Data centre power market to hit USD $50.51bn on AI, telecoms push
The global data centre power market is projected to expand from USD $35.14 billion in 2025 to USD $50.51 billion by 2030. According to forecasts, the sector will register a compound annual growth rate (CAGR) of 7.5%. Industry developments are being shaped by sustainability ambitions and the increasing use of AI-driven power systems across facilities worldwide.
Sustainability targets
Companies are accelerating their efforts to implement advanced power management solutions to reduce emissions, improve efficiency, and achieve green compliance. These changes are in response to rising sustainability requirements and government-backed energy policies in multiple regions. Operators are investing in renewable integration, grid-interactive systems, and AI-based power management to strengthen scalability and ensure operational resilience.
The transition to modern data centre power systems is not without challenges. Many facilities continue to rely on legacy infrastructure that limits efficiency and complicates upgrades. Moving to intelligent architectures calls for substantial investment, access to specialised expertise, and significant integration work. These factors contribute to ongoing pressures around cost and complexity for businesses aiming to enhance their power capabilities.
Telecommunications demand
The telecommunications sector is anticipated to hold the largest share of the market by 2025. Data centres underpinning telecoms support essential services such as mobile networks, internet services, and cloud communication platforms. Any interruption to power can cause disruptions to these systems, affecting end-users and potentially impacting wider critical infrastructure, like 5G base stations.
Suppliers are offering solutions including uninterruptible power supply (UPS) systems, power distribution units (PDUs), on-site generators, and battery storage to safeguard continuous power delivery for telecom workloads. Fault-tolerant and redundant power designs, offering multiple distribution pathways, are being implemented to ensure continued network operation across diverse locations.
Facilities are adopting real-time monitoring systems and predictive maintenance to manage electricity consumption, prevent outages, and minimise operational expenditure. Modular power systems are also being deployed, enabling data centres to scale capacity as user demand and data traffic grow, without service disruption.
Tier IV growth
Within the market, Tier IV data centres-characterised by the highest standard of power reliability and fault tolerance-are expected to see the fastest rate of growth. These facilities feature dual-powered and fully redundant infrastructure, allowing continued operation even during multiple component failures. This design is intended to protect mission-critical IT infrastructure from unexpected outages.
Developing Tier IV centres requires advanced planning and precise integration of redundant systems across power and cooling. Operators depend on robust monitoring platforms and advanced management software to deliver predictive analytics and automated responses to irregularities. Flexibility and energy efficiency are key, with facilities integrating renewable generation and optimising operations through load balancing and peak shaving.
Regional trends
North America retains the largest share of data centre power spending, fuelled by ongoing development among hyperscale, cloud, and colocation operators. The US and Canada are expanding their investments in renewable generation, battery storage, and automation to meet rising energy demands and environmental standards. These factors are underpinned by strong regulation and mature digital infrastructure in the region.
Meanwhile, Asia Pacific is marked as the fastest-growing regional market. Rapid expansion of cloud adoption, deployment of 5G, and digital transformation in markets such as China, India, Singapore, and Australia are boosting demand for scalable and reliable power technologies. Enhanced support for green energy from governments and increased investment from multinational technology firms are contributing to heightened activity across the region.
"Based on enterprise vertical, the telecommunications segment is estimated to hold the largest market share in 2025," said Priyanka Tiwari, Content and Partner Marketing, MarketsandMarkets Research.
