Data Center Power Market Overview
The systems, procedures, and infrastructure that supply and oversee electricity in a data center are collectively referred to as "data center power." This involves the distribution of the power supply, backup plans, and management tools to guarantee uninterrupted, continuous, and effective operation of the data center. Data centers' power consumption remained impressively consistent even as their workload increased. As the AI revolution gains momentum and the rate of efficiency increases in electricity use slows down, Goldman Sachs Research predicts that data center power demand will increase by 160% by 2030.
Worldwide Power Consumption: Around 460 terawatt-hours (TWh) of power were used by data centers worldwide in 2022, making up 2% of the world's total electricity consumption. By 2026, this amount is predicted to double, possibly reaching 1,050 TWh or 650 TWh, depending on several variables such as the workload growth associated with cryptocurrencies and artificial intelligence.
Usage of Data Centers in the US: Data center power usage in the US is expected to almost double, from 17 GW in 2022 to 35 GW in 2030. The need for AI and machine learning capabilities, which demand substantially more power per rack, is primarily responsible for this surge.
Localized Perspectives: By 2026, data centers in Ireland are predicted to consume 32% of all electricity, up from 17% in 2022. The many new data center projects that are planned for the area are the cause of this sharp rise.
Power Utilization Efficiency (PUE): Over time, data centers' average PUE has increased, showing increased energy efficiency. Big data centers, however, can still need more than 100 MW of electricity, which is enough to power about 80,000 homes.
Major Players' Usage: Major internet businesses such as Amazon, Microsoft, Google, and Meta used power at a rate that more than doubled between 2017 and 2021, reaching approximately 72 TWh in 2021.
The global data center power market was valued at USD 23.34 billion in 2023 and grew to USD 25.75 billion in 2024. It is projected to reach USD 56.58 billion by 2032, with a compound annual growth rate (CAGR) of 10.34% over the forecast period from 2024 to 2032.
Competitive Landscape
Some of the prominent players operating in the Data Center Power Market are
ABB
Schneider Electric
Eaton
Delta Electronics, Inc.
Raritan Inc.
Rittal GmbH & Co. KG
Server Technology, Inc.
Tripp Lite
Black Box Corporation
Cyber Power Systems (USA), Inc.
Generac Power Systems, Inc.
Huawei Technologies Co., Ltd.
Legrand
Vertiv Group Corp.
Schleifenbauer
RPS Spa
Kohler Co.
AEG Power Solutions B.V.
Shenzhen Kstar Science & Technology Co., Ltd.
Hitachi Hi-Rel Power Electronics Pvt. Ltd.
Fuji Electric Co., Ltd.
Bloom Energy
Hitec Power Protection
Toshiba International Corporation
Mitsubishi Electric Corporation
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Latest Trends in the Data Center Power Market
Increased Demand for AI
The use of AI technology in data centers is significantly increasing energy usage. The total energy consumption of data centers is expected to double by 2026 as a result of AI GPUs, which can use up to four times as much energy as conventional servers. It is anticipated that this demand will cause the United States data center power consumption to nearly quadruple from 17 GW in 2022 to 35 GW by the end of the decade.Growth of Edge Computing
The dynamics of energy usage are changing as edge computing becomes more widely used. Edge data centers can use less energy for cooling and data transfer since they process data closer to the source. According to forecasts, the global market for edge data centers is expected to increase from $4 billion in 2017 to $13.5 billion in 2024, highlighting its potential for energy efficiency.Increasing Need for Power
There will be a large increase in the power requirements per rack as data centers adapt to serve AI workloads. AI-ready racks might require as much as 60 kW, whereas current racks usually only need 10–14 kW. Existing data center infrastructures are facing issues as a result of this transformation, and they may find it difficult to meet these increased demands.Renewable Energy and Sustainability
In the data center sector, sustainability is becoming more and more important. To lessen the environmental effects of growing electricity demands, businesses are investing more in on-site power generation and renewable energy sources. huge IT companies are making huge investments in geothermal, wind, and solar energy.Estimated World Power Consumption
According to FTI Consulting, by 2027, the world's data center power consumption would reach 71 GW, with demands related to AI expected to expand at a compound annual growth rate of 47.9%. The need for data centers to innovate and find dependable power sources is highlighted by this sharp rise.Utility and Grid Difficulties
The current utility and grid capacities are not keeping up with the growth in data center power demand. Because of the retirement of older power resources and the significant increase in load, many regions are experiencing ongoing power limitations. Because of this, utility companies and data center operators must work together to provide innovative energy supply solutions.
Global Data Center Power Market: Segmentation
As a result of the Data Center Power Market segmentation, the market is divided into sub-segments based on product type, application, as well as regional and country-level forecasts.
By Type
Solutions
Services
By End-User
Mid-Size Data Centre
Enterprise Data Centre
Large Data Centre
By Vertical
BFSI
Energy
Government & Defense
Healthcare
Manufacturing
Research & Academia
Retail
Telecommunications & IT
Others
The report forecasts revenue growth at all geographic levels and provides an in-depth analysis of the latest industry trends and development patterns from 2022 to 2030 in each of the segments and sub-segments. Some of the major geographies included in the market are given below:
North America (U.S., Canada)
Europe (U.K., Germany, France, Italy)
Asia Pacific (China, India, Japan, Singapore, Malaysia)
Latin America (Brazil, Mexico)
Middle East & Africa
Regional Analysis
North America
Accessible Market: With only 0.2% of capacity available, major markets like Northern Virginia, the largest data center market in the world, are suffering from severely poor availability. The Bay Area (0.5%), Dallas-Fort Worth (1.9%), and Phoenix (3.8%) are among the other important areas that struggle to satisfy demand.
Use of Electricity: About 33% of the world's data centers are located in the United States, and consumption is predicted to increase from 200 TWh in 2022 to 260 TWh by 2026.
Americas Energy Usage: The United States' data center electricity consumption is expected to almost treble from 17 GW in 2022 to 35 GW by 2030. The demand for AI and machine learning workloads, which require much more power per rack—rising from 10–14 kW to 40–60 kW for AI-ready racks—is the main cause of this spike.
India's Data Center Power Load in Asia-Pacific
The Dominance of China: Some of the world's most energy-hungry data centers are located in China; one such facility is the 150 MW Inner Mongolia Information Park. Additional noteworthy establishments comprise China Mobile's 130 MW Hohhot Data Center and 120 MW Harbin Data Center.
By 2024, the data center sector in India is expected to have a power load of 1,369 MW, a reflection of the country's rapidly expanding needs for cloud computing and digital services.
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Key Highlights
In order to explain the Data Center Power Market the following: introduction, product type and application, market overview, market analysis by countries, market opportunities, market risk, and market driving forces
The purpose of this study is to examine the manufacturers of the Data Center Power Market, including profile, primary business, news, sales and price, revenue, and market share.
To provide an overview of the competitive landscape among the leading manufacturers in the world, including sales, revenue, and market share of Data Center Power Market percent
To illustrate the market subdivided by kind and application, complete with sales, price, revenue, market share, and growth rate broken down by type and application
To conduct an analysis of the main regions by manufacturers, categories, and applications, covering regions such as North America, Europe, Asia Pacific, the Middle East, and South America, with sales, revenue, and market share segmented by manufacturers, types, and applications.
To conduct an investigation into the production costs, essential raw materials, production method, etc.
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