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 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 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.

United States Data Center Power Market Size was valued at USD 13.20 Billion in 2024 and is projected to reach USD 31.6 Billion by 2032, growing at a CAGR of 11.5% from 2026 to 2032.

United States Data Center Power Market Drivers

1. AI and High-Density Computing Demands The surge in artificial intelligence (AI), machine learning, and high-performance computing has significantly increased power requirements. AI data centers are projected to triple their electricity consumption over the next three years, potentially accounting for 12% of the nation's total power usage.

2. Expansion of Cloud and Hyperscale Infrastructure The growing adoption of cloud services and the proliferation of hyperscale data centers necessitate robust power infrastructures. Major tech companies like Google, Amazon Web Services (AWS), and Microsoft are investing heavily in AI-focused data centers, further amplifying power demands.

3. Sustainability and Renewable Energy Initiatives Environmental concerns and regulatory pressures are pushing data centers toward sustainable energy solutions. Innovations such as fuel cells, lithium-ion batteries, and renewable energy sources like solar and wind are being integrated to reduce carbon footprints.

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.

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Data Center Power Market Size 2025-2029

The data center power market size is valued to increase USD 24.05 billion, at a CAGR of 10.8% from 2024 to 2029. Increasing investments in data centers will drive the data center power market.

Major Market Trends & Insights

North America dominated the market and accounted for a 29% growth during the forecast period.
By Product - Generators segment was valued at USD 6.89 billion in 2023
By End-user - IT and telecom segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 155.01 billion
Market Future Opportunities: USD 24.05 billion
CAGR from 2024 to 2029: 10.8%

Market Summary

The market is a dynamic and evolving sector, driven by increasing investments in data centers and high-performance computing (HPC) systems. According to recent reports, the market is projected to reach a significant market share by 2026, growing steadily due to the rising demand for cloud services and the increasing adoption of renewable energy sources. One of the major challenges in this market is the risk of UPS battery failure, which can lead to costly downtime and data loss.
However, opportunities abound, particularly in the adoption of advanced core technologies such as lithium-ion batteries and fuel cells, and the implementation of energy efficiency measures. Regulations, such as those mandating carbon reduction targets, also play a role in shaping the market landscape. For instance, in the European Union, the Energy Performance of Buildings Directive requires data centers to meet strict energy efficiency standards.

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

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How is the Data Center Power Market Segmented ?

The data center power industry 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.

Product

  Generators
  Transformers
  UPS
  Transfer switches and switchgears
  Others


End-user

  IT and telecom
  BFSI
  Energy
  Healthcare
  Retail


Services

  Design & Consulting
  Integration & Deployment
  Support & Maintenance
  Design & Consulting
  Integration & Deployment
  Support & Maintenance


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Product Insights

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

Data centers rely on generators as backup power sources during power outages. The selection of a generator depends on the required backup time and power capacity. Generators are categorized into gas, diesel, and bi-fuel types based on their fuel source. Enterprises consider fuel options to minimize generator operating costs. Currently, the market experiences significant growth. Approximately 30% of data centers worldwide have implemented generator installations, reflecting the increasing importance of an uninterrupted power supply. Moreover, the adoption of renewable energy sources in data centers has led to a 25% surge in the demand for generator installations.

Looking ahead, the market anticipates continued expansion. The market is projected to grow by 28% in the next five years, driven by the increasing digitalization of industries and the growing need for energy-efficient data center solutions. Power density, capacity planning, and cooling systems are essential components of data center design. Free cooling systems and liquid cooling technologies are gaining popularity due to their energy efficiency. Airflow management, rack power consumption, and power factor correction are other critical factors in optimizing power usage and cooling capacity. Energy storage systems, waste heat recovery, and electrical load balancing are essential for enhancing energy efficiency and reducing environmental impact.

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The Generators segment was valued at USD 6.89 billion in 2019 and showed a gradual increase during the forecast period.

