NEW YORK, Jan. 30, 2025 -- Report on how AI is driving market transformation - The global data center power market size is estimated to grow by USD 24.05 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of over 10.8% during the forecast period. Increasing investments in data centers is driving market growth, with a trend towards increasing investments in hpc systems. However, ups battery failure poses a challenge. Key market players include ABB Ltd, Active Power Solutions Ltd., AEG Power Solutions BV, Black Box Corp., Caterpillar Inc., Control Technology Co., Cummins Inc., Cyber Power Systems Inc., Danfoss AS, Delta Electronics Inc., Eaton Corp., Exide Technologies, Generac Holdings Inc., Legrand SA, Panduit Corp., Rolls Royce Holdings Plc, Schneider Electric SE, Siemens AG, Toshiba Corp., and Vertiv Holdings Co..
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Data Center Power Market Scope | |
Report Coverage | Details |
Base year | 2024 |
Historic period | 2019 - 2023 |
Forecast period | 2025-2029 |
Growth momentum & CAGR | Accelerate at a CAGR of 10.8% |
Market growth 2025-2029 | USD 24.05 billion |
Market structure | Fragmented |
YoY growth 2022-2023 (%) | 10.0 |
Regional analysis | North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution | North America at 29% |
Key countries | US, China, Australia, Canada, UK, Japan, France, Germany, India, and South Korea |
Key companies profiled | ABB Ltd, Active Power Solutions Ltd., AEG Power Solutions BV, Black Box Corp., Caterpillar Inc., Control Technology Co., Cummins Inc., Cyber Power Systems Inc., Danfoss AS, Delta Electronics Inc., Eaton Corp., Exide Technologies, Generac Holdings Inc., Legrand SA, Panduit Corp., Rolls Royce Holdings Plc, Schneider Electric SE, Siemens AG, Toshiba Corp., and Vertiv Holdings Co. |
Market Driver
Data centers are at the heart of digital transformation, powering cloud computing, IT infrastructure, and web hosting for various industries like IT & telecommunications, government, healthcare, retail, banking, financial services, and insurance. Trends like cloud, advanced systems, and work-from-home models drive the need for more energy-efficient solutions. Modular data centers and PDUs (Power Distribution Units) are gaining popularity due to their scalability and energy conservation. Energy management is crucial with technologies like PUE (Power Usage Effectiveness) monitoring devices, intelligent power strips, and battery monitoring equipment ensuring optimal energy usage. Hyper-scale providers, mega data centers, and medium-sized enterprises invest in reliable power solutions such as UPSs (Uninterruptible Power Supply) and busways. Compatible devices like online double conversion UPSs ensure uninterrupted power supply for IT equipment. Emerging technologies like AI (Artificial Intelligence), robotics, and 5G require high bandwidth and low-latency data transmission, further increasing the demand for DC power solutions. The World Economic Forum predicts that by 2025, 80% of enterprise workloads will be in the cloud. This growth necessitates CAPEX budgets for advanced power solutions. In conclusion, the data center power market is evolving rapidly, driven by digitization, cloud networking, and the increasing reliance on IT infrastructure. Reliability, maintenance, and energy efficiency are key considerations for businesses, making advanced power solutions an essential investment.
High-Performance Computing (HPC) systems are clusters of processors, ranging from 16 to 64 nodes, designed to deliver superior computing performance. These systems utilize advanced algorithms, networks, and simulated environments for enhanced computer capabilities. HPC systems are primarily used in scientific and engineering applications, such as physical simulations, weather forecasting, quantum mechanics, and molecular modeling. The performance of HPC systems is measured in Floating-Point Operations Per Second (FLOPS), surpassing the capabilities of general-purpose computers. HPC systems efficiently solve complex problems and perform intricate operations, significantly reducing the time required for solutions.
