Global Data Center Power Market Landscape 2026-2031

The global data center power market size by investment is expected to grow at a CAGR of 14.17% from 2025 to 2031.

DATA CENTER POWER MARKET TRENDS & DRIVERS

Growing Adoption of Renewable Energy

• The adoption of renewable energy is on the rise across the globe, and it will continue to grow. Data centers are responsible for most of the global electricity consumption, and they have a significant impact on the environment. To reduce their environmental impact, data center operators are powering their facilities with renewable and green energy.
• We observe that data center operators are increasingly integrating advanced sustainability practices beyond renewable power procurement, including heat reuse, carbon removal, and carbon-neutral campus designs. For instance, Green Mountain's RJU1 facility in Norway launched a heat-recovery project supplying excess data center heat to a nearby aquaculture operation, while Microsoft committed to purchasing 1.1 million tons of carbon removal credits from a carbon-capture project in Oslo. In Denmark, Microsoft and other operators are supporting long-term carbon-free energy procurement and carbon removal initiatives, reflecting the region's leadership in next-generation sustainable digital infrastructure.
• We have seen that many data center operators across the globe are scaling renewable procurement and next-generation energy solutions through long-term PPAs, grid partnerships, and low-carbon infrastructure upgrades. For instance, in 2026, Global Switch signed a wind PPA with RWE to supply ~70 GWh annually to its London Docklands site, while Telehouse secured a 10-year wind energy agreement with RWE for its UK operations. In parallel, nLighten partnered with Uniper to deliver 24/7 renewable energy for German edge facilities, and Microsoft reported matching 100% of its global electricity consumption with renewable energy in 2025-highlighting the industry-wide shift toward carbon-free, verifiable power sourcing.

Adoption of AI

• Rapid digitalization and AI adoption are driving strong demand for hyperscale and AI-ready data center infrastructure across the globe. Governments and enterprises are investing heavily in AI, connectivity, and digital transformation initiatives in various regions, including North America, Latin America, Europe, APAC, among others. For instance, countries include Brazil's $4 billion National AI Plan, Colombia's $116 million National AI Policy, and Mexico's plans for Latin America's first NVIDIA-powered HPC and AI center in Nuevo Leon with an estimated $1 billion investment. These initiatives are increasing demand for high-density, GPU-ready, and cloud-enabled data center capacity.
• Major technology and infrastructure investments continue to strengthen the digital ecosystem of the region and support future data center growth. In Argentina, OpenAI and Sur Energy signed a Letter of Intent to explore a 500 MW Stargate Argentina AI campus, while Cirion Technologies expanded its Buenos Aires BUE1 facility to support AI workloads. In Mexico, CloudHQ announced a $4.8 billion investment to develop six data centers in Queretaro, and AWS reported that approximately 495,000 companies adopted AI in the country during 2025. Meanwhile, Brazil continues to accelerate connectivity through initiatives such as the Taara wireless optical network deployment and the expansion of 5G infrastructure through the IHS Brazil-TIM Brasil partnership.

Introduction of HVO Fuel for Generators

• We observe that several data center operators in various regions and countries are exploring the potential of deploying HVO as a fuel for generators, aiming to replace diesel fuel in backup systems in their data center facilities. Although the adoption of HVO is still in its early stages, we anticipate significant growth in its use within the data center industry during the forecast period.
• In April 2025, Verne announced its plan to swap diesel generators with HVO fuel for backup power in its London data center facility in Farringdon. The company has partnered with Crown Oil, a fuels and lubricants distribution company, which is likely to replace diesel fuel.

Emergence of Advanced UPS Batteries

• The increasing demand for advanced AI-optimized data center facilities is significantly increasing the need for reliable and energy-efficient backup power systems across the globe. UPS batteries play a critical role in maintaining continuous operations during power fluctuations and outages.
• The adoption of advanced UPS batteries is transforming backup power infrastructure across the global data center market as data center operators are increasingly focusing on improving energy efficiency, operational reliability, and environmental sustainability. Li-ion batteries, liquid metal batteries, sodium-ion batteries, and nickel-zinc batteries are helping data center companies to reduce maintenance requirements, improve energy storage performance, and lower carbon emissions. For instance, in March 2025, Google announced that the company had installed more than 100 million Li-ion batteries across its global data centers, including in the US.

