PUBLISHER: KBV Research | PRODUCT CODE: 1767820
PUBLISHER: KBV Research | PRODUCT CODE: 1767820
The Global Data Center Power Market size is expected to reach $50.67 billion by 2032, rising at a market growth of 12.8% CAGR during the forecast period.
The North America segment recorded 36% revenue share in the market in 2024. This dominance is attributed to many hyperscale data centers, advanced IT infrastructure, and key market players in the region. The growing demand for cloud services, big data analytics, and AI applications has further driven investments in power-efficient and resilient data center infrastructures.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In December, 2024, Schneider Electric announced new AI-ready data center solutions, including liquid-cooled designs and the Galaxy VXL UPS, to address energy and sustainability challenges. In collaboration with NVIDIA, the solutions aim to optimize power efficiency and support AI workloads sustainably. Moreover, In November, 2024, Delta Electronics, Inc. has launched the SMART PDU I-Type, a compact 1U DC distribution unit with up to 21 intelligent, programmable breakers and remote management. It optimizes power distribution, enhances operational efficiency, saves space, and reduces costs for telecom and data center operators. Its design supports scalable, energy-efficient infrastructure for growing 5G and data needs.
KBV Cardinal Matrix - Data Center Power Market Competition Analysis
Based on the Analysis presented in the KBV Cardinal matrix; Huawei Technologies Co., Ltd. is the forerunner in the Data Center Power Market. In October, 2024, Huawei Technologies Co., Ltd. New-Generation All-Flash Data Center solution, launched at GITEX 2024, enhances data center performance, resilience, and energy efficiency. With innovations like diskless architecture and AI-powered storage, it supports sustainable, high-performance infrastructure for industries undergoing digital and intelligent transformation. Companies such as Cisco Systems, Inc., Schneider Electric SE, and General Electric Company are some of the key innovators in Data Center Power Market.
Market Growth Factors
The increasing popularity of colocation services significantly drives demand for scalable power infrastructure within data centers. As more enterprises seek to outsource their IT infrastructure to colocation providers, the need for flexible, high-capacity power systems supporting diverse tenant requirements is growing rapidly. Hence, this trend toward colocation benefits the clients and is a significant catalyst for power solution manufacturers and integrators, ensuring long-term growth for the market.
Additionally, The explosive growth in global data generation is a fundamental driver for the market. Data is being produced at unprecedented volumes, from high-definition video streaming and social media content to IoT sensors and AI-driven analytics. According to the United Nations, in 2020, approximately 64.2 zettabytes of data were created, which is a 314 percent increase from 2015. In conclusion, this evolving landscape prompts continuous innovation in power technologies, positioning the market as a critical enabler of the data-driven economy and ensuring a strong growth trajectory.
Market Restraining Factors
However, One of the most pressing restraints for the market is the steep upfront capital required to deploy advanced power infrastructure. Modern data centers demand high-performance, redundant, scalable power systems to ensure consistent uptime and operational efficiency. However, these systems-such as modular UPS units, intelligent PDUs, and advanced backup generators-come with significant costs, especially when paired with necessary integration technologies like energy monitoring software and automation tools. As a result, the high capital investment requirement remains a significant roadblock to widespread adoption and scalability within the market.
Component Outlook
The UPS segment acquired 67% revenue share in the market in 2024. This segment's dominance is attributed to UPS systems' critical role in providing immediate backup power during outages, ensuring uninterrupted data center operations. As data centers continue to support essential digital infrastructure, the demand for high-capacity and energy-efficient UPS systems has surged.
End-use Outlook
Based on end-use, the market is segmented into IT & telecom, BFSI, government, energy, healthcare, retail & e-commerce, and others. The IT & telecommunications segment acquired 19% revenue share in the market in 2024. The expansion of cloud computing, data-intensive applications, and growing internet users are major contributors to this segment's demand for power infrastructure. Telecom operators and IT firms increasingly invest in high-density data centers to support 5G networks, IoT, and AI technologies, boosting the need for efficient and scalable power systems.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment witnessed 27% revenue share in the market in 2024. Rapid digital transformation, expanding internet penetration, and a surge in data consumption are fuelling the growth of data centers across emerging economies like China, India, and Southeast Asian countries. Government initiatives to develop smart cities and enhance IT infrastructure support market expansion.
Market Competition and Attributes
The competition in the Data Center Power Market becomes more fragmented and dynamic, with increased opportunities for regional and emerging companies to gain market share. Innovation, energy efficiency, and strategic partnerships become key differentiators. The absence of dominant players fosters a more level playing field, encouraging diverse solutions and intensifying the race for technological advancement.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global Data Center Power Market Report Segmentation
By Component
By End-use
By Geography