Data Center Power Market Analysis

Data Center Power Industry Insights

Data Center Tier Insights

The tier III & tier IV category leads the market, with 70% revenue share, in 2024. It will also witness the higher CAGR, of 6.8%, during the forecast period. This is largely due to the fact that these categories offer N+1 and 2N redundancy, which means the architecture can sustain the entire IT load, while also including extra components for power backup, thus ensuring that performance is not harmed if a single component fails. During a disturbance, redundant systems take over, to ensure operations are not affected.

Some other benefits of tier III & tier IV variants include 99.982% and 99.995% uptime, respectively, a maximum of 26.3 minutes to 1.6 hours of downtime per year, N+1 fault tolerance, ensuring at least 72-hour power outage protection, and power-packed arrangement to deal with undesirable events, such as component failures, power fluctuations, and catastrophes.

Data centers of the following tiers have been analyzed:

• Tier I & Tier II
• Tier III & Tier IV (Larger and Faster-Growing Category)

Equipment Type Insights

UPS systems dominate the market in 2024, with 40% share. This is because they ensure the continuous operations of large data centers and protect critical equipment across the facility. They include multiple configurations and dual-bus capabilities to ensure critical systems continue to operate in the event of power outages, blackouts, sags, and surges. UPS systems for the modular creation of a fully redundant power and control system can be sized to meet the critical equipment's power requirement. When power needs change, the capacity may be simply added, without expanding the system footprint. Owing to such factors, the installation of UPS systems in the data center power infrastructure is significantly high.

The PDUs category will grow the fastest, with 7.2% CAGR, during the forecast period. They receive power from the grid and distribute it to various data center systems via individual sockets. Moreover, modern PDUs integrated with IoT provide real-time power consumption insights and operational data, allowing operators to predict malfunctions before they occur.

The following equipment types have been covered:

• UPS Systems (Largest Category)
• Generators
• Transfer Switches & Switchgears
• PDUs (Fastest-Growing Category)
• Others

Data Center Size Insights

The large category is the larger in 2024, and the faster-growing over this decade, with 7.0% CAGR. Facilities over 25,000 square feet in floor area fall in this category, and they have multiple servers, network switches, lighting panels, HVAC systems, fire and intrusion alarms, and other electrical systems. Therefore, their electricity requirement is much more than that of small and mid-sized facilities. Additionally, the growing focus on hyperscale data centers, which are huge facilities that can operate more cost-effectively due to economies of scale, drives the market in this category.

The segment is bifurcated as follows:

• Small and Medium
• Large (Larger and Faster-Growing Category)

Vertical Insights

The IT and telecom category is expected to dominate the vertical segment with a share of 35% in 2030. It will also witness the highest CAGR during the forecast period. Huge amounts of data are being generated as a result of the extensive use of advanced technologies, such as IoT, cloud computing, and AI. This data originates from mobile internet usage, personnel records, network equipment, server logs, billing activity, and social networks.

The report covers the below-mentioned verticals:

• BFSI
• IT and Telecommunications (Largest and Fastest-Growing Category)
• Healthcare
• Government and Defense
• Retail and E-Commerce
• Others