Data Center Power Delivery Market is expected to reach USD 25 billion by 2034 | Exactitude Consultancy

Data Center Power Delivery Market Outlook 2025–2034

/EIN News/ -- Luton, Bedfordshire, United Kingdom, June 17, 2025 (GLOBE NEWSWIRE) -- Market Overview

As of 2024, the global data center power delivery market is valued at approximately USD 12 billion, fueled by the surging global demand for efficient energy management in digital infrastructure. With rapid advancements in cloud computing, artificial intelligence (AI), and the Internet of Things (IoT), the market is projected to reach USD 25 billion by 2034, growing at a compound annual growth rate (CAGR) of 7.5% over the forecast period. This robust growth trajectory is a reflection of the increasing reliance on high-performance, always-on data centers to support digital ecosystems.

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Key Market Trends and Dynamics

The data center landscape is undergoing a fundamental transformation, driven by the imperative for energy efficiency, system reliability, and sustainability. Organizations are rapidly adopting innovative power distribution technologies, including modular systems and digital monitoring solutions. These developments allow for optimized energy consumption, reduced wastage, and enhanced operational control. Moreover, the market is responding to the global push towards decarbonization by integrating renewable energy sources into data center operations.

However, challenges persist. Supply chain disruptions, especially in sourcing critical components such as semiconductors and transformers, have hindered the timely deployment of power infrastructure. Additionally, rising energy prices and inflationary pressures are escalating operational costs for data center operators. The industry also faces increasingly complex regulatory requirements around energy consumption and environmental impact, posing compliance burdens—particularly for smaller or emerging players.

Despite these constraints, the market is ripe with opportunities. The proliferation of edge computing and the growing importance of real-time data processing are reshaping data center architectures, creating fresh demand for localized, high-efficiency power delivery solutions. As organizations aim to align their operations with environmental sustainability goals, there is growing interest in renewable energy integration, battery storage systems, and AI-powered energy management platforms.

Market Segmentation Insights

By Product Type

The data center power delivery market is segmented into Uninterruptible Power Supply (UPS), Power Distribution Units (PDUs), Generators, Power Cables, Transformers, and Rack Power Distribution. Among these, the UPS segment leads, accounting for nearly 30% of market revenue. UPS systems are essential for ensuring uninterrupted operations during power outages, especially in mission-critical data environments. The segment is witnessing a shift toward high-capacity and lithium-ion-based UPS systems, enhancing both energy efficiency and reliability.

PDUs hold the second-largest share, contributing about 25% to the overall market. With rising emphasis on energy monitoring, intelligent PDUs that offer remote management and analytics capabilities are gaining traction. Generators, comprising 20% of the market, remain crucial for backup power, particularly in regions with unreliable grid infrastructure. Innovations in low-emission and fuel-flexible generators are expected to bolster this segment.

Power cables and transformers, each accounting for around 10%, are foundational to data center infrastructure. These components are evolving with advances in materials science and thermal management, supporting improved efficiency and performance. Meanwhile, rack-level power distribution systems, which currently represent about 5% of the market, are growing rapidly due to the trend of high-density server configurations in edge and hyperscale environments.

By Data Center Type

The market is categorized into Enterprise, Colocation, Hyperscale, and Edge data centers. Enterprise data centers, typically built and managed in-house, account for the largest share at 40%. These facilities benefit from tailored infrastructure aligned with specific organizational needs, and investments in this category are growing with the digital transformation of businesses.

Colocation data centers represent about 30% of the market, driven by the increasing demand for shared, scalable infrastructure among small and medium-sized enterprises. Hyperscale data centers, which serve cloud giants and large digital platforms, account for around 20%. Their need for rapid scalability and efficient energy management continues to make them a focal point of innovation.

The edge data center segment, comprising approximately 10%, is set to witness the fastest growth, fueled by the rise of IoT, autonomous vehicles, and smart cities. These facilities require compact yet robust power systems capable of delivering low-latency processing close to the data source.

By Service Type

Data center power delivery services are broadly classified into Installation, Maintenance, and Consulting Services. Together, these services constitute about 15% of market revenue. As power infrastructure becomes more complex, demand is increasing for expert services that ensure uptime, optimize performance, and provide insights into capacity planning and regulatory compliance.

By End-User Industry

The market serves several industries, with IT & Telecommunications emerging as the dominant segment, given its massive data consumption and 24/7 operational needs. The Healthcare sector is rapidly growing, driven by digital health applications, telemedicine, and electronic health records that require continuous availability and data integrity.

BFSI (Banking, Financial Services, and Insurance) is another major vertical, where regulatory requirements demand high data security and backup capabilities. The Government and public sector prioritize secure and resilient power systems for national infrastructure, while the Retail industry is investing heavily in data center power solutions to support its e-commerce platforms and omnichannel operations.

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Market Segmentation

By Type
- Uninterruptible Power Supply (UPS)
- Power Distribution Units (PDUs)
- Generators
- Power Cables
- Transformer
- Rack Power Distribution

By Data Center Type
- Enterprise Data Centers
- Colocation Data Centers
- Hyperscale Data Centers
- Edge Data Centers

By Service Type
- Installation Services
- Maintenance Services
- Consulting Services

By End-user Industry
- IT & Telecommunication
- Healthcare
- BFSI (Banking, Financial Services, and Insurance)
- Government & Public Sector
- Retail

By Region
- North America
- Latin America
- Europe
- Asia Pacific
- Middle East and Africa

Regional Analysis

Asia-Pacific

The Asia-Pacific region leads the market, holding approximately 40% of global revenue in 2024. High internet penetration, cloud adoption, and expanding tech infrastructure in China, India, and Southeast Asia are major growth catalysts. Regulatory support for green energy and the rise of smart city initiatives further strengthen the region’s position as a key data center hub.

