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Data Center Power Market is expected to generate a revenue of USD 26.45 Billion by 2032, Globally, at 7.5% CAGR: Verified Market Research®

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Verified Market Research

Sep 30, 2025, 10:45 ET

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The Data Center Power Market is driven by the exponential surge in cloud adoption, the rising demand for energy-efficient power solutions, and the growth of hyperscale facilities worldwide. However, high capital costs, complex integration challenges, and increasing concerns over carbon emissions are acting as major restraints, influencing strategies for market expansion and long-term investments.

LEWES, Del., Sept. 30, 2025 /PRNewswire/ -- The Global Data Center Power Market Size is projected to grow at a CAGR of 7.5% from 2026 to 2032, according to a new report published by Verified Market Research®. The report reveals that the market was valued at USD 14.1 Billion in 2024 and is expected to reach USD 26.45 Billion by the end of the forecast period.

The Data Center Power Market is expanding as enterprises seek reliable, efficient, and sustainable energy solutions. With growing digitalization, hyperscale growth, and renewable integration, the market is poised for robust opportunities, despite challenges related to cost and energy regulation.

For a detailed analysis of industry trends and growth drivers, explore the full  Data Center Power Market .

Browse in-depth TOC

202 - Pages
126 – Tables
37 – Figures

Global Data Center Power Market Overview

Market Driver

  1. Growing Demand for Energy-Efficient Infrastructure
    The Data Center Power Market is witnessing robust growth as organizations prioritize energy-efficient solutions to manage soaring data loads. Efficiency has become the central focus of IT investments, as enterprises aim to balance performance with sustainability.
    • Companies are investing in advanced intelligent PDUs, modular UPS systems, and next-gen cooling technologies.
    • Energy efficiency reduces operating expenses and ensures lower total cost of ownership (TCO).
    • Sustainability initiatives allow firms to achieve compliance with global environmental standards.
    • Businesses adopting efficient power infrastructure gain a competitive edge by optimizing performance and improving long-term ROI.

  2. Expansion of Hyperscale Data Centers
    The rapid growth of hyperscale facilities is one of the strongest catalysts driving the Data Center Power Market. The rise of cloud services, streaming platforms, and digital commerce is fueling massive demand for scalable power infrastructure.
    • Hyperscale operators require high-capacity, redundant, and reliable power systems to avoid outages.
    • Advanced energy storage and backup solutions are crucial to safeguard uptime and reduce downtime costs.
    • Vendors are seeing new revenue opportunities as global players build large data campuses in the U.S., Europe, and Asia-Pacific.
    • Continuous hyperscale expansion ensures sustained demand for modular and scalable power technologies.

  3. Shift Toward Renewable and Sustainable Power Sources
    Sustainability has emerged as a defining trend in the Data Center Power Market. Global data center operators are increasingly shifting toward renewable energy adoption to align with carbon neutrality goals.
    • Companies are integrating solar, wind, and hybrid energy sources into data center operations.
    • Green power adoption enables facilities to gain certifications such as LEED or Energy Star.
    • AI-driven energy management platforms optimize renewable integration and improve efficiency.
    • Enterprises that invest in renewable-centric solutions enhance brand value, comply with environmental mandates, and attract eco-conscious clients.

Market Restraints

  1. High Initial Capital Investment
    Despite the long-term savings, the high upfront investment remains a major restraint in the Data Center Power Market. Deploying advanced systems requires significant budgets, which can deter adoption.
    • Capital-intensive systems include UPS infrastructure, PDUs, and renewable energy setups.
    • SMEs face financial challenges in adopting advanced technologies, which restricts scalability.
    • High installation costs extend the payback period, delaying ROI for investors.
    • These capital barriers reduce the pace of adoption and discourage new players from entering the market.

