Market Analysis and Insights:
The market for Global Data centre Power Market was estimated to be worth USD 18.23 billion in 2022, and from 2023 to 2032, it is anticipated to grow at a CAGR of 6.42%, with an expected value of USD 31.67 billion in 2032.
The driving forces behind the Data centre Power Market are multifaceted. The exponential expansion of data volume alongside the escalating reliance on cloud computing and storage solutions are primary catalysts for the ened demand for datacentres. This surge in data usage necessitates dependable and effective power solutions to uphold the operational integrity of these facilities. Furthermore, the increasing integration of artificial intelligence (AI), big data analytics, and the Internet of Things (IoT) has further stimulated the call for datacentre power offerings. Given the substantial computational requirements of these cutting-edge technologies, datacentres must possess resilient power systems to accommodate the escalated demands. Moreover, there is a mounting emphasis on environmental sustainability, prompting the integration of eco-friendly practices and renewable energy sources to power datacentres. The quest for energy-efficient alternatives and the concentration on diminishing carbon footprints are steering the market toward more sustainable power alternatives. Finally, the proliferation of edge computing, which involves decentralizing computing functions closer to data sources, has amplified the requirement for smaller, localized datacentres that rely on dependable and effective power solutions. Collectively, the Data centre Power Market is steered by factors including data expansion, technological progressions, environmental sustainability considerations, and the trend towards edge computing.
Datacentre Power Market Scope:
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2032 |
| Study Period | 2018-2032 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2032 | USD 31.67 billion |
| Growth Rate | CAGR of 6.42% during 2023-2032 |
| Segment Covered | By Product, By Type, By End-User, By Tier Standard, By Vertical, By Region. |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | Schneider Electric, Eaton Corporation, ABB Ltd., General Electric, Emerson Electric, Delta Electronics Inc., Legrand SA, Vertiv Group Corp., Rittal GmbH & Co. KG, and Cyber Power Systems (USA) Inc. |
Market Definition
The market for data center power pertains to the sector that delivers the required energy and systems to sustain the functions of data centers, which serve as expansive hubs utilized for the storage and handling of digital data. This sector encapsulates the essential products, solutions, and innovations crucial for the efficient and optimal powering and governance of these data centers.
The Data centre Power Market plays a vital role in supporting the expansion and effectiveness of data centers, the essential foundation of the contemporary digital economy. With the rising dependence of businesses and organizations on cloud computing, big data analytics, and artificial intelligence, the demand for data center facilities has surged significantly. The power market furnishes the required infrastructure, machinery, and resources to ensure the seamless operation and optimum performance of data centers.
Efficient and dependable power systems play a crucial role in minimizing downtime, decreasing energy consumption, and managing expenses, all while aligning with environmental sustainability objectives. By facilitating continuous availability and smooth operation of critical applications and services that propel economic activities across different industries, the data center power market is pivotal.
Key Market Segmentation:
Insights On Key Product
Transformers
Transformers are expected to dominate the Global data center power Market due to their crucial role in power distribution and voltage regulation. Transformers play a key role in converting and distributing electrical power efficiently and safely within datacenter facilities. They are essential in maintaining the required voltage levels for various equipment and systems, ensuring their proper functioning. Furthermore, transformers help mitigate power fluctuations and voltage variations, providing a stable power supply to the datacenter infrastructure. As datacenters continue to expand and demand for reliable power supply increases, the demand for transformers is expected to grow significantly.
Generators
Generators, although not dominating the Global data center power Market, are still an essential component. They serve as backup power sources in case of grid failures or power outages, providing uninterrupted power supply to critical datacenter operations. Generators are crucial in ensuring datacenter continuity and safeguarding against potential revenue losses or data corruption. As the reliance on datacenters for various applications increases, the demand for backup power solutions, including generators, is expected to grow.
UPS (Uninterruptible Power Supply)
UPS systems provide short-term power backup during power disruptions, allowing datacenters to operate seamlessly until the backup power source, such as generators, is activated. UPS systems play a critical role in protecting datacenter equipment from power surges, voltage fluctuations, and interruptions. While not dominating the market, UPS systems are necessary to ensure uninterrupted power supply and prevent data loss or equipment damage during transient power events.
Transfer Switches & Switchgears
Transfer switches and switchgears are essential components in data center power distribution systems, allowing for smooth and controlled power transfer between different sources and equipment. They ensure the seamless switching between utility power, backup generators, and UPS systems. Transfer switches and switchgears are crucial in maintaining power supply continuity and preventing equipment damage or data loss during electrical faults or disruptions. Although not dominating the market, their importance in data center power infrastructure cannot be undermined.
