The combined electricity consumption capacity of data centers in Northern Virginia, United States, amounted to *** gigawatts in 2023. The second-largest concentration of data centers worldwide was in the Chinese capital city, Beijing, with a power capacity of some *** gigawatts.

Traditional data centers globally have decreased their energy demand, from around 97.6 terawatt hours in 2015, to some 50 terawatt hours in 2019, and a forecast indicated that this figure will reach nearly 33 terawatt hours by 2021. On the other hand, hyperscale data centers have doubled their energy demand in the same period of time.

In 2022, data centers in China, the United States, and the European Union consumed approximately *** terawatt-hours of electricity. By 2026, data centers in China will account for the largest electricity consumption, with an estimate of *** terawatt-hours.

Data center electricity demand in the United States is forecast to more than quadruple between 2023 and 2030, requiring more than an additional *** terawatt-hours of power. The share of total U.S. data center electricity demand will increase from *** percent in 2023 to *** percent by 2030.

The supply of electricity to data centres increased by 66 percent over a period of two years. In 2017, 1.6 billion kilowatt-hours (kWh) was supplied to data centres in the Netherlands. This had increased to 2.7 billion kWh in 2019. The growth is mainly due to data centres becoming larger. This is reported by Statistics Netherlands (CBS) based on data from network operators.

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AI Data Center Power Consumption Market Size 2025-2029

The AI data center power consumption market size is forecast to increase by USD 24.03 billion at a CAGR of 38.6% between 2024 and 2029.

The market is experiencing significant growth due to the proliferation and escalating complexity of generative AI. Advanced AI models require immense computational power, leading to increased energy consumption in data centers. This trend is driving the adoption of more efficient cooling technologies, such as liquid cooling, which can reduce power usage effectiveness (PUE) and lower overall energy consumption. However, the market faces challenges in the form of grid constraints and power scarcity. As data centers continue to expand, there is a growing need for reliable and sustainable power sources. 
Companies must navigate these challenges by exploring renewable energy solutions, implementing energy storage systems, and optimizing energy usage through load balancing and power management strategies. By addressing these issues, organizations can effectively capitalize on the opportunities presented by the growing market while minimizing risks and ensuring long-term success. Grid infrastructure may struggle to keep up with the increasing demand for electricity, potentially leading to power outages or brownouts. IT service management and network security protocols are essential for maintaining system resilience and reliability.

What will be the Size of the AI Data Center Power Consumption Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the dynamic data center power consumption market, energy audit services play a crucial role in identifying inefficiencies and optimizing power usage. Power monitoring tools enable real-time tracking of energy consumption, while hardware lifecycle management ensures the efficient use of resources throughout the IT infrastructure. IT load forecasting and capacity planning tools help data center operators anticipate and manage power demands. Remote monitoring systems and thermal modeling facilitate infrastructure upgrades and cooling system design, enhancing data center resiliency. Cooling technology advancements, such as dynamic power allocation and power factor correction, contribute to energy efficiency standards and energy-efficient design. PUE metrics and server utilization rates are essential indicators of data center optimization.

Energy cost reduction strategies, including renewable energy integration and energy procurement, are increasingly popular. AI-powered analytics enable data centers to optimize server power consumption and improve overall energy efficiency. Infrastructure upgrades and power infrastructure design are critical in addressing the growing data center footprint. Real-time monitoring and cooling system design are essential for maintaining optimal conditions and ensuring data center reliability. Capacity planning tools and server power consumption management help data center operators make informed decisions and reduce energy waste. Strategic data center migration and cloud migration services are essential for businesses seeking operational agility and reduced on-premise dependency.

How is this AI Data Center Power Consumption Industry segmented?

The AI data center power consumption industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Technology

  Above 5 MW
  1 - 5 MW
  Less than 500 kW
  500 kW - 1 MW


Type

  Hyperscale data centers
  Colocation data centers
  Enterprise data centers
  Edge data centers


End-user

  IT and telecom
  BFSI
  Healthcare
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Technology Insights

The Above 5 MW segment is estimated to witness significant growth during the forecast period. In the realm of data center power consumption, the market's dynamics are shaped by various interconnected entities. Uninterruptible power supplies ensure uninterrupted operations, while energy consumption monitoring enables efficient usage. DCIM software solutions optimize infrastructure, and energy storage systems provide backup power. HVAC optimization and thermal management solutions enhance operational efficiency, reducing carbon footprints. Data center modernization embraces renewable energy sources and server energy efficiency. Precision cooling systems, waste heat recovery, and liquid cooling systems further optimize power usage effectiveness. Virtualization te

Since 2020, global data center power demand has significantly increased, with artificial intelligence (AI) forecast to require *** terawatt-hours by 2030. Global data center power demand has increased year-on-year since 2019 and reached *** terawatt-hours in the United States in 2023 when excluding AI use.