Predictive maintenance, server power consumption, redundant power supplies, and precision cooling are vital strategies for managing power and maintaining optimal operating conditions. Electrical infrastructure, smart power distribution, UPS battery systems, critical power systems, and power monitoring systems are integral components of data center power management. Energy consumption monitoring and power quality are essential for ensuring efficient and reliable power management. Renewable energy sources, such as solar and wind, are increasingly being adopted to reduce carbon emissions and enhanc

Much of the world’s data are stored, managed, and distributed by data centers. Data centers re-quire a tremendous amount of energy to operate, accounting for around 1.8% of electricity use in the United States. Large amounts of water are also required to operate data centers, both directly for liquid cooling and indirectly to produce electricity. For the first time, we calculate spatially-detailed carbon and water footprints of data centers operating within the United States, which is home to around one-quarter of all data center servers globally. Our bottom-up approach reveals one-fifth of data center servers direct water footprint comes from moderately to highly water stressed watersheds, while nearly half of servers are fully or partially powered by power plants located within water stressed regions. Approximately 0.5% of total US greenhouse gas emissions are attributed to data centers. We investigate tradeoffs and synergies between data center’s water and energy utilization by strategically locating data centers in areas of the country that will minimize one or more environmental footprints. Our study quantifies the environmental implications behind our data creation and storage and shows a path to decrease the environmental footprint of our increasing digital footprint..

The size of the United States Data Center Server market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 8.50% during the forecast period.The United States Data Center Server Market refers to the production, distribution, and sales of servers tailored for use within data centers. Data center servers are high-performance computers that process and store large volumes of data and are the very backbone of modern digital infrastructure. They make possible functions such as cloud computing, e-commerce, social media, and financial transactions.These servers are known for their high performance, reliability, and energy efficiency. They are optimized for 24/7 operation in controlled environments, which feature redundant power supplies, advanced cooling systems, and robust security measures. Features such as these are designed to maximize the availability of services. The drivers behind this market include ever-growing adoption of cloud computing, higher and increasing demands on data storage and processing, and increasingly broad adoption of artificial intelligence and machine learning applications. Recent developments include: May 2023: By combining the Intersight infrastructure management platform with Unified Computing System (UCS) X-Series servers, Cisco says it can reduce data center energy consumption by up to 52 percent at a four-to-one (4:1) server consolidation ratio., March 2023: Supermicro has launched a new server that uses a standalone liquid cooling system and is designed as a platform for developing and running AI software. SYS-751GE-TNRT-NV1 Server is overheating. It features four NVIDIA A100 GPUs consuming 300 W each and is liquid-cooled by a standalone system.. Key drivers for this market are: Significant investment in IT infrastructure, Digitalization in Healthcare sector. Potential restraints include: Increasing number of Data Security Breaches. Notable trends are: IT & Telecommunication Is The Largest Market In The Country.

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.

After years of stagnant growth, U.S. electricity demand recently surged. This increase was driven in part by the commercial sector, particularly the rapid expansion of data centers and the adoption of artificial intelligence. The surge is expected to continue, signaling a shift toward a more electrified economy, with significant implications for economic competitiveness and energy infrastructure.

Data Center Energy Management Market Outlook

According to our latest research, the global data center energy management market size reached USD 12.6 billion in 2024, reflecting robust growth driven by rapid digital transformation and the increasing demand for sustainable IT infrastructure. The market is poised to grow at a CAGR of 13.4% from 2025 to 2033, with the total value forecasted to reach USD 40.2 billion by 2033. This impressive expansion is primarily fueled by the proliferation of hyperscale data centers, the rising adoption of cloud computing, and stringent energy efficiency regulations worldwide.

One of the primary growth factors propelling the data center energy management market is the surging global data traffic, which has led to an exponential increase in the number and size of data centers. As organizations across various sectors migrate to digital platforms and embrace cloud-based solutions, the energy consumption of data centers has soared. This has created a pressing need for advanced energy management solutions that can optimize power usage, minimize operational costs, and ensure compliance with environmental standards. Furthermore, the growing integration of artificial intelligence and IoT technologies in data centers is enabling more granular monitoring and dynamic control of energy consumption, driving further innovation and adoption in the market.

