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.

Data Center Power Market Outlook

The global data center power market size was valued at approximately USD 20 billion in 2023 and is expected to reach around USD 40 billion by 2032, growing at a compound annual growth rate (CAGR) of about 7.5% from 2024 to 2032. This growth can be attributed to the increasing demand for energy-efficient power solutions in data centers, which have become essential for the continuous and reliable operation of IT infrastructure. The rising adoption of cloud computing, the proliferation of big data, and the expansion of edge computing are key factors driving the market's expansion during the forecast period.

One of the primary growth factors in the data center power market is the exponential increase in data generation and storage needs. With the advent of emerging technologies like the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML), the volume of data generated has skyrocketed, necessitating the development of robust and efficient data center infrastructures. This surge in data has led to a heightened demand for data centers that can handle large-scale processing and storage requirements, subsequently driving the need for advanced power solutions to ensure seamless operations and minimize downtime.

Another significant driver of market growth is the shift towards sustainable and energy-efficient solutions. Governments and regulatory bodies worldwide are imposing stringent energy consumption and carbon emissions standards on data centers. This has compelled data center operators to adopt green energy solutions, such as advanced power distribution units (PDUs) and uninterruptible power supply (UPS) systems, to enhance energy efficiency. Moreover, the integration of renewable energy sources, like solar and wind power, into data center operations is gaining traction, further propelling the growth of the data center power market.

The increased focus on edge computing is also playing a crucial role in the market's expansion. As businesses seek to deliver faster and more efficient services to end-users, the deployment of edge data centers closer to the data source has become imperative. These edge data centers necessitate sophisticated power systems that can provide reliable and uninterrupted power supply in remote and often challenging environments. Consequently, the demand for innovative power solutions tailored to the requirements of edge computing is expected to witness significant growth in the coming years.

From a regional perspective, North America continues to dominate the data center power market, driven by the presence of major tech companies and a robust IT infrastructure. However, the Asia Pacific region is anticipated to exhibit the highest growth rate during the forecast period, fueled by the rapid digital transformation initiatives, increasing internet penetration, and the expansion of cloud-based services in countries like China, India, and Japan. Europe, Latin America, and the Middle East & Africa are also expected to witness steady growth, supported by ongoing investments in data center infrastructure and the adoption of advanced power management solutions.

Component Analysis

The data center power market by component is segmented into solutions and services. The solutions segment encompasses products like uninterruptible power supply (UPS) systems, power distribution units (PDUs), generators, and transfer switches and switchgears. These solutions are critical for ensuring the uninterrupted operation of data centers, protecting against power outages, and optimizing energy consumption. The increasing deployment of hyperscale data centers and the rising demand for energy-efficient power solutions are driving the growth of the solutions segment.

UPS systems, in particular, are witnessing substantial demand due to their ability to provide emergency power to data centers during outages and stabilize power fluctuations. Innovations in UPS technology, such as the integration of lithium-ion batteries and modular designs, are further enhancing their efficiency and reliability. Additionally, PDUs are gaining traction for their role in distributing electrical power to various data center components while ensuring optimal load balancing and energy management.

The services segment includes installation, maintenance, and consulting services that ensure the smooth operation

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.

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Green Data Center Market Size 2025-2029

The green data center (GDC) market size is forecast to increase by USD 90.65 billion, at a CAGR of 13.2% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing electricity consumption and rising costs associated with traditional data centers. This trend is pushing organizations to adopt energy-efficient solutions, making GDCs an attractive alternative. Another key driver is the growing adoption of Data Center Infrastructure Management (DCIM) solutions and automation technologies, which enable better energy management and resource utilization in GDCs. However, the high cost of building and maintaining these facilities remains a significant challenge.
Additionally, partnerships and collaborations between industry players can help reduce costs and share best practices, making GDCs a strategic investment for businesses seeking to reduce their carbon footprint and optimize operational efficiency. Despite this, companies can capitalize on the market's potential by focusing on innovative design and construction methods, utilizing renewable energy sources, and implementing advanced cooling technologies to minimize energy consumption and costs.

What will be the Size of the Green Data Center (GDC) Market during the forecast period?