Advancements in Power Utilities and Smart Grid Integration

• Advancements in power utilities and the adoption of smart grids to supply continuous power to data centers play a crucial role in enhancing sustainability across the data center industry by helping companies to manage electricity usage more efficiently, improve renewable energy utilization, reduce energy waste, and maintain a stable power supply to process AI and HPC workloads.
• In May 2026, American Microgrid Solutions, the US-based microgrid developer, expanded its partnership with Schneider Electric, the data center support infrastructure manufacturer, to accelerate scalable microgrid deployment for supporting critical energy-intensive facilities, including data centers, by combining advanced distributed energy systems and EcoStruxure Microgrid technology to strengthen energy resilience and sustainability.

DATA CENTER POWER MARKET SEGMENTATION INSIGHTS

• We observe that the demand for over 1,000 kVA of UPS systems is steadily increasing in medium and large data center facilities across the globe. Due to the rapid expansion of AI data centers, hyperscale data centers, and large-scale colocation data center which use high-performance computing systems and have higher rack power densities. These systems provide reliable backup power, improve energy efficiency, support redundancy, and ensure uninterrupted operations for data center facilities.
• The rise of hyperscale and AI data centers boosted demand for generators with capacities of 3 MW or higher, alongside the adoption of DRUPS systems driving growth in the data center generator sector.
• The adoption of HVO as a sustainable fuel for data center generators is gaining momentum worldwide, with significant developments anticipated between 2026 and 2031. For instance, in May 2026, Bridge Data Centres and EcoCeres, a renewable fuels firm, announced that it has complete an HVO-powered backup fuel pilot across Bridge Data Centres' SEA data center campus. Additionally, Bridge Data Centres plans to expand HVO adoption across its data center facilities to enhance sustainability.
• In 2025, the demand for medium-voltage switchgear in data center facilities is steadily increasing due to the rapid expansion of hyperscale, AI, and large-scale colocation data centers worldwide. The increased power requirements, higher rack densities, and the need for reliable and efficient power distribution are the main reasons driving the adoption of medium-voltage switchgear in data center facilities. We expect the market share and demand for medium-voltage switchgear to continue increasing during the forecast period.

DATA CENTER POWER MARKET GEOGRAPHICAL ANALYSIS:

• In the global data center power market, America has contributed to the highest market share in terms of investment, with a market share of around 59% in 2025, followed by APAC, Europe, and the Middle East and Africa.
• In North America, North America accounted for the largest market share in terms of investment, followed by Latin America. Within the region, the US dominated the market with a market share of around 57% in 2025.
• In Europe, Western Europe witnessed the highest market share in terms of investment in 2025, followed by the Nordics and CEE.
• In Western Europe, the UK dominated the power market in terms of investment in 2025, followed by Germany, Spain, Ireland, France, Italy, among others.
• In the Nordic region, Sweden dominated the power market in terms of investment in 2025, followed by Norway, Finland, Denmark, and Iceland.

DATA CENTER POWER MARKET VENDOR INSIGHTS

The global data center power market has the presence of key power infrastructure providers including ABB, Caterpillar, Cummins, Eaton, Legrand, Rolls-Royce, Schneider Electric, and Vertiv.

The Global data center power market has the presence of other prominent vendors includingAEG Power Solutions, Aggreko, Aksa Power Generation, AMETEK Powervar, Bachmann, BENNING Elektrotechnik Und Elektronik, Bloom Energy, Centiel, Canovate, Cisco, Delta Electronics, Exide Technologies, Generac Power Systems, Kehua Data, Piller Power Systems, Powertek, Rehlko, Siemens, among others.