Another significant driver is the increasing regulatory pressure on organizations to reduce their carbon footprint and enhance energy efficiency. Governments and regulatory bodies across major economies are implementing stringent policies and incentives to promote green data centers and sustainable IT practices. This regulatory landscape is compelling data center operators to invest in state-of-the-art energy management systems that facilitate real-time monitoring, predictive analytics, and automated optimization of energy usage. Additionally, the rising corporate emphasis on ESG (Environmental, Social, and Governance) goals is encouraging enterprises to adopt energy-efficient technologies, further boosting market growth.

The rapid evolution of data center architectures, including the emergence of edge computing and modular data centers, is also shaping the energy management landscape. As organizations deploy distributed data centers closer to end-users to support latency-sensitive applications, the complexity of managing energy consumption across geographically dispersed sites increases. This complexity necessitates scalable and flexible energy management solutions that can seamlessly integrate with diverse IT and facility infrastructures. The growing collaboration between hardware, software, and service providers is resulting in holistic solutions that address the unique energy management challenges of modern data centers, thereby expanding the market’s addressable scope.

From a regional perspective, North America continues to dominate the data center energy management market, accounting for a significant share owing to the presence of major cloud service providers, advanced IT infrastructure, and proactive regulatory frameworks. However, the Asia Pacific region is emerging as the fastest-growing market, driven by rapid digitalization, increasing investments in hyperscale data centers, and supportive government initiatives for energy efficiency. Europe also remains a key market, with stringent sustainability mandates and a strong focus on renewable energy integration in data center operations. The Middle East & Africa and Latin America are witnessing steady growth, fueled by expanding digital economies and rising data center investments.

Component Analysis

The data center energy management market by component is segmented into hardware, software, and services, each playing a pivotal role in the holistic management of energy consumption within data centers. Hardware components, such as intelligent power distribution units (PDUs), advanced cooling systems, and energy-efficient servers, form the backbone of energy management infrastructure. These devices are increasingly equipped with sensors and real-time monitoring capabilities, enabling precise measurement and control of power usage at granular levels. The growing adoption of high-density computing and the need for efficient thermal management are driving significant investments in innovative hardware solutions, which contribute substantially to reducing overall data center energy consumption.<br

Carbon Neutral Data Center Market Outlook

The global carbon neutral data center market is poised for substantial growth, with the market size reaching approximately USD 5.3 billion in 2023 and projected to escalate to nearly USD 23.7 billion by 2032, reflecting a compound annual growth rate (CAGR) of 18.2%. This vibrant expansion is driven by an increasing commitment to environmental sustainability, spurred by both regulatory pressures and corporate social responsibility initiatives. Organizations across various industry verticals are investing heavily in carbon-neutral solutions to mitigate their environmental impact, which significantly bolsters market growth.

A primary growth factor for the carbon neutral data center market is the rising awareness and demand for sustainable practices. As the effects of climate change become more pronounced, there is a growing consensus among businesses and governments to reduce their carbon footprints. Data centers, known for their high energy consumption, are at the forefront of this movement. The push for carbon neutrality is not just a matter of compliance but also a strategic move to enhance brand image and operational efficiency. Additionally, advancements in renewable energy technologies, such as solar and wind power, have made it more feasible for data centers to transition to green energy sources.

Technological innovations in data center infrastructure are another significant growth driver. Modern data centers are being equipped with state-of-the-art energy-efficient hardware and software solutions that reduce overall power consumption. Innovations such as liquid cooling, advanced power management systems, and efficient cloud computing solutions are critical in achieving carbon neutrality. These technologies not only reduce energy use but also enhance the performance and reliability of data centers, providing a dual benefit of sustainability and operational efficiency.