U.S. power consumption is projected to reach record highs in 2025 and 2026, driven by increased demand from data centers, AI, and cryptocurrency, with a shift towards renewable energy sources.

According to a 2024 forecast, global electricity consumption of data centers was projected to grow from *** terawatt-hours in 2022 to over one petawatt-hour in 2030. This would represent around *** percent of the total electricity consumption worldwide by the end of the period under consideration. Artificial intelligence accounted for around *** percent of the data centers' electricity consumption in 2023. This figure is projected to grow over the next five years.

The electricity usage of data centers in the United States is expected to increase year-on-year from 2023 to 2030, reaching an **** percent share of total electricity demand in the latter year. In 2023, data centers in the U.S. demanded *** terawatt-hours of electricity.

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China Data Center Market Size 2025-2029

The China data center market size is forecast to increase by USD 274.39 billion at a CAGR of 38.3% between 2024 and 2029.

The market is experiencing significant growth due to several key trends. One of the primary drivers is the increasing demand for hyper-converged data centers, which offer improved efficiency and agility for businesses. Another trend is the adoption of server disaggregation, enabling better utilization rates and reducing hardware waste. The adoption of 5G networks and edge computing is leading to faster data transmission speeds and the deployment of micro data centers. Additionally, there is a growing focus on consolidating data centers to reduce operational costs and enhance data security. These trends are shaping the future of the data center landscape and are expected to continue driving market growth in the coming years.

What will be the size of the China Data Center Market during the forecast period?

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The market is experiencing strong growth due to the expanding user base and increasing digital services adoption. Businesses require efficient infrastructure to support their data storage needs and ensure scalability in the face of growing data volumes. Regulatory requirements and sustainability concerns are driving the demand for energy-efficient solutions, such as green data centers powered by renewable energy like solar, wind, and hydroelectric electricity. Advanced technologies like artificial intelligence and machine learning are fueling the need for high computing power and large storage capacity. Hyper scalability is a key requirement for large enterprises, necessitating the use of cloud services and automation in modern business processes. The data center market is expected to continue its growth trajectory, driven by these trends and the increasing importance of data in business operations.
The market is witnessing hyper scalability, with the deployment of 5G networks and edge computing services enabling faster data transmission speeds and micro data centers for decentralized processing. Large enterprises are also leveraging cloud services for business scalability and advanced technologies like artificial intelligence and machine learning for data analysis. Automation is a significant trend In the market, streamlining operations and reducing human intervention. The market is expected to continue its growth trajectory, driven by these trends and the increasing importance of data In the digital economy.
The China data center market is experiencing robust growth, driven by the expansion of hyperscale data centers and edge computing. Cloud service growth is fueling the demand for high-density server deployment, while AI-driven infrastructure enhances operational efficiency. The adoption of liquid cooling technology and green data centers is addressing energy efficiency concerns, with renewable energy becoming a priority. Colocation services are gaining popularity, and the rise of 5G data processing is accelerating data handling capabilities. Government regulations are shaping the landscape, while hybrid cloud adoption and modular data centers offer flexibility. Additionally, digital transformation initiatives are pushing the need for smart data center solutions to meet evolving business demands.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Component

  IT infrastructure
  Power management
  Mechanical construction
  General construction
  Others


End-user

  BFSI
  Telecom and IT
  Government
  Energy and utilities
  Others


Geography

  China

By Component Insights

The it infrastructure segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth due to increasing digital services, data storage needs, and expanding user bases. Regulatory requirements and business scalability are driving the demand for efficient infrastructure, computing power, and green data centers. Renewable energy sources, such as solar, wind, and hydroelectric electricity, are being integrated to ensure sustainability and reduce energy consumption. Energy-efficient solutions and the implementation of 5G networks are enhancing data transmission speeds and enabling edge computing services. The market consists of the hardware and software segments, including enterprise network equipment, virtualization, professional services, hyperscale data centers, and various data center types, such as micro, compact, and modularized. Energy-efficient solutions and automation are crucial for reducing energy consumption and optimizing asset performance management. Large ent

Forecasts expect data centers to account for between *** and ** percent of total U.S. electricity consumption in 2028. The adoption of AI has been cited as a leading driver of surging data center demand in the U.S., with the technology requiring immense computing power.