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The market continues to evolve, driven by the increasing demand for cloud computing efficiency and the need to reduce carbon footprint. Hardware optimization and server virtualization play significant roles in this evolution, enabling data centers to house more servers while consuming less energy. For instance, a leading technology company was able to increase its server capacity by 50% while reducing energy consumption by 30% through server consolidation and virtualization. Ensuring data security and privacy is a major concern for organizations, necessitating significant investments in cybersecurity measures. Moreover, the adoption of advanced technologies such as software-defined networking, energy management systems, and automation technologies contributes to the market's dynamism. These solutions optimize network performance, improve power usage effectiveness, and enhance security protocols.

In fact, industry experts anticipate a 15% compound annual growth rate (CAGR) for the GDC market over the next five years, driven by the increasing adoption of renewable energy sources, sustainable building design, and thermal management solutions. Furthermore, free cooling techniques, such as liquid cooling technology and geothermal cooling, are gaining traction in the market, as they offer significant energy savings. Additionally, the integration of AI-powered optimization and predictive maintenance systems allows for more efficient use of resources and minimizes waste heat recovery. The GDC market is characterized by continuous innovation and the integration of various technologies aimed at reducing greenhouse gas emissions and improving cloud computing efficiency.

From hardware optimization and server virtualization to software solutions and advanced thermal management techniques, the market's evolution is driven by the need for sustainability and energy efficiency. Data center infrastructure continues to evolve, with modularity and building automation systems becoming increasingly popular, enabling energy storage systems and remote monitoring systems to improve overall energy efficiency metrics.

How is this Green Data Center (GDC) Industry segmented?

The green data center (GDC) 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.

Component

  IT infrastructure
  Power solutions
  General construction
  Cooling solutions
  Monitoring and management


End-user

  BFSI
  Energy
  IT and telecom
  Others


Type

  Hyperscale data centers
  Colocation data centers
  Enterprise data centers


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    Spain
    UK


  APAC

    China
    India
    Japan


  Rest of World (ROW)

By Component Insights

The IT infrastructure segment is estimated to witness significant growth during the forecast period. The digital transformation of businesses has led to an increasing reliance on cloud computing, with 90% of small and medium enterprises projected to adopt cloud storage by 2025. This shift necessitates the construction of data centers to accommodate the demand for higher computational power and network traffic. The growing complexity of data storage systems and the exponential increase in data necessitate adva

Data Center Power System Market Outlook

In 2023, the global data center power system market size is estimated to be valued at approximately USD 21.7 billion, with a projected growth to USD 36.8 billion by 2032, reflecting a compound annual growth rate (CAGR) of 5.9%. This growth is driven by the burgeoning demand for data storage and processing capabilities across various sectors, underpinned by the exponential increase in data generation and consumption worldwide.

One of the primary growth factors for the data center power system market is the rapid digital transformation of industries. As companies across all sectors increasingly rely on digital technologies to drive productivity, efficiency, and innovation, the need for robust and reliable data center infrastructure becomes paramount. Furthermore, the advent of emerging technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and edge computing is creating unprecedented demand for data centers, which in turn is driving the growth of power systems required to support these facilities.

Another significant driver is the increasing focus on sustainability and energy efficiency. Data centers are notoriously energy-intensive, and there is growing pressure from governments, regulatory bodies, and consumers for companies to minimize their environmental footprint. This has led to a surge in the adoption of energy-efficient power systems, including advanced power distribution units, uninterruptible power supplies (UPS), and innovative cooling solutions, which are designed to optimize energy usage and reduce carbon emissions.

Additionally, the rise of hyperscale and colocation data centers is contributing significantly to market growth. Hyperscale data centers, characterized by their immense computing and storage capabilities, are being established by tech giants such as Amazon, Google, and Microsoft to cater to the massive data demands of their global operations. Similarly, colocation data centers offer shared infrastructure to multiple organizations, providing a cost-effective solution for smaller enterprises and startups. This trend is boosting the demand for reliable and scalable power systems to ensure uninterrupted operations and prevent costly downtime.

From a regional perspective, North America continues to dominate the data center power system market, driven by the presence of major technology companies and extensive investments in data center infrastructure. However, the Asia Pacific region is expected to witness the highest growth rate due to rapid digitalization, increasing internet penetration, and significant investments in data centers by both local and international players. Europe and Latin America are also experiencing steady growth, fueled by regulatory support and the expanding adoption of cloud-based services.

