Data Center UPS Market Size and Share
Data Center UPS Market Analysis by Mordor Intelligence
The Data Center UPS market reached USD 4.2 billion in 2025 and is projected to climb to USD 6.8 billion by 2030, delivering a 7.05% CAGR. The expansion is linked to hyperscale facility build-outs, artificial-intelligence (AI) power-density requirements, and lithium-ion battery economics that improve total cost of ownership. Infrastructure suppliers focus on modular designs, grid-interactive functions, and high-efficiency topologies aligned with sustainability mandates. Rack power densities expected to move toward the 500-1,000 kW range by 2026 are reshaping design rules for every new deployment. Ongoing supply-chain risks for power-electronic components and regional moratoriums on data-center utilities introduce volatility, yet large capital commitments from cloud providers sustain momentum. As a result, the Data Center UPS market is evolving from static back-up equipment toward dynamic, revenue-generating assets that stabilize grids and support AI workloads.
Key Report Takeaways
- By UPS type, double-conversion on-line platforms held 44.6% of the Data Center UPS market share in 2024; modular/parallel-redundant systems are set to expand at an 8.9% CAGR through 2030.
- By power capacity, >200 kVA units captured 52.3% share of the Data Center UPS market size in 2024 and are forecast to grow 9.3% annually to 2030.
- By architecture, modular scalable designs are advancing at a 10.3% CAGR, while centralized systems maintained 45.3% revenue share in 2024.
- By battery type, VRLA solutions retained 61.6% share in 2024; lithium-ion alternatives are posting an 8.7% CAGR on lifecycle savings.
- By data-center type, hyperscale operators commanded 49.4% share in 2024 and record the fastest 10.3% CAGR through 2030.
- By geography, North America led with 37.4% revenue share in 2024, whereas Asia-Pacific is pacing the global field with a 9.5% CAGR through 2030.
Global Data Center UPS Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Hyperscale data-center build-outs accelerating ≥10 MW facilities | 1.8% | Global, with concentration in North America and APAC | Medium term (2-4 years) |
Edge micro-data-center proliferation in retail and telecom | 1.2% | Global, particularly APAC and emerging markets | Long term (≥ 4 years) |
Carbon-neutral procurement mandates by hyperscalers | 1.0% | North America and EU primarily, expanding globally | Medium term (2-4 years) |
Lithium-ion TCO advantage over VRLA in ≥500 kVA UPS | 0.9% | Global, led by developed markets | Short term (≤ 2 years) |
AI/ML workload power-density (≥20 kW/rack) surge | 1.5% | Global, concentrated in hyperscale hubs | Short term (≤ 2 years) |
Mandatory Tier III+ uptime compliance in emerging markets | 0.8% | APAC core, spill-over to MEA | Long term (≥ 4 years) |
Source: Mordor Intelligence
Hyperscale Data-Center Build-Outs Accelerating ≥10 MW Facilities
Massive projects such as Microsoft’s USD 30 billion AI infrastructure program exemplify the scale now required for backbone cloud campuses.[1]Microsoft Corp., “Microsoft invests in artificial-intelligence infrastructure,” blogs.microsoft.com Modular UPS frames rated 500-1,250 kW per block allow stepwise expansion and limit stranded capacity.[2]Fuji Electric Corp. of America, “UPS7400WX-T3U High-Capacity UPS,” americas.fujielectric.com Centralized deployments cut capital cost per megawatt while advanced battery monitoring stretches operational life toward 15 years between major refresh cycles. Suppliers respond with factory-integrated power halls that ship as near-complete units, slashing commissioning times. The result is an immediate lift in the Data Center UPS market as each hyperscale project locks in large multi-year purchase agreements for both equipment and service.
Edge Micro-Data-Center Proliferation in Retail and Telecom
5G densification and customer-facing analytics push compute to storefronts, cell towers, and branch offices. Edge sites demand compact UPS units built for higher ambient temperatures, dust, and minimal on-site staff. Lithium-ion adoption rises because longer operating envelopes and faster recharge cycles outweigh higher initial cost. Telecommunications operators aggregate thousands of edge cabinets into centralized monitoring portals, creating annuity service contracts for UPS vendors. Demand response participation further strengthens the business case as utilities compensate sites that can momentarily export power without compromising back-up integrity.
