Data Center Power Market worth $52.43 billion by 2031 - Report by MarketsandMarkets™

DELRAY BEACH, Fla., /PRNewswire/ -- According to MarketsandMarkets™, the global Data Center Power Market is projected to grow from USD 38.84 billion in 2026 to USD 52.43 billion by 2031, registering a CAGR of approximately 6.2% during the forecast period.

Browse 355 market data Tables and 55 Figures spread through 300 Pages and in-depth TOC on 'Data Center Power Market – Global Forecast to 2031'

Data Center Power Market Size & Forecast:

Market Size Available for Years: 2021–2031

2025 Market Size: USD 35.15 billion

2026 Market Size: USD 38.84 billion

2031 Projected Market Size: USD 52.43 billion

CAGR (2026–2031): 6.2%

Data Center Power Market Trends & Insights:

Increasing investments in hyperscale data centers, cloud computing, AI infrastructure, and high-performance computing are driving demand for reliable and scalable power solutions.

By component, the electrical solutions segment is expected to hold the largest market value of USD 34.00 billion in 2026.

By data center size, mega-sized data centers are expected to grow at the highest CAGR of 12.1% during the forecast period.

By data center type, enterprises are expected to hold the largest market value in 2026.

North America is expected to hold the largest market value of USD 15.50 billion in 2026.

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The market is witnessing increasing demand for reliable, scalable, and energy-efficient power infrastructure as cloud computing, hyperscale data centers, artificial intelligence (AI), and high-performance computing continue to expand globally.

The growing scale and complexity of digital infrastructure are accelerating investments in advanced data center power systems. Hyperscale operators, colocation providers, and enterprises require reliable electrical infrastructure to support high-density computing, continuous workloads, and increasing power consumption. Solutions such as uninterruptible power supply (UPS) systems, power distribution units (PDUs), backup generators, switchgear, transformers, and battery energy storage systems (BESS) play a critical role in maintaining operational continuity. Operators are also increasingly adopting modular power infrastructure, intelligent monitoring, and integrated power management platforms to improve energy utilization, reduce downtime, and accommodate future capacity expansion.

At the same time, the growing deployment of AI workloads is changing data center power requirements. High-density racks and accelerated computing systems require higher power capacities, efficient power conversion, and advanced distribution architectures. Vendors are increasingly developing modular UPS systems, high-capacity power distribution solutions, solid-state transformers, and direct-current (DC) power technologies to address these requirements. AI-enabled monitoring, predictive maintenance, and automated load management are also becoming more important for optimizing electrical infrastructure. Meanwhile, sustainability commitments and grid constraints are pushing data center operators to explore renewable energy integration, battery storage, on-site generation, and grid-interactive power solutions.

By electrical solution, the uninterruptible power supply (UPS) segment is expected to hold the largest market share during the forecast period.

Uninterruptible power supply (UPS) systems are essential components of data center power infrastructure, providing backup power and protecting critical IT equipment against power interruptions, voltage fluctuations, and grid instability. Increasing dependence on cloud services, enterprise applications, and AI-driven workloads is strengthening the need for continuous power availability. UPS systems help maintain uninterrupted operations by supplying backup power during grid disturbances and enabling a controlled transition to generators or other backup sources. The growing deployment of high-density computing infrastructure is further increasing demand for high-capacity and energy-efficient UPS solutions. Modern UPS systems are evolving beyond conventional backup functionality through modular architectures, intelligent monitoring, and advanced power conversion technologies. Manufacturers are introducing scalable UPS configurations that allow operators to increase power capacity as data center requirements expand. High-efficiency operating modes, predictive maintenance, remote monitoring, and integration with battery energy storage systems also improve operational flexibility and reduce energy losses. These capabilities are particularly important for hyperscale and colocation facilities, where power availability and efficient load management directly influence operational performance. As a result, the UPS segment is expected to maintain its leading position in the Data Center Power Market.

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By data center type, the cloud/hyperscale data center segment is expected to record the highest CAGR during the forecast period.