Infrastructure Distribution Solutions For Data Centers play a crucial role in ensuring the seamless operation of these facilities. As data centers continue to expand in size and complexity, the need for efficient and reliable infrastructure distribution solutions becomes increasingly important. These solutions encompass a wide range of components, including power distribution units, cabling systems, and cooling infrastructure, all designed to optimize the flow of power and data within the center. By implementing advanced distribution solutions, data centers can enhance their operational efficiency, reduce energy consumption, and improve overall performance. Furthermore, the integration of intelligent monitoring and management systems allows for real-time insights into the infrastructure's performance, enabling proactive maintenance and minimizing downtime. As the demand for data centers grows, so does the need for innovative infrastructure distribution solutions that can support the evolving requirements of these critical facilities.

Component Analysis

The component segment of the data center power system market encompasses various critical elements, each playing a vital role in maintaining the operational integrity of data centers. Among these, Power Distribution Units (PDUs) are essential for distributing electrical power to various equipment within the data center. PDUs are designed to handle high power loads and provide reliable power distribution, ensuring optimal performance of servers, storage devices, and networking equipment. The growing emphasis on energy efficiency and monitoring capabilities is drivin

Since 2020, global data center power demand has significantly increased, with artificial intelligence (AI) forecast to require 200 terawatt-hours by 2030. Global data center power demand has increased year-on-year since 2019 and reached 142 terawatt-hours in the United States in 2023 when excluding AI use.

The United States data center power market, valued at approximately $14.28 billion in 2025, is projected to experience robust growth, driven by the increasing adoption of cloud computing, big data analytics, and the Internet of Things (IoT). The market's Compound Annual Growth Rate (CAGR) of 6.60% from 2025 to 2033 indicates a significant expansion, fueled by the rising demand for reliable and efficient power solutions within data centers. Key drivers include the need for high-availability power systems to ensure uninterrupted operations, the proliferation of edge computing deployments requiring localized power infrastructure, and the growing focus on energy efficiency to reduce operational costs and environmental impact. Market segmentation reveals a strong demand for UPS systems, generators, and advanced PDUs (Power Distribution Units) across diverse end-user sectors such as IT and telecommunications, BFSI (Banking, Financial Services, and Insurance), and government. The services segment, encompassing system integration, training, maintenance, and consulting, contributes significantly to the overall market value, reflecting the need for specialized expertise in managing complex data center power infrastructure. While specific regional data for the US is not provided, the overall market growth trajectory suggests strong regional performance within the country, particularly in key technology hubs. Competitive dynamics are characterized by the presence of established players like ABB, Eaton, and Schneider Electric, alongside specialized providers catering to niche segments. The market is poised for sustained growth, driven by technological advancements, expanding data center footprint, and increased digital transformation across various sectors. The continued expansion of hyperscale data centers and colocation facilities will be a significant catalyst for market growth throughout the forecast period. This expansion, combined with the increasing demand for higher power density solutions to accommodate denser server deployments and advancements in energy-efficient technologies like renewable energy integration, will further propel the market’s trajectory. The market is witnessing a shift toward more sophisticated power management systems, including intelligent PDUs capable of real-time monitoring and control, enhancing operational efficiency and reducing energy waste. Furthermore, stringent regulatory requirements regarding energy consumption and environmental sustainability are pushing data center operators to adopt greener power solutions, contributing to the demand for advanced and efficient power infrastructure. The integration of smart technologies and predictive maintenance within power systems is also expected to play a vital role in driving market growth by optimizing operational efficiency and minimizing downtime. Recent developments include: December 2023: Eaton, an intelligent power management company, announced the launch of its new Rack PDU G4 (4th generation) that provides a high security and business continuity data center. It also combines with C39 outlets that securely connect both C14 and C20 power cords, backed by a locking mechanism and a built-in high retention system that secures the power cord., November 2023: ABB Ltd announced the launch of the Protecta Power panel board, designed for industrial, commercial, and institutional buildings. It is integrated with digital monitoring and control technology while enhancing durability and safety.. Key drivers for this market are: Growing Rack Power Density, Increase in the Demand for Energy-efficient and Cost-effective Data Centers. Potential restraints include: Growing Rack Power Density, Increase in the Demand for Energy-efficient and Cost-effective Data Centers. Notable trends are: Switched PDU is Anticipated to be Fastest-growing Segment.

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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 e

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.

