The data centre power market is poised for robust growth as the increasing demand for data processing, storage, and digital services continues to drive the development of more efficient and reliable data centre solutions. The market is expected to grow at a compound annual growth rate (CAGR) of approximately 7.50% during the forecast period of 2025-2034. The rise of advanced power-reduction systems and the emergence of modular data centres are expected to fuel the market’s expansion. In this blog, we will explore the data centre power market’s overview, size, trends, growth factors, forecast, and competitive analysis of key players.

Data Centre Power Market Overview

The data centre power market involves the generation, distribution, and management of electrical power used by data centres, which are facilities designed to house critical systems for data storage, management, and processing. Data centres are essential infrastructure for industries that rely on cloud computing, artificial intelligence, e-commerce, and other data-driven technologies.

Power systems in data centres are crucial because they support high-density servers and cooling systems, ensuring that these facilities operate efficiently without interruptions. The growing trend toward digitization, increased data generation, and the need for high-performance computing are all pushing the demand for reliable power systems in data centres.

Key components of data centre power systems include uninterruptible power supplies (UPS), backup generators, transformers, switchgear, and power distribution units. The development of energy-efficient and sustainable power solutions, along with modular designs, is enhancing the capabilities of data centres worldwide.

Data Centre Power Market Size

The global data centre power market is experiencing significant growth, driven by the increasing demand for data processing and storage capabilities. The market’s size is projected to expand as industries, such as cloud computing, telecommunications, and e-commerce, continue to grow and require more energy-efficient and reliable power solutions.

While the current market size is continually evolving, the data centre power market is set to reach new heights in the coming years. The market is expected to grow at a robust CAGR of around 7.50% between 2025 and 2034, fueled by the increasing need for data centre expansion, the adoption of energy-efficient solutions, and the growing reliance on cloud-based services.

By 2034, the market is expected to experience substantial growth as more businesses and sectors integrate digital solutions into their operations and develop new, energy-efficient data centre designs.

Data Centre Power Market Trends

Several key trends are shaping the future of the data centre power market:

Power-Reduction Systems: The demand for energy-efficient data centres is growing as energy costs rise and sustainability becomes more of a priority. Advanced power-reduction systems, including energy-efficient UPS, variable frequency drives, and energy-saving power management systems, are increasingly being integrated into data centres to lower operational costs and environmental impact.

Modular Data Centres: The advent of modular data centres, which are designed for scalability and energy efficiency, is becoming a major trend in the market. Modular designs allow for flexible expansion and quick deployment, which is particularly useful for industries needing rapid scalability and remote data centre installations.

Adoption of Renewable Energy: Many data centre operators are moving towards renewable energy sources to reduce their carbon footprint and meet sustainability goals. Solar, wind, and hydroelectric power are becoming more common sources of energy for data centres, especially in regions with abundant renewable resources.

Edge Computing: The rise of edge computing, which involves processing data closer to its source rather than relying on centralized data centres, is influencing the development of power systems. Edge data centres require localized power solutions that are reliable, efficient, and capable of handling lower-latency data processing.

Sustainability Initiatives: Environmental concerns and corporate sustainability goals are pushing the demand for green data centres. Power systems that minimize waste, reduce emissions, and use less water for cooling are being adopted, as companies aim to create more sustainable data centre infrastructures.

Data Centre Power Market Growth

The data centre power market is experiencing rapid growth, driven by several key factors:

Increased Demand for Data: The continuous growth in internet traffic, digital transformation, and the proliferation of IoT devices are driving the need for more data centres globally. The growing volume of data requires increased data storage and processing capabilities, which, in turn, demands more reliable and efficient power solutions.

Energy Efficiency and Cost Reduction: With rising energy costs, businesses are seeking ways to reduce their energy consumption while maintaining the high performance of their data centres. This has led to a growing demand for power systems that are not only reliable but also energy-efficient, resulting in lower operating costs and enhanced profitability.

Expansion of Cloud Services: The growing adoption of cloud computing and services such as Software as a Service (SaaS) and Infrastructure as a Service (IaaS) is boosting the demand for data centres. As more businesses move to the cloud, there is an increasing need for power systems capable of supporting these digital platforms.

Government Regulations and Incentives: Governments around the world are implementing stricter regulations on energy usage and environmental sustainability, pushing data centre operators to adopt more energy-efficient power solutions. Additionally, incentives for using renewable energy sources are encouraging the shift toward sustainable data centre power systems.

Emerging Markets: The growth of digital infrastructure in emerging markets such as India, Africa, and Southeast Asia is driving the expansion of data centres in these regions. As businesses in these regions adopt digital technologies, the need for reliable, efficient, and scalable power systems will continue to rise.

Data Centre Power Market Forecast

The global data centre power market is expected to grow at a CAGR of 7.50% from 2025 to 2034. By 2034, the market is projected to reach a value of approximately USD 78.66 billion. This growth will be fueled by the increasing need for data centres to support the growing digital economy, advancements in power-reduction technologies, and the rise of modular and sustainable data centres.

The Asia-Pacific region is expected to witness the fastest growth in the data centre power market, driven by the increasing adoption of cloud computing, digital services, and mobile internet technologies. North America and Europe will continue to be key markets, with a focus on green data centres, energy efficiency, and the integration of renewable energy solutions.

Competitive Analysis of Key Players

The data centre power market is highly competitive, with several major players offering innovative power solutions for data centres. Leading companies in the market include:

ABB Ltd.: ABB is a global leader in power and automation technologies, providing comprehensive solutions for data centres. The company offers energy-efficient power systems, UPS solutions, and power distribution systems designed to meet the growing demand for reliable data centre power.

Black Box Corporation: Black Box provides a range of data centre power solutions, including UPS systems, power distribution units, and energy management solutions. The company is known for its high-quality, customizable solutions that help optimize energy use in data centres.

Eaton Corporation Plc.: Eaton is a prominent player in the data centre power market, offering UPS systems, power management solutions, and electrical distribution products. The company focuses on providing energy-efficient and reliable power solutions for data centre operators.

General Electric Company: General Electric (GE) is a major player in the power systems market, offering solutions that improve energy efficiency and reliability for data centres. GE’s products include energy-efficient UPS systems, generators, and power management technologies.

Generac Power Systems, Inc.: Generac is a leading provider of backup power solutions for data centres. The company specializes in providing reliable and scalable power systems to ensure uninterrupted service for critical data centre operations.

Others: Other key players in the data centre power market include Schneider Electric, Vertiv, and Siemens, who are continuously innovating to meet the growing demand for efficient, sustainable, and reliable power solutions for data centres.