
Data Centre Power Market Size, Share, Trends & Report | 2034
Data Centre Power Market Outlook
The global data centre power market size is experiencing significant growth, driven by the increasing demand for cloud computing, digital services, and the expansion of internet data traffic. According to a report by Expert Market Research (EMR) it is projected to grow at a robust compound annual growth rate (CAGR) of 7.5% during the forecast period of 2025-2034. This growth is fueled by the continuous demand for higher computing power, the expansion of data centres worldwide, and the growing need for efficient and sustainable energy solutions.
Data centres are critical infrastructures that house servers, networking equipment, and storage systems, all of which require substantial amounts of electrical power to operate. The rapid digitization across industries such as healthcare, finance, retail, and entertainment has created an insatiable demand for data storage and processing capabilities, further accelerating the growth of data centres. As a result, the data centre power market is poised to expand significantly, driven by technological advancements, a surge in internet usage, and the increasing need for power-efficient and reliable energy solutions.
Data Centre Power Market Share
The global data centre power market is highly fragmented, with a diverse range of players including equipment manufacturers, energy providers, and infrastructure developers. North America has traditionally been the dominant region in terms of market share, largely due to the high concentration of data centres in the United States, which is home to several global tech giants and cloud service providers. Additionally, the presence of major energy suppliers and a high level of digital adoption in industries across North America contribute to the region’s market leadership.
Europe and the Asia-Pacific regions are also significant players in the global data centre power market. Europe, with its emphasis on renewable energy sources, has seen considerable growth in data centre power demand, particularly in countries like the UK, Germany, and France. The Asia-Pacific region, particularly China, Japan, and India, is witnessing rapid expansion in data centres, driven by the rise in internet penetration, digital transformation, and the proliferation of data-driven industries. This region is expected to exhibit the highest growth rate during the forecast period, fueled by increased infrastructure investments and the adoption of next-generation technologies.
Within the data centre power market, the primary segments include power distribution units (PDUs), uninterruptible power supplies (UPS), generators, and cooling systems. The UPS segment holds the largest share of the market, driven by the critical need for uninterrupted power supply in data centres to ensure the seamless operation of servers and networking equipment. Power distribution units and generators also contribute significantly to the market, as they provide the infrastructure necessary to distribute and supply power to the equipment efficiently. The cooling systems segment is also experiencing growth due to the increasing importance of managing heat generation in data centres, which can impair performance and reliability.
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Drivers of Growth
The growth of the global data centre power market is driven by several factors. One of the key drivers is the exponential increase in data generation and internet traffic. As more industries and consumers rely on digital technologies, the volume of data being generated continues to rise, creating a need for greater data processing and storage capabilities. The growing adoption of cloud services, big data analytics, and the Internet of Things (IoT) further fuels the demand for data centres, which, in turn, drives the need for reliable and efficient power solutions.
Another significant factor contributing to market growth is the increasing focus on energy efficiency and sustainability. With the rising operational costs of data centres, there is growing pressure to reduce energy consumption and environmental impact. This has led to the development of more power-efficient technologies, including energy-efficient servers, advanced cooling solutions, and the integration of renewable energy sources such as solar and wind power. Many data centres are now seeking to adopt green energy solutions to meet sustainability goals and reduce their carbon footprint, which is expected to continue to drive growth in the data centre power market.
Additionally, the shift towards edge computing is also playing a role in the expansion of the data centre power market. Edge computing involves processing data closer to the location where it is generated, such as in smart devices or local servers, to reduce latency and bandwidth costs. As edge computing networks expand, the demand for small, localised data centres with dedicated power infrastructure is increasing, further driving the market for power solutions that can meet the requirements of these smaller, decentralised data centres.
Data Centre Power Market Trends
Several key trends are shaping the global data centre power market, reflecting the evolving needs of data centre operators and the technological advancements within the industry. One of the most prominent trends is the shift towards renewable energy integration. Data centres are increasingly adopting renewable energy sources, not only to meet sustainability targets but also to address growing concerns about energy costs and supply chain resilience. Renewable energy sources, such as solar, wind, and hydroelectric power, are being used to supplement the energy needs of data centres, and in some cases, data centres are entirely powered by renewable sources.
Another notable trend is the increasing use of artificial intelligence (AI) and machine learning (ML) to optimise data centre operations. AI and ML technologies are being leveraged to monitor and control power usage, improving energy efficiency and reducing waste. For example, AI-driven cooling systems are being deployed to adjust the temperature of data centre rooms in real-time, ensuring that servers and other equipment operate within optimal temperature ranges while minimising energy consumption.
Additionally, the adoption of modular data centre designs is growing in popularity. Modular data centres, which consist of pre-engineered and pre-fabricated units, provide greater flexibility, scalability, and efficiency in terms of power distribution and cooling. These modular units can be easily expanded as demand increases, allowing for cost-effective and energy-efficient solutions for data centre operators.
Data Centre Power Market Segmentation
The Market can be segmented on the basis of Type, Application and Region.
Breakup by Type
Solutions
Services
Breakup by Application
IT and Telecommunication
BFSI
Government
Energy
Healthcare
Retail
Others
Breakup by Region
North America
Europe
Asia Pacific
Latin America
Middle East and Africa
Challenges and Opportunities
Despite the robust growth prospects, the global data centre power market faces several challenges. One of the primary concerns is the rising cost of energy, especially in regions where energy prices are volatile or where energy supply infrastructure is underdeveloped. The increasing reliance on digital technologies and cloud services has resulted in significant energy consumption, creating challenges in terms of managing operating costs while maintaining high uptime and service reliability.
Another challenge is the environmental impact of data centres. Despite efforts to integrate renewable energy sources, the energy consumption of data centres remains substantial, contributing to greenhouse gas emissions and environmental degradation. As a result, there is increasing pressure on data centre operators to meet stricter sustainability standards and adopt more eco-friendly power solutions, which may involve significant capital investment in new infrastructure and technologies.
However, these challenges also present opportunities for growth. The demand for energy-efficient solutions, renewable energy integration, and green data centre technologies is opening up new avenues for innovation and investment in the data centre power market. Companies that can develop more cost-effective, sustainable, and efficient power solutions will be well-positioned to capitalize on the growing demand for data centre power infrastructure.
Competitive Landscape
ABB Ltd.
Black Box Corporation
Eaton Corporation Plc.
General Electric Company
Generac Power Systems, Inc.
Huawei Technologies Co., Ltd
Others
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