The North America data center power market, valued at approximately $14.80 billion in 2025, is projected to experience robust growth, driven by the increasing adoption of cloud computing, the proliferation of edge data centers, and the expanding digital economy. The compound annual growth rate (CAGR) of 6.83% from 2025 to 2033 indicates a significant market expansion. Key drivers include the rising demand for high-availability power solutions, stringent regulatory compliance requirements for data center uptime, and the increasing focus on energy efficiency to reduce operational costs. The market is segmented by solution type (power distribution and power backup solutions), service type (which requires further clarification in the original data, assume it includes installation, maintenance, and support), data center type (colocation, enterprise & cloud, and hyperscalers), and end-user application (BFSI, IT & Telecom, Government, Manufacturing, Media & Entertainment, and Others). Competition is intense, with major players like ABB, Schneider Electric, Vertiv, and Eaton vying for market share through technological advancements, strategic partnerships, and acquisitions. The North American region, particularly the United States, is expected to dominate the market due to its advanced technological infrastructure and high concentration of data centers. The growth trajectory is influenced by several trends, including the increasing adoption of renewable energy sources for powering data centers, the rise of artificial intelligence and machine learning applications demanding substantial computing power, and the growing need for robust cybersecurity measures to protect critical data center infrastructure. However, restraining factors include the high initial investment costs associated with implementing advanced power solutions and the potential for supply chain disruptions impacting the availability of components. The market is likely to witness further consolidation through mergers and acquisitions as companies strive to enhance their market position and expand their service offerings. Specific growth within segments will be driven by factors unique to each; for example, hyperscalers may drive higher demand for power distribution solutions, while enterprise data centers might prioritize robust backup power solutions. Furthermore, governmental regulations aimed at improving energy efficiency will likely incentivize the adoption of more sustainable power solutions. This comprehensive report provides an in-depth analysis of the North America data center power market, offering invaluable insights for stakeholders across the value chain. With a study period spanning 2019-2033, a base year of 2025, and a forecast period of 2025-2033, this report leverages historical data (2019-2024) to predict future market trends and growth opportunities. The report covers key market segments, including power distribution units (PDUs), power backup solutions, and uninterruptible power supplies (UPS), across various data center types (colocation, enterprise, cloud, hyperscalers) and end-user applications. The market is valued in millions of US dollars. 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: Data Security Concerns will Remain a Challenge to the Growth of the Market. Notable trends are: IT and Telecom to Hold Significant Share.

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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?

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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

The size of the US Data Center Industry market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 6.00% during the forecast period.A data center is a facility that keeps computer systems and networking equipment housed, processing, and transmitting data. It represents the infrastructure on which organizations carry out their IT operations and host websites, email servers, and database servers. Data centers, therefore, are imperative to any size business: small start-ups or large enterprise since they enable digital transformation, thus making business applications available.The US data center industry is one of the largest and most developed in the world. The country boasts robust digital infrastructure, abundant energy resources, and a highly skilled workforce, making it an attractive destination for data center operators. Some of the drivers of the US data center market are the growing trend of cloud computing, internet of things (IoT), and high-performance computing requirements.Top-of-the-line technology companies along with cloud service providers set up major data center footprints in the US, mostly in key regions such as Silicon Valley and Northern Virginia, Dallas, for example. These data centers support applications such as e-commerce-a manner of accessing streaming services-whose development depends on its artificial intelligence financial service type. As demand increases concerning data center capacity, therefore, the US data centre industry will continue to prosper as the world's hub for reliable and scalable solutions. Recent developments include: February 2023: The expansion of Souther Telecom to its data center in Atlanta, Georgia, at 345 Courtland Street, was announced by H5 Data Centers, a colocation and wholesale data center operator. One of the top communication service providers in the southeast is Southern Telecom. Customers in Alabama, Georgia, Florida, and Mississippi will receive better service due to the expansion of this low-latency fiber optic network.December 2022: DigitalBridge Group, Inc. and IFM Investors announced completing their previously announced transaction in which funds affiliated with the investment management platform of DigitalBridge and an affiliate of IFM Investors acquired all outstanding common shares of Switch, Inc. for USD approximately USD 11 billion, including the repayment of outstanding debt.October 2022: Three additional data centers in Charlotte, Nashville, and Louisville have been made available to Flexential's cloud customers, according to the supplier of data center colocation, cloud computing, and connectivity. By the end of the year, clients will have access to more than 220MW of hybrid IT capacity spread across 40 data centers in 19 markets, which is well aligned with Flexential's 2022 ambition to add 33MW of new, sustainable data center development projects.. Key drivers for this market are: , High Mobile penetration, Low Tariff, and Mature Regulatory Authority; Successful Privatization and Liberalization Initiatives. Potential restraints include: , Difficulties in Customization According to Business Needs. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

Introduction

According to Market.us, The Global Data Center Construction Market size is expected to be worth around USD 453.5 Billion by 2033, growing from USD 237.1 Billion in 2023 at a CAGR of 6.7% during the forecast period from 2024 to 2033.