Moreover, supportive regulatory frameworks and government incentives are playing a crucial role in market expansion. Various regions have introduced stringent regulations to curb carbon emissions, pushing data centers to adopt greener practices. Incentives such as tax rebates, grants, and subsidies for the deployment of renewable energy sources and energy-efficient technologies are encouraging data center operators to invest in carbon-neutral solutions. This regulatory support is pivotal in accelerating the adoption of sustainable practices across the data center industry.

Regionally, North America is expected to lead the market, driven by a robust technological infrastructure and significant investments in green data center technologies. Europe follows closely, benefiting from stringent environmental regulations and a strong commitment to sustainability. The Asia Pacific region is poised for rapid growth, fueled by increasing digital transformation initiatives and rising investments in renewable energy. Emerging economies in Latin America and the Middle East & Africa are also showing considerable potential, driven by growing awareness and supportive government policies.

Component Analysis

The carbon neutral data center market can be categorized by components into hardware, software, and services. In terms of hardware, the demand for energy-efficient servers, storage devices, and networking equipment is on the rise. These hardware components are designed to consume less power and generate less heat, thereby reducing the overall carbon footprint of data centers. Innovations in hardware, such as the development of high-efficiency power supplies and advanced cooling systems, are crucial in enabling data centers to achieve carbon neutrality. Additionally, the adoption of renewable energy-powered hardware solutions is gaining traction, further driving market growth.

Software solutions play a pivotal role in managing and optimizing the operational efficiency of carbon neutral data centers. Energy management software, for instance, allows operators to monitor and control energy consumption in real-time, enabling them to make data-driven decisions to enhance energy efficiency. Advanced analytics and AI-driven software applications are also instrumental in predicting energy usage patterns and optimizing resource allocation. These software solutions are essential in achieving and maintaining carbon neutrality, as they provide the tools needed to minimize energy waste and improve overall efficiency.

The services segment encompasses a wide range of offerings, including consulting, implementation, and maintenance services.

Power Usage Analytics for Data Centers Market Outlook

According to our latest research, the Global Power Usage Analytics for Data Centers market size was valued at $2.1 billion in 2024 and is projected to reach $7.8 billion by 2033, expanding at a CAGR of 15.2% during the forecast period of 2025–2033. The primary driver fueling this robust growth is the escalating demand for energy-efficient solutions and operational optimization in data centers, as organizations worldwide seek to reduce energy costs, comply with stringent environmental regulations, and support sustainability initiatives. The growing proliferation of data-intensive applications, cloud computing, and the digital transformation of enterprises is further amplifying the need for advanced power usage analytics to ensure reliability, scalability, and efficient resource allocation within data centers.

Regional Outlook

North America currently commands the largest share of the Power Usage Analytics for Data Centers market, accounting for over 38% of the global revenue in 2024. This dominance is attributed to the region’s mature data center ecosystem, widespread adoption of advanced IT infrastructure, and the presence of major cloud service providers and hyperscale data centers. Regulatory frameworks such as the U.S. Department of Energy’s energy efficiency standards and various state-level green initiatives are compelling operators to invest in sophisticated analytics platforms for power optimization. Additionally, the high concentration of tech giants and a strong focus on sustainability and carbon footprint reduction are further accelerating the deployment of power usage analytics solutions across North America, reinforcing its leadership in the global market.

The Asia Pacific region is poised to be the fastest-growing market, projected to expand at a remarkable CAGR of 18.7% through 2033. This rapid growth is underpinned by massive investments in digital infrastructure, particularly in emerging economies like China, India, and Southeast Asian nations. The surge in internet penetration, cloud adoption, and the rise of smart city initiatives are driving the construction of new data centers and the modernization of existing facilities. Governments across Asia Pacific are introducing incentives and policy reforms to promote energy efficiency and green data center development, which in turn is boosting the adoption of power usage analytics solutions. The influx of foreign direct investment and the expansion strategies of global cloud providers are further catalyzing market growth in this dynamic region.

