Transformers for Data Centers Market Set to Surge - Key Insights You Must Know

Transformers for Data Centers Market Size

The global market for Transformers for Data Centers was valued at US$ 1150 million in the year 2024 and is projected to reach a revised size of US$ 2996 million by 2031, growing at a CAGR of 13.4% during the forecast period.

Compared to conventional transformers, Transformers for Data Centers are designed with a greater emphasis on high reliability, low energy consumption, fire safety, and environmental adaptability. Common types include dry-type transformers (such as epoxy-cast), oil-immersed transformers (such as mineral oil or ester oil), and the more recently emerging liquid-immersed environmentally friendly transformers, each designed for different power supply links and environmental requirements.

Due to the extremely high requirements for power continuity and power quality in data centers, Transformers for Data Centers typically feature low noise, low losses, excellent heat dissipation, strong overload capacity, and compliance with various high-efficiency standards (such as DOE and EU energy efficiency standards). In large-scale data center projects, transformers are often used in conjunction with UPS systems, generator sets, and energy storage equipment to form a complete redundant power supply system.

In 2024, global production of transformers for data centers reached 69,345 MW, with an average selling price of $17 per kW.

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Transformers for Data Centers, core components of power infrastructure, are experiencing a new round of technological upgrades and market transformation as the global digitalization process accelerates. Currently, the industry's mainstream technology is based on high-efficiency dry-type transformers. Amorphous alloy transformers, with their ultra-low no-load losses (60%-70% lower than traditional silicon steel transformers), are gaining popularity in hyperscale data centers. At the same time, to meet the demands of high power density, innovative solutions such as liquid-cooled transformers and intelligent monitoring systems are being piloted by leading technology companies. However, material costs (amorphous alloy transformers are 30% more expensive) and technical barriers continue to constrain their adoption, resulting in a market characterized by a clear demand for higher efficiency but gradual commercialization.

In recent years, global energy requirements for data centers have become increasingly stringent. Policies such as China's "East-West Computing" project and the EU's Energy Efficiency Directive (EED) have both set higher PUE (Power Usage Effectiveness) standards for data centers, driving market demand for high-efficiency and energy-saving transformers. Furthermore, the trend toward green data centers is prompting operators to adopt renewable energy sources, which in turn places new demands on transformer compatibility and stability. In terms of market competition, international giants such as Schneider Electric, Hitachi Energy, Siemens Energy, and GE dominate the high-end market with their technological expertise and vertical integration capabilities. Chinese manufacturers, however, are achieving differentiated competition in emerging scenarios such as edge data centers through rapid response and customized services. Notably, policies and regulations are becoming a key driver. The continued upgrades to the EU's EU 548/2014 Tier 3 energy efficiency standards and China's GB 20052-2020 are forcing the industry to eliminate inefficient production capacity.

Looking ahead, the industry faces a critical window for technological decision-making. In the short term, a combination of amorphous alloys and digital monitoring will be the most cost-effective solution. In the long term, attention should be paid to the breakthrough potential of wide-bandgap semiconductor (SiC) transformers. Despite discussions about alternative technologies such as DC power supply and modular integration, traditional AC transformers are expected to maintain a dominant market share for the next 5-10 years. For companies, building competitive advantages in three key areas-material innovation (such as the use of ultra-thin silicon steel), deep application development (such as liquid cooling system adaptation), and zero-carbon transformation (such as carbon footprint traceability)-will determine their survival in the second half of the competition. With the rise of emerging data center markets in Southeast Asia and the Middle East, companies with technological expertise and localized service capabilities are poised to reap the benefits of significant growth.

By Type
• Dry-type Transformers
• Oil-immersed Transformers

By Application
• Non-AI Data Centers
• AI Data Centers

Key Companies
Hitachi Energy, Siemens Energy, Eaton, TMC Transformers, Hyosung Heavy Industries, Schneider Electric, GE, Virginia Transformer, Eaglerise Electric and Electronic, Guangdong Mingyang Electric, Hainan Jinpan Smart Technology Co., Ltd., TBEA Co., Ltd., Guangdong Shunna Electric Co.,Ltd., Jiangsu Yangdian Science and Technology

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