The Data Center Construction Market is experiencing substantial growth driven by the increasing demand for cloud services, big data analytics, and the proliferation of Internet of Things (IoT) devices. The surge in data generation has necessitated robust infrastructure to handle vast volumes of data securely and efficiently, thus propelling the expansion of data center construction. Companies are heavily investing in building state-of-the-art facilities that incorporate advanced energy-efficient technologies and adhere to strict regulatory standards regarding data security and environmental impact.

A significant growth factor for this market is the escalating need for data processing power in industries such as finance, healthcare, and e-commerce, which rely heavily on real-time data processing. The trend towards digital transformation, emphasizing cybersecurity, and sustainable practices is pushing businesses to invest in modernizing their data centers or constructing new ones that are better equipped to handle future technological advancements.

The opportunity in this sector lies in adopting green construction practices and energy-efficient technologies. As environmental concerns become more pressing, the industry is moving towards sustainable development. Innovations such as the use of renewable energy sources, advanced cooling mechanisms, and energy management systems are not only environmentally friendly but also cost-effective in the long run, presenting significant opportunities for market growth and differentiation.

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 Centre Power Distribution Unit Market Outlook

The global Data Centre Power Distribution Unit (PDU) market size was valued at approximately USD 2.3 billion in 2023 and is expected to reach USD 4.5 billion by 2032, growing at a compound annual growth rate (CAGR) of 7.5% during the forecast period. The increasing demand for energy-efficient power distribution solutions, coupled with the rapid expansion of data centers globally, are key drivers of this market's growth. As industries increasingly rely on data centers to manage their vast amounts of information, the need for robust and efficient power management solutions like PDUs becomes crucial. This growing reliance not only fuels the demand for PDUs but also encourages innovation and development within the industry.

One of the primary growth factors of the Data Centre PDU market is the escalating expansion of cloud computing and big data analytics. As organizations digitize their operations, the surge in data generation has necessitated the establishment and expansion of data centers. These data centers require efficient power distribution to ensure seamless operations and avoid downtime, which PDUs provide. Furthermore, with the advent of edge computing, the need for localized data processing units is increasing, further driving the demand for more sophisticated and reliable PDU systems. The trend towards data localization and regional data processing centers is expected to bolster the market growth significantly.

Another significant factor contributing to the market's growth is the increasing focus on energy efficiency and sustainability within data centers. With rising environmental concerns and regulatory pressures, data center operators are under immense pressure to adopt greener technologies. PDUs play a critical role in enhancing energy efficiency by offering advanced power monitoring and management features that help in optimizing energy consumption. Additionally, the integration of smart technologies such as IoT and AI into PDUs is enabling real-time monitoring and control, which is vital for reducing energy wastage and improving sustainability metrics. This trend is further accelerated by government incentives and policies promoting energy-efficient infrastructure.

The growing complexity and scale of modern data centers have also necessitated the need for advanced power management solutions, thereby driving the demand for PDUs. As data centers become more diverse in their operations, the need for PDUs that offer flexibility, scalability, and reliability is increasing. PDUs that can cater to high-density power requirements and support mixed power phases are particularly in demand. Moreover, the trend towards modular data center designs, which allow for scalable and adaptable infrastructure, is further fueling the need for sophisticated PDU solutions. These factors collectively underscore the crucial role of PDUs in modern data center operations and contribute to the market's robust growth trajectory.

Regionally, North America is expected to dominate the Data Centre PDU market owing to the region's advanced technological infrastructure and the presence of numerous data centers. The region accounted for a significant share of the market in 2023 and is projected to maintain its leading position throughout the forecast period. In addition, the Asia Pacific region is anticipated to witness the highest growth rate during the forecast period. The rapid digital transformation and increasing investments in data center infrastructure in countries like China, India, and Japan are key factors driving this growth. The European market is also expected to experience substantial growth, driven by the increasing demand for data storage and processing solutions across various industries.

