Data centre power market set to hit USD $70.94bn by 2034
Tue, 11th Aug 2026 (Today)
Polaris Market Research projects the global data centre power market will reach USD $70.94 billion by 2034, up from an estimated USD $23.10 billion in 2025.
That forecast implies a compound annual growth rate of 13.3% from 2026 to 2034, with the market estimated at USD $26.13 billion in 2026.
Demand for data centre power systems is rising as operators expand infrastructure for artificial intelligence, cloud computing, hyperscale facilities and high-density computing. These environments require a steady electricity supply for servers, storage and networking equipment, along with backup and monitoring systems.
Hyperscale development is a key driver of that demand. Large technology groups and colocation providers are building bigger sites to handle growing digital workloads, while edge data centres are creating parallel demand for distributed power infrastructure closer to end users.
Segment split
By component, solutions accounted for 70.6% of the market in 2025, according to the analysis. That category includes uninterruptible power supply systems, power distribution units, backup technologies, monitoring systems and cabling infrastructure.
Services are expected to grow faster than the broader market, with a projected compound annual growth rate of 14.9% over the forecast period. The research linked that increase to stronger demand for design, integration, maintenance and energy management as data centre environments become more complex.
Artificial intelligence is also changing how operators manage electrical loads. The study found AI-enabled power management systems can help optimise energy consumption, identify potential failures and support predictive maintenance.
Tier demand
Tier III data centres held the largest share by facility type in 2025 at 57.0%. Their mix of redundancy, reliability and cost made them well suited to enterprise and hyperscale deployments.
Tier IV facilities are expected to post a 14.5% compound annual growth rate through 2034. That growth reflects demand from organisations that need more fault-tolerant infrastructure for critical applications.
The findings point to a broader shift in data centre investment, with operators placing greater emphasis on continuous availability and resilience in electrical systems rather than simple supply provision.
Regional picture
North America was the largest regional market in 2025, accounting for 44.5% of global revenue. The research attributed that position to strong uptake of AI and high-performance computing, along with continued hyperscale expansion.
Within the region, the US represented 88.0% of the North American market in 2025, supported by ongoing investment from major cloud and technology companies.
Asia Pacific is expected to record the fastest regional growth, with a projected compound annual growth rate of 15.5% during the forecast period. The analysis cited green data centre policies, wider cloud adoption, 5G rollout and rising AI workloads as key factors.
China accounted for 52.0% of the Asia Pacific market in 2025, supported by growth in cloud infrastructure, digital services and telecom networks.
Energy pressure
The market outlook comes as data centre operators face growing pressure over electricity use, grid access and emissions. Rising power demand is colliding with sustainability targets, prompting operators to consider cleaner and more efficient energy systems.
Battery energy storage, renewable energy integration, intelligent monitoring, high-efficiency uninterruptible power supply equipment and advanced power distribution are becoming more prominent in data centre planning. The report described these technologies as moving from optional upgrades to core parts of infrastructure strategy.
One recent example came when TotalEnergies and Google announced two long-term power purchase agreements covering 1 GW of solar capacity intended to supply Google data centres in Texas.
Competitive field
The market remains fragmented among electrical equipment suppliers, infrastructure specialists and data centre operators. Companies named in the analysis included ABB, Black Box, Eaton, Equinix, GDS Holdings, Generac Power Systems, General Electric, Huawei Technologies, Legrand, NTT Global Data Centres, Rittal and Schneider Electric.
The research said the industry is increasingly focused on systems that can support higher rack densities while balancing reliability, efficiency, flexibility and sustainability.