In contrast, emerging economies in Latin America and the Middle East & Africa are experiencing a gradual yet steady uptake of power usage analytics for data centers. While these regions collectively account for a smaller market share, their growth potential is significant due to increasing digital transformation efforts and the rising importance of data sovereignty. However, adoption is challenged by factors such as limited access to advanced technologies, budget constraints, and a lack of skilled professionals. Policy support is gradually improving, with governments introducing measures to encourage energy-efficient practices and attract foreign investment. As awareness of operational efficiency and sustainability grows, these markets are expected to witness accelerated adoption in the latter half of the forecast period.

Report Scope

The North America data center power market, valued at $14.80 billion in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 6.83% from 2025 to 2033. This surge is primarily driven by the increasing adoption of cloud computing, the proliferation of big data analytics, and the expanding digital transformation initiatives across various sectors. The rising demand for high-availability power solutions, coupled with stringent regulatory requirements for energy efficiency, further fuels market expansion. Growth is particularly strong within the hyperscaler segment, reflecting the massive power needs of large-scale data centers. Within the solution types, power distribution solutions currently dominate, but power backup solutions are witnessing significant growth, driven by the need for uninterrupted operations in data centers. Key players like Vertiv, ABB, Schneider Electric, and Eaton are strategically investing in research and development to enhance their product offerings and cater to evolving market needs, particularly focusing on innovative solutions that improve energy efficiency and reduce carbon footprint. This competitive landscape fosters innovation and drives down costs, benefiting end-users. The BFSI, IT and Telecom, and Government sectors represent significant end-user segments, showcasing the market's importance across diverse industries. The North American region's dominance in the data center power market is fueled by a robust technological infrastructure, a high concentration of hyperscale data centers, and substantial investments in digital infrastructure. While the United States leads the market, Canada and Mexico are experiencing noteworthy growth, driven by increasing government initiatives and private sector investments in expanding data center capacity. However, market growth faces some restraints, including the high initial investment costs associated with implementing advanced power solutions and the ongoing challenge of ensuring grid stability to meet the soaring energy demands of data centers. Nevertheless, the long-term outlook for the North America data center power market remains positive, supported by ongoing technological advancements, increasing data consumption, and a growing need for reliable and efficient power infrastructure. Strategic partnerships and mergers and acquisitions are also expected to reshape the market landscape in the coming years. Recent developments include: June 2023 - CyberPower released an update for its Three-Phase Intelligent LCD PDU firmware. It adds support for a new environmental sensor, SNEV001, and allows users to enable/disable cipher suites for the SSL Server., June 2023 - Legrand introduced the industry’s next-generation intelligent rack Power Distribution Units (PDUs). The Server Technology PRO4X and Raritan PX4 rack PDUs are poised to redefine power management in data centers with exceptional visibility, cutting-edge hardware, and enhanced security.. Key drivers for this market are: Rising Adoption of Mega Data Centers and Cloud Computing, Increasing Demand to Reduce Operational Costs. Potential restraints include: Rising Adoption of Mega Data Centers and Cloud Computing, Increasing Demand to Reduce Operational Costs. Notable trends are: IT and Telecom to Hold Significant Share.

The net electricity consumption in the United States was projected to grow by approximately 45 percent between 2024 and 2050, reaching some 5.7 petawatt-hours in the latter year. The main drivers of this growth will be data centers and the transportation sector.

Data Center Power Distribution Market Outlook

According to our latest research, the global data center power distribution market size in 2024 stands at USD 8.2 billion, reflecting a robust ecosystem that underpins the expanding digital infrastructure worldwide. The market is projected to grow at a CAGR of 7.1% from 2025 to 2033, reaching an estimated value of USD 15.3 billion by 2033. This impressive growth trajectory is primarily driven by the exponential surge in data generation, the proliferation of cloud computing, and the increasing adoption of high-density computing environments. As per our comprehensive analysis, the market’s expansion is further catalyzed by the relentless demand for energy-efficient and reliable power distribution systems within data centers to ensure operational continuity and minimize downtime.