Product Type Analysis

The Data Centre PDU market is segmented by product type into Basic PDU, Metered PDU, Monitored PDU, and Switched PDU. Basic PDUs are the traditional form of power distribution units that provide a simple and cost-effective solution for power distribution within data centers. These PDUs are typically used in environments where power monitoring and control are not critical. Despite their simplicity, Basic PDUs remain in demand due to their affordability and ease of installation. They are often used in small to medium-sized data centers where advanced features are not justified by the scale of operations. However, the limited functionality of Basic PDUs may restrain their growth potential in an increasingly complex data center environment.

Metered PDUs offer an additional layer of functionality by

Data Center Power Market Outlook

According to our latest research, the global Data Center Power market size reached USD 22.3 billion in 2024, demonstrating robust expansion driven by the exponential growth of digital infrastructure worldwide. The market is projected to grow at a CAGR of 7.5% from 2025 to 2033, reaching an estimated USD 42.5 billion by 2033. This impressive momentum is fueled by the ever-increasing demand for cloud computing, the proliferation of hyperscale data centers, and the rising adoption of energy-efficient power solutions across industries. The market’s growth trajectory underscores the critical role of reliable and sustainable power infrastructure in supporting global digital transformation and data-driven business models.

One of the primary growth factors propelling the Data Center Power market is the relentless surge in global data traffic, catalyzed by the widespread adoption of cloud services, IoT devices, and artificial intelligence applications. Enterprises and service providers are continuously expanding their data center footprints to accommodate the explosive demand for real-time data processing and storage. This expansion necessitates advanced power management solutions, including high-efficiency UPS systems, intelligent PDUs, and scalable backup power generators. Furthermore, the integration of renewable energy sources and the pursuit of sustainability goals are encouraging investments in green power technologies, driving innovation in power distribution and management within data centers. These dynamics are fostering a competitive environment where both established players and new entrants are focusing on delivering cutting-edge, energy-efficient power solutions.

Another significant driver is the increasing emphasis on data center uptime and operational reliability. As data centers become the backbone of digital economies, any power-related downtime can lead to substantial financial losses and reputational damage. This has led to heightened investments in robust power infrastructure, including redundant power supplies, advanced switchgear, and intelligent monitoring systems. The proliferation of edge computing and distributed data centers is further amplifying the need for modular and scalable power solutions that can ensure seamless operations in diverse environments. Additionally, regulatory pressures and industry standards are compelling data center operators to adopt best practices in power management, further fueling market growth.

The rapid digitalization of emerging economies, particularly in Asia Pacific and Latin America, is also contributing to the market’s robust growth. Governments and private enterprises in these regions are investing heavily in building new data centers to support burgeoning digital services, e-commerce, and financial technologies. This regional expansion is creating lucrative opportunities for power solution providers, especially those offering customizable and energy-efficient products. Moreover, the shift towards hybrid and multi-cloud architectures is driving the need for flexible power systems capable of supporting diverse workloads and deployment models. As organizations prioritize agility and scalability, the demand for next-generation data center power infrastructure is expected to accelerate further.

From a regional perspective, North America currently dominates the Data Center Power market, accounting for the largest revenue share in 2024, followed closely by Europe and Asia Pacific. The United States, in particular, remains a global hub for hyperscale data centers and cloud service providers, driving sustained demand for advanced power solutions. Meanwhile, Asia Pacific is witnessing the fastest growth, with countries like China, India, and Singapore emerging as key data center destinations. The region’s rapid digital transformation, coupled with favorable government policies and increasing investments in renewable energy, is expected to propel its market share significantly over the forecast period. Europe continues to prioritize energy efficiency and sustainability, further boosting the adoption of innovative power management solutions across its data center landscape.

Component Analysis

The Data Center Power market is segmented by component into Solutions and Services, each playing a pivotal role in ensuring the seamless operation of data centers. The solutions segment encompasses hardware and software products such as UPS systems, PDUs, generators

According to Cognitive Market Research, the global Hyper-scale Data Center market size will be USD 141542.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 6.20% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 56616.8 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 42462.6 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 32544.7 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 7077.1 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 2830.8 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.9% from 2024 to 2031.
The Solution component held the highest Hyper-scale Data Center market revenue share in 2024.