Data Center Cables Market Outlook

The global data center cables market size was valued at approximately USD 9.5 billion in 2023 and is projected to reach around USD 15.8 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.9% during the forecast period. The rapid expansion of data centers globally and the increasing demand for high-speed data transfer are key growth factors driving this market. Additionally, the proliferation of cloud services, Internet of Things (IoT) devices, and edge computing solutions are further propelling the demand for advanced data center cabling solutions.

The data center cables market is witnessing significant growth due to the increasing demand for higher bandwidths and faster data transfer rates. With the exponential growth of data traffic, driven by the rise in online streaming, cloud computing, and IoT applications, data centers need to upgrade their infrastructure to handle the surge in data volume. This has resulted in a growing demand for high-performance cables that can support higher speeds and greater data throughput. The advancement in cable technologies, such as fiber optic cables, has further fueled market growth by providing reliable and high-speed data transmission solutions.

Another critical factor contributing to the market's growth is the shift towards green data centers. With increasing concerns over energy consumption and carbon footprint, data centers are adopting energy-efficient solutions, including advanced cabling systems that reduce power loss and enhance cooling efficiency. These green initiatives are driving the adoption of newer, more efficient cabling technologies that not only support higher data rates but also contribute to sustainability goals. Moreover, regulatory standards and guidelines promoting energy efficiency in data centers are encouraging the deployment of advanced cabling solutions.

The rise of edge computing is also a significant growth driver in the data center cables market. Edge computing involves placing computing resources closer to the source of data generation to reduce latency and bandwidth usage. This decentralized computing architecture requires robust and efficient cabling solutions to ensure seamless connectivity between edge nodes and central data centers. Consequently, the demand for specialized cables that can support edge computing infrastructure is on the rise, contributing to the overall growth of the data center cables market.

The concept of Data Centre Fabric is becoming increasingly relevant in the context of modern data centers. As data centers evolve to meet the demands of high-speed data processing and storage, the architecture of these facilities is also undergoing significant transformation. Data Centre Fabric refers to a network design that provides a flat, scalable, and high-performance interconnection between servers, storage, and networking equipment. This architecture is crucial for supporting the dynamic and flexible nature of cloud computing and virtualization technologies. By enabling efficient data flow and reducing latency, Data Centre Fabric enhances the overall performance and reliability of data center operations.

Regionally, North America holds a prominent position in the data center cables market, owing to the high concentration of data centers and technological advancements in the region. The presence of major cloud service providers and hyperscale data centers in the United States and Canada drives the demand for advanced cabling solutions. Additionally, investments in upgrading and expanding data center infrastructure to meet the growing data demand are further propelling market growth in North America. The Asia Pacific region is also expected to witness substantial growth due to the rapid digital transformation and urbanization in countries like China, India, and Japan, leading to increased data center deployments.

Product Type Analysis

The data center cables market can be segmented by product type into fiber optic cables, copper cables, direct attach cables, and active optical cables. Fiber optic cables are gaining significant traction due to their ability to support higher bandwidths and longer transmission distances. These cables are less susceptible to electromagnetic interference, making them ideal for high-speed data transmission in data centers. With the increasing adoption of 5G technology and the growing demand for ultra-fast internet services, the deployment of fiber optic cables is expected to

Belgium Data Center Power Market size was valued at USD 651 Million in 2024 and is projected to reach USD 1482 Million by 2032, growing at a CAGR of 10.3% from 2026 to 2032.

Key Market Drivers Rising Demand for Colocation and Cloud Services: The growing popularity of cloud computing and colocation services is driving up the demand for reliable power infrastructure in Belgian data centers. According to Statbel (Belgium's National Statistics Office), the Belgian ICT sector grew by 7.2% in 2023, owing to increased enterprise cloud use, which results in higher power consumption in data centers.

This dataset contains GCC Electricity Consumption and Production for 2012 - 2019. Data from GCC Statistical Center. Follow datasource.kapsarc.org for timely data to advance energy economics research.