In March 2026, ABB announced that it has expanded its partnership with VoltaGrid, a microgrid developer, to support data center microgrid solutions for AI-driven infrastructure. According to the agreement, ABB will supply 35 additional synchronous condensers with flywheel technology and prefabricated eHouse units. These solutions help data centers maintain a stable and reliable power supply by improving grid performance and voltage management. They also enable faster deployment of large-scale power infrastructure, supporting the growing needs of hyperscale data centers and AI-driven facilities.

Key Power Infrastructure Providers

• ABB
• Caterpillar
• Cummins
• Eaton
• Legrand
• Rolls-Royce
• Schneider Electric
• Vertiv

Other Prominent Vendors

• AEG Power Solutions
• Aggreko
• Aksa Power Generation
• AMETEK Powervar
• Anord Mardix
• Artesyn Embedded Power
• ATEN
• Austin Hughes Electronics
• Bachmann
• BENNING Elektrotechnik Und Elektronik
• Borri
• Bloom Energy
• Canovate
• Centiel
• Chatsworth Products
• Cisco
• Dataprobe
• Delta Electronics
• Detroit Diesel
• EAE Elektrik
• Elcom International
• Enconnex
• EverExceed
• Exide Technologies
• Fuji Electric
• Generac Power Systems
• General Electric
• Genesal Energy
• Hewlett Packard Enterprise
• HIMOINSA
• Hitachi
• HITEC Power Protection
• HITZINGER Power Solutions
• Huawei Technologies
• INNIO
• Kehua Data
• Kirloskar Oil Engines Limited
• Marathon Power
• Mitsubishi Electric
• MPI Energy
• Panduit
• Piller Power Systems
• Plug Power
• Powertek
• Pramac
• Rehlko
• Riello Elettronica Group
• Rittal
• SAFT
• Shenzhen KSTAR Science and Technology (KSTAR)
• Siemens
• Socomec
• SolarEdge Technologies
• Thycon
• Toshiba
• VYCON
• Western Telematic (WTI)
• ZAF Energy Systems
• ZincFive

Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgears
• PDUs
• Other Electrical Infrastructure

Segmentation by UPS System Capacity

• <=500 kVA
• >500-1,000 kVA
• >1,000 kVA

Segmentation by Generator Capacity

• 0-1.5 MW
• 1.5-3 MW
• >3 MW

Segmentation by Generator Type

• DRUPS Systems
• Diesel & Gas Generators
• HVO Fuel
• Fuel Cells

Segmentation by Switchgear Type

• Low-Voltage Switchgear
• Medium-Voltage Switchgear
• High-Voltage Switchgear

Segmentation by Tier Standards

• Tier I & II
• Tier III
• Tier IV

Segmentation by Geography

• North America
  • U.S.
  • Canada
• Latin America
  • Brazil
  • Chile
  • Mexico
  • Colombia
  • Argentina
  • Rest of Latin America
• Western Europe
  • U.K.
  • Germany
  • France
  • Netherlands
  • Ireland
  • Switzerland
  • Italy
  • Spain
  • Belgium
  • Portugal
  • Greece
  • Other Western European Countries
• Nordics
  • Denmark
  • Sweden
  • Norway
  • Finland
  • Iceland
• Central & Eastern Europe
  • Russia
  • Poland
  • Austria
  • Czechia
  • Other Central & Eastern European Countries
• Middle East
  • UAE
  • Saudi Arabia
  • Israel
  • Qatar
  • Kuwait
  • Oman
  • Bahrain
  • Turkey
  • Other Middle East Countries
• Africa
  • South Africa
  • Kenya
  • Nigeria
  • Egypt
  • Other African Countries
• APAC
  • China
  • Hong Kong
  • Australia
  • New Zealand
  • Japan
  • India
  • South Korea
  • Taiwan
  • Rest of APAC
• Southeast Asia
  • Singapore
  • Indonesia
  • Malaysia
  • Thailand
  • Philippines
  • Vietnam
  • Other Southeast Asia Countries

KEY QUESTIONS ANSWERED:

1. How big is the global data center power market?

2. What is the growth rate of the global data center power market?

3. How much MW of power capacity is expected to reach the global data center power market by 2031?

4. What are the key trends in the data center power market?

5. Who are the key power infrastructure providers in the global data center power market?