U.S. Data Center Power Market to Reach USD 5.0 Billion by 2030 | Strong 7.7% CAGR | Western Region Leads with 36% Share | Key Players: Schneider Electric, Eaton, Vertiv, GE, Cisco

U.S. Data Center Power Market Overview

The U.S. Data Center Power Market reached US$ 2.8 billion in 2022 and is projected to grow to US$ 5.0 billion by 2030, expanding at a CAGR of 7.7% during the forecast period 2024-2031. The market is witnessing strong growth driven by the rapid expansion of hyperscale and cloud data centers, increasing demand for reliable power infrastructure, and a growing focus on energy efficiency and sustainability initiatives. Data center operators across the U.S. are actively pursuing green and carbon-neutral energy goals to reduce their environmental footprint. Major technology firms such as Google, Microsoft, Amazon, and Meta (Facebook) are leading the charge, investing heavily in renewable energy sources like wind and solar power. Many operators now measure Power Usage Effectiveness (PUE) and are aligning with global initiatives such as the 24/7 Carbon-Free Energy Compact, which aims to transition data centers toward fully renewable operations.

Sustainability-focused design practices, including energy-efficient HVAC systems, advanced cooling racks, and smart building envelopes, are being integrated into modern data center construction. Furthermore, renewable energy procurement strategies whether through direct ownership of renewable assets or long-term power purchase agreements are contributing to a robust ecosystem for sustainable power management. The U.S. remains a global leader in data center infrastructure due to its technological maturity, high data consumption, and strong presence of hyperscale operators. As digital transformation accelerates across industries, the growing demand for cloud services, AI workloads, and edge computing will continue to drive investments in advanced, efficient, and sustainable data center power solutions.

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Recent Developments:

✅ October 2025: Schneider Electric launched its next-generation EcoStruxureTM Power Monitoring Expert platform, designed to optimize power usage and sustainability in large-scale U.S. data centers through AI-driven analytics and predictive maintenance.

✅ September 2025: Google announced the completion of a 900 MW renewable energy purchase agreement to power its U.S. data centers, reinforcing its commitment to achieving 24/7 carbon-free energy operations by 2030.

✅ August 2025: Microsoft unveiled its advanced modular data center architecture integrating hydrogen fuel cell systems, reducing reliance on diesel generators and achieving zero-emission backup power solutions.

✅ June 2025: Eaton Corporation introduced a new range of high-efficiency uninterruptible power supply (UPS) systems tailored for hyperscale data centers in the U.S., improving energy efficiency and load management.

✅ March 2025: Amazon Web Services (AWS) partnered with Dominion Energy to develop large-scale solar farms dedicated to powering AWS data centers in Virginia, advancing the company's goal of 100% renewable energy utilization.

Mergers & Acquisitions:

✅ November 2025: Vertiv Holdings acquired a U.S.-based renewable data center infrastructure company to strengthen its portfolio of sustainable power and cooling technologies.

✅ September 2025: Schneider Electric entered a strategic partnership with Bloom Energy to co-develop on-site microgrid and fuel cell solutions for sustainable data center operations across North America.

✅ June 2025: Eaton Corporation completed the acquisition of a power distribution software startup to enhance its digital energy management capabilities for smart and energy-efficient data centers.

Key Players:

• Schneider Electric - 18.6% Leads the U.S. data center power market with its EcoStruxureTM Power platform, offering AI-driven energy management, modular UPS systems, and sustainable microgrid solutions. Its focus on carbon-neutral operations and digital power monitoring makes it a preferred choice among hyperscale operators.

• Eaton Corporation - 16.9% Holds a strong position due to its energy-efficient UPS systems, intelligent power distribution units (PDUs), and grid-interactive solutions. Eaton's emphasis on sustainable infrastructure and its support for hybrid and colocation data centers continue to drive market growth.

• Vertiv (Liebert) - 14.3% Specializes in critical power infrastructure, offering UPS, precision cooling, and power distribution solutions designed for high-density data centers. Vertiv's innovations in modular and scalable systems cater to the growing hyperscale segment in the U.S.

• General Electric (GE) - 12.7% Provides power generation, grid management, and renewable integration technologies for large data center campuses. GE's expertise in electrical distribution and smart grid systems strengthens its market presence.

