Market Perspective

The global Data Center Power Market was valued at USD 12.24 billion in 2022 and is projected to reach USD 28.33 billion by 2030, growing at a CAGR of 11.06% from 2023 to 2030.

The market growth is accelerated by the expansion of digital infrastructure resulting from the growing popularity of cloud services. The continuous technology integration and digitization in various organizations and growing demand for closed and scalable power systems which support their computing activities requirements, which promotes the market growth. In addition, data centers provides compute-intensive workloads such as artificial intelligence (AI), machine learning (ML), big data analytics, and high-performance computing (HPC). These applications require significant computing power and consume more electricity to complete the workload, which propels market expansion. However, the lack of adequate infrastructure and awareness of the benefits of energy-efficient solutions in several regions is expected to curb the market growth. The complexity of designing data centers and the requirement of huge investment costs to implement energy-efficient data solutions would also restrict the market growth during the forecast period.

Analyst’s Review on Data Center Power Market

The increasing use of data centers is due to their benefits, such as efficiency, improved scalability, and flexibility, which is increasing the market share. The proliferation of cloud services and development of IT infrastructure and the increasing construction of hyperscale facilities have accelerated the growth of the data center power market. The ongoing adoption of modular power infrastructure, increase in power density of facilities, and surging power consumption are the factors driving the growth of the market through the review timeline. Growing demand from emerging economies, technological advances, and wider adoption of automation and control solutions are factors that will provide many growth opportunities in the coming years. The growing awareness of energy efficiency and sustainability is driving the adoption of energy-efficient solutions in data centers.

Market Definition

Data centers are scalable and handle increasing data storage and processing. Innovations in energy-efficient hardware, advanced cooling technologies, virtualization, and power management systems aim to optimize data center energy consumption. Data centers are increasingly implementing energy-efficient procedures to cut back on power usage and lessen their environmental impact. The growing use of data centers have maximized the energy utilization, this includes utilizing power management strategies, cooling systems, and servers that are energy-efficient. Mounting computing and storage requirements of contemporary data centers are supported by a power supply that is both scalable and dependable owing to the architecture of data center power infrastructure.

Market Dynamics

The increasing need for sustainable and scalable power infrastructure propels market growth. In addition, the prevalent adoption of cloud computing and construction of information centers, are accelerating the market growth. Burgeoning data production and the need to improve data center performance has boosted the need for sustainable and scalable. From utilizing energy-efficient servers and cooling systems to adopting power management techniques, data centers strive to reduce power consumption while maintaining performance. The demand for digital services continues to grow exponentially, requiring data centers to scale their operations rapidly. Scalable power infrastructure allows data centers to expand their capacity without compromising operational performance.

The complexity of data center design and the requirement of massive initial investments to implement energy-efficient data center solutions would restrain the growth of the global data center power market. Businesses in the data center power sector encounter tough obstacles because a sizable initial investment is necessary. It requires new hardware, software, and labor in addition to infrastructure modifications. Most companies, especially SMEs with limited resources, are unable to update their data centers because of this requirement. The initial expenditure needed to establish standard power solutions is substantially lower than that needed to deploy energy-efficient power solutions.

Segmentation Analysis

The global data center power market is segmented based on product, end-user, and geography.

Based on product, the market is segmented into uninterruptible power supply (UPS), power distribution units (PDU), and battery monitoring equipment. The use of power distribution units (PDU), in applications such as software as a service (SaaS), high-performance computing, online gaming, and online media streaming have also contributed to the growth of the data center power market.

Based on end-user, the market is classified into IT & telecommunications, healthcare, retail, banking, financial services & insurance (BFSI), and others. The IT & telecommunication segment is growing rapidly owing to the upsurge in the requirement of data warehouses to manage large quantities of information. In addition, the segment is growing rapidly mainly due to the increase in the number of IT and telecommunication component providers who are installing massive data center infrastructure to handle the proliferating amount of data.

Geographical Analysis

Based on regional analysis, the global data center power market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

North America is the dominating region owing to the presence of government and regulatory bodies to implement various standards and regulations to reduce carbon footprint and energy consumption. This has led to the widespread use of efficient power management solutions, increasing digital adoption, and the need for scalable powerful solutions that are sufficient for data masses handling and storage requirements. The spread of advanced technologies such as artificial intelligence and the Internet of Things have increased allocations for critical infrastructure segments, including transport, supply chain, industrial capacity, digital ecosystem, and sustainability, which fosters market growth.

Data centers providers are exploring ways to integrate with North America's smart grid infrastructure using advanced metering, demand-responsive software, and intelligent control systems. These data centers can actively manage their energy consumption and promote network stability. In North America, several regulations and policies focus on improving energy efficiency and reducing carbon emissions, these trends aim to respond to sustainable development, improve operational efficiency, and ensure reliable power supply for data centers in the region.

Competitive Landscape

The global data center power industry study will provide valuable insights with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies, such as partnerships, mergers & acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. The major players in the data center power market are:

• Cisco Systems, Inc.
• Delta Electronics, Inc.
• Eaton
• Fujitsu Ltd
• General Electric
• Huawei Technologies Co., Ltd.
• Microsoft
• Mitsubishi Electric Corporation
• Schneider Electric
• NTT Limited
• ABB

Key Developments

• In June 2023: NTT Ltd. invested USD 300 million in its data center campus in Chennai to provide direct connectivity to or from India. The data center campus is spread over 6 hectares and has a total planned capacity of 34.8 megawatts (MW) of critical IT load from two data center buildings.
• In April 2023: Microsoft launched its newest trusted cloud region in Poland with one or more data centers. The opening of the Polish cloud region is a response to the growing demand for high-performance computing (HPC) and fast and reliable use of Microsoft cloud services.

The global Data Center Power Market is segmented as:

By Product

• Uninterruptible Power Supply (UPS)
• Power Distribution Units (PDU)
• Battery Monitoring Equipment

By End-User

• IT & Telecommunications
• Healthcare
• Retail
• Banking, Financial Services & Insurance (BFSI)
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America