One of the most significant growth factors for the data center power distribution market is the rapid expansion of hyperscale and colocation data centers. As global enterprises and service providers migrate toward digital and cloud-first strategies, there is an unprecedented need for robust data infrastructure. Hyperscale data centers, in particular, require advanced power distribution solutions to manage the high-density computing loads and ensure seamless scalability. These facilities are increasingly deploying intelligent power distribution units, busways, and advanced switchgear to optimize energy efficiency and reduce operational costs. Furthermore, the integration of renewable energy sources and sustainable power management practices is becoming a critical consideration, pushing vendors to innovate and deliver eco-friendly solutions that align with global sustainability goals.

Another critical driver is the technological evolution in power distribution components and systems. The emergence of smart power management solutions, equipped with real-time monitoring, predictive analytics, and automation capabilities, is transforming how data centers manage their power infrastructure. Such advancements enable proactive maintenance, enhance reliability, and prevent costly outages. Additionally, the growing adoption of three-phase power distribution systems is supporting the increasing power demands of modern IT equipment, further fueling market growth. The convergence of Internet of Things (IoT) technologies and artificial intelligence in power distribution units is also enabling data center operators to achieve granular visibility and control over their energy consumption, thereby optimizing operational efficiency.

Regulatory compliance and industry standards are also playing a pivotal role in shaping the data center power distribution market. Governments and industry bodies across major economies are implementing stringent energy efficiency and safety standards, compelling data center operators to upgrade their power distribution infrastructure. These regulations are particularly pronounced in regions with high data center density, such as North America and Europe, where energy consumption and carbon emissions are under close scrutiny. As a result, there is a marked shift toward the adoption of modular and scalable power distribution solutions that not only ensure compliance but also provide flexibility for future expansion. This regulatory landscape is fostering a competitive environment, encouraging continuous innovation and investment in advanced power distribution technologies.

From a regional perspective, Asia Pacific is emerging as a critical growth engine for the data center power distribution market. The region’s rapid digital transformation, coupled with significant investments in cloud infrastructure by global technology giants, is driving substantial demand for state-of-the-art data centers. Countries such as China, India, and Singapore are witnessing a surge in data center construction, fueled by the booming e-commerce, fintech, and telecommunications sectors. Meanwhile, North America continues to hold a dominant market share, underpinned by the presence of leading cloud service providers and a mature digital ecosystem. Europe is also witnessing steady growth, propelled by government initiatives to promote digitalization and energy efficiency. The Middle East & Africa and Latin America, while currently representing smaller market shares, are poised for accelerated growth as digital adoption intensifies across these regions.

Component Analysis

The component seg

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.

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US Data Center Construction Market Size 2025-2029

The US data center construction market size is forecast to increase by USD 15.02 billion at a CAGR of 10.8% between 2024 and 2029.

US Data Center Construction Market is experiencing significant growth due to the increasing number of data centers being constructed to meet the surging demand for digital services and cloud computing. This trend is driven by the shift towards remote work and learning, as well as the increasing adoption of Internet of Things (IoT) devices and advanced technologies such as artificial intelligence and machine learning. Another key trend in the market is the focus on constructing eco-friendly data centers. With growing concerns over energy consumption and carbon footprint, data center operators are investing in renewable energy sources and energy-efficient designs to reduce their environmental impact.
However, the market is not without challenges. Cybersecurity issues remain a major concern, with data centers being prime targets for cyber attacks due to the sensitive information they house. As such, data center operators must invest in robust security systems and implement strict access controls to mitigate these risks. However, cybersecurity challenges must be addressed to ensure the secure operation of these facilities. Companies seeking to capitalize on market opportunities should focus on energy efficiency, cybersecurity, and sustainability to stay competitive.

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

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US data center construction market is experiencing robust growth, driven by the increasing demand for advanced telecommunications infrastructure to support IT and telecommunications industries, government and defense sectors, 5G networks, cloud-based services, and edge data centers. This growth is reflected in the significant expansion of data center capacity, with a focus on electrical infrastructure, including UPS systems, and mechanical infrastructure, such as cooling systems. Edge data centers and edge computing are also gaining traction due to the need for real-time data processing and data-driven decision-making.
The market's size is substantial, with billions of dollars being invested annually. Physical damage from natural disasters and the increasing importance of advanced technology solutions are additional factors contributing to the market's momentum. Overall, the data center construction market is a dynamic and evolving sector, underpinned by the ongoing digital transformation and the growing importance of technology in various industries.

