Data Center Power Systems Market

According to Stratistics MRC, the Global Data Center Power Systems Market is accounted for $15.15 billion in 2025 and is expected to reach $25.14 billion by 2032 growing at a CAGR of 7.5% during the forecast period. Data Center Power Systems provide the essential electrical foundation that enables continuous operations across computing and storage environments. They typically combine UPS devices, diesel or gas generators, switchgear, distribution units, and real-time power monitoring to maintain stable energy delivery. As global digital workloads surge, facilities deploy resilient and scalable power setups designed to eliminate interruptions and protect mission-critical assets. Modern designs emphasize energy efficiency through advanced UPS technologies, battery innovations, and integration of renewable power. Smart management software further optimizes consumption, strengthens redundancy, and improves reliability. By ensuring constant availability and controlled energy distribution, these power systems safeguard performance and efficiency for growing hyperscale and enterprise data centers.

According to the U.S. Department of Energy, data centers consumed approximately 10 to 50 times more energy per floor space than typical commercial office buildings. Power systems—including UPS, PDUs, and backup generators—are critical to maintaining uptime and efficiency in these high-density environments.

Market Dynamics:

Driver:

Rising global data traffic and digitalization

The rapid growth of global data usage strongly fuels market demand for Data Center Power Systems. Streaming platforms, smart devices, cloud computing, and digital business applications are generating massive data flows that data centers must process constantly. As a result, operators are expanding facilities and installing scalable, intelligent power infrastructures to ensure uninterrupted performance. Companies invest in UPS solutions, switchgear, high-capacity generators, and modern distribution units to maintain uptime and prevent outages during peak loads. With 5G rollouts and digital adoption increasing, the need for dependable power management continues to rise. This trend strengthens the market, as reliable electricity becomes essential for continuous connectivity and mission-critical operations.

Restraint:

High initial investment and installation costs

Large capital spending required for installing advanced power solutions limits market growth. Building a data center demands expensive equipment like UPS technologies, PDUs, switchgear, backup generators, and battery storage systems. To ensure uninterrupted performance, operators also need cooling systems, redundancy layers, and real-time monitoring software, which add to overall cost. These financial challenges especially affect smaller firms with limited budgets. In addition, technological upgrades are frequent, forcing companies to continuously invest to handle increasing workloads and energy demands. While modern power systems help reduce operational costs in the long run, many organizations delay implementation because of high upfront costs and slow investment recovery.

Opportunity:

Growing adoption of renewable and sustainable power technologies

Sustainability trends are creating new business opportunities in the Data Center Power Systems Market. Facilities are shifting toward renewable power sources like wind and solar to cut emissions and reduce reliance on traditional electricity grids. Advanced UPS systems, battery innovations, and hydrogen or fuel-cell generators support greener operations. Software-driven tools also help monitor and optimize power use, improving efficiency and cost control. Many governments encourage low-carbon data center development through incentives, pushing operators to adopt clean-energy infrastructure. Companies offering environmentally friendly power solutions, renewable integration, and intelligent energy optimization will benefit as data centers pursue lower PUE values and long-term operational savings.

Threat:

Supply chain disruptions and component shortages

Component shortages and unstable global supply chains pose ongoing risks to the Data Center Power Systems Market. Modern power solutions depend on complex manufacturing ecosystems for batteries, control boards, semiconductors, transformers, and cooling systems. When material shortages or shipping delays occur, equipment delivery timelines extend and installation projects are postponed. Geopolitical tensions, trade barriers, fuel price fluctuations, and limited shipping capacity add further uncertainty. Smaller operators often struggle more because they lack bulk-purchase advantages. These challenges raise procurement costs, delay infrastructure upgrades, and force companies to revise deployment plans. Long-term supply disruptions reduce competitiveness, limit technological adoption, and slow the pace of new data center builds.

Covid-19 Impact:

COVID-19 influenced the Data Center Power Systems Market in both negative and positive ways. Initially, production shutdowns, transportation restrictions, and shortage of components slowed data center construction and delayed equipment deployment. But at the same time, digital adoption increased sharply as remote work, online learning, telemedicine, and streaming platforms became essential. This large spike in global data usage pushed organizations to upgrade IT capacity and reinforce backup power infrastructure. Many enterprises accelerated cloud migration, creating demand for UPS units, modern batteries, and intelligent power management. Industries such as healthcare and logistics relied heavily on data centers, resulting in long-term growth momentum despite temporary supply challenges.