  2. Complexity in Integration and Scalability
    The growing transition toward hybrid and multi-cloud environments creates challenges in power system integration. Legacy infrastructure often struggles to adapt to advanced power technologies.
    • Compatibility issues between old and new systems increase risks of inefficiencies.
    • Scaling power infrastructure to meet fluctuating workloads demands frequent upgrades.
    • Integration complexities lead to delayed deployments and higher maintenance costs.
    • This complexity slows down adoption, especially for enterprises with diverse IT architectures.

  3. Rising Concerns Over Energy Consumption and Carbon Footprint
    While data centers are critical to the digital economy, their massive energy consumption is raising sustainability challenges. Governments and clients are pressuring operators to adopt greener practices.
    • High energy usage leads to rising carbon emissions, adding environmental stress.
    • Stringent regulatory frameworks demand greener solutions and compliance.
    • Companies failing to adopt eco-friendly power systems risk financial penalties and reputational damage.
    • Balancing performance, operational costs, and environmental sustainability is becoming a tough challenge, acting as a brake on market growth.
    Download a free sample to access exclusive insights, data charts, and forecasts from the Data Center Power Market Sample Report.

Geographical Dominance : North America dominates the Data Center Power Market, driven by the presence of hyperscale operators, rapid cloud adoption, and strong investments in digital infrastructure across the U.S. and Canada. The region benefits from advanced power management technologies, regulatory support for energy-efficient solutions, and significant demand from industries such as BFSI, IT & telecom, and healthcare. With data center clusters expanding in Virginia, Texas, and Silicon Valley, North America continues to lead in innovation, sustainability, and large-scale deployments.

Key Players

The "Global Data Center Power Market" study report will provide a valuable insight with an emphasis on the global market.  The major players in the market are Schneider Electric , Vertiv , ABB , Eaton , Delta Electronics , Huawei , Legrand , Mitsubishi Electric , Cisco Systems , Rittal.

Data Center Power Market Segment Analysis

Based on the research, Verified Market Research has segmented the global market into Component, End-User, and Geography.

  • Data Center Power Market, by Component
    • Power Distribution Units
    • Uninterruptible Power Supply
    • Generators
    • Transfer Switches & Switchgear
  • Data Center Power Market, by End-User
    • Enterprise Data Centers
    • Colocation Providers
    • Cloud Service Providers
    • Edge Facilities
  • Data Center Power Market, by Geography
    • North America
      • U.S
      • Canada
      • Mexico
    • Europe
      • Germany
      • France
      • U.K
      • Rest of Europe
    • Asia Pacific
      • China
      • Japan
      • India
      • Rest of Asia Pacific
    • ROW
      • Middle East & Africa
      • Latin America

Strategic Insight :

The Data Center Power Market is poised for significant growth, fueled by hyperscale expansion, energy-efficient infrastructure demand, and a clear shift toward renewable integration. However, high capital costs, complex integration, and rising carbon regulations pose barriers that must be addressed with innovative solutions. North America's dominance, supported by advanced digital infrastructure and strong enterprise adoption, highlights lucrative entry points for investors and technology providers. Businesses entering this market should focus on scalable power solutions, renewable-driven strategies, and energy-efficient technologies to maximize ROI, secure long-term contracts, and capture opportunities in this highly competitive global landscape.

To gain complete access with corporate or enterprise licensing, visit the  Data Center Power Market .

Key Highlights of the Report:

  • Market Size & Forecast: In-depth analysis of current value and future projections
  • Segment Analysis: Breaks down the market by Component, and End-User for focused strategy development.
  • Regional Insights: Comprehensive coverage of North America, Europe, Asia-Pacific, and more
  • Competitive Landscape: Profiles key players, their strategic initiatives, and innovation-driven growth approaches.
  • Growth Drivers & Challenges: Analyzes the forces accelerating growth and the restraints hindering large-scale adoption.
  • Challenges and Risk Assessment: Evaluates ethical debates, off-target effects, and regulatory complexities.