PDUs (Power Distribution Units)
PDUs are responsible for distributing electric power from sources, such as transformers and UPS systems, to various equipment within the datacenter, including servers, networking devices, and cooling systems. They regulate and allocate power effectively, ensuring each equipment receives the required amount of power without overload. While PDUs are not expected to dominate the market, their demand is directly correlated with datacenter expansion, as more equipment requires reliable power supply and effective distribution.
Energy Storage Devices
Energy storage devices, such as batteries and flywheels, play a minor role in the Global data center power Market. They are primarily used to provide short-term backup power during grid failures or while backup power sources are being activated. Energy storage devices are crucial in bridging the gap between power disruptions and the activation of backup power solutions, such as generators. However, they are not expected to dominate the market, as their primary purpose is to ensure a smooth transition and uninterrupted power supply during transient power events.
Insights On Key Type
Solutions:
analysis, the Solutions is expected to dominate the Global Data centre Power Market. This includes various products and technologies that are designed to provide efficient power solutions for data centers. With the increasing demand for data storage and processing, there is a growing need for power solutions that can ensure uninterrupted operations and energy efficiency. Companies in the data centre industry are investing in advanced power solutions to optimize their energy consumption and reduce operational costs. Therefore, the Solutions is projected to be the dominant force in the Global Data centre Power Market.
Services:
While the Solutions is expected to dominate the Global Data centre Power Market, the Services also plays a crucial role in supporting the efficient operation of data centers. Services such as installation, maintenance, and professional consulting are essential for ensuring the smooth functioning of power infrastructure in data centres. However, compared to the Solutions , the Services is expected to have a smaller market share. This is because the demand for power solutions is higher due to the increasing scale and complexity of data centres. Nonetheless, the Services remains a significant of the market, providing essential support and expertise to complement the power solutions offered by the dominant Solutions .
Insights On Key Tier Standard
Tier III
Tier III is expected to dominate the Global Data centre Power Market. Tier III data centres are designed with a focus on redundancy and availability. They have multiple active power and cooling distribution paths, ensuring uninterrupted operation even during maintenance or equipment failure. This high level of reliability and redundancy is crucial for mission-critical applications and businesses that require high uptime. Tier III data centres provide a balance between cost-effectiveness and reliability, making them the preferred choice for many organizations. Due to the increasing demand for data storage and processing capabilities, the dominance of Tier III data centres is expected to continue in the Global Data centre Power Market.
Tier I & Tier II
Tier I & Tier II data centres, while still significant, are not expected to dominate the Global Data centre Power Market. Tier I data centres have basic infrastructure and provide limited redundancy, making them suitable for non-critical applications. Tier II data centres offer a slightly higher level of reliability through redundant components but are still limited in terms of uptime. Both Tier I and Tier II data centres may be less expensive to build and operate, but their lower level of reliability and redundancy make them less appealing for businesses with critical data and applications.
Tier IV
Tier IV data centres may have the highest level of reliability and availability, but they are not expected to dominate the Global Data centre Power Market. Tier IV data centres are designed with fault tolerance and redundancy to ensure continuous operation even in extreme conditions. They have multiple active power and cooling distribution paths, redundant components, and advanced monitoring systems. While Tier IV data centres are ideal for companies with extremely critical applications, their higher construction and operational costs may limit their widespread adoption, making them less dominant in the market compared to Tier III data centres.
Insights On Key End-User
Large Data Centre
The that is expected to dominate the Global Data centre Power Market is the Large Data Centre. Large data centres are characterized by their extensive computing, storage, and networking infrastructure to support high data processing and storage requirements. Considering the increasing demand for cloud computing, big data analytics, and artificial intelligence, large data centres are experiencing significant growth. These facilities are capable of housing a vast number of servers, network equipment, and storage devices, thus necessitating higher power capacity to operate effectively. As a result, the demand for power solutions such as uninterrupted power supply (UPS) systems, generators, and power distribution units (PDUs) is expected to be dominant in the global Data centre Power Market. Moreover, large data centres often require more scalable and energy-efficient power solutions to ensure reliable and uninterrupted operations, making them a major contributor to the market.
Mid-Size Data Centre
While the Large Data Centre is expected to dominate, the Mid-Size Data Centre also plays a significant role in the Global Data centre Power Market. Mid-size data centres are smaller in scale compared to large data centres but still require substantial power solutions to meet their operational needs. These data centres cater to the requirements of medium-sized businesses or organizations with moderate data processing and storage demands. Although their power capacity may be lower than that of large data centres, the aggregate number of mid-size data centres globally contributes to a considerable market share. Power solutions such as UPS systems, rack power distribution units (rPDU), and power monitoring systems are in demand by mid-size data centres to ensure efficiency and reliability in their operations.
