Data Center Power Market to Exceed USD 38 Bn by 2031 with Electrical Solutions Holding 63.54% Share in 2025, Reports Mordor Intelligence

The data center power market is growing at a CAGR of 6.95%, driven by rising hyperscale expansion, AI-driven workloads, and increasing demand for energy-efficient and reliable power infrastructure, with North America leading the market.


Hyderabad, March 18, 2026 (GLOBE NEWSWIRE) -- According to a new report by Mordor Intelligence, the data data center power market size is projected to grow from USD 27.53 billion in 2026 to USD 38.52 billion by 2031, registering a CAGR of 6.95%, driven by rising demand for reliable and energy-efficient power infrastructure amid accelerating global digital transformation. The market growth is primarily fueled by the rising adoption of cloud computing, artificial intelligence, and edge computing, all of which demand robust and uninterrupted power systems. Additionally, the evolving data center power market trends indicate a shift toward sustainable energy solutions and modular power architectures, reinforcing long-term expansion across the global data center power industry. 

Data Center Power Market Trends Shaping Future Infrastructure 

Enhancing Reliability Through Advanced Redundancy 

 
Organizations are increasingly prioritizing highly resilient power infrastructures to ensure uninterrupted operations in critical environments. Advanced redundancy frameworks, supported by backup power systems and intelligent monitoring software, help minimize downtime and improve fault tolerance. Industries such as finance and healthcare are particularly investing in these solutions to maintain compliance standards and avoid the risks associated with service disruptions. 

Power Infrastructure Evolution for AI Workloads 

 
The rapid adoption of AI-driven applications is pushing data centers to handle significantly higher power densities, prompting a shift in how facilities are designed. Operators are moving toward more efficient layouts with advanced cooling systems placed closer to heat sources, along with scalable power solutions that support intense computing demands. Modern battery technologies and high-capacity UPS systems are also helping improve energy efficiency while reducing space requirements and thermal stress. 

Discover comprehensive insights and stay ahead of the latest industry trends, including the Japanese edition for in-depth localized analysis: https://www.mordorintelligence.com/ja/industry-reports/global-data-center-power-market-industry?utm_source=globenewswire 

