Data Center Power Market - Size, Share, Industry Trends, and Forecasts (2024 - 2031)

By Product:

Based on product, the market is segmented into Power Distribution Units (PDU), Uninterruptible Power Supply (UPS), Busway, and others.

Trends in the Product:

• Improved scalability and reduction of energy losses, along with efficiency and flexible power distribution are achieved with the innovations in busways, including the IoT integration in Smart busway solutions.
• The enhancement in adaptability of modular busways, is due to the seamless integration. To optimize the space usage in the existing data centers.

The Uninterruptible Power Supply (UPS) sector accounted for the largest revenue share of the total data center power market share in 2023.

• The continuous operation during power outages is ensured with the power backup provided by UPS, especially for critical data center systems.
• It ensures data integrity by protecting against power surges, voltage fluctuations, and blackouts.
• With the exponential growth in the demand for modern data centers, the higher power densities and efficiency are supported by the UPS systems.
• In 2023, MegaFlex DPA (Decentralized Parallel Architecture) UPS solutions was launched by ABB India's Electrification business. It is a part of the ABB EcoSolutions™ portfolio, which complies with the ABB circularity framework.
• Therefore, as per the segmental trends analysis, the increased efficiency and reliability of power solutions, places UPS as the largest segment by product in the market.

The Power Distribution Units (PDUs) sector is anticipated to register the fastest CAGR during the forecast period.

• Ensuring the even distribution and reduction of power wastage, various equipment in the data centers were supplied with electrical power using the PDUs.
• The monitoring of power usage is ensured with the integration of PDUs with intelligent systems, to improve energy efficiency.
• The operational efficiency in PDUs is enhanced with the integration of IoT technology, which enables remote monitoring and predictive maintenance.
• In November 2023, a rack power distribution for data centers, Rack PDU G4 was launched by Eaton. It manages power demands for various equipment and facility types, enabling the deployment of a single PDU across multiple locations.
• Thus, the requirement for power optimization and smart energy management, drives the data center power market trends.

By Data Center Size:

Based on data center size, the market is segmented into Small Data Centers, Medium Data Centers, and Large Data Centers.

Trends in the Data Center Size:

• Innovation in edge computing, with compact, modular designs meets the requirement for localized data processing in small data centers.
• In order to ensure the sustainability and reduction of operational costs, small data centers are equipped with energy-efficient cooling solutions.

The Large Data Centers sector accounted for the largest revenue share of 46.89% in 2023.

• The operational efficiency is maintained by utilizing extensive power and cooling infrastructures in order to handle massive amounts of data in large data centers.
• Additionally, in order to avoid system failures advanced power systems like redundant UPS systems and high-capacity PDUs are utilized.
• They also play a major role in housing the global enterprise's infrastructures.
• In November 2021, a new 38 MW Hyperscale Data Center was launched by Nxtra the data center subsidiary of Airtel. It's spread across 270,000 sq. ft, fully integrated into Airtel's global submarine cable network.
• Therefore, the ability to handle vast amounts of data drives the data center power market growth.

The Medium Data Centers sector is anticipated to register the fastest CAGR during the forecast period.

• Medium-sized data centers offer scalability and cost-effectiveness, leading to their increasing adoption across enterprises.
• They do not require massive infrastructure and substantial IT infrastructure meets the requirements to cater to business needs.
• Localized data solutions are increasingly preferred by businesses with the enhancements in edge computing and regional data center demands.
• In May 2023, SoftBank Corp. and NVIDIA collaborated to roll out AI-based data centers across Japan. These will be utilized for generative AI and 5G/6G applications, with the NVIDIA GH200 Grace Hopper™ Superchip.
• Therefore, the rise in the requirement for localized computing power and flexibility boosts the data center power market trends.

By End-Use Industry:

Based on the end-use industry, the market is segmented into IT & Telecom, BFSI, Healthcare, Government & Defense, Energy, Retail, Manufacturing, Media & Entertainment, and others.

Trends in the End-Use Industry:

• The advancements in data security solutions are blockchain-backed, ensuring reduced data breaches and improved transparency in the BFSI sector.
• In order to secure the sensitive information in the data centers, the Government & Defense sectors are continuously integrating AI-based tools for cybersecurity.

The IT & Telecom sector accounted for the largest revenue share in 2023

• The vast digital infrastructure is handled by data centers in the IT & Telecom industries that support services including internet services, cloud computing, and data storage.
• To ensure uptime, scalability, and user connectivity which is continuous, advanced power systems are utilized in high-performance data centers.
• The advancements in the IoT and 5G deployments are further accelerating the adoption of data centers in the IT &Telecom sector.
• In May 2021, a micro data center was launched by Vertiv in EMEA, which is pre-assembled. It is designed for Edge or small IT sites and has applications across various industries including retail stores, healthcare, and light industrial sites.
• Therefore, the innovations in technology and scalability provided drive the data center power market demand.

The healthcare sector is anticipated to register the fastest CAGR during the forecast period.

• The rise in the adoption of digital technologies including electronic health records (EHR), telemedicine, and AI-driven diagnostics in the healthcare sector, solidifies the requirement for data center infrastructure.
• In order to ensure the security, reliability, and compliance of data center power solutions, cloud-based services are integrated into healthcare organizations.
• There is also a rise in the investment towards dedicated data centers for the healthcare sector with the increase in the requirement for security and privacy of data.
• As per the analysis, the rapid digital transformation and advancements in technology drive the usage of data centers in the healthcare sector, in turn driving the data center power market expansion.

Regional Analysis:

The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.

Asia Pacific region was valued at USD 6,018.42 Million in 2023. Moreover, it is projected to grow by USD 6,350.44 Million in 2024 and reach over USD 10,708.54 Million by 2031. Out of this, China accounted for the maximum revenue share of 30.2%. As per the data center power market analysis, the development is due to the rapid digitalization and urbanization in developing countries, especially China and India. The increasing adoption of advanced technologies like 5G, IoT, and artificial intelligence, leading to massive amounts of data further accelerates the requirement for data centers in this region.

• In December 2023, an underwater data center project was announced by China, utilizing the power of 6M PCs. This enables energy efficiency by saving 122 million kilowatt-hours of electricity every year.

North America is estimated to reach over USD 13,676.46 Million by 2031 from a value of USD 7,920.87 Million in 2023 and is projected to grow by USD 8,336.50 Million in 2024. The growth is driven by the rapid adoption of advanced technologies including cloud computing and data storage needs, especially across hyperscale data centers. To meet the digital demands across industries like healthcare, finance, and e-commerce, businesses are heavily investing in data centers.

• In November 2021, Hydrogen Fuel Cell Technology was launched by Caterpillar Inc. to facilitate backup power at Microsoft Data Center . This project is partially funded by the U.S. Department of Energy (DOE) and backed by the National Renewable Energy Lab (NREL).

The stringent government policies and the shift towards sustainability drive the growth of the market in Europe. The adoption of energy-efficient infrastructure and renewable energy, are a few of the contributing factors. The data center power market analysis shows that the increasing penetration of digital services, cloud computing, and innovations involving smart cities are the primary driving factors of the market in the Middle East and Africa. In Latin America, the advancements in cloud-based services and digital transformation contribute to data center power market expansion.

Top Key Players & Market Share Insights:

The data center power market is highly competitive with major players providing services to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the global data center power market. Key players in the data center power industry include-