Data Center Power Market - By Component (Solution, Service), By End-Use (Colocation, BFSI, Energy, Government, Healthcare, Manufacturing, IT & Telecom), Forecast 2023 - 2032

Data Center Power Market - By Component (Solution, Service), By End-Use (Colocation, BFSI, Energy, Government, Healthcare, Manufacturing, IT & Telecom), Forecast 2023 - 2032

Global Data Center Power Market will witness over 7% CAGR between 2023 and 2032. The relentless surge in data consumption, fueled by cloud computing, IoT, and digital transformation, demands scalable and reliable power solutions. Environmental concerns and sustainability goals are pushing data centers to adopt energy-efficient and green power technologies. Additionally, the adoption of advanced hardware, such as GPUs for AI and ML, requires robust power infrastructure.

The growing guidelines from leading companies on managing these power needs support the data center power market outlook. For instance, in September 2023, Schneider Electric, a leading French power company, introduced a pioneering guide focused on tackling the evolving design complexities in AI data center power infrastructure. Titled The AI Disruption: Challenges and Advice for Data Center Design, this blueprint focuses on offering insights into emerging technologies geared towards supporting high-density AI clusters in the future. It comprehensively covers four key physical infrastructure aspects: power, cooling, racks, and software tools.

The overall Data Center Power Market is classified based on component, end-use, and region.

The services segment will showcase a high growth rate from 2023 to 2032. As data centers expand and become increasingly complex, services such as power management, consulting, and maintenance are critical. These services ensure efficient power distribution, minimize downtime, and optimize energy consumption. In an era of digital reliance, businesses are prioritizing reliable data center power services to safeguard their operations, leading to increased adoption of data center power services.

The energy segment could undergo significant development and dominate the data center power market share by 2032. As energy companies embrace digitalization and data-driven decision-making, data centers play a vital role in data processing and analysis. Robust and reliable power solutions are crucial to support uninterrupted operations, data security, and compliance. With the growing importance of data in energy applications, the demand for advanced data center power solutions continues to rise.

Asia Pacific data center power industry will showcase over 9% CAGR from 2023 to 2032. Rapid economic growth, increased digitalization, and cloud adoption are driving the need for robust data center power solutions. Governments in the region are focusing on data security and sustainability, further boosting demand. For instance, Singapore's Commissioner issued the second edition of the Cybersecurity Code of Practice for Critical Information Infrastructure in 2022. This updated version, following the initial release in 2018, has been in effect since July 2022. As Asia Pacific continues to be a hub for technology and business innovation, the data center power market size will witness substantial growth in the region.