growth and a 5% quarter-on-quarter rise. The surge in the need for cloud-based data storage is a decisive factor propelling 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 advancement is a focal point in the data center power market, with major companies emphasizing the development of innovative solutions. In June 2021, Hitachi ABB Power Grids introduced a new lifecycle management program technology, enabling users to map and track their installed assets for operational and technological requirements. This grid automation shield program offers up-to-date details on product lifetimes and related services, contributing to operational optimization and full lifecycle asset value.

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 December 2021, American Tower Corporation, a prominent US-based real estate investment trust company, successfully completed the acquisition of CoreSite for an approximate sum of $10.1 billion. This strategic move by American Tower is designed to capitalize on CoreSite's portfolio of highly interconnected data center facilities, featuring critical cloud on-ramps. The acquisition is expected to fuel robust, consistent, and recurring growth for American Tower while concurrently elevating the value of the company's existing tower real estate, especially through emerging opportunities in edge compute. CoreSite, the acquired entity, is a well-established US-based provider of carrier-neutral data centers, making this acquisition a significant step in American Tower's expansion and diversification strategy within the dynamic data center sector.

Major companies operating in the data center power market report are ABB Ltd., Anord Mardix Inc., Cisco Technology 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., and Power-One Inc.

Asia-Pacific was the largest region in the data center power market in 2023. 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.

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.

This report 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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