The uninterruptible power supply (UPS) segment is expected to be the largest during the forecast period

The uninterruptible power supply (UPS) segment is expected to account for the largest market share during the forecast period because it provides the first line of defense against power interruptions. Every data center requires a reliable UPS to maintain continuous operation and protect sensitive IT hardware from spikes, failures, or electrical instability. With rising digital services and mission-critical applications, consistent backup power has become a mandatory requirement. Modern UPS solutions offer flexible scalability, higher efficiency, and strong support for dense computing environments. Advancements such as lithium-ion energy storage, modular configuration, and smart power management increase system reliability and operational efficiency. Due to its vital role in preventing downtime, UPS remains the most widely deployed segment.

The retail & e-commerce segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the retail & e-commerce segment is predicted to witness the highest growth rate because of expanding digital business models and rising online consumption. Modern retailers depend on stable IT systems for transactions, payment gateways, real-time analytics, and inventory management. Any power disturbance can interrupt customer service, causing financial and reputational losses. As a result, companies deploy advanced UPS networks, automated power distribution solutions, and reliable backup systems to maintain round-the-clock operations. The widespread use of cloud platforms, personalized marketing tools, and large-scale logistics systems continues to boost power infrastructure needs. The sector’s rapid expansion in digital commerce drives strong investment in resilient data center power technologies.

Region with largest share:

During the forecast period, the North America region is expected to hold the largest market share because of the large number of data centres being built and upgraded in the U.S. and Canada. Major cloud and enterprise service providers are deploying significant investments in power infrastructure — including UPSs, PDUs, backup power, and resilient distribution systems — to accommodate artificial intelligence, cloud growth, and high-availability demands. The region’s mature utility infrastructure, high standards for reliability, and strong investment culture give it a distinct advantage. Consequently, North America dominates the demand for data-center power equipment and services, underscoring its role as the largest regional market.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR, driven by fast-paced digital transitions, cloud service expansion, and the build-out of large and edge data centers. Major markets like China and India, along with Southeast Asia and Australia, are scaling up infrastructure to support 5G networks, IoT ecosystems and high-performance computing. These trends fuel demand for advanced electrical backup solutions—including UPS units, power distribution systems, battery storage and modular generation. As enterprises and service providers in the region modernize and build new centers for high-availability operations, power systems providers have strong prospects across Asia-Pacific.

Key players in the market

Some of the key players in Data Center Power Systems Market include Schneider Electric SE, Vertiv Holdings Co., ABB Ltd, Eaton Corporation plc, Legrand SA, Huawei Technologies Co. Ltd, Fujitsu Ltd, Cisco Systems Inc., Rittal GmbH and Co. KG, Mitsubishi Electric Corp., Cummins Inc., Kohler Power Systems, Delta Electronics Inc., Caterpillar Inc. and Socomec Group.

Key Developments:

In August 2025, Schneider Electric announced the signing of a long-term framework agreement with E.ON, one of Europe’s largest energy companies. This strategic partnership marks a significant step forward in the deployment of sustainable and digital-ready energy infrastructure across Europe. Schneider Electric will support E.ON’s ambitious goals with its latest SF6-free medium-voltage (MV) switchgear and a suite of digital technologies.

In August 2025, Vertiv Holdings Co has completed its acquisition of Great Lakes Data Racks & Cabinets for approximately $200 million, expanding its rack, cabinet, and integration solutions for white space applications.

In June 2025, Eaton announced it has signed an agreement to acquire Ultra PCS Limited from the Cobham Ultra Group. Ultra PCS’s innovative solutions for safety and mission critical aerospace systems will augment Eaton’s portfolio in both military and civilian aircraft. We expect Ultra PCS’s strong growth position on high-margin business to be accretive to Eaton. Under the terms of the agreement, Eaton will pay $1.55 billion for Ultra PCS.

Components Covered:
• Uninterruptible Power Supply (UPS)
• Power Distribution Units (PDU)
• Generators
• Transfer Switches
• Switchgear
• Busways
• Battery Systems

Software & Services Covered:
• Power Monitoring & Management Software
• Design & Consulting Services
• Installation & Integration Services
• Maintenance & Support Services

Data Center Types Covered:
• Hyperscale Data Centers
• Colocation Data Centers
• Enterprise Data Centers
• Edge Data Centers

Tier Standards Covered:
• Tier I & II
• Tier III
• Tier IV

Data Center Sizes Covered:
• Small-Sized Data Centers
• Medium-Sized Data Centers
• Large-Sized Data Centers

End Users Covered:
• Information Technology & Telecom
• Banking, Financial Services & Insurance (BFSI)
• Healthcare & Life Sciences
• Government & Defense
• Energy & Utilities
• Retail & E-Commerce
• Manufacturing & Industrial

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan       
o China       
o India       
o Australia 
o New Zealand
o South Korea
o Rest of Asia Pacific   
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

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