Carbon-Neutral Procurement Mandates by Hyperscalers
Amazon, Google, and Microsoft increasingly rank UPS suppliers by lifecycle carbon footprint, integrating renewable energy sourcing with equipment purchasing decisions. Products offering grid-interactive operation and verified recycling pathways earn preferred vendor status. Europe’s forthcoming data-center sustainability rating amplifies this trend and raises the bar for minimum efficiency across the block.[3]European Commission, “Revised Energy Efficiency Directive 2023/1791,” europa.eu Consequently, mature suppliers funnel R&D toward high-efficiency silicon carbide converters and smart firmware that prioritizes renewable power draw, widening the moat against lagging competitors.
Lithium-Ion TCO Advantage over VRLA in ≥500 kVA UPS
Early adopters report 10-30% cost-of-ownership reductions over a decade when switching from VRLA to lithium-ion batteries. Higher cycle life, smaller footprint, and remote-diagnostics capability tilt economics in favor of new chemistries despite premium purchase prices. Supply agreements with battery giants protect OEMs from raw-material volatility and lock in cost curves. Enterprises now extend budget allocations to cover the delta because long-term savings are proven, propelling the Data Center UPS market toward a tipping point on energy-storage selection.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Upfront capex premium (≈35%) of double-conversion topology | -1.1% | Global, more pronounced in cost-sensitive markets | Short term (≤ 2 years) |
Grid-interactive energy-storage regulations still nascent | -0.7% | North America and EU, with regulatory lag in APAC | Medium term (2-4 years) |
Supply-chain volatility for power electronic components | -0.9% | Global, with acute impact in APAC manufacturing | Short term (≤ 2 years) |
Data-center moratoriums on water/energy use in EU metros | -0.5% | EU metropolitan areas, potential expansion | Medium term (2-4 years) |
Source: Mordor Intelligence
Upfront Capex Premium of Double-Conversion Topology
Line-interactive alternatives cost roughly one-third less, prompting budget-sensitive buyers to defer upgrades even when lifecycle math favors high-efficiency units. Although financing packages and energy-as-a-service models are gaining ground, procurement teams remain cautious. Modular capacity staging mitigates sticker shock, but market education is still required. Where deferred budgets intersect with aging VRLA fleets, risk of downtime increases, yet short-term financial constraints continue to cap immediate conversion rates.
Grid-Interactive Energy-Storage Regulations Still Nascent
While FERC Order 841 opened US wholesale markets to energy storage, region-by-region implementation varies widely. Data-center operators hesitate to enroll UPS capacity for ancillary services without clear guidelines on emissions rules, interconnection fees, or liability exposure. Europe advances faster, but harmonization across member states remains incomplete. The resulting policy uncertainty delays full monetization of installed assets and tempers growth projections over the next three years.
Segment Analysis
By UPS Type: Modular Platforms Anchor Scalability Needs
Double-conversion on-line systems held 44.6% revenue leadership in 2024 as mission-critical sites continued to value time-tested reliability. Even so, modular/parallel-redundant frames are expanding at an 8.9% CAGR by allowing hot-swappable power blocks and right-sized initial deployments. In high-density AI halls, these systems occupy less white-space and cut mean-time-to-repair, giving operators tangible operating-expense savings. Line-interactive and standby categories maintain niche appeal in low-power edge cabinets where cost outweighs redundancy.
The Data Center UPS market increasingly prefers architectures that can be expanded without downtime, and suppliers have shifted roadmaps accordingly. Schneider Electric’s Galaxy VXL showcases stackable blocks that push capacity to 1,250 kW within a minimal footprint, delivering 99% efficiency in eco-mode. As labor shortages pinch maintenance schedules, self-diagnostic logic embedded in modular frames further attracts operators who need to maximize uptime with smaller teams. Going forward, parallel-ready designs are expected to overtake incumbents in both new builds and retrofit cycles.
