Data Center Power Market Size (2024 - 2029)

The Data Center Power Market is experiencing growth driven by the increasing demand for data centers due to the rising global digital data production and the expansion of connected networks. The market's expansion is supported by the need for advanced power solutions, such as power distribution units and uninterruptible power supplies, which are essential for managing power requirements and reducing outages. However, the high installation and maintenance costs of these components pose challenges for data center operators, potentially impacting the market's growth trajectory.

Market Size of Data Center Power Industry

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Data Center Power Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 24.33 Billion
Market Size (2029) USD 33.92 Billion
CAGR (2024 - 2029) 6.87 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Data Center Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Data Center Power Market Analysis

The Data Center Power Market size is estimated at USD 24.33 billion in 2024, and is expected to reach USD 33.92 billion by 2029, growing at a CAGR of 6.87% during the forecast period (2024-2029).

The need for data centers has increased as the population grows increasingly connected and dependent on digital infrastructure. The amount of digital data produced globally is growing rapidly.

  • As networks evolve and coverage expands, 5G is expected to play the role of a major enabler of emerging edge use cases that need high-bandwidth and low-latency data transmission. Hyper-scale providers seek next-generation automation with power distribution units (PDUs) to evolve to accommodate the shift. With rising capacities and lower space, PDUs are being constructed with a focus on modularity and providing extra safety.
  • The need to increase storage capacity has become critical for almost every major enterprise, as there is a continuous rise in data and its respective applications. According to the Edge Delta, the amount of data generated is around 120 zettabytes, which includes 337,080 petabytes (PB) of daily data generation.
  • Further, the incorporation of Al, robotics, IoT, and other technologies is also expected to increase. This aspect will support the development of data centers in remote places. Critical components such as PDUs and UPS can assist data center operators in decreasing data outages and ensuring systematic management of the power requirement. As data centers grow in popularity, the use of backup power solutions is also expected to grow.
  • The demand for DC power solutions is raising the need for installation and maintenance costs of the power components, including the power distribution units, switches, and UPS, in the DC environment, which can be a major challenge for the DC operators worldwide to adopt the advance DC power solutions due to their limited CAPEX budget, which could hinder the market's growth in the future.

Data Center Power Industry Segmentation

The data center power market is expanding with the growth of the adoption of advanced power distribution and management solutions by various data center designers, aiming to achieve energy efficiency with lower power usage effectiveness (PUE) ratios. Many facilities across the global market are adopting 2N redundant UPS systems to cope with the various feed designs of the facility and frequent failures, including energy-efficient solutions in other segments such as PDUs and busways.

The data center power market is segmented by type (solutions (power distribution unit, UPS, busway, and other solutions), services (consulting, system integration, and professional service)), end-user application (information technology, manufacturing, BFSI, government, telecom, and other end-user applications), size (small and medium and large), and geography (North America (United States and Canada), Europe (United Kingdom, Germany, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, Singapore, Australia, India, and Rest of Asia-Pacific), and Rest of World. The market size and forecasts are provided in terms of value (USD) for all the above segments.

By Type
Solutions
Power Distribution Unit
UPS
Busway
Other Solutions
Services
Consulting
System Integration
Professional Services
By End-user Application
Information Technology
Manufacturing
BFSI
Government
Telecom
Other End-user Applications
By Data Center Size
Small and Medium
Large
By Geography***
North America
Europe
Asia
Australia and New Zealand
Latin America
Middle East and Africa
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Data Center Power Market Size Summary

The data center power market is experiencing significant growth, driven by the increasing demand for digital infrastructure as global connectivity and data generation continue to rise. The expansion of 5G networks and the need for high-bandwidth, low-latency data transmission are key factors propelling the market forward. Hyper-scale providers are focusing on next-generation automation and modular power distribution units (PDUs) to manage rising capacities and ensure safety. The integration of technologies such as AI, robotics, and IoT is further supporting the development of data centers, particularly in remote locations. However, the high installation and maintenance costs of power components pose challenges for data center operators, potentially hindering market growth.

In regions like Asia-Pacific and China, rapid digitalization and government initiatives are boosting the demand for data center power solutions. The increasing reliance on internet services in Japan is driving investments in power infrastructure to ensure uninterrupted operations. The market is characterized by intense competition, with key players like Schneider Electric, Fujitsu, Cisco, Eaton, and ABB adopting strategies such as mergers, acquisitions, and partnerships to enhance their market presence. Innovations in uninterruptible power supply (UPS) systems and collaborations with power equipment companies are helping to meet the growing demand for reliable data center power infrastructure.

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Data Center Power Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products and Services

      5. 1.2.5 Degree of Competition

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Solutions

        1. 2.1.1.1 Power Distribution Unit

        2. 2.1.1.2 UPS

        3. 2.1.1.3 Busway

        4. 2.1.1.4 Other Solutions

      2. 2.1.2 Services

        1. 2.1.2.1 Consulting

        2. 2.1.2.2 System Integration

        3. 2.1.2.3 Professional Services

    2. 2.2 By End-user Application

      1. 2.2.1 Information Technology

      2. 2.2.2 Manufacturing

      3. 2.2.3 BFSI

      4. 2.2.4 Government

      5. 2.2.5 Telecom

      6. 2.2.6 Other End-user Applications

    3. 2.3 By Data Center Size

      1. 2.3.1 Small and Medium

      2. 2.3.2 Large

    4. 2.4 By Geography***

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia

      4. 2.4.4 Australia and New Zealand

      5. 2.4.5 Latin America

      6. 2.4.6 Middle East and Africa

Data Center Power Market Size FAQs

The Data Center Power Market size is expected to reach USD 24.33 billion in 2024 and grow at a CAGR of 6.87% to reach USD 33.92 billion by 2029.

In 2024, the Data Center Power Market size is expected to reach USD 24.33 billion.

Data Center Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)