Table of Contents (Partial) - Data Center Power Industry 

1. INTRODUCTION 

1.1 Study Assumptions and Market Definition 

1.2 Scope of the Study 

2. RESEARCH METHODOLOGY 

3. EXECUTIVE SUMMARY 

4. MARKET LANDSCAPE 

4.1 Market Overview 

4.2 Market Drivers 

4.2.1 Hyperscale and Cloud-Computing Expansion 

4.2.2 AI-Driven High-Density Workloads 

4.2.3 Stricter Uptime and Redundancy Standards 

4.2.4 And more 

4.3 Market Restraints 

4.3.1 High CAPEX of Electrical Infrastructure 

4.3.2 Carbon-Intensity Regulations and Reporting 

4.3.3 Transformer and Switchgear Supply Bottlenecks 

4.3.4 And more 

4.5 Regulatory Landscape 

4.6 Technological Outlook 

4.7 Porter's Five Forces Analysis 

4.7.1 Threat of New Entrants 

4.7.2 Bargaining Power of Buyers 

4.7.3 Bargaining Power of Suppliers 

4.7.4 Threat of Substitute Products 

4.7.5 Intensity of Competitive Rivalry 

4.8 Impact of Macroeconomic Factors on the Market 

5. MARKET SIZE AND GROWTH FORECASTS (VALUE) 

5.1 By Component 

5.1.1 Electrical Solution 

5.1.1.1 UPS Systems 

5.1.1.2 Generators 

5.1.1.2.1 Diesel Generators 

5.1.1.2.2 Gas Generators 

5.1.1.2.3 Hydrogen Fuel-cell Generators 

5.1.1.3 Power Distribution Units 

5.1.1.4 Switchgear 

5.1.1.5 and more 

5.2 By Tier Type 

5.2.1 Tier 1 and 2 

5.2.2 Tier 3 

5.2.3 Tier 4 

5.3 By Data Center Size 

5.3.1 Small Data Center 

5.3.2 Medium Data Center 

5.3.3 Large Data Center 

5.3.4 and more 

5.4 By Data Center Type 

5.4.1 Colocation Data Center 

5.4.2 Hyperscalers Data Center/CSPs 

5.4.3 Enterprise and Edge Data Center 

5.5 By Geography 

5.5.1 North America 

5.5.1.1 United States 

5.5.1.2 Canada 

5.5.1.3 Mexico 

5.5.2 South America 

5.5.2.1 Brazil 

5.5.2.2 Argentina 

5.5.2.3 Rest of South America 

5.5.3 Europe 

5.5.3.1 Germany 

5.5.3.2 United Kingdom 

5.5.3.3 France 

5.5.3.4 Italy 

5.5.3.5 Spain 

5.5.3.6 Rest of Europe 

5.5.4 Asia-Pacific 

5.5.4.1 China 

5.5.4.2 Japan 

5.5.4.3 India 

5.5.4.4 South Korea 

5.5.4.5 Australia 

5.5.4.6 Rest of Asia-Pacific 

5.5.5 Middle East and Africa 

5.5.5.1 Middle East 

5.5.5.1.1 United Arab Emirates 

5.5.5.1.2 Saudi Arabia 

5.5.5.1.3 Turkey 

5.5.5.1.4 Rest of Middle East 

5.5.5.2 Africa 

5.5.5.2.1 South Africa 

5.5.5.2.2 Nigeria 

5.5.5.2.3 Rest of Africa 

6. COMPETITIVE LANDSCAPE 

6.1 Market Concentration 

6.2 Strategic Moves 

6.3 Market Share Analysis 

6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments) 

6.4.1 Schneider Electric SE 

6.4.2 Vertiv Holdings Co. 

6.4.3 ABB Ltd 

6.4.4 Eaton Corporation plc 

6.4.5 Legrand SA 

6.4.6 Huawei Technologies Co. Ltd 

6.4.7 Fujitsu Ltd 

6.4.8 Cisco Systems Inc. 

6.4.9 Rittal GmbH and Co. KG 

6.4.10 and more 

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK 

7.1 White-Space and Unmet-Need Assessment 

Explore more insights on data center power competitive landscape: https://www.mordorintelligence.com/industry-reports/global-data-center-power-market-industry/companies?utm_source=globenewswire 

Data Center Power Market Growth Across Regions 

Europe continues to play a leading role in shaping the data center power landscape, supported by strict energy-efficiency regulations and growing demand for edge infrastructure. Countries such as Germany, the United Kingdom, and France are witnessing steady expansion, with operators adapting to local policies by adopting advanced cooling systems and optimizing power usage. Regulatory frameworks in major cities are also influencing how facilities are designed and operated. 

Meanwhile, Asia-Pacific is emerging as a high-growth region, driven by rapid digitalization and supportive government initiatives. Countries like China, India, Japan, and South Korea are investing heavily in new infrastructure, with a strong focus on energy efficiency, renewable integration, and resilient power systems. These developments are accelerating the region’s position as a key hub for next-generation data center deployments. 

“Data center power demand is expanding in step with rising digital workloads and ongoing capacity additions across key regions. Mordor Intelligence’s consistent data validation and balanced use of multiple industry sources provide a clearer, more dependable view than fragmented or assumption-led market estimates.” Says, Ashish Gautam, Senior Research Manager, Mordor Intelligence. 

Check out related reports published by Mordor Intelligence: 

North America Data Center Power Market  - The North America data center power market is valued at USD 16.88 billion in 2026, growing from USD 15.81 billion in 2025 and projected to reach USD 23.39 billion by 2031, driven by strong hyperscale investments and rising demand for cloud and AI infrastructure. The market is expanding at a steady CAGR of 6.75%, supported by ongoing upgrades in power efficiency and grid reliability across major data center hubs. 

 
Data Center Market Growth  - The global data center market was valued at USD 386.71 billion in 2025 and is estimated to grow from USD 425.3 billion in 2026 to reach USD 684.39 billion by 2031, at a CAGR of 9.98%. This growth is driven by rapid digital transformation, increasing cloud adoption, and rising investments in hyperscale and edge data center infrastructure worldwide. 

US Data Center Power Market Size - The United States data center power market is expected to grow from USD 15.22 billion in 2025 to USD 16.17 billion in 2026 and further reach USD 21.89 billion by 2031, registering a CAGR of 6.25%. Growth is fueled by increasing data consumption, expansion of hyperscale facilities, and rising adoption of renewable energy and advanced power management solutions. 

ABB Ltd, Schneider Electric SE, Vertiv Holdings Co, Eaton Corp plc, Caterpillar Inc are the major companies operating in this market. 

Read more about companies active in the market: 
https://www.mordorintelligence.com/industry-reports/united-states-data-center-power-market/companies?utm_source=globenewswire 

About Mordor Intelligence 

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals. With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape.  

This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics. 

CONTACT: For any inquiries, please contact: 
media@mordorintelligence.com 
https://www.mordorintelligence.com/contact-us 

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