Note: Segment shares of all individual segments available upon report purchase
By Power Capacity: High-Capacity Units Dominate Growth
Systems rated above 200 kVA claimed 52.3% of Data Center UPS market share in 2024 and are tracking a 9.3% CAGR through 2030. Hyperscale campuses and GPU clusters clustered at tens of megawatts require large-block units that streamline electrical distribution, reduce cable runs, and enable liquid-cooling integration. Segment momentum is visible in product lines such as Fuji Electric’s 225-1,000 kVA series that uses identical 330-kVA modules for simplified scaling.
Mid-market organizations continue to rely on 20.1-200 kVA frames, yet their share shrinks as workloads migrate into consolidated regional hubs. Systems below 20 kVA, often the mainstay in telco shelters, still ship in volume but register only incremental revenue. High-capacity lithium-ion cabinets mitigate space penalties by doubling energy density relative to VRLA, unlocking fresh white-space for compute racks and reinforcing demand for the top tier of power classes.
By Architecture: Modular Scalable Configurations Gain Precedence
Centralized power rooms still control 45.3% of Data Center UPS market revenue as of 2024, yet modular scalable topologies are advancing 10.3% annually. That momentum is underpinned by a design philosophy that blends containerized units, factory witness testing, and software-defined energy management. Operators now favor deployment models that let them add capacity in quarter-megawatt increments rather than oversizing day-one infrastructure.
Distributed row-level UPS approaches serve GPU-dense zones by trimming transmission losses and improving heat isolation. Meanwhile, macro-modules remain preferred where existing building layouts constrain floor loading and cable pathways. Vendors increasingly offer chassis-agnostic control software that unifies both centralized and distributed nodes, smoothing the operational transition toward greener, more modular estates.
By Battery Type: Lithium-Ion Adoption Accelerates
VRLA batteries retained 61.6% share in 2024, yet the Data Center UPS market size for lithium-ion solutions is growing at 8.7% as operators place weight on extended warranty terms and compact footprints. A lithium system typically occupies 40% less floor area and endures twice as many cycles before replacement, tilting long-run economics firmly in its favor. Suppliers now embed granular cell-level telemetry that feeds predictive-maintenance engines and reduces technician site visits.
Alternative chemistries such as nickel-zinc target stringent sustainability mandates, offering high recyclability and fire-safety advantages. Price curves show battery pack costs sliding into the USD 280-580 per kWh band for data-center-grade modules in 2025, triggering fresh bid rounds where operators previously defaulted to VRLA. Subsequent swap-out programs are expected to lift lithium unit shipments through the decade.

Note: Segment shares of all individual segments available upon report purchase
By Data-Center Type: Hyperscalers Reshape Procurement Patterns
Hyperscale and cloud providers occupied 49.4% of the Data Center UPS market size in 2024 and are driving a 10.3% CAGR as they build AI factories at unprecedented scale. Procurement teams issue multi-regional framework agreements that standardize power-protection hardware across a global estate, lowering unit pricing while demanding tight delivery windows. Colocation landlords mirror those specifications to stay compatible with anchor-tenant requests, deepening the reach of hyperscale-grade products into shared facilities.
Enterprise buyers still represent a sizable installed base, especially in regulated sectors requiring on-premise workloads, yet their capital intensity pales against cloud majors. Edge installations in retail, healthcare, and public safety create a long-tail demand curve for compact, autonomous UPS units. The confluence of hyperscale sustainability goals and enterprise latency needs continues to diversify revenue channels for suppliers.
Geography Analysis
North America led the Data Center UPS market with a 37.4% revenue share in 2024, supported by mature colocation clusters, federal incentives for domestic manufacturing, and frameworks such as FERC Order 841 that permit monetizing reserve capacity. Utility interconnection queues averaging more than four years do, however, push investors to secondary metros where power access is quicker. Manufacturers including Schneider Electric have committed USD 700 million to expand US production and reduce lead times, a move that also balances geopolitical risk.