How is this market segmented?

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.

Application

  Enterprise
  Cloud
  Colocation
  Hyperscale


End-user

  IT and telecom
  BFSI
  Government and defense
  Others


Infrastructure

  Electrical Infrastructure
  Mechanical Infrastructure
  Networking Infrastructure
  Power Distribution & Cooling Infrastructure


Geography

  US

By Application Insights

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

In today's digital economy, businesses across sectors including healthcare, finance, and IT are undergoing transformation through the adoption of cloud computing, big data analytics, IoT devices, and artificial intelligence (AI). The resulting surge in digital data from various sources necessitates the need for advanced data center infrastructure. Enterprise data centers must provide high-capacity storage and processing capabilities to manage and analyze vast volumes of data efficiently. This data is generated from sources such as social media, mobile devices, IoT sensors, and business applications. By deriving actionable insights from this data, businesses can support decision-making processes and optimize operations.

The electrical infrastructure of data centers includes UPS systems and other electrical infrastructure, while mechanical infrastructure comprises cooling systems. IT and telecommunications sectors are significant consumers of data center services, including cloud-based data storage, cloud applications, and AI algorithms. Government and defense sectors also utilize data centers for cloud-based healthcare solutions, smart devices, and disaster recovery protocols. The adoption of cloud computing and edge computing, 5G networks, and telecommunication providers' cloud-based services is driving the demand for data centers. However, data security and cyber threats, including data breaches, remain critical concerns. Innovative designs, modular power infrastructure, and OPEX savings through real-time monitoring software and free cooling techniques are essential

Renewable Energy Powered Data Center Market Outlook

According to our latest research, the Global Renewable Energy Powered Data Center market size was valued at $8.7 billion in 2024 and is projected to reach $38.5 billion by 2033, expanding at a robust CAGR of 17.9% during the forecast period of 2025–2033. One of the primary factors fueling this remarkable growth is the increasing commitment among enterprises and hyperscale operators to decarbonize their operations, driven by both regulatory mandates and the mounting demand from stakeholders for sustainable digital infrastructure. As data centers continue to consume vast amounts of electricity, the integration of renewable energy sources such as solar, wind, hydroelectric, and biomass is becoming not only a strategic advantage but also a necessity for meeting global sustainability targets and ensuring long-term operational cost savings.

Regional Outlook

North America currently holds the largest share of the Renewable Energy Powered Data Center market, accounting for approximately 37% of the global revenue in 2024. This dominance is attributed to the region's mature digital infrastructure, early adoption of advanced data center technologies, and robust regulatory frameworks supporting renewable energy integration. The United States, in particular, has seen significant investment from hyperscale cloud providers and colocation operators, who are leveraging abundant wind and solar resources to power massive data centers in states such as Texas, Iowa, and Virginia. Furthermore, government incentives, renewable energy credits, and aggressive corporate sustainability pledges have created a conducive environment for rapid expansion. The presence of leading technology firms and a well-established ecosystem of renewable energy suppliers further solidifies North America's leadership in this sector.

Asia Pacific is emerging as the fastest-growing region in the Renewable Energy Powered Data Center market, with an impressive projected CAGR of over 21% between 2025 and 2033. This rapid growth is fueled by the exponential rise in digital services, cloud adoption, and data consumption across countries like China, India, Singapore, and Australia. Governments in the region are implementing ambitious renewable energy targets and offering incentives to attract data center investments. Notably, Singapore’s Green Data Centre Roadmap and India’s renewable energy auctions have spurred hyperscale and enterprise operators to prioritize green energy procurement. The influx of foreign direct investment, combined with local innovation in solar, wind, and hydroelectric power, is accelerating the deployment of next-generation, energy-efficient data centers throughout Asia Pacific.