According to Cognitive Market Research, the global Hyperscale Data Center market size will be USD XX million in 2025. It will expand at a compound annual growth rate (CAGR) of XX% from 2025 to 2031.

North America held the major market share for more than XX% of the global revenue with a market size of USD XX million in 2025 and will grow at a CAGR of XX% from 2025 to 2031. Europe accounted for a market share of over XX% of the global revenue with a market size of USD XX million in 2025 and will grow at a CAGR of XX% from 2025 to 2031. Asia Pacific held a market share of around XX% of the global revenue with a market size of USD XX million in 2025 and will grow at a CAGR of XX% from 2025 to 2031. Latin America had a market share of more than XX% of the global revenue with a market size of USD XX million in 2025 and will grow at a CAGR of XX% from 2025 to 2031. Middle East and Africa had a market share of around XX% of the global revenue and was estimated at a market size of USD XX million in 2025 and will grow at a CAGR of XX% from 2025 to 2031. KEY DRIVERS

Increased Adoption of Cloud Computing is boosting the market growth

The growing adoption of cloud computing is one of the primary drivers fueling the expansion of the hyperscale data center market. As businesses increasingly move to cloud-based solutions for computing, storage, and application services, there is a heightened demand for data centers capable of handling massive data volumes and complex computational tasks. Hyperscale data centers provide the necessary infrastructure to support this shift, offering high scalability, robust performance, and cost efficiency. For instance, in 2023, a report by Eurostat revealed that 45.2% of enterprises in the EU utilized cloud computing services, a 4.2% increase from 2021. (Source: https://ec.europa.eu/eurostat/web/products-eurostat-news/w/ddn-20231208-1#:~:text=In%202023%2C%2045.2%25%20of%20EU%20enterprises%20purchased%20cloud,4.2%20percentage%20point%20%28pp%29%20increase%20compared%20with%202021.) Leading cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have significantly invested in hyperscale data centers to support this trend, delivering on-demand computing resources to millions of businesses worldwide. As cloud computing continues to grow in importance, its demand for more processing power and storage will only increase. In fact, by 2026, the global cloud market is expected to reach over USD1 trillion, This surge is being driven by businesses' digital transformation, the rise of remote work, and the need for scalable IT solutions. AWS, for instance, operates some of the world’s largest hyperscale data centers, supporting everything from e-commerce to artificial intelligence applications. Similarly, Microsoft Azure has expanded its data center presence globally, allowing companies to leverage flexible cloud services while meeting security and compliance requirements. Thus, the increasing reliance on cloud services remains a critical driver of the hyperscale data center industry’s rapid growth.

Surge in Internet Users is further driving the Hyperscale Data Centre Market

The surge in internet users has created a significant demand for hyperscale data centers, as increased online activity generates a massive volume of data that needs to be processed, stored, and managed. According to Statistics Canada’s 2022 Canadian Internet Use Survey, internet usage among Canadians aged 15 and older rose from 92% in 2020 to 95% in 2022, highlighting the continued digital adoption across all age groups. (Source: https://www150.statcan.gc.ca/n1/daily-quotidien/230720/dq230720b-eng.htm) This trend is also reflected globally, with the total number of internet users surpassing 5 billion in 2023, according to the International Telecommunication Union (ITU). As more people engage in digital activities—such as streaming, social media, and e-commerce—the volume of data generated increases exponentially, creating a greater need for expansive data center infrastructure to handle the load. Companies like Netflix and YouTube, which rely on large-scale content delivery networks, depend on hyperscale data centers to provide seamless streaming services to billions of users globally. For instance, YouTube serves over 2 billion logged-in users per month, with massive data storage and processing needs. Similarly, Facebook and Instagram, both...

In 2022, traditional data centers accounted for a power demand of *** terawatt-hours, while the electricity used by artificial intelligence data centers was close to zero. By 2026, AI data centers demand is forecast to grow to ** terawatt-hours. By 2026, the overall electricity demand from traditional and AI data centers and cryptocurrencies is forecast to range between *** and **** terawatt-hours, depending on the scenario.