Enterprise Data Centre
In the Global Data centre Power Market, the Enterprise Data Centre , while not expected to dominate, still represents a significant portion of the market. Enterprise data centres primarily cater to the data processing and storage needs of large organizations and corporations. These data centres typically have extensive computing infrastructure and high-density server configurations. While they may not require as much power capacity as large data centres, the complexity of their power distribution and management systems cannot be undermined. Power solutions such as intelligent power distribution units (iPDU), power monitoring and management software, and UPS systems are in demand to ensure that these data centres can maintain reliable operations and minimize downtime.
In conclusion, the Large Data Centre is expected to dominate the Global Data centre Power Market, given its significant power requirements and expanding scale. However, both the Mid-Size Data Centre and Enterprise Data Centre s play substantial roles in the market due to the cumulative number of medium-sized and large organizations globally. Power solutions that cater to the unique needs of these different s are essential for maintaining efficient and reliable data centre operations.
Insights On Key Vertical
Retail
The retail sector is expected to dominate the Global Data centre Power Market. With the rapid growth in e-commerce and the increasing reliance on digital technologies, the demand for datacenters in the retail industry is on the rise. Retail companies are expanding their online presence, requiring robust and efficient datacenters to support their operations. These datacenters need reliable power infrastructure to ensure continuous operation and data security. Furthermore, the retail sector also generates a significant amount of data that needs to be processed and stored, increasing the need for datacenters. As a result, the retail is expected to dominate the Global Data centre Power Market.
Telecommunications & IT
Telecommunications & IT is another that is expected to have a significant presence in the Global Data centre Power Market. The telecommunications industry, with the proliferation of smartphones and the advent of 5G technology, requires datacenters to support the increasing data traffic and demands for low-latency applications. Additionally, the IT sector is experiencing exponential growth, driven by cloud computing, big data analytics, and artificial intelligence, all of which necessitate powerful and efficient datacenters. Therefore, the telecommunications & IT is expected to be a prominent player in the Global Data centre Power Market.
BFSI (Banking, Financial Services, and Insurance)
The BFSI is expected to have a considerable presence in the Global Data centre Power Market. The banking, financial services, and insurance industries heavily rely on datacenters to store customer data, perform transactions, and support critical financial operations. With the increasing adoption of digital banking and remote financial services, the demand for reliable and secure datacenters is growing in the BFSI sector. Furthermore, datacenters in the BFSI industry need to comply with strict regulatory requirements, including data privacy and security regulations. Hence, the BFSI is expected to be a significant player in the Global Data centre Power Market.
Energy
While the Energy is important for the functioning of datacenters, it is not expected to dominate the Global Data centre Power Market. The energy industry involves power generation and distribution, which plays a crucial role in providing electricity to datacenters. However, data center power requirements are increasing, driven by the exponential growth of digital technologies and the need for high-performance computing. As a result, data center power needs often outpace the capabilities of the energy infrastructure. Thus, while the Energy is integral to the Global Data centre Power Market, it is not expected to be the dominating .
Insights on Regional Analysis:
Asia Pacific
Asia Pacific is expected to dominate the Global Data centre Power Market market. This region has witnessed significant growth in the datacenter industry due to the increasing adoption of cloud computing, big data analytics, and artificial intelligence. Countries like China, India, Japan, and South Korea have emerged as major players in the datacenter market, driven by a large population, rapid digitalization, and investments in infrastructure development. Furthermore, rising internet penetration, the proliferation of smartphones, and the growth of e-commerce are fueling the demand for datacenters in the region. With leading technology companies establishing their presence and expanding their datacenter operations in Asia Pacific, this region is poised to dominate the Global Data centre Power Market market.
North America
North America is another prominent region in the Global Data centre Power Market market. The region boasts highly developed and mature datacenter infrastructures, driven by advanced technological adoption, robust connectivity, and a strong presence of major technology companies. The United States has been a frontrunner in the datacenter market, with Silicon Valley and other tech hubs fueling the growth. Additionally, Canada has also emerged as a key player with its favorable business environment and investments in datacenter infrastructure. The demand for datacenters in North America is fueled by factors such as increasing digitalization, cloud adoption, and the growing need for data storage and processing capabilities. While Asia Pacific may dominate the market, North America remains a significant player in the Global Data centre Power Market market.
