United States Data Center Power Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 14.28 Billion |
| Market Size (2029) | USD 19.01 Billion |
| CAGR (2024 - 2029) | 6.60 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United States Data Center Power Market Analysis
The United States Data Center Power Market size is estimated at USD 14.28 billion in 2024, and is expected to reach USD 19.01 billion by 2029, growing at a CAGR of 6.60% during the forecast period (2024-2029).
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the United States data center rack market is expected to reach 24,000 MW by 2029. Data centers in the United States use more than 90 billion kWh of electricity each year. Most of this power is provided via the grid, but all data centers also have long-term backup generators.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 80 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 4,035,000 units by 2029. Northern Virginia is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are more than 80 submarine cable systems connecting the United States, and many are under construction.
United States Data Center Power Market Trends
Switched PDU is Anticipated to be Fastest-growing Segment
- A switched PDU is a type of smart rack PDU that can turn on or off single outlets or groups of outlets on the PDU. Switched PDUs allow users to remotely control devices and provide power in a specific order. It also allows the user to delay the power-on sequence, which eliminates power sags and extends device life.
- Switched PDUs are important in remote deployments because they allow users to restart servers and restore service without having to physically visit the data center site. It also helps users save energy and reduce costs by enabling them to turn off devices that are not in use. In the event of a utility power failure, non-essential loads can be shut down to maximize UPS uptime.
- The United States is expected to be the fastest-growing hyperscale data center market in Northern Virginia over the coming years. The significant drivers of data center construction in the country have been recent economic incentives and tax benefits. Approximately 27 states leverage these factors to attract data center projects. In addition, the heavy tax breaks being implemented in the United States indicate a government-front aim to construct new mega data centers or renovate existing ones. Northern Virginia holds over 1 GW of data center capacity, exempts data center facilities from state sales, and uses taxes through 2035.
- With maximum growth in mega data centers in the country, the need for PDUs has also increased. Faster internet and the subsequent penetration of devices capable of accessing it play a crucial role in determining and estimating data consumption in a region. Data suggests that the number of 5G mobile connections in the United States will increase from 15% in 2021 to about 68% by 2025, signifying high 5G mobile penetration in the country. The rising data traffic would further create a demand for DC facilities with smart PDU systems.
- Switched PDUs with outlet metering help users monitor power consumption and available capacity. Easily understand actual power consumption at the device level, allowing users to compare efficiencies, improve capacity planning, increase utilization of existing resources, and allocate costs to specific customers or business units. The above-mentioned instances and benefits of switched PDU would accelerate the growth of the segment during the forecast period.
IT and Telecommunication is Anticipated to be Largest Segment
- The United States is the world's largest technology market. Information and communication technology (ICT) is ubiquitous and plays a critical role in the economic development of the United States. The US ICT market was estimated to account for about 35% of the world's in 2023. Since the Industrial Revolution after World War II, innovation has been a defining characteristic of competitiveness in the United States and has fueled global dominance.
- The number of cloud vendors and hyperscalers has increased significantly over the past decade, making them top energy consumers. The energy consumption of global data centers is equivalent to 20% of the total commercial electricity consumption (987 TWh) in the United States. While energy consumption through traditional data centers has been declining for three years, hyperscale energy consumption has surged in recent years due to the rapid expansion of these data centers and their enormous sizes.
- The US computer, information technology, and communications industry have a reputation for developing reliable, efficient products and bringing them to market quickly. The US market has attracted the attention of many international companies due to its strict enforcement of intellectual property regulations. The software and technology services sector accounts for more than half of spending in the country's technology market. With stable market shares abroad, US companies dominate the global market for packaged and individual software and are competitive in all other market segments.
- In terms of R&D, in 2022, the Federal Communications Commission (FCC) awarded the first Spectrum Horizons License, a 10-year special category of authorization for experimenting with frequencies between 95 GHz and 3 THz. It has also established an expert group to advise the board on how to conduct spectrum works in 6G. The Biden administration has signed MOUs with countries like Japan, and it is planning to invest USD 4.5 billion in 6G development. Such initiatives are expected to showcase major data traffic in the coming years, leading to colocation demand.
United States Data Center Power Industry Overview
The US data center power market is moderately competitive and has gained a competitive edge in recent years. In terms of market share, a few major players, such as ABB Ltd, Caterpillar Inc., Cummins Inc., Eaton Corporation, and Cisco Systems Inc., are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- February 2024: Enlogic, a major data center and a significant provider of power products, announced two new PDUs to its extensive iPDU product line: horizontal and vertical high AMP PDUs. High AMP vertical PDU, with combination and locking combination outlet, and horizontal high AMP PDU (100/125A), with combination and locking combination outlets of C13/C15 and C13/C15/C19/C21, offer versatility and flexibility.
- January 2024: Vertiv announced the plans to double its manufacturing capacity for busways, switchgear, and integrated modular solutions (IMS) by 2025. The expansion plans include increasing utilization and footprint in the United Arab Emirates, Ireland, South Carolina (United States), Mexico, Slovakia, and Northern Ireland.
United States Data Center Power Market Leaders
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ABB Ltd.
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Caterpillar Inc.
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Cummins Inc.
