Data Center UPS Market Rises as AI Data Centers Expand, Says Strategic Market Research

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Jun 10, 2026, 10:20 ET

Global Data Center UPS Market to grow from USD 5.5 billion in 2023 to USD 9.2 billion by 2030 as AI workloads, hyperscale cloud facilities, and edge data centers increase demand for uninterrupted power infrastructure

SAMBALPUR, India, June 10, 2026 /PRNewswire/ -- The Data Center UPS Market is gaining strong momentum as AI computing, hyperscale cloud expansion, edge data centers, 5G networks, and digital infrastructure growth increase the need for reliable backup power systems.

According to Strategic Market Research, the Global Data Center UPS Market was valued at USD 5.5 billion in 2023 and is projected to reach USD 9.2 billion by 2030, expanding at a CAGR of 7.1% during the forecast period.

The most prominent growth driver is the rapid expansion of AI-ready and hyperscale data centers. AI workloads require high-density computing environments where power interruptions can disrupt model training, cloud services, financial transactions, healthcare data access, telecom networks, and enterprise applications. As rack densities rise and data-center operators expand globally, UPS systems are becoming a core reliability layer rather than a backup accessory.

As per Strategic Market Research, data center UPS systems are becoming critical infrastructure for AI and cloud operations. Data-center buyers are no longer evaluating UPS systems only by backup runtime and upfront cost. They are prioritizing uptime protection, modular scalability, energy efficiency, battery lifecycle, load compatibility, monitoring capability, and integration with wider power-management architecture.

Online/Double Conversion UPS Leads Due to Mission-Critical Reliability

Online/double conversion UPS systems hold the largest market share, accounting for nearly 60% of total revenue. Their leadership is linked to their ability to provide continuous power conditioning and zero transfer-time backup, which is critical in hyperscale, colocation, banking, telecom, and enterprise data centers.

This segment is expected to grow at a 7.5% CAGR during the forecast period. Demand is strongest in facilities where even a short interruption can affect servers, storage systems, network equipment, and mission-critical workloads.

Line-interactive UPS systems are the fastest-growing type, expanding at a 9% CAGR. Their growth is being supported by edge data centers, modular facilities, and small-to-medium data centers that require reliable voltage regulation with lower cost and easier deployment.

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High-Capacity UPS Demand Rises With Hyperscale and AI Infrastructure

The above 1,000 kVA segment leads the market with around 50% share, supported by hyperscale cloud facilities, AI compute clusters, large colocation campuses, and high-density enterprise data centers.

This segment is projected to grow at a 7.8% CAGR as data-center operators deploy larger backup systems to support GPU clusters, high-performance computing, storage infrastructure, and network equipment.

The 500–1,000 kVA segment is growing faster, at a 9.2% CAGR, due to increasing deployment of medium-sized data centers and colocation facilities in emerging digital markets. This range is especially relevant for enterprises, telecom operators, and regional cloud providers expanding capacity without building hyperscale campuses.

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Lithium-Ion UPS Batteries Gain Share as Operators Seek Longer Lifecycle and Smaller Footprint

Lead-acid batteries remain the leading battery type, accounting for approximately 55% of the market. Their dominance is supported by lower upfront cost, established supply chains, and widespread use in traditional data-center UPS systems.

However, lithium-ion batteries are the fastest-growing battery type, expanding at a 12% CAGR. Data-center operators are adopting lithium-ion UPS systems because they can offer longer lifecycle, reduced maintenance, smaller footprint, faster recharge, and improved energy efficiency compared with conventional lead-acid alternatives.

This transition is especially important in hyperscale and colocation environments where space utilization, maintenance reduction, and lifecycle cost are becoming more important than only initial battery cost.

IT and Telecom Remain the Largest End-Use Segment

The IT and telecom sector leads the Data Center UPS Market with around 40% share. The segment is projected to grow at a CAGR of 8%, supported by cloud computing, 5G deployment, AI workloads, streaming traffic, enterprise digitalization, and edge-network infrastructure.

UPS systems are critical in IT and telecom environments because service availability depends on uninterrupted power. Power instability can affect servers, switches, routers, storage systems, network nodes, and customer-facing digital services.

Healthcare is the fastest-growing vertical, expanding at an 11% CAGR. Hospitals, diagnostic centers, medical research institutions, and digital health platforms increasingly depend on data centers for electronic health records, telemedicine, imaging data, AI diagnostics, and connected medical systems. This makes reliable backup power essential for clinical and operational continuity.

North America Leads, Asia Pacific Expands Fastest

North America holds around 40% of the global Data Center UPS Market, supported by large-scale hyperscale data-center development, cloud service providers, colocation expansion, and strong digital infrastructure investment across the United States and Canada.

The region is projected to grow at a 7.5% CAGR through 2030. Major data-center hubs across the United States continue to invest in high-capacity UPS systems as cloud, AI, and enterprise workloads expand.

Asia Pacific is the fastest-growing region, expanding at a 10.8% CAGR. Growth is being supported by rapid digitization, cloud adoption, telecom expansion, AI infrastructure investment, and data-center development across China, India, Japan, South Korea, Southeast Asia, and Australia.

Competitive Landscape Focuses on Efficiency, Modularity, and Battery Innovation

The Data Center UPS Market includes major power infrastructure and electrical equipment companies such as Schneider Electric, Eaton Corporation, Vertiv Holdings Co., ABB Ltd., Mitsubishi Electric Corporation, Huawei Technologies, Toshiba Corporation, Delta Electronics, Legrand, and Siemens AG.

Competition is increasingly focused on modular UPS systems, lithium-ion battery integration, high-efficiency double-conversion architectures, remote monitoring, predictive maintenance, compact footprint, and scalable deployment for hyperscale, colocation, enterprise, healthcare, telecom, and edge data centers.

UPS suppliers that can support high-density AI workloads, flexible capacity expansion, lower maintenance, and strong service networks are expected to gain stronger market positioning through 2030.

Outlook Through 2030

The Data Center UPS Market is expected to maintain steady growth as AI infrastructure, cloud computing, edge data centers, telecom networks, and healthcare digitization increase the cost of downtime.

The projected rise from USD 5.5 billion in 2023 to USD 9.2 billion by 2030 reflects a broader shift in data-center power strategy. UPS systems are no longer viewed only as emergency backup equipment. They are becoming essential to uptime assurance, digital service reliability, and mission-critical infrastructure continuity.

Manufacturers capable of delivering scalable, energy-efficient, high-capacity, lithium-ion-compatible, and digitally monitored UPS systems are expected to benefit as data centers move toward higher power density and stricter reliability requirements.

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SOURCE Strategic Market Research LLP