Market Size of Data Center Power Industry
| Study Period | 2019- 2029 |
| Market Size (2024) | USD 24.33 Billion |
| Market Size (2029) | USD 33.92 Billion |
| CAGR (2024 - 2029) | 6.87 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Data Center Power Market Analysis
The Data Center Power Market size is estimated at USD 24.33 billion in 2024, and is expected to reach USD 33.92 billion by 2029, growing at a CAGR of 6.87% during the forecast period (2024-2029).
The need for data centers has increased as the population grows increasingly connected and dependent on digital infrastructure. The amount of digital data produced globally is growing rapidly.
- As networks evolve and coverage expands, 5G is expected to play the role of a major enabler of emerging edge use cases that need high-bandwidth and low-latency data transmission. Hyper-scale providers seek next-generation automation with power distribution units (PDUs) to evolve to accommodate the shift. With rising capacities and lower space, PDUs are being constructed with a focus on modularity and providing extra safety.
- The need to increase storage capacity has become critical for almost every major enterprise, as there is a continuous rise in data and its respective applications. According to the World Economic Forum, the amount of data is set to grow in the coming years and is expected to reach 463 exabytes by 2025.
- Further, the incorporation of Al, robotics, IoT, and other technologies is also expected to increase. This aspect will support the development of data centers in remote places. Critical components such as PDUs and UPS can assist data center operators in decreasing data outages and ensuring systematic management of the power requirement. As data centers grow in popularity, the use of backup power solutions is also expected to grow.
- The demand for DC power solutions is raising the need for installation and maintenance costs of the power components, including the Power Distribution Units, Switches, and UPS, among others in the DC environment, which can be a major challenge for the DC operators worldwide to adopt the advance DC power solutions due to their limited CAPEX budget, which could hinder the market's growth in the future.
- With the outbreak of COVID-19, the cloud market gained significant traction as cloud-based services and tools are increasingly adopted due to organizations deploying remote work access amid lockdowns in various countries, which has continued in the post-pandemic era as well. Most data centers worldwide witnessed a massive surge in demand owing to the growth of cloud adoption across all sizes of enterprises.