• Intel Corporation - 9.8% Develops power-efficient chips and data center processors that optimize energy usage in AI, cloud, and high-performance computing workloads. Intel's focus on sustainability and silicon-level efficiency contributes to overall power optimization.

• Cisco Systems, Inc. - 8.4% Offers intelligent networking and power management technologies that enhance reliability and energy control across connected data centers. Cisco's integration of smart energy analytics supports end-to-end efficiency.

• Panduit Corporation - 6.2% Delivers energy-efficient power distribution, cabling, and network infrastructure solutions. Panduit's intelligent PDUs and structured cabling systems are widely adopted for modern data center expansions.

• Sunbird DCIM - 5.1% Provides data center infrastructure management software for real-time monitoring, predictive maintenance, and sustainability analytics. Its DCIM solutions help reduce operational costs and optimize power usage effectiveness (PUE).

• Belden Inc. - 4.3% Specializes in network connectivity and power transmission systems, offering intelligent cabling and energy management solutions that improve system reliability and reduce downtime.

• LocknCharge - 3.7% Focuses on innovative device charging and energy control solutions used within data center and IT facility operations. Its compact and efficient charging systems cater to equipment security and uptime.

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Market Segmentation:

➥By Power:
The AC Power segment dominated the market in 2024, accounting for 63% of total revenue. AC power remains the standard across most data centers due to its compatibility with traditional electrical infrastructure and lower conversion costs. The DC Power segment held 37%, supported by the growing adoption of hyperscale and edge data centers that prioritize higher energy efficiency, reduced power loss, and improved reliability for modern computing workloads. The trend toward DC-based architectures is accelerating, especially in modular and high-performance data centers seeking to optimize operational efficiency.

➥By Indicators:
Power Usage Effectiveness (PUE) remained the most widely used performance metric, representing 35% of market adoption in 2024. Operators are increasingly focusing on achieving lower PUE values through advanced cooling and energy management systems. Energy Efficiency Ratio (EER) accounted for 22%, as it helps assess the balance between power input and cooling efficiency. Mean Time Between Failures (MTBF) represented 18%, crucial for maintaining system reliability in mission-critical facilities, while Mean Time to Repair (MTTR) accounted for 15%, emphasizing operational uptime. Carbon Usage Effectiveness (CUE) contributed 10%, gaining importance as data centers pursue carbon-neutral goals.

➥By Solution:
The Power Distribution segment led the market with a 40% share in 2024, driven by the demand for high-performance switchgear, busways, and PDUs that ensure reliable power flow in hyperscale environments. Power Monitoring followed with 28%, reflecting the growing integration of digital platforms and IoT sensors for real-time energy tracking and predictive maintenance. Power Backup accounted for 22%, driven by rising UPS adoption and generator installations for redundancy. Cabling Infrastructure held 10%, supporting structured connectivity and efficient power routing across data center racks.

➥By Services:
Design and Consulting services captured 36% of the market, reflecting increasing demand for tailored energy-efficient infrastructure planning. Integration and Deployment services held 34%, fueled by rapid construction of hyperscale and colocation data centers across the U.S. Support and Maintenance accounted for 30%, as continuous power monitoring and equipment servicing are essential to maintaining uptime and regulatory compliance in mission-critical facilities.

➥By Data Center Size:
Large Data Centers dominated the market with a 48% share in 2024, driven by the expansion of hyperscale operations by major cloud providers such as AWS, Google, and Microsoft. Medium Data Centers accounted for 32%, serving enterprises and regional colocation hubs with growing energy demands. Small Data Centers contributed 20%, primarily driven by the rise of edge computing and localized data storage needs supporting IoT and AI-driven applications.

Regional Insights:

Western U.S. dominated the data center power market in 2024, accounting for 36% of total market revenue. The region's leadership is driven by the concentration of hyperscale data centers in California, Oregon, and Washington, fueled by tech giants such as Google, Meta, and Amazon. These companies are investing heavily in renewable power sources such as solar and hydroelectric energy to meet their carbon-neutral commitments. The presence of robust digital infrastructure, favorable renewable energy policies, and reliable grid systems has made the Western region the epicenter for sustainable data center development.

