Data Center Power Market Trends: Scaling Energy Infrastructure for Digital Growth

According to a new report published by Allied Market Data Center Power Market Size, Share, Competitive Landscape and Trend Analysis Report, by Product (UPS, PDU, Busway, Others), by End Use (IT & Telecom, BFSI, Government, Energy, Healthcare, Retail, Others): Global Opportunity Analysis and Industry Forecast, 2021 - 2031, The global data center power market size was valued at USD 11.2 billion in 2021 and is projected to reach USD 24 billion by 2031, growing at a CAGR of 8% from 2022 to 2031.

The data center power market plays a critical role in supporting the digital economy by ensuring uninterrupted, efficient, and reliable electricity supply to data centers. Power infrastructure includes generators, UPS systems, PDUs, switchgear, and energy storage solutions that enable continuous operations for cloud computing, colocation, enterprise IT, and hyperscale facilities.

With exponential growth in data generation from AI, IoT, streaming, and digital services, data centers are expanding rapidly in scale and density. This growth has intensified the need for advanced power management systems that enhance energy efficiency, reduce downtime, and align with sustainability goals, making power solutions a strategic investment for data center operators.

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Market Dynamics
One of the primary drivers of the data center power market is the rapid adoption of cloud computing and hyperscale data centers. As enterprises migrate workloads to the cloud, operators require robust power infrastructure to support high-density servers and ensure business continuity.

Energy efficiency and sustainability concerns are also shaping market dynamics. Rising electricity costs and strict environmental regulations are encouraging the adoption of energy-efficient UPS systems, lithium-ion batteries, and renewable energy integration to lower carbon footprints.

The growing deployment of AI, machine learning, and high-performance computing has increased power density within data centers. This has led to higher demand for scalable and modular power solutions capable of handling fluctuating loads and ensuring stable power delivery.

However, high initial capital investment acts as a restraint, particularly for small and mid-sized data center operators. Advanced power infrastructure, redundancy systems, and compliance requirements significantly increase upfront costs.

On the opportunity side, advancements in smart power management, DC power systems, and edge data centers are creating new growth avenues. The integration of digital monitoring, predictive maintenance, and energy storage technologies is enhancing reliability and optimizing operational efficiency.

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Segment Overview
The data center power market is segmented by component, data center type, and end user. By component, it includes UPS systems, generators, PDUs, transfer switches, and energy storage solutions, with UPS systems holding a significant share due to their critical role in power backup. By data center type, hyperscale and colocation facilities dominate owing to large-scale deployments, while by end user, cloud service providers lead the market due to continuous expansion and high power consumption needs.

Regional Analysis
North America holds a prominent share of the data center power market, driven by the presence of major cloud service providers, high adoption of advanced technologies, and significant investments in hyperscale data centers. Strong focus on reliability, redundancy, and energy-efficient infrastructure further supports market growth in the region.

Asia-Pacific is expected to witness the fastest growth, fueled by rapid digitalization, increasing internet penetration, and expanding cloud services in countries such as China, India, and Southeast Asia. Government initiatives supporting data localization and growing investments in data center infrastructure are boosting demand for advanced power solutions across the region.

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Competitive Analysis
The key players profiled in the automatic content recognition market analysis are Vertiv Group Corp., ABB, General Electric, Schneider Electric, Anord Mardix, ZincFive, Inc., Siemens, Mitsubishi Electric Corporation, Cisco Systems, Inc., and Eaton. These players have adopted various strategies to increase their market penetration and strengthen their position in the automatic content recognition industry.

Key Findings of the Study
• By product, the UPS sub-segment will have a significant market share during the forecast period.
• Based on end-user the global data center power market analysis is divided into IT & telecommunications, BFSI, government, energy, healthcare, retail, and others.
• Based on region, the Asia-Pacific market is anticipated to grow the most and is projected to maintain its position during the forecast period.
• An in-depth study of the global data center power market forecast is provided in the report.

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