Data Center Power Market Size By Component (Solution [Power Distribution Units (PDUs), UPS, Generators, Cabling Infrastructure], Service [Managed, Professional]), By Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Teleco

Data Center Power Market Size By Component (Solution [Power Distribution Units (PDUs), UPS, Generators, Cabling Infrastructure], Service [Managed, Professional]), By Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom), COVID19 Impact Analysis, Application Potential, Competitive Market Share & Forecast, 2023 - 2032

The global data center power market size is projected to expand considerably over 2023-2032, considering the rise IoT and cloud computing trends across enterprises.

With the growing competitiveness and expansion of retail businesses, there have been requirements to move beyond the traditional supply chain, enterprise resource planning, and customer relationship management. As a result, cloud adoption has gained traction to optimize processes, reduce operational costs, improve data collection, and generate new revenue streams.

The surge in digital solutions will encourage data center operators to expand their facility storage and computing capacity to manage the ever-increasing data traffic. Furthermore, the rising emphasis on advancing power cabling infrastructure is also likely to proliferate data center power consumption.

The data center power industry is bifurcated based on the component, application, and regional landscape.

On the basis of the component, the industry value from the service segment is set to register commendable growth over the estimated timeline. The rise of initiatives to expand the reach of data center backup power systems are among the prominent factors amplifying the service demand.

To cite an instance, in June 2022, Microsoft inked an agreement with Eaton to make its data center backup power supplies systems a part of the electricity grid, fostering the integration of renewable energy sources. Factors such as these are expected to escalate the adoption of managed services to support data center power distribution.

Data center power market value from the IT and telecom application segment was worth over USD 2.5 billion in 2022, given the rapid development of IT infrastructure to manage a large amount of data. These factors will drive the installation of efficient UPS, generators, and other power systems in data centers.

Data center power industry share from the energy application segment registered revenue worth more than USD 1 billion in 2022, owing to the incorporation of hybrid and public cloud networks for data management.

From a regional perspective, the North American data center power industry recorded a revenue of over USD 4 billion in 2022, on account of the advanced IT infrastructure. Data center operators are also expanding their networks and improving their operations with the installation of racks, servers, and other IT equipment. These initiatives will fuel the demand for efficient data center power equipment for uninterrupted operations across the region.

The Middle East and Africa data center power market is slated to be valued at over USD 600 million by 2032. The strong focus on accelerating the digital economy is driving the regional market demand. In addition, government authorities have been introducing various strategies to increase the contribution of the digital economy to GDP, further augmenting the need for data centers to deliver back-end IT support.