Southern U.S. held a 28% share in 2024, with states such as Texas, Virginia, and Georgia emerging as key data center hubs. The availability of affordable land, strong power supply infrastructure, and business-friendly policies has driven significant investment from hyperscale and colocation operators. Virginia's "Data Center Alley" continues to be one of the largest data center clusters globally, with high power demand supporting innovation in UPS systems, cooling efficiency, and renewable energy integration.

Midwestern U.S. accounted for 21% of the market, benefiting from lower electricity costs, vast land availability, and increasing construction of cloud data centers in states like Iowa, Ohio, and Illinois. The region is also witnessing growing adoption of wind energy to power large-scale facilities, contributing to its appeal for sustainable data center operations.

Northeastern U.S. represented 15% of the market, led by strong data infrastructure in New York, New Jersey, and Pennsylvania. The region's market growth is driven by the modernization of legacy enterprise data centers, high connectivity density, and government initiatives promoting energy efficiency and smart grid integration.

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Market Dynamics:

Drivers:
The U.S. data center power market is primarily driven by the rapid expansion of hyperscale and cloud data centers, fueled by the growing demand for digital transformation, cloud computing, and AI-driven workloads. Major cloud service providers such as Amazon Web Services (AWS), Google, and Microsoft are investing heavily in expanding power infrastructure to support increasing data volumes. Another major driver is the shift toward renewable and sustainable energy solutions, with operators committing to carbon-neutral or carbon-free operations through initiatives like the 24/7 Carbon-Free Energy Compact.

In addition, rising energy efficiency requirements and the adoption of advanced power monitoring systems are helping data centers reduce operational costs and improve Power Usage Effectiveness (PUE). The integration of AI, IoT, and automation in power management is enabling predictive maintenance, optimizing uptime, and enhancing overall system reliability further fueling market growth.

Restraints:
Despite robust growth, the market faces challenges such as high capital investment costs associated with deploying advanced UPS systems, renewable power infrastructure, and grid upgrades. Smaller operators often struggle to keep up with the financial burden of implementing sustainable and energy-efficient technologies. Power outages and grid instability in certain regions pose reliability risks, making backup systems essential but costly. Additionally, complex regulatory standards related to energy usage, emissions, and environmental compliance can slow down project execution and increase operational complexity.

Opportunities:
There is a strong opportunity for innovation in renewable and hybrid energy integration, such as the use of hydrogen fuel cells, microgrids, and on-site solar power systems for backup and primary energy supply. The rising trend of edge data centers across Tier II and Tier III cities also offers significant potential, as these smaller facilities require modular and efficient power systems to support localized data processing. Furthermore, government incentives and private investments promoting green energy and sustainable infrastructure are expected to drive further adoption of eco-friendly data center power solutions.

Trends:
Key trends shaping the U.S. data center power market include the increasing deployment of AI-enabled power management systems, the rise of DC-powered architectures, and growing adoption of modular and containerized data centers for rapid scalability. There is also a significant focus on liquid cooling technologies and smart grid integration, enabling better power efficiency and environmental performance. As data centers continue to evolve into high-performance digital ecosystems, the convergence of energy efficiency, sustainability, and automation is becoming the cornerstone of next-generation data center design and operation.

Key Developments:

✅ July 2023: Huawei Technologies made major advancements in sustainable data center infrastructure during the 2023 Global Smart Green Data Center Summit. The company unveiled three new facility solutions designed to improve power efficiency and achieve an ultra-low Power Usage Effectiveness (PUE) of 1.15. Huawei also launched its iManager-M intelligent management platform, a cloud-based solution that provides real-time performance insights, remote operations, and reduced capital expenditure through centralized monitoring.

✅ January 2023: Energy Cloud Labs (ECL) introduced a pioneering hydrogen-powered data center model, marking a significant innovation in sustainable data center operations. This model is designed to reduce dependency on conventional power sources, accelerate carbon-neutral initiatives, and enhance the environmental sustainability of large-scale facilities.

✅ October 2022: PhonePe, a leading fintech company, launched its first Green Data Center in collaboration with Dell Technologies and NTT. The center leverages energy-efficient and cloud-integrated technologies to improve operational reliability, data security, and power optimization. This initiative highlights the growing trend toward eco-friendly data infrastructure and sustainable digital operations.

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