Why This Report Matters:

This report delivers in-depth insights into revenue growth, competitive positioning, and technological innovations shaping the Data Center Power Market. It enables businesses to identify new revenue streams, refine investment strategies, and make data-driven decisions to gain a sustainable edge in a rapidly evolving ecosystem.

Who You Should Read This Report:

  •  Market Research Professionals – for accurate insights & competitive benchmarking
  •  B2B Clients & Industrialists – to align investment with growth opportunities
  •  Technology Providers – to understand demand for advanced energy solutions
  • Investors & Consultants – for strategic market entry and expansion planning

Browse Related Reports:

United Kingdom Data Center Power Market Size By Power Distribution Units (Basic PDU, Metered PDU), By End User (IT & Telecommunication, BFS), By Product Type (Uninterruptible Power Supply, Power Distribution Units, Busway), By Geographic Scope and Forecast

Global Ethernet PHY Chip Market Size By Data Rate (Fast Ethernet (10/100 Mbps), Gigabit Ethernet (1 Gbps), 10 Gigabit Ethernet (10 Gbps), 25/40/50/100 Gigabit Ethernet), By Application (Data Centers, Enterprise Networking, Telecommunications, Automotive Ethernet, Industrial Ethernet, Consumer Electronics),By Industry (It And Telecommunication, Healthcare, Manufacturing And Industrial, Consumer Electronics, Energy And Utilities), By Geographic Scope And Forecast

Global Modular Data Center Market Size By Component (Solutions, Services), By Organization Size (Later Enterprises, SMEs), By End User (Insurance Companies, Government), By Geography, And Forecast

Global Hyperscale Data Center Market Size By Component (Solution, Services), By End User (Cloud Providers, Colocation Providers, Enterprises), By Application (Banking, Financial Services, And Insurance (BFSI), Retail And E-Commerce, Government, IT And Telecom, Media And Entertainment), By Geography, And Forecast

Top Data Center Power Companies: Best Energy Solutions, Providers, and Infrastructure

Visualize Data Center Power Market using Verified Market Intelligence -:

Verified Market Intelligence is our BI Enabled Platform for narrative storytelling in this market. VMI offers in-depth forecasted trends and accurate Insights on over 20,000+ emerging & niche markets, helping you make critical revenue-impacting decisions for a brilliant future.

VMI provides a holistic overview and global competitive landscape with respect to Region, Country, Segment, and Key players of your market. Present your Market Report & findings with an inbuilt presentation feature saving over 70% of your time and resources for Investor, Sales & Marketing, R&D, and Product Development pitches. VMI enables data delivery In Excel and Interactive PDF formats with over 15+ Key Market Indicators for your market.

About Us

Verified Market Research® stands at the forefront as a global leader in Research and Consulting, offering unparalleled analytical research solutions that empower organizations with the insights needed for critical business decisions. Celebrating 10+ years of service, VMR has been instrumental in providing founders and companies with precise, up-to-date research data.

With a team of 500+ Analysts and subject matter experts, VMR leverages internationally recognized research methodologies for data collection and analyses, covering over 15,000 high impact and niche markets. This robust team ensures data integrity and offers insights that are both informative and actionable, tailored to the strategic needs of businesses across various industries.

VMR's domain expertise is recognized across 14 key industries, including Semiconductor & Electronics, Healthcare & Pharmaceuticals, Energy, Technology, Automobiles, Defense, Mining, Manufacturing, Retail, and Agriculture & Food. In-depth market analysis cover over 52 countries, with advanced data collection methods and sophisticated research techniques being utilized. This approach allows for actionable insights to be furnished by seasoned analysts, equipping clients with the essential knowledge necessary for critical revenue decisions across these varied and vital industries.

Verified Market Research® is also a member of ESOMAR, an organization renowned for setting the benchmark in ethical and professional standards in market research. This affiliation highlights VMR's dedication to conducting research with integrity and reliability, ensuring that the insights offered are not only valuable but also ethically sourced and respected worldwide.

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