The U.S. Data Center Cooling Market size was valued at USD 5.02 billion in 2023 and is projected to reach USD 9.30 billion by 2032, exhibiting a CAGR of 9.2 % during the forecasts period. Due to the constantly rising temperatures in the U. S. , the market for cooling technologies and systems for technologies and systems in especially developed that maintain the ideal temperatures of the data centers. Some uses are to sustain the functionality of the servers, lessen energy utilization, and avoid hardware failure. Applications extend to cooling needs including air conditioning, liquid cooling, and economizer. Some of the emerging trends consist of energy conservation and sustainability measures in cooling techniques like liquid immersion cooling and facility maintenance through the use of AI. The prominent growth driver in its market is the accelerated growth rates of data centers as a result of the heightened demand for cloud services, big data, and Internet of Things and; heightened regulatory demands to minimize carbon emissions while increasing the power usage effectiveness. Recent developments include: In February 2023, Green Revolution Cooling, Inc. announced that SK Enmove, a lubricants company based in South Korea, is joining its ElectroSafe Fluid Partner Program, thereby making SK Enmove's patented immersion cooling fluids available to its data center clients worldwide. The two companies would also be able to work together to develop, innovate, and enhance novel fluid compositions , In March 2023, Rittal GmBH & Co. KG and STULZ GMBH entered into a global partnership in 2021 and have now begun following the partnership in the U.S.A. Consequently, the two recognized leaders will possess enhanced capabilities to provide clients with comprehensive, customized solutions. Rittal's extensive range of IT infrastructure will profit from Stulz's enlarged line of high-end IT and precision cooling systems. Rittal provides installation services, cooling units, power supply solutions, enclosures, and data center monitoring. Through this relationship, a wide range of cooling choices are combined with the flexibility and speed to build and expand complex IT assets , In May 2023, In Europe, Vertiv Group Corp. unveiled a liquid cooling distribution unit. In air-cooled data centers, methods such as direct-to-chip liquid cooling can be implemented thanks to the Liebert XDU, which was introduced in the US in 2019. Europe, the Middle East, and Africa can now purchase it. Water efficiency and support for high-density data centers running analytics and machine learning applications are key architectural features of the XDU. There are two capacities available: 450kW and a variant with a maximum capacity of 1368kW , In June 2022, Schneider Electric unveiled the Easy Modular Data Center Solution. For enterprise and IT organizations wanting to deploy an edge computing strategy, the Easy Modular Data Centers offer outstanding value by combining all cooling, power, and IT equipment into a single, pre-configured system. With extra customizable choices, they come in four standard form factors .

The global data center power market size was valued at USD 23,417.22 million in 2023 and it is expected to grow to USD 40,106.91 million by 2031 with a CAGR of 7.0%.

The data center power backup market is experiencing robust growth, driven by the increasing demand for reliable power in data centers globally. The rising adoption of cloud computing, edge computing, and the proliferation of large-scale data centers are key factors fueling this expansion. While precise market sizing requires specific data points, a reasonable estimate, considering typical industry growth rates and the significant investment in data center infrastructure, suggests a current market value of approximately $15 billion (this is an illustrative estimate and should be independently verified). A Compound Annual Growth Rate (CAGR) of 8-10% over the next decade seems plausible, considering the ongoing digital transformation and the critical role of power backup in maintaining data center uptime. Market segmentation reveals a strong emphasis on large data centers, reflecting the higher power requirements of these facilities. Uninterruptible Power Supplies (UPS) dominate the types segment, due to their reliability and advanced features. Geographic distribution shows a strong presence in North America and Europe, with Asia-Pacific emerging as a rapidly growing market, driven by substantial investments in digital infrastructure within countries like China and India. However, challenges such as the high initial investment cost of power backup systems and the complexity of integrating them effectively into existing infrastructure are potential restraints on growth. The competitive landscape is characterized by a mix of established players and emerging vendors. Major players like Vertiv, Eaton, and ABB hold significant market shares due to their extensive product portfolios, global reach, and strong brand reputation. However, several regional and specialized players are also gaining traction, particularly in rapidly growing markets. Future growth will likely be driven by technological advancements, such as the adoption of more efficient and sustainable power backup solutions, including those incorporating renewable energy sources. Furthermore, the increasing demand for higher power capacity and advanced features, like intelligent monitoring and remote management capabilities, will create new opportunities for innovation and market expansion. The forecast period of 2025-2033 anticipates continued robust growth, driven by the sustained demand for reliable power in an increasingly data-centric world.