Global Data Center Power Market to Reach US$109.27 Billion

Dublin, Sept. 22, 2026 (GLOBE NEWSWIRE) -- "Global Data Center Power Market Landscape 2026-2031" has been added to ResearchAndMarkets.com's offering.

The global data center power market was valued at USD 49.33 billion in 2025 and is projected to reach USD 109.27 billion by 2031, expanding at a compound annual growth rate (CAGR) of 14.17%. Market growth is being driven by the rapid development of hyperscale and artificial intelligence (AI) data centers, higher rack power densities, expanding cloud infrastructure, and increasing demand for reliable, energy-efficient power systems.

Renewable Energy and Sustainability Reshape Data Center Power Strategies

Data center operators are increasing renewable energy procurement through long-term power purchase agreements, grid partnerships, and low-carbon infrastructure investments. Sustainability strategies are also expanding beyond renewable electricity to include heat reuse, carbon removal, and carbon-neutral campus development.

Recent initiatives include Green Mountain's heat-recovery project in Norway, which supplies excess data center heat to a nearby aquaculture operation, and Microsoft's commitment to purchase 1.1 million tons of carbon removal credits from an Oslo carbon-capture project. Global Switch and Telehouse have signed wind energy agreements with RWE for UK operations, while nLighten has partnered with Uniper to support continuous renewable energy use at German edge data centers.

AI Data Centers Increase Demand for High-Capacity Power Infrastructure

AI adoption and digital transformation are accelerating investment in GPU-ready, high-density data center capacity. Government and enterprise initiatives across North America, Latin America, Europe, and Asia-Pacific are supporting demand for hyperscale facilities, high-performance computing infrastructure, and advanced data center electrical systems.

Notable investments include Brazil's USD 4 billion National AI Plan, Colombia's USD 116 million National AI Policy, and plans for an NVIDIA-powered high-performance computing and AI center in Nuevo Leon, Mexico. Additional projects include the proposed 500 MW Stargate Argentina AI campus, CloudHQ's USD 4.8 billion data center investment in Queretaro, and Cirion Technologies' expansion of its BUE1 facility in Buenos Aires.

Advanced Backup Power Technologies Gain Momentum

The transition from conventional diesel generators to hydrotreated vegetable oil (HVO) is emerging as an important data center power market trend. Verne announced plans in April 2025 to use HVO for backup power at its London data center. In May 2026, Bridge Data Centres and EcoCeres completed an HVO-powered backup fuel pilot at a Southeast Asia campus, with plans to expand adoption across additional facilities.

Data center operators are also deploying advanced uninterruptible power supply (UPS) batteries to improve reliability, energy efficiency, and storage performance. Lithium-ion, sodium-ion, nickel-zinc, and liquid-metal technologies are gaining attention as operators modernize backup power infrastructure. In March 2025, Google reported installing more than 100 million lithium-ion battery cells across its global data center portfolio.

Smart grids and microgrids are becoming increasingly important for power resilience, renewable energy integration, and AI workload support. In May 2026, American Microgrid Solutions expanded its partnership with Schneider Electric to accelerate scalable microgrid deployment for energy-intensive facilities. ABB also expanded its partnership with VoltaGrid in March 2026, agreeing to supply additional synchronous condensers, flywheel technology, and prefabricated eHouse units for AI-focused data center microgrids.

Data Center Power Market Segmentation Highlights

Demand for UPS systems rated above 1,000 kVA is increasing across medium-sized, large, hyperscale, and AI data centers.

Generators with capacities above 3 MW are gaining market share as high-density computing requirements expand.

Diesel rotary UPS systems, HVO-powered generators, gas generators, and fuel cells remain important generator technology segments.

Medium-voltage switchgear demand is rising due to higher facility power requirements and the expansion of hyperscale and large colocation campuses.

The market covers UPS systems, generators, transfer switches and switchgear, power distribution units, and other electrical infrastructure.

Tier-based analysis includes Tier I and II, Tier III, and Tier IV data center facilities.

Regional Market Outlook

The Americas accounted for approximately 59% of global data center power investment in 2025, followed by Asia-Pacific, Europe, and the Middle East and Africa. The United States was the leading national market, representing approximately 57% of global investment during the year.

Western Europe led European investment, with the UK ranking ahead of Germany, Spain, Ireland, France, and Italy. Sweden led the Nordic data center power market, followed by Norway, Finland, Denmark, and Iceland. The report also assesses opportunities across Latin America, Central and Eastern Europe, the Middle East, Africa, Asia-Pacific, and Southeast Asia.

Competitive Landscape

Leading data center power infrastructure providers include ABB, Caterpillar, Cummins, Eaton, Legrand, Rolls-Royce, Schneider Electric, and Vertiv. Other prominent vendors include AEG Power Solutions, Aggreko, Aksa Power Generation, AMETEK Powervar, Bloom Energy, Centiel, Cisco, Delta Electronics, Exide Technologies, Generac Power Systems, Huawei Technologies, Kehua Data, Mitsubishi Electric, Piller Power Systems, Rehlko, Siemens, Socomec, Toshiba, ZincFive, and other electrical infrastructure specialists.