Market Dynamics of Hyper-scale Data Center Market

Key Drivers for Hyper-scale Data Center Market

Growing Number of Data Centers to Increase the Demand Globally

Hyperscale data centers have evolved significantly to meet the increasing demands for computing and storage capacity, especially to support high-end applications. As of 2022, the United States accounted for more than half of the world's hyperscale data center capacity, with U.S. hyperscale revenue reaching nearly $88 billion for the year. Across the country, there are over 2,600 data centers. Northern California is renowned as a hub for many data-intensive firms like Google, Facebook, Uber, Twitter, and Yelp. Currently, Dallas hosts the highest number of data centers at 149, followed closely by the Bay Area with 147 and Los Angeles with 139. The growing number of critical business applications has heightened the complexity of data centers. Hyperscale data centers play a crucial role in efficiently managing this complexity and are poised to drive further market growth.

Radically Increasing Volume of Data to Propel Market Growth

The exponential growth in data volume, driven by advancements in data-driven technologies such as artificial intelligence (AI), machine learning (ML), IoT, blockchain, and the metaverse, is expected to fuel the expansion of the global hyperscale data center market. Approximately 402.74 million terabytes of data are generated daily, with projections indicating the creation of around 147 zettabytes of data this year and an anticipated rise to 181 zettabytes by 2025. Videos alone account for more than half of internet data traffic. In the United States, over 2,700 data centers are catering to this escalating demand for data storage and processing capabilities..

Restraint Factor for the Hyper-scale Data Center Market

Requirement of Huge Capital Investment to Limit the Sales

Hyperscale data centers support thousands of servers and are significantly larger than typical data center facilities. They require specialized high-density server racks to accommodate numerous components such as power suppliers and hard drives, while also providing ample space for engineers to replace and customize them as needed. Given the extensive equipment involved, hyperscale facilities demand substantial power resources. Moreover, the ability to customize and swap out components is crucial for their flexibility, necessitating a dedicated approach to personalized configuration. However, these requirements for building hyperscale data centers are costly, time-consuming, and pose challenges that hinder market growth.

Impact of Covid-19 on the Hyper-scale Data Center Market

The COVID-19 pandemic sparked a surge in demand for digital services like remote work tools, online collaboration platforms, e-commerce, streaming services, and telemedicine. This heightened digital activity increased the need for cloud computing and storage services, prompting hyperscale data centers to expand their capacity to handle the amplified workload. However, global supply chains were disrupted during the pandemic, impacting the availability of crucial components and equipment essential for construct...

Low Energy Data Center Market Outlook

As of 2023, the global low energy data center market size is estimated at USD 14.5 billion, and it is projected to grow to USD 37.8 billion by 2032, registering a compound annual growth rate (CAGR) of 11.2%. This growth is largely driven by the increasing need for energy-efficient and sustainable data management solutions as well as the rising demand for digital transformation across various industries.

One of the primary growth factors for the low energy data center market is the escalating energy costs associated with traditional data centers. Data centers are notorious for their massive energy consumption, and with the global push towards sustainability, businesses and governments are increasingly looking for ways to reduce their carbon footprints. The adoption of low energy data centers helps in achieving these goals by utilizing advanced cooling technologies, energy-efficient hardware, and green building practices. Furthermore, regulatory frameworks mandating energy efficiency are reinforcing this trend, accelerating the shift to low energy data centers.

Another significant growth driver is the rapid advancement in technology. Innovations in cooling solutions such as liquid cooling and immersion cooling, along with the development of energy-efficient processors and storage devices, are making it possible to operate data centers with considerably lower energy consumption. Additionally, the integration of artificial intelligence and machine learning for optimizing energy usage stands out as a transformative trend. These technologies can autonomously manage various aspects of data center operations, including load balancing and cooling, thereby significantly reducing energy usage.

The proliferation of cloud computing and edge computing is also contributing to the increased adoption of low energy data centers. Cloud service providers and enterprises are constantly expanding their data center capacities to meet the growing demand for data storage and processing. As a result, there is an increased focus on building energy-efficient data centers to manage operational costs effectively. Edge computing, which involves processing data closer to the source of data generation, requires smaller, energy-efficient data centers that can operate with minimal power consumption. This trend is particularly evident in industries such as telecommunications, healthcare, and retail.

