Data Center Power Market - By Component (Solution, Service), By Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom) & Forecast 2024 - 2032

Data Center Power Market Size

Data Center Power Market was valued at USD 12.6 billion in 2023 and is estimated to register a CAGR of over 7.5% between 2024 & 2032. The industry is witnessing an increased adoption of energy-efficient solutions, driven by rising energy costs and environmental concerns. The key trends include the integration of renewable energy sources, advancements in power management software, and the deployment of modular & scalable power infrastructure to meet the evolving data center needs.
 

For instance, in February 2024, SIP, an Alphabet spin-off, introduced Verrus, a pioneering data center concept integrating "microgrids" powered by high-capacity batteries and software for targeted energy distribution to various tasks and applications. This strategy is designed to tackle the power demands posed by contemporary computing requirements including spikes in cloud computing utilization and extensive projects such as AI training.
 

The escalating demand for digital services, cloud computing, and big data analytics is propelling an unprecedented surge in power consumption for data centers worldwide. As businesses increasingly rely on data-driven decision-making and cloud-based applications, the need for robust data center infrastructure continues to grow. Additionally, the proliferation of IoT devices, AI, and edge computing further amplifies power demands. Meeting these demands necessitates continuous expansion and optimization of data center facilities, driving the industry's upward trajectory of power consumption.
 

The substantial initial investment required for data center power infrastructure presents a significant challenge for organizations. Building or upgrading data center power systems involves considerable costs associated with equipment procurement, installation, and maintenance. Additionally, the complexity of integrating power solutions into existing infrastructure may lead to unexpected expenses and delays. High upfront expenditures can strain budgets and hinder the ability of businesses to invest in other critical areas. Moreover, the risk of overestimating power needs and underutilizing investments adds further financial pressure.
 

Data Center Power Market Trends

In response to mounting environmental concerns and regulatory pressures, the data center power industry is witnessing a notable shift toward sustainable practices. Companies are increasingly prioritizing energy-efficient solutions, such as modular power infrastructure, renewable energy sources, and advanced cooling technologies. Moreover, innovations in power management software enable more precise monitoring and optimization of energy usage, reducing both costs and environmental impacts. This trend reflects a broader industry commitment to sustainability and underscores the importance of greener data center operations in mitigating climate change. For instance, in March 2024, Nautilus Data Technologies introduced EcoCore, a fresh lineup of modular data center products rooted in the company's cooling technology. This design, featuring a capacity of 2.5MW, caters to customer needs and sustainability while ensuring future adaptability and efficiency.
 

An emerging focus within the data center power market is the integration of resilience and reliability features into the power infrastructure. With the growing frequency of extreme weather events and cyber threats, ensuring continuous operation and data integrity has become paramount. This trend fuels the adoption of redundant power systems, such as dual power feeds and backup generators, to minimize the risk of downtime. Additionally, advancements in predictive maintenance and fault-tolerant design enable proactive identification and mitigation of potential power-related failures, enhancing the overall system reliability and bolstering the resilience of data center operations.
 

Data Center Power Market Analysis

Based on application, the market is categorized into BFSI, colocation, energy, government, healthcare, manufacturing, and IT & telecom. In 2023, the colocation segment accounted for a market share of around 30% and is projected to grow by 2032. The colocation segment of the data center power industry is witnessing a surge in demand as businesses increasingly opt for outsourced hosting solutions. Colocation providers offer access to robust power infrastructure, enabling organizations to scale their operations without the burden of upfront capital investment and maintenance. For instance, in February 2024, AQ Compute, a colocation data center provider, unveiled AQ-OSL1, an AI-capable data center close to Oslo, Norway. This facility, designed to meet the demands of AI technology, simplifies the development and scaling of AI applications. AQ Compute and NexGen Cloud, a supplier of Infrastructure-as-a-Service and GPU cloud solutions, collaboratively developed a viable approach to incorporating AI.
 