Europe
Europe is a notable region in the Global Data centre Power Market market. The region has a sophisticated datacenter ecosystem, driven by factors such as robust connectivity, favorable government regulations, and a strong emphasis on data protection and security. Countries like the United Kingdom, Germany, and the Netherlands have established themselves as major datacenter hubs in Europe. The demand for datacenters in the region is propelled by factors like digitization initiatives, IoT adoption, and the growing need for data storage and processing capabilities. While Europe may not dominate the Global Data centre Power Market market compared to Asia Pacific, it plays a significant role in the development and growth of the industry.
Latin America
Latin America is an emerging region in the Global Data centre Power Market market. The region is witnessing increased investments in datacenter infrastructure, driven by factors such as a growing digital economy, government initiatives promoting digitization, and the rising adoption of cloud computing and data-driven technologies. Brazil, Mexico, and Argentina are leading countries in the Latin American datacenter market. The demand for datacenters in Latin America is fueled by factors such as expanding internet penetration, e-commerce growth, and the need for secure and reliable data storage and processing capabilities. While Latin America may not dominate the Global Data centre Power Market market as compared to Asia Pacific, its growth potential makes it an important region in the industry.
Middle East & Africa
The Middle East & Africa region is evolving as a player in the Global Data centre Power Market market. The region is experiencing increasing investments in datacenter infrastructure to support digital transformation initiatives, smart cities development, and the rising demand for cloud services. Countries like the United Arab Emirates, Saudi Arabia, and South Africa are leading the adoption of datacenters in the region. Factors driving the demand for datacenters in the Middle East & Africa include increasing internet penetration, growing enterprise digitization, and the need for enhanced data storage and processing capabilities. While the region may not dominate the Global Data centre Power Market market, it offers significant growth opportunities and is expected to contribute to the overall market development.
Company Profiles:
Prominent entities in the international data center power industry serve a critical function by delivering effective power solutions and infrastructure to data centers worldwide. They address the increasing need for dependable and eco-friendly power sources, offering a diverse array of products and services such as power distribution units, uninterruptible power supply systems, generators, and energy management solutions.
Leading companies in the Data centre Power Market, an intensely competitive industry, are Schneider Electric, Eaton Corporation, ABB Ltd., General Electric, Emerson Electric, Delta Electronics Inc., Legrand SA, Vertiv Group Corp., Rittal GmbH & Co. KG, and Cyber Power Systems (USA) Inc. These distinguished firms specialize in delivering power solutions and equipment tailored for data centers, encompassing uninterruptible power supply (UPS) systems, power distribution units (PDUs), backup generators, and energy management systems. As the demand for dependable and effective power infrastructure in data centers grows, these market leaders focus on providing innovative and resilient solutions to meet the changing requirements of the sector. The rivalry among these key players fuels progress in energy efficiency, scalability, and sustainability within data center power management.
COVID-19 Impact and Market Status:
The worldwide data center power market has seen a slowdown in expansion as a consequence of the Covid-19 pandemic, mainly because of supply chain disruptions and construction project setbacks.
The Data centre Power Market has witnessed substantial impacts from the global COVID-19 pandemic. The shift towards remote work and ened reliance on digital services has led to a notable rise in the demand for data centres. However, supply chain disruptions due to the pandemic have caused setbacks in construction timelines and equipment procurement processes.
Factors such as restricted workforce capacity and the implementation of social distancing measures have further hindered the expansion of new data centre facilities. Additionally, some enterprises have scaled back their IT investments in response to economic uncertainties, resulting in a temporary deceleration of new data centre initiatives. Nevertheless, existing data centres have encountered ened power consumption levels as they manage increased data flow. Power infrastructure providers have been actively striving to uphold high availability and resilience amid this surge in demand. Despite the challenges posed by the pandemic, it has underscored the crucial role of data centres in facilitating digital connectivity. This recognition is anticipated to drive continued investment and expansion within the data centre industry.
Latest Trends and Innovation:
- Schneider Electric announced the acquisition of ASCO Power Technologies on February 6, 2020.
- Vertiv announced the launch of the Liebert EXM2 data center UPS system on February 6, 2020.
- Eaton Corporation announced the acquisition of Power Distribution, Inc. (PDI) on January 7, 2020.
- Delta Electronics announced the acquisition of Trihedral Engineering Limited on December 20, 2019.
- ABB Ltd. announced the launch of its new high-voltage data center power distribution technology on November 7, 2019.
- Huawei Technologies Co., Ltd. launched its FusionModule1000B prefabricated data center solution on October 18, 2019.
- Schneider Electric announced the acquisition of ProLeiT AG's process control and automation software portfolio on September 13, 2019.