Regionally, North America and Europe are leading the charge in the adoption of low energy data centers, driven by stringent energy efficiency regulations and a strong focus on sustainability. In contrast, the Asia Pacific region is expected to witness the highest growth rate during the forecast period due to the rapid expansion of digital infrastructure and growing awareness about energy efficiency. Latin America and the Middle East & Africa are also gradually catching up, driven by investments in digital transformation and green technologies.

Component Analysis

In the realm of low energy data centers, the market is segmented by component into hardware, software, and services. Each of these segments plays a crucial role in the overall ecosystem, contributing to the energy efficiency and operational efficacy of data centers. Hardware components include energy-efficient servers, storage devices, and cooling systems that are designed to minimize power consumption while maximizing performance. For instance, advanced server designs that utilize low-power processors and SSDs instead of traditional HDDs can significantly cut down energy usage.

Software, another critical component, encompasses management and optimization tools that help in monitoring and reducing energy consumption. Energy management software can provide real-time insights into power usage across various parts of the data center, enabling administrators to make informed decisions about load balancing and cooling. These tools often incorporate machine learning algorithms that can predict and mitigate energy inefficiencies before they escalate into larger issues.

Services form the third major component of the low energy data center market. These services range from consulting and design to installation and ongoing maintenance. Consulting services help organizations plan and design their data centers with a focus on energy efficiency. Installation services ensure that the data center is set up in accordance with best practices for energy conservation. Finally, ongoing maintenance services are crucial for keeping the data center operating at optimal energy efficiency

The North America data center construction market, valued at $22.40 billion in 2025, is projected to experience robust growth, driven by a Compound Annual Growth Rate (CAGR) of 6.20% from 2025 to 2033. This expansion is fueled by several key factors. The increasing demand for cloud computing and digital services necessitates substantial investment in data center infrastructure. Organizations across various sectors, including banking, financial services, insurance (BFSI), IT and telecommunications, and government, are aggressively expanding their data center footprints to support growing data volumes and enhance operational efficiency. Furthermore, the adoption of advanced technologies like artificial intelligence (AI) and machine learning (ML) further accelerates this demand. The market is segmented by infrastructure type (electrical and mechanical), tier type (Tier I-IV), and end-user industry. Electrical infrastructure, encompassing power distribution solutions (PDUs, transfer switches, switchgear), power backup solutions (UPS, generators), and related services, constitutes a significant portion of the market. Mechanical infrastructure, including cooling systems (immersion, direct-to-chip, rear door heat exchangers, in-row/in-rack), racks, and other components, is equally crucial for maintaining optimal data center operations. The significant players in this market include AECOM, Whiting-Turner Contracting Company, Turner Construction Co, Jacobs Solutions Inc, and others, competing intensely based on their expertise, project delivery capabilities, and technological innovations. Growth is expected to be particularly strong in the Tier III and Tier IV data center segments, reflecting the increasing focus on high-availability and resilience. While the United States dominates the North American market, Canada and Mexico are also experiencing growth, driven by increasing digitalization and foreign investment. However, the market faces certain challenges, including rising construction costs, supply chain disruptions, and the need for skilled labor. Despite these restraints, the long-term outlook remains positive, with continued growth anticipated throughout the forecast period driven by sustained demand for advanced data center facilities across all major sectors. The market's success is intertwined with the continued advancement of digital technologies and the unwavering need for robust and reliable data storage and processing capabilities. Recent developments include: January 2024: The ACS group was selected to build a hyperscale data center campus for meta in Jeffersonville, Indiana, through Turner Construction Company. The nearly 700,000-square-foot campus is expected to feature several data center buildings. Once completed, the Jeffersonville data center is anticipated to cost over USD 800 million to build., October 2023: JLL, Lumen Technologies, and Schneider Electric are expected to offer customers around the United States modular data centers. JLL is anticipated to identify and select locations for the initiative, including approximately 5,000 sites across Lumen's fiber network. Schneider Electric brings its expertise in design and construction, with the agreement aiming to have ready-to-use modular data centers available in six to nine months.. Key drivers for this market are: 4., Growing Cloud Applications, AI, and Big Data4.; Rising Adoption of Hyperscale Data Centers. Potential restraints include: 4., Growing Cloud Applications, AI, and Big Data4.; Rising Adoption of Hyperscale Data Centers. Notable trends are: United States to hold the Major Market Share.