Based on component, the market is divided into solution and service. In 2023, the solution segment accounted for a market share of around 64%. Solution-based approaches are gaining traction in the data center power market, offering comprehensive packages tailored to specific customer needs. Providers deliver integrated solutions encompassing power infrastructure design, implementation, and ongoing support. This growth simplifies procurement and deployment processes for businesses while ensuring optimized performance and reliability of their data center power systems. For instance, in August 2023, CyrusOne, a Dallas-based leading global developer and operator of data centers, introduced Intelliscale, an AI workload data center solution crafted to optimize AI performance. Intelliscale represents a cutting-edge, AI workload-tailored data center solution engineered to meet the escalating demands of AI applications and services.
 

North America dominated the global market with a major share of over 35% in 2023. In North America's data center power market, heightened emphasis on security is boosting the adoption of advanced power infrastructure solutions. Providers are integrating security features, such as robust access controls, surveillance systems, and cybersecurity measures, into power equipment to safeguard against physical and cyber threats, enhancing the overall data center security posture. For instance, in April 2024, Cisco introduced an AI-powered security solution designed for data centers and cloud environments, to bolster security measures within these contexts. This innovative solution seamlessly integrates security into the development process, advocating for proactive security practices rather than reactive responses.
 

Europe's data center power industry, collaboration is emerging as a key trend, with industry stakeholders partnering to accelerate innovation and address common challenges. Collaborative efforts span R&D, development of standards, and joint ventures, fostering a more cohesive ecosystem focused on advancing power efficiency, sustainability, and reliability in data centers. For instance, in December 2023, InfraRed Capital Partners unveiled a new European data center platform as part of its strategic endeavors within the data center industry. This initiative seeks to augment its presence and product offerings in the European data center market, aligning with the region's increasing demand for data services.
 

Asia Pacific market, rapid urbanization and digital transformation are fueling a surge in demand for robust power infrastructure. Providers are focused on scalability and flexibility, offering modular and adaptable power solutions to accommodate diverse customer needs and support the region's burgeoning data center ecosystem. For instance, in August 2023, Stack Infrastructure inaugurated its first data center in Melbourne, Australia. This 36MW facility forms a part of a 72MW campus established in one of the most rapidly expanding markets in the region for both cloud service providers and large enterprises.
 

Data Center Power Market Share

Schneider and Vertiv hold a significant market share of over 24% in the market. Schneider is a prominent player in the data center power industry, offering a comprehensive portfolio of power distribution, management, and monitoring solutions. With a global footprint and strong brand reputation, Schneider Electric competes by offering innovative, energy-efficient products and services tailored to diverse customer requirements.
 

Vertiv is a provider of critical infrastructure solutions including power management systems, for data centers worldwide. Known for its reliability and expertise, Vertiv competes by delivering high-quality power solutions that ensure uptime and operational efficiency. The company focuses on technological innovations and a customer-centric approach.
 

Data Center Power Market Companies

Major players operating in the industry are:

• ABB
• Active Power
• Cummins
• Hewlett Packard Company
• Eaton Corporation
• Caterpillar
• Vertiv
• Legrand
• Huawei
   

Data Center Power Industry News

• In December 2023, Eaton introduced its latest innovation, the Rack PDU G4, marking the fourth generation of this product line. Engineered to elevate security, business continuity, and operational flexibility in data centers, the Rack PDU G4 showcases cutting-edge attributes such as combined C39 outlets, a high retention system, and a locking mechanism for ensuring secure power cord connections.
   
• In July 2023, ABB India's electrification business introduced the MegaFlex DPA UPS solution, tailored for data centers within the India market. This pioneering UPS system delivers sustainability and compactness, featuring reduced energy losses, up to 97.4% energy efficiency, and a footprint that is up to 45% smaller.
   

The data center power market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Component

• Solution
  • Power Distribution Units (PDU)
  • UPS
  • Generators
  • Cabling infrastructure
  • Others
• Service
  • Managed
  • Professional

Market, By Application

• BFSI
• Colocation
• Energy
• Government
• Healthcare
• Manufacturing
• IT & telecom
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Poland
  • Benelux
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Singapore
  • Australia
  • Rest of Asia Pacific 
• South America
  • Brazil
  • Chile
  • Peru
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Rest of MEA