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Data Center Power Infrastructure Market to Hit $101.9B by 2035 – AI and Cloud Fuel 15.9% CAGR

Written by BIS Research | Sep 18, 2025 6:15:31 AM

According to BIS Research, the Global Data Center Power Infrastructure Market was valued at $18.93 billion in 2024 and is projected to reach $101.90 billion by 2035, growing at a CAGR of 15.9% during 2025–2035. This surge reflects the rising global demand for digital services, cloud computing, AI workloads, and big data analytics, all of which are driving investment in advanced, efficient, and scalable power solutions.

Market Overview

Data centers form the backbone of the modern digital economy, and their power infrastructure is critical for ensuring reliability, scalability, and energy efficiency. The market encompasses systems and components for power distribution, management, and backup, such as:

  • Power Distribution Units (PDUs)
  • Switchgear & Circuit Breakers
  • Uninterruptible Power Supplies (UPS)
  • Busbar Systems & Automatic Transfer Switches (ATS)

As digital workloads grow in intensity—particularly with AI and IoT—the industry is moving toward energy-efficient, intelligent, and renewable-integrated power systems.

Key Growth Drivers

Rising Data Consumption

The explosion of cloud services, video streaming, IoT devices, and AI applications has led to unprecedented demand for data processing and storage. Industry leaders like AWS, Microsoft Azure, and Google Cloud are investing heavily in high-capacity, energy-efficient infrastructure.

AI & Next-Gen Technologies

AI-driven workloads require high-density computing and, in turn, robust power supply and cooling systems. The adoption of 5G networks and edge computing is pushing data closer to users, creating a need for localized, high-reliability power infrastructure.

Sustainability Goals

Data center operators face mounting pressure to reduce carbon footprints. This is accelerating investment in:

  • Renewable energy integration
  • Energy-efficient power management
  • Smart monitoring for optimizing consumption

Market Segmentation Insights


By Component

  • Power Distribution & Management Systems lead the market due to their critical role in maintaining uptime and optimizing energy use.

By Data Center Type

  • Colocation and Retail Data Centers dominate, driven by enterprise outsourcing and cloud adoption. These require intelligent PDUs and scalable power solutions.

By Application

  • Conventional & Non-AI Data Centers still lead due to their broad base of enterprise and cloud workloads, though AI-focused facilities are rapidly growing.

By Power Architecture

  • Includes 12V DC, 48V DC, and 400V± DC rack architectures, with centralized and distributed power supply models.

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Regional and Industrial Impact

While global in scope, demand is strongest in regions with:

  • Rapid cloud adoption (North America, Asia-Pacific)
  • Expanding AI ecosystems (U.S., China, Singapore)
  • Strong sustainability mandates (EU)

The technology, telecommunications, and energy sectors are particularly impacted, as they depend heavily on uninterrupted digital operations.

Competitive Landscape

Leading players include:

  • Dell Inc.
  • Hewlett Packard Enterprise
  • Huawei Technologies
  • Cisco Systems
  • Schneider Electric
  • Vertiv Group Corp.
  • Eaton
  • Rittal
  • Mitsubishi Electric

These companies are innovating in high-efficiency power systems, intelligent distribution, and modular infrastructure to meet evolving needs.

Future Outlook

According to BIS Research analysts, demand for resilient, scalable, and energy-efficient power systems will intensify as:

  • AI workloads increase power density requirements
  • Edge data centers proliferate
  • Governments tighten sustainability regulations

The next decade will likely see greater integration of renewables, advanced energy storage, and AI-based energy management in data center infrastructure.

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Q&A: Quick Insights

Q1: What is driving the growth of the data center power infrastructure market?
A: Rising data consumption, cloud adoption, AI workloads, and sustainability goals are key growth drivers, prompting investment in advanced, efficient, and renewable-integrated power solutions worldwide.

Q2: Which segment holds the largest market share by data center type?
A: Colocation and retail data centers lead the market due to increasing enterprise outsourcing and the demand for scalable, intelligent, and energy-efficient power solutions.

Q3: What is the forecast market size for 2035?
A: The global market is projected to reach $101.90 billion by 2035, up from $18.93 billion in 2024, representing strong double-digit growth over the forecast period.

Q4: How is sustainability influencing market trends?
A: Sustainability goals are driving the adoption of renewable energy, AI-based energy management, and efficient power systems to reduce the environmental impact of growing data center operations.

Q5: Which industries benefit most from these advancements?
A: Technology, telecommunications, e-commerce, and cloud services benefit most, relying on continuous uptime and efficient power delivery to support high-demand, data-intensive applications.

Conclusion:

The data center power infrastructure market is set for robust double-digit growth, underpinned by the digital economy’s expansion, AI-driven workloads, and the push for sustainability. Players who innovate in energy efficiency, intelligent monitoring, and renewable integration will lead in the coming decade.