Data Center Power Market Size & Share, Trends, Growth Insights (2026–2031)

Based on electrical infrastructure, the server segment held the largest share of the global data center market, accounting for approximately 28% in 2025. The growing deployment of high-performance servers for AI, cloud computing, data analytics, and other compute-intensive workloads is increasing demand for higher-capacity and efficient power infrastructure. This creates attractive opportunities for power equipment vendors to develop solutions that support rising server densities and expanding facility loads.

Data center operators increasingly prefer UPS systems exceeding 750 kVA to support large-scale facilities and growing power requirements, while smaller facilities and hyperscale in-rack deployments continue to drive demand for UPS systems below 500 kVA. For instance, the DC5 facility of Urbacon Data Centre Solutions in Ontario, Canada, uses a high-efficiency static UPS system with N+1 redundancy.

As server densities and power requirements continue to rise, buyers are increasingly seeking high-capacity, energy-efficient, scalable, and modular UPS solutions. Vendors offering flexible UPS configurations, advanced energy management, and high-efficiency power protection systems can capitalize on opportunities across new data center builds, capacity expansions, and infrastructure upgrades.

Tier III facilities represented the largest share of the global data center market by tier standard in 2025, driven by demand for high-availability infrastructure with greater operational flexibility. Tier III facilities use concurrently maintainable infrastructure with a minimum N+1 configuration, enabling operators to perform planned maintenance without disrupting critical IT operations.

The continued development of Tier III facilities is creating specific procurement opportunities across UPS systems, generators, switchgear, power distribution units, cooling systems, monitoring and control systems, and redundant network infrastructure. Data center operators and colocation providers are increasingly seeking modular and scalable solutions that can support N+1 redundancy while controlling capital and operating costs. For instance, OADC received Uptime Institute Tier III certification for the design documents of its Isando, Johannesburg data center in May 2024, while eStruxture Data Centers’ Calgary1 Phase 1 facility received Tier III design certification.

As operators expand Tier III capacity, vendors offering N+1-ready power and cooling equipment, intelligent monitoring systems, modular infrastructure, and energy-efficient solutions can target procurement opportunities across new builds and facility expansions. Suppliers capable of meeting Tier III specifications while offering shorter deployment timelines, lower lifecycle costs, and scalable capacity are likely to gain an advantage in data center purchasing decisions.

Based on switchgear type, the low-voltage switchgear segment held the largest share of the global data center market, driven by the growing need for safe, efficient, and scalable power distribution across data center facilities. Typically rated up to 1 kV, low-voltage switchgear is a critical component of data center electrical infrastructure, supporting power distribution across substations, IT systems, cooling equipment, and other essential loads.

The continued expansion of data center capacity and increasing power requirements are driving demand for advanced, energy-efficient, and intelligent low-voltage switchgear solutions. This creates significant opportunities for manufacturers to develop products with enhanced monitoring, automation, protection, and scalability features. Leading companies, including ABB, Delta Electronics, Eaton, Siemens, Legrand, and Schneider Electric, are well positioned to capitalize on this demand by expanding their switchgear portfolios and offering customized solutions.

For data center operators, selecting switchgear with high efficiency, compact design, intelligent monitoring, advanced protection, scalability, and easy maintenance is becoming increasingly important as facilities expand and power loads rise. Vendors that can deliver customized, reliable, and future-ready switchgear solutions with competitive lifecycle costs are likely to gain a stronger position in procurement decisions and secure opportunities across new data center developments, expansions, and modernization projects.

Based on generator type, the diesel & gas generators segment held the largest share of the global data center market, supported by the continued demand for dependable and cost-efficient backup power solutions. The growing availability of advanced gas and bi-fuel generators reflects ongoing innovation by leading manufacturers, providing data center operators with flexible power solutions that can operate alongside grid supplies and support diverse facility requirements.

Diesel generators continue to benefit from their lower maintenance requirements and favorable fuel economics, making them an attractive option for critical data center applications. While gas-based systems offer operational and environmental advantages, concerns related to gas pipeline safety and infrastructure requirements can influence purchasing decisions. These factors are encouraging vendors to develop more efficient, flexible, and fuel-optimized generator solutions, creating opportunities to capture demand from new data center projects, capacity expansions, and backup power upgrades.

Based on generator system capacity, the 1.5 MW to 3 MW segment held the largest share of the global data center market, driven by the growing demand for flexible and scalable backup power solutions. Generator sets within this capacity range are widely deployed in data centers and are commonly configured with N+N or 2N redundancy to support critical operations. They can also be integrated with higher-capacity generators exceeding 3 MW, enabling operators to build customized power configurations based on facility requirements.

The growing development and expansion of data centers is creating strong opportunities for generator manufacturers and solution providers. Smaller 1.5 MW–3 MW generator sets can complement larger systems while supporting critical loads, including cooling infrastructure. With more than 300 data center facilities built or expanded with capacities below 5 MW, demand for flexible and modular generator solutions is expected to remain strong. Ven

Based on UPS system capacity, the ≤500 kVA segment held the largest share of the global data center market, driven by rising demand for compact, modular, and cost-effective power solutions across smaller, edge, and distributed data center facilities. Vendors offer UPS systems ranging from 1 kVA to 50 kVA, which are widely deployed at the rack level to support growing IT power requirements, creating attractive opportunities across rack-level and small-scale data center applications.

Demand for UPS systems below 500 kVA is particularly strong among data centers with power densities below 1 MW and prefabricated facilities, where rapid deployment, space efficiency, and scalability are key considerations. For instance, Colt Data Centre Services’ Singapore facility uses a 22 kV and 2N UPS configuration, while NTT DATA’s Hemel Hempstead 2 facility in the UK uses a 16 kVA power supply with a 2N UPS configuration.

The growing adoption of prefabricated data centers and OCP-based hyperscale infrastructure is creating further opportunities for vendors offering customized, energy-efficient, and scalable UPS solutions. As demand expands across modular, rack-level, edge, and distributed facilities, vendors with flexible and high-efficiency UPS portfolios are well positioned to capture opportunities from new data center builds, capacity expansions, and infrastructure upgrades.