- Vertiv unveiled its Liebert EXL S1 UPS system on August 27, 2019.
- Eaton Corporation announced the acquisition of Innovative Switchgear Solutions, Inc. on June 5, 2019.
- Delta Electronics announced the launch of its InfraSuite DataCenter Infrastructure Solution in April 2019.
Significant Growth Factors:
Factors fueling the expansion of the Data centre Power Market comprise a rising need for effective and dependable power options, elevated funding in data centers, and the increasing embrace of cloud computing and IoT innovations.
The data center power Market is experiencing significant growth driven by various crucial factors. The escalating demand for data storage and processing capabilities, influenced by the rapid expansion of cloud computing, big data analytics, and Internet of Things (IoT) applications, plays a vital role. With businesses generating copious amounts of data, the necessity for efficient and dependable data centers for data storage and processing is imperative. Moreover, the market is benefiting from the transition to renewable energy sources like solar and wind power within data centers, contributing to its expansion. Concerns surrounding environmental sustainability and the reduction of carbon emissions have prompted data center operators to embrace green power solutions, consequently intensifying the demand for data center power equipment. The continual growth of the telecommunications industry and the increasing use of smartphones, tablets, and other mobile devices are further propelling the need for data center power solutions. These devices demand uninterrupted connectivity and data access, underscoring the requirement for resilient infrastructure and power supply in data centers.
Additionally, the rising adoption of artificial intelligence (AI), machine learning (ML), and high-performance computing (HPC) is driving the necessity for more potent and energy-efficient data center power equipment to support these advanced technologies. In conclusion, the surge in data volumes, the shift towards renewable energy sources, the expansion of the telecommunications sector, and the adoption of cutting-edge technologies collectively fuel the growth of the data center power market.
Restraining Factors:
A significant barrier impeding the expansion of the Data centre Power Market is the substantial upfront investment needed for establishing and maintaining infrastructure.
The data center power market has experienced noteworthy expansion recently, fueled by the rising need for data storage and computational capacities. Nevertheless, certain constraints impede the market's progress. Firstly, the substantial upfront investment necessary for establishing data centers and installing power networks acts as a deterrent for potential new players. Additionally, escalating energy expenses and the demand for environmentally-friendly power solutions amplify the financial strain on data center operators. Moreover, deficiencies in current power grids and inadequate infrastructure in specific geographic locations impede the market's growth. Furthermore, mounting concerns regarding environmental sustainability and the imperative to diminish carbon emissions necessitate the implementation of efficient and eco-conscious power technologies, albeit at a potentially high cost and time investment. Despite these hurdles, the data center power market harbors considerable growth prospects. Technological advancements, such as the enhancement of reliable uninterruptible power supply (UPS) systems and the integration of renewable energy sources, present promising avenues for surmounting the existing limitations.
Additionally, synergies between data center operators and power providers can lead to collaborative ventures that foster innovation and address industry-specific power challenges. By making strategic investments and prioritizing sustainable power solutions, the data center power market is poised to flourish and underpin the expanding digital landscape.
Key Segments of the Data centre Power Market
Product Overview
• Generators
• Transformers
• UPS (Uninterruptible Power Supply)
• Transfer Switches & Switchgears
• PDUs (Power Distribution Units)
• Energy Storage Devices
Type Overview
• Solutions
• Services
Tier Standard Overview
• Tier I & Tier II
• Tier III
• Tier IV
End-User Overview
• Mid-Size Data Centre
• Enterprise Data Centre
• Large Data Centre
Vertical Overview
• BFSI (Banking, Financial Services, and Insurance)
• Energy
• Government & Defense
• Healthcare
• Manufacturing
• Research & Academia
• Retail
• Telecommunications & IT
• Others
Regional Overview
North America
• US
• Canada
• Mexico
Europe
• Germany
• France
• UK
• Rest of Europe
Asia Pacific
• China
• Japan
• India
• Rest of Asia Pacific
Middle East and Africa
• Saudi Arabia
• UAE
• Rest of Middle East and Africa
Latin America
• Brazil
• Argentina
• Rest of Latin America
Frequently Asked Questions (FAQ) :
The top companies that hold the market share in data centre power market are Schneider Electric, Eaton Corporation, ABB Ltd., General Electric, Emerson Electric, Delta Electronics Inc., Legrand SA, Vertiv Group Corp., Rittal GmbH & Co. KG, and Cyber Power Systems (USA) Inc.
The base year for the report is 2023 in data centre power market.
The data centre power market is Segmented on the By Product, By Type, By Tier Standard, By End-User ,By Vertical, By Region.