Data Center Transformer Global Market Report 2026

A data center transformer is specialized electrical equipment designed to step down high-voltage power to safe, usable levels for servers and critical IT infrastructure, ensuring stable and efficient energy distribution within data facilities. Its primary goal is to provide consistent, reliable power while minimizing energy loss, supporting uninterrupted operations, and preventing electrical failures. It also enhances overall energy performance, reduces overheating risks, supports load management, and contributes to the long-term reliability and sustainability of data centers.

The key types of data center transformer are liquid-immersed transformer and dry-type transformer. Liquid-immersed transformer refers to transformers that use insulating oil for cooling and insulation, offering high efficiency, durability, and load-handling capacity suitable for large-scale data center operations. It is categorized by cooling type into oil-cooled and air-cooled systems. It finds applications in step-up transformers and step-down transformers, serving end users including enterprise data centers, colocation data centers, hyperscale data centers, and edge data centers.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the data center transformer market by raising costs for imported transformer cores, insulating materials, and cooling equipment, particularly affecting regions like North America and Europe that rely heavily on imports. Step-down and liquid-immersed transformer segments are most impacted due to higher component import dependency. On the positive side, tariffs are encouraging local manufacturing, driving innovation in energy-efficient and sustainable transformer designs, and helping reduce reliance on foreign suppliers, thereby fostering a more resilient and cost-optimized supply chain.

The data center transformer market research report is one of a series of new reports from The Business Research Company that provides data center transformer market statistics, including data center transformer industry global market size, regional shares, competitors with a data center transformer market share, detailed data center transformer market segments, market trends and opportunities, and any further data you may need to thrive in the data center transformer industry. This data center transformer 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 transformer market size has grown rapidly in recent years. It will grow from $9.29 billion in 2025 to $10.24 billion in 2026 at a compound annual growth rate (CAGR) of 10.3%. The growth in the historic period can be attributed to expansion of enterprise data centers, adoption of high-capacity power distribution systems, increasing need for reliable step-down transformers, growth in colocation facilities, early use of dry-type transformers for safety.

The data center transformer market size is expected to see rapid growth in the next few years. It will grow to $15.02 billion in 2030 at a compound annual growth rate (CAGR) of 10.0%. The growth in the forecast period can be attributed to rising hyperscale data center deployments, adoption of liquid-immersed and bio-based oil transformers, increased demand for energy-efficient transformers, growth in edge computing facilities, integration of predictive maintenance and IoT-based monitoring. Major trends in the forecast period include adoption of energy-efficient transformer designs, integration of smart monitoring and predictive maintenance systems, increased use of bio-based and low-loss insulating oils, deployment of modular and scalable transformer units, rising demand for transformers in hyperscale and edge data centers.

The increasing adoption of cloud computing is expected to propel the growth of the data center transformer market. Cloud computing refers to delivering computing resources, such as storage, servers, and software, over the internet, enabling scalable, on-demand access without physical infrastructure. The rise in cloud computing adoption is due to its scalability and flexibility, as it allows businesses to adjust resources on demand without heavy upfront infrastructure costs. Data center transformers support cloud computing by providing efficient and reliable power distribution, ensuring uninterrupted operation of servers and storage systems. They enhance energy efficiency and scalability, enabling seamless performance for expanding cloud infrastructure. For instance, in December 2023, according to Eurostat, a Luxembourg-based government agency, 45.2% of enterprises purchased cloud computing services. Therefore, the increasing adoption of cloud computing and digital services is driving the growth of the data center transformer market.

Key companies operating in the data center transformer market are focusing on developing technologically advanced solutions, such as transient voltage protection (TVP) technology, to enhance reliability, operational safety, and resilience against transient overvoltages. Transient voltage protection (TVP) technology refers to an advanced system designed to safeguard transformers from sudden voltage spikes and electrical transients while improving insulation performance, reliability, and operational lifespan in high-stress power environments. For instance, in November 2023, Hitachi Energy Ltd., a Switzerland-based power technology company, launched a new range of liquid-filled transformers equipped with transient voltage protection (TVP) technology, marking a significant advancement in transformer design. This innovation improves insulation performance, protects equipment from harmful voltage transients, enhances reliability, and extends service life, supporting growing demands in data centers, renewables, and utilities for stable and efficient energy systems.

In August 2025, Eaton Corporation plc, an Ireland-based intelligent power management company, acquired Resilient Power Systems Inc. for an undisclosed amount. Through this acquisition, Eaton Corporation plc aims to strengthen its advanced power management portfolio by integrating Resilient Power Systems' solid-state transformer technology, enhancing energy efficiency, power reliability, and operational resilience in data center and critical infrastructure environments. Resilient Power Systems Inc. is a US-based energy solutions company that provides solid-state transformer technology for data centers.

Major companies operating in the data center transformer market are Hitachi Ltd., General Electric Company, Schneider Electric SE, Mitsubishi Electric Corporation, Siemens Energy AG, ABB Ltd., Toshiba Corporation, Eaton Corporation Public Limited Company, Legrand SA, Fuji Electric Co. Ltd., Bharat Heavy Electricals Limited, HD HyundAI Electric Co. Ltd., Virginia Transformer Corporation, Ormazabal Electric S.L.U., Hammond Power Solutions Inc., MGM Transformer LLC, Hyosung Heavy Industries Corporation, Kirloskar Electric Company Limited, JCL Energy LLC, Wilson Power Solutions Limited

North America was the largest region in the data center transformer market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center transformer market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the data center transformer market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The data center transformer market consists of sales of modular and compact transformers, oil-free eco-friendly transformers, isolation and converter transformers, medium voltage transformers, and cast resin transformers. Values in this market are 'factory gate' values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.

Data Center Transformer Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses data center transformer market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for data center transformer ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The data center transformer market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: Liquid-Immersed Transformer; Dry-Type Transformer
• 2) By Cooling Type: Oil-Cooled; Air-Cooled
• 3) By Application: Step-Up Transformers; Step-Down Transformers
• 4) By End-User: Enterprise Data Centers; Colocation Data Centers; Hyperscale Data Centers; Edge Data Centers
• Subsegments:
• 1) By Liquid-Immersed Transformer: Oil-Filled Transformers; Bio-Based Oil Transformers; Silicone Oil Transformers; Mineral Oil Transformers
• 2) By Dry-Type Transformer: Cast Resin Transformers; Vacuum Pressure Impregnated Transformers; Encapsulated Dry Transformers; Air-Cooled Dry Transformers
• Companies Mentioned: Hitachi Ltd.; General Electric Company; Schneider Electric SE; Mitsubishi Electric Corporation; Siemens Energy AG; ABB Ltd.; Toshiba Corporation; Eaton Corporation Public Limited Company; Legrand SA; Fuji Electric Co. Ltd.; Bharat Heavy Electricals Limited; HD Hyundai Electric Co. Ltd.; Virginia Transformer Corporation; Ormazabal Electric S.L.U.; Hammond Power Solutions Inc.; MGM Transformer LLC; Hyosung Heavy Industries Corporation; Kirloskar Electric Company Limited; JCL Energy LLC; Wilson Power Solutions Limited
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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