Asia-Pacific is on track for the fastest 9.5% CAGR through 2030. Regional power demand is rising from 1,677 MW in Q1 2024 toward an expected 7,589 MW by 2028, thanks to policy support in Malaysia, Indonesia, and Thailand. Singapore’s land and power constraints have redirected hyperscale pipelines to Johor and Batam, amplifying cross-border grid projects. Domestic suppliers such as Huawei leverage proximity and government programs to compete on price and customization, propelling unit shipments beyond those of imported brands. Meanwhile, Japan’s multibillion-dollar incentives attached to semiconductor fabs increase demand for UPS systems that meet both seismic and energy-efficiency codes, adding an extra layer of technical differentiation.
Europe presents a mixed outlook. The Energy Efficiency Directive compels a 11.7% cut in data-center energy use by 2030, ensuring that every refresh cycle upgrades to at least 98% efficiency modules. Germany’s strict PUE targets give market heft to premium-grade UPS equipment, while the Netherlands and Ireland weigh moratoriums on new power-hungry builds, redirecting growth to Poland and Spain. Brexit adds data-sovereignty constraints that keep a baseline of infrastructure inside the United Kingdom. Overall, compliance pressures elevate replacement rates, sustaining high-efficiency UPS demand even as net new capacity faces tighter environmental scrutiny.

Note: Segment shares of all individual segments available upon report purchase
Competitive Landscape
The Data Center UPS market demonstrates moderate consolidation. Schneider Electric, Vertiv, and Eaton hold multi-continent service networks and end-to-end portfolios that combine UPS, power distribution, and lifecycle software. Schneider Electric’s Galaxy VXL illustrates design leadership with 500-1,250 kW ratings inside a 1.2 m² footprint and 99% eConversion efficiency, directly addressing GPU farm density needs. Vertiv is collaborating with NVIDIA to launch 800 VDC architectures, signaling the shift toward higher voltage distribution that cuts copper mass and cooling loads.
Intellectual-property intensity rises as chipmakers such as Intel patent energy budgeting systems that balance AI workload spikes against power-cap envelopes. Start-ups that merge hydrogen generation, fuel cells, and advanced batteries offer alternative back-up models, challenging legacy diesel-plus-VRLA frameworks. Large incumbents counter with acquisition budgets aimed at software analytics and battery chemistries, thereby expanding total addressable markets into microgrids and renewable integration.
Regional challengers benefit from government procurement preferences and local content rules. Huawei captures share in China and parts of Southeast Asia by pairing UPS hardware with integrated liquid-cooling racks. ABB and Socomec push nickel-zinc and high-efficiency silicon-carbide converters respectively, each targeting sustainability rankings that influence European orders. As product parity tightens, service responsiveness, spare-parts logistics, and regulatory consulting emerge as decisive differentiators.
Data Center UPS Industry Leaders
-
ABB Ltd
-
Schneider Electric
-
Eaton Corporation
-
Power Innovations International
-
Vertiv Holdings Co
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- May 2025: Vertiv announced development of 800 VDC power solutions in partnership with NVIDIA, targeting commercial release in 2026 to support high-power AI clusters
- April 2025: Schneider Electric detailed a USD 700 million US capacity-expansion plan covering digital factories, microgrid labs, and automation upgrades
- March 2025: Schneider Electric, NVIDIA, and ETAP launched an AI-driven efficiency platform to optimize power usage in dense data-center environments
- February 2025: Vantage Data Centers committed EUR 1.4 billion to expand its EMEA footprint, underlining sustained regional build-out demand
- January 2025: Socomec released DELPHYS XM UPS featuring 300-800 kVA ratings and up to 99% Smart Conversion efficiency for sustainable deployments
- December 2024: Schneider Electric launched Galaxy VXL, the market’s most compact high-density UPS at 500-1,250 kW within 1.2 m²
Global Data Center UPS Market Report Scope
An Uninterruptible Power Supply or Uninterruptible Power Supply (UPS) is an electrical device that provides emergency power to a load in the event of an input or mains failure. UPSs are different from auxiliary or emergency power systems or standby generators. It provides near-instantaneous protection from power interruptions by supplying the energy stored in the battery, supercapacitor, or flywheel.