North America

North America accounts for about 30% of the market, with a projected CAGR of 8.5% through 2034. The U.S. remains a global leader in data center innovation, supported by high investment in hyperscale facilities and increasing focus on sustainable energy management. The proliferation of cloud-based services and AI workloads continues to stimulate power delivery advancements.

Europe

Europe follows with a 25% share, driven by stringent energy efficiency regulations and a strong focus on sustainable infrastructure. Countries like Germany, the UK, and the Netherlands are investing heavily in modular data centers and renewable energy integration, aligning with the EU’s decarbonization targets.

Latin America and Middle East & Africa

Emerging markets such as Latin America and the Middle East and Africa (MEA) show strong potential. Latin America is expected to grow at a CAGR of 9%, supported by improved digital access and government-backed tech initiatives. The MEA region is forecasted to expand at a CAGR of 10%, the fastest globally, driven by investments in digital transformation, 5G infrastructure, and local manufacturing. However, regulatory complexity and infrastructure limitations pose challenges in these regions.

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Key Competitors

1. Schneider Electric
2. Eaton Corporation
3. Vertiv Holdings
4. ABB Ltd.
5. Siemens AG
6. Emerson Electric Co.
7. Rittal GmbH & Co. KG
8. Delta Electronics, Inc.
9. General Electric Company
10. Huawei Technologies Co., Ltd.
11. NFOCUS
12. Tripp Lite
13. Ametek, Inc.
14. Cummins Inc.
15. Legrand SA

Recent Market Developments

Company Name: Schneider Electric
Month & Year of Occurrence: August 2023
Type of Development: Partnership
Detailed Analysis: In August 2023, Schneider Electric announced a strategic partnership with Google Cloud to enhance energy efficiency in data centers. This collaboration aims to integrate Schneider's energy management solutions with Google’s advanced cloud capabilities, targeting sustainability and operational efficiency. The partnership signifies a critical alliance between a leader in power management and a tech giant, creating a synergistic model that leverages both cloud computing and energy management. This move is particularly significant as it aligns with the growing trend of sustainability in data centers, affecting not only operational practices but also attracting clients who prioritize green energy commitments. As data centers are significant energy consumers, this partnership could inspire similar collaborations across the industry, potentially shifting market dynamics towards integrated, eco-friendly solutions.

Company Name: Vertiv Holdings
Month & Year of Occurrence: September 2023
Type of Development: Product Launch
Detailed Analysis: Vertiv Holdings launched the ‘Vertiv™ Liebert® GXT5’ Uninterruptible Power Supply (UPS) system, designed to provide advanced power protection for critical data center infrastructures. With enhancements in efficiency and compact design, this product addresses the increasing demand for reliable and energy-efficient solutions. The launch is expected to set a new benchmark in the UPS segment, especially for edge computing applications. The ensuing competitive response could lead to more rapid innovation cycles among competitors, fostering an environment where energy efficiency becomes crucial for product viability. Vertiv's previous installations have set a foundation for customer trust, which could translate to an increased market share thanks to this innovative release.

Company Name: Eaton Corporation
Month & Year of Occurrence: October 2023
Type of Development: Acquisition
Detailed Analysis: Eaton Corporation completed the acquisition of a pioneering edge power management firm that specializes in the development of smart energy solutions for data centers. This strategic maneuver aims to bolster Eaton's capabilities in the fast-evolving edge computing landscape. By integrating advanced technology from this firm, Eaton positions itself as a more formidable player in the data center market, especially at the edge, which is rapidly growing due to rising data demands. The acquisition underscores prevailing trends towards smart, digitized solutions and could lead to increased market consolidation as players strive to enhance their technology portfolios. This move may provoke competitive strategies focused on innovation, particularly among mid-tier companies seeking differentiation.

Company Name: ABB Ltd.
Month & Year of Occurrence: July 2023
Type of Development: Technological Advancement
Detailed Analysis: ABB Ltd. unveiled a groundbreaking energy management platform tailored for data centers aimed at optimizing power usage and reducing costs. This platform introduces AI-powered analytics and integrates seamlessly with existing infrastructure. The significance of this development lies in its potential to significantly reduce overall operating costs while enhancing energy efficiency, making data centers more sustainable. As customers increasingly demand smarter energy solutions, ABB's advancement may catalyze a wave of technological innovations, promoting competition in energy management systems. This could further stimulate investments in AI technologies across the industry, as competitors strive to keep pace with ABB’s lead.

Company Name: Delta Electronics, Inc.
Month & Year of Occurrence: May 2023
Type of Development: Expansion
Detailed Analysis: Delta Electronics announced an expansion of its manufacturing capabilities in India aimed at producing power management devices for data centers. This decision is strategically timed to capitalize on the increasing demand for localized manufacturing in the wake of global supply chain disruptions. By enhancing their production footprint in India, Delta seeks not only to meet domestic demand but also to export advanced products that align with global standards. This expansion is poised to bolster Delta’s presence in the burgeoning Indian market and could encourage other companies to consider similar strategic expansions. The development might also catalyze government initiatives towards enhancing local manufacturing capabilities, thus altering the market landscape for power management solutions in data centers.

This report is also available in the following languages : Japanese (データセンター電力供給市場), Korean (데이터 센터 전력 공급 시장), Chinese (数据中心电力输送市场), French (Marché de l'alimentation électrique des centres de données), German (Markt für die Stromversorgung von Rechenzentren), and Italian (Mercato della fornitura di energia elettrica nei data center), etc.

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