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Market Challenges
• Data centers rely on Uninterruptible Power Supply (UPS) systems for power backup during outages. These systems are an essential component of data center infrastructure, ensuring uninterrupted power to servers and other critical equipment. However, UPS systems and their batteries can sometimes fail, leading to costly downtime for data center operators and their customers. The batteries, which typically have a lifespan of ten years, are the most common cause of UPS failures. Failures can result in significant losses, with data center operators facing costs of USD1-USD5 million per hour during downtime. These failures can also cause damage to servers and other equipment. Regular maintenance and timely replacement of batteries are crucial to prevent such incidents and minimize downtime.
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Segment Overview
This data center power market report extensively covers market segmentation by
- Product
- 1.1 Generators
- 1.2 Transformers
- 1.3 UPS
- 1.4 Transfer switches and switchgears
- 1.5 Others
- End-user
- 2.1 IT and telecom
- 2.2 BFSI
- 2.3 Energy
- 2.4 Healthcare
- 2.5 Retail
- Geography
- 3.1 North America
- 3.2 Europe
- 3.3 APAC
- 3.4 South America
- 3.5 Middle East and Africa
1.1 Generators- Data centers require a reliable power source to ensure uninterrupted operation of critical IT infrastructure. Generators serve as backup power supplies during power outages. Enterprises should consider the backup time and power requirements when selecting a generator. Generators are classified into gas, diesel, and bi-fuel types based on fuel source. Diesel generators are commonly used due to their availability and cost-effectiveness. However, gas generators offer lower operating costs in the long run. A UPS system can provide power during short outages, but generators are ideal for extended backup periods. Market growth is driven by the increasing adoption of data centers and the need for uninterrupted power supply. Companies are also launching UPS systems with extended backup times, making them a cost-effective alternative to generators for some applications. This trend is expected to impact the market dynamics during the forecast period.
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Research Analysis
The Data Center Power Market is witnessing significant growth due to the increasing adoption of advanced systems such as modular data centers and technologies like cloud computing and computational power. The shift towards work-from-home models and the rise of medium-sized enterprises (MSEs) in various sectors including IT & telecommunications, government, healthcare, retail, banking, financial services, and insurance, are driving the demand for data center power solutions. Power Distribution Units (PDUs) and Uninterruptible Power Supply (UPS) systems are key products in the market, providing reliable power to IT equipment and ensuring energy conservation. Intelligent power strips and battery monitoring devices enable efficient energy management and PUE monitoring. Advanced technologies like busways and energy storage solutions with battery monitoring equipment are gaining popularity for their ability to provide power to large-scale data centers, including mega data centers and hyper-scale facilities, while being compatible with various end-uses. Initial investment in these power solutions can be high, but the long-term benefits of energy efficiency, reliability, and scalability make them a worthwhile investment for businesses of all sizes.
Market Research Overview
The Data Center Power Market is witnessing significant growth due to the increasing demand for cloud computing, data storage, and IT infrastructure in various industries such as IT & telecommunications, government, healthcare, retail, banking, financial services, and insurance. Advanced systems like modular data centers and work-from-home models are gaining popularity for their energy efficiency and scalability. Power Distribution Units (PDUs) and Uninterruptible Power Supply (UPS) systems are essential components of data centers, ensuring reliable power supply and protection against power outages. Energy conservation is a key focus area, with PUE monitoring devices, intelligent power strips, and battery monitoring equipment helping to optimize energy usage. DC power solutions, including busways, are also gaining traction due to their compatibility with advanced technologies like cloud computing, computational power, and Al (Artificial Intelligence), robotics, and 5G. The initial investment in data centers can be high, but the long-term benefits in terms of reliability, maintenance, digitization, cloud networking, and low-latency data transmission make it a worthwhile investment for medium-sized enterprises, colocation data centers, mega data centers, and hyper-scale providers alike. The World Economic Forum estimates that the data center power market will continue to grow, driven by the increasing demand for high bandwidth and online double conversion technologies.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Product
- Generators
- Transformers
- UPS
- Transfer Switches And Switchgears
- Others
- End-user
- IT And Telecom
- BFSI
- Energy
- Healthcare
- Retail
- Geography
- North America
- Europe
- APAC
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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