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Eaton Corporation
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Cisco Systems Inc.
*Disclaimer: Major Players sorted in no particular order
United States Data Center Power Market News
- December 2023: Eaton, an intelligent power management company, announced the launch of its new Rack PDU G4 (4th generation) that provides a high security and business continuity data center. It also combines with C39 outlets that securely connect both C14 and C20 power cords, backed by a locking mechanism and a built-in high retention system that secures the power cord.
- November 2023: ABB Ltd announced the launch of the Protecta Power panel board, designed for industrial, commercial, and institutional buildings. It is integrated with digital monitoring and control technology while enhancing durability and safety.
United States Data Center Power Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumption and Market Definition
- 1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Growing Rack Power Density
- 4.2.2 Increase in the Demand for Energy-efficient and Cost-effective Data Centers
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4.3 Market Restraints
- 4.3.1 Faster Refresh Life Cycle than Data Center Profitable Life Expectancy
- 4.4 Value Chain / Supply Chain Analysis
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4.5 Industry Attractiveness - Porter's Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
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5.1 By Power Infrastructure
- 5.1.1 Electrical Solution
- 5.1.1.1 UPS Systems
- 5.1.1.1.1 UPS Capacity
- 5.1.1.1.1.1 <500 kVA
- 5.1.1.1.1.2 500 - 1000 kVA
- 5.1.1.1.1.3 > 1000 kVA
- 5.1.1.2 Generators
- 5.1.1.2.1 Generator Capacity
- 5.1.1.2.1.1 < 1MW
- 5.1.1.2.1.2 1 - 2 MW
- 5.1.1.2.1.3 > 2 MW
- 5.1.1.3 By Power Distribution Unit (PDU)
- 5.1.1.3.1 PDU Type
- 5.1.1.3.1.1 Basic PDU
- 5.1.1.3.1.2 Metered PDU
- 5.1.1.3.1.3 Monitored PDU
- 5.1.1.3.1.4 Switched PDU
- 5.1.1.4 Other Electrical Solutions
- 5.1.2 By Service
- 5.1.2.1 System Integration
- 5.1.2.2 Training and Consulting
- 5.1.2.3 Maintenance and Other Services
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5.2 By End User
- 5.2.1 IT and Telecommunication
- 5.2.2 BFSI
- 5.2.3 Government
- 5.2.4 Media and Entertainment
- 5.2.5 Other End Users
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 ABB Ltd
- 6.1.2 Caterpillar Inc.
- 6.1.3 Cummins Inc.
- 6.1.4 Eaton Corporation
- 6.1.5 Legrand Group
- 6.1.6 Cisco Systems Inc.
- 6.1.7 Rittal GmbH & Co. KG
- 6.1.8 Fujitsu Limited
- 6.1.9 RESA Power LLC
- 6.1.10 Schneider Electric SE
- 6.1.11 Cyber Power Systems (USA) Inc.
- 6.1.12 Hewlett Packard Enterprise Development LP
- 6.1.13 Leviton Manufacturing Co. Inc.
- 6.1.14 Raritan Inc.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityUnited States Data Center Power Industry Segmentation
Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, that provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions tailored to the specific needs of data centers. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.
The US data center power market is segmented by power infrastructure (electrical solution {UPS system, generators, power distribution solutions [PDU, switchgear, critical power distribution, transfer switches, remote power panels, other power distribution solutions]}, and service) and end user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Power Infrastructure | Electrical Solution | UPS Systems | UPS Capacity | <500 kVA |
| 500 - 1000 kVA | ||||
| > 1000 kVA | ||||
| By Power Infrastructure | Electrical Solution | Generators | Generator Capacity | < 1MW |
| 1 - 2 MW | ||||
| > 2 MW | ||||
| By Power Infrastructure | Electrical Solution | By Power Distribution Unit (PDU) | PDU Type | Basic PDU |
| Metered PDU | ||||
| Monitored PDU | ||||
| Switched PDU | ||||
| By Power Infrastructure | Electrical Solution | Other Electrical Solutions | ||
| By Power Infrastructure | By Service | System Integration | ||
| Training and Consulting | ||||
| Maintenance and Other Services | ||||
| By End User | IT and Telecommunication | |||
| BFSI | ||||
| Government | ||||
| Media and Entertainment | ||||
| Other End Users |
United States Data Center Power Market Research FAQs
How big is the United States Data Center Power Market?
The United States Data Center Power Market size is expected to reach USD 14.28 billion in 2024 and grow at a CAGR of 6.60% to reach USD 19.01 billion by 2029.
What is the current United States Data Center Power Market size?
In 2024, the United States Data Center Power Market size is expected to reach USD 14.28 billion.
Who are the key players in United States Data Center Power Market?
ABB Ltd., Caterpillar Inc., Cummins Inc., Eaton Corporation and Cisco Systems Inc. are the major companies operating in the United States Data Center Power Market.
What years does this United States Data Center Power Market cover, and what was the market size in 2023?
In 2023, the United States Data Center Power Market size was estimated at USD 13.34 billion. The report covers the United States Data Center Power Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United States Data Center Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United States Data Center Power Industry Report
Statistics for the 2024 United States Data Center Power market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States Data Center Power analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