Emerging economies in Latin America and the Middle East & Africa are gradually adopting renewable energy powered data centers, although they face unique challenges. While countries such as Brazil, Chile, the United Arab Emirates, and South Africa are investing in solar and wind infrastructure, limited grid reliability, regulatory complexity, and high upfront capital costs can impede widespread adoption. Nevertheless, localized demand for digital transformation, rising internet penetration, and government-led clean energy initiatives are laying the groundwork for future growth. In these regions, partnerships between global technology firms and local utilities, as well as the development of modular or edge data centers powered by renewables, are helping to overcome some of the initial barriers and foster a more sustainable digital ecosystem.

Report Scope

48V Power Architecture for Data Centers Market Outlook

According to our latest research, the 48V Power Architecture for Data Centers market size reached USD 5.7 billion globally in 2024. The market is exhibiting a robust growth trajectory, with a recorded CAGR of 15.2% from 2025 to 2033. By the end of 2033, the market is forecasted to reach USD 19.3 billion, driven by the escalating demand for energy-efficient power solutions in the data center industry. This growth is primarily fueled by the rapid expansion of hyperscale data centers, increasing power density, and the pressing need to minimize energy loss and operational costs in modern IT infrastructures.

One of the key growth factors propelling the 48V Power Architecture for Data Centers market is the significant surge in demand for high-efficiency power distribution systems. As data centers continue to scale up in size and complexity, traditional 12V architectures are proving inadequate for supporting the higher power requirements of advanced servers and networking equipment. The adoption of 48V systems enables more efficient power conversion and distribution, reducing losses and allowing for denser, more compact data center designs. With the proliferation of AI, machine learning, and big data analytics workloads, data centers are under immense pressure to deliver higher performance while keeping energy consumption in check, making the transition to 48V architectures increasingly attractive.

Another critical driver is the growing emphasis on sustainability and operational cost reduction within the data center sector. Power consumption remains one of the largest operational expenditures for data centers, and operators are continuously seeking innovative solutions to enhance energy efficiency. 48V power architectures offer significant advantages in this regard, as they reduce the number of conversion stages and associated losses compared to legacy systems. This not only results in lower electricity bills but also contributes to reduced carbon emissions, aligning with the environmental goals of major cloud service providers and colocation operators. As regulatory pressures mount and customers demand greener operations, the shift toward 48V solutions is expected to accelerate.

Technological advancements and industry standardization are also playing a pivotal role in the market’s expansion. The development of advanced power supply units, converters, and battery technologies compatible with 48V architectures has lowered the barriers to adoption for both new and retrofitted data centers. Furthermore, industry consortia and standards bodies are working to harmonize specifications, ensuring interoperability and reliability across different vendors’ products. These efforts are fostering a vibrant ecosystem of suppliers and integrators, further stimulating market growth. Additionally, the ongoing evolution of edge computing and distributed data center architectures is creating new opportunities for 48V power solutions, as these environments require compact, scalable, and efficient power delivery systems.

From a regional perspective, North America remains the dominant market for 48V Power Architecture for Data Centers, owing to the concentration of hyperscale data centers and leading technology firms in the United States. However, Asia Pacific is emerging as the fastest-growing region, driven by rapid digital transformation, expanding cloud adoption, and significant investments in new data center infrastructure across China, India, and Southeast Asia. Meanwhile, Europe is witnessing steady growth, supported by stringent energy efficiency regulations and increasing demand for green data centers. Latin America and the Middle East & Africa, while smaller in market share, are gradually catching up as digital economies mature and investments in data center capacity ramp up.

Component Analysis

The Component segment of the 48V Power Architecture for Data Centers market encompasses a diverse range of products, including power supply units, converters, distribution systems, batteries, and other ancillary components. Power supply units (PSUs) form the backbone of 48V architectures, offering high conversion efficiency and reliability essential for mission-critical data center operations. As data centers strive to maximize uptime and reduce energy waste, the demand for advanced PSUs with intelligent monitoring and adaptive control