The data center UPS market is segmented by type (standby, line interactive, and double conversion online), size of data center (small, medium, and large), end-user vertical (banking and financial services, manufacturing, information technology, energy, healthcare, government, and entertainment and media), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The report offers the market size in value terms in USD for all the abovementioned segments.
By UPS Type | Standby | ||
Line-Interactive | |||
Double-Conversion On-Line | |||
Modular/Parallel-Redundant | |||
Rotary and Flywheel | |||
By Power Capacity | ≤20 kVA | ||
20.1–200 kVA | |||
>200 kVA | |||
By Architecture | Centralized | ||
Distributed (Row-level) | |||
Modular Scalable | |||
By Battery Type | Lead-acid (VRLA) | ||
Lithium-ion | |||
Nickel-Cadmium and Others | |||
By Data Center Type | Colocation | ||
Hyperscalers/Cloud Service Providers | |||
Enterprise and Edge | |||
By Geography | North America | United States | |
Canada | |||
Mexico | |||
South America | Brazil | ||
Chile | |||
Argentina | |||
Rest of South America | |||
Europe | United Kingdom | ||
Germany | |||
France | |||
Italy | |||
Spain | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
India | |||
Singapore | |||
Australia | |||
Malaysia | |||
Rest of Asia-Pacific | |||
Middle East | United Arab Emirate | ||
Saudi Arabia | |||
Turkey | |||
Rest of Middle East | |||
Africa | South Africa | ||
Nigeria | |||
Rest of Africa |
Standby |
Line-Interactive |
Double-Conversion On-Line |
Modular/Parallel-Redundant |
Rotary and Flywheel |
≤20 kVA |
20.1–200 kVA |
>200 kVA |
Centralized |
Distributed (Row-level) |
Modular Scalable |
Lead-acid (VRLA) |
Lithium-ion |
Nickel-Cadmium and Others |
Colocation |
Hyperscalers/Cloud Service Providers |
Enterprise and Edge |
North America | United States |
Canada | |
Mexico | |
South America | Brazil |
Chile | |
Argentina | |
Rest of South America | |
Europe | United Kingdom |
Germany | |
France | |
Italy | |
Spain | |
Rest of Europe | |
Asia-Pacific | China |
Japan | |
India | |
Singapore | |
Australia | |
Malaysia | |
Rest of Asia-Pacific | |
Middle East | United Arab Emirate |
Saudi Arabia | |
Turkey | |
Rest of Middle East | |
Africa | South Africa |
Nigeria | |
Rest of Africa |
Key Questions Answered in the Report
How big is the Data Center UPS market today and how fast is it growing?
The Data Center UPS market stands at USD 4.2 billion in 2025 and is heading toward USD 6.8 billion by 2030, registering a 7.05% CAGR.
Which UPS topology is gaining traction the fastest?
Modular or parallel-redundant frames are the fastest-growing, posting an 8.9% CAGR as operators demand hot-swap scalability and shorter repair windows.
Why are lithium-ion batteries displacing VRLA in large facilities?
Lithium-ion packs trim floor space, last two to three times longer, and lower 10-year total cost of ownership by 10-30%, making them attractive despite higher upfront prices.
Which region shows the strongest growth potential for UPS sales?
Asia-Pacific leads with a 9.5% CAGR thanks to hyperscale expansions in Malaysia, Indonesia, and Japan, where new government incentives accelerate data-center builds.
What years does this Data Center UPS Market cover?
The report covers the Data Center UPS Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Data Center UPS Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
How are sustainability mandates influencing UPS procurement?
Hyperscale cloud providers now require documented lifecycle carbon reductions and favor grid-interactive UPS systems able to absorb or discharge energy to support renewables.
What is the main obstacle to wider grid-interactive UPS adoption?
Regulatory frameworks remain patchy; until compensation schemes and interconnection standards are consistent, operators hesitate to expose critical back-up assets to grid duty cycles.
Page last updated on: June 25, 2025