Data Center Low Voltage Or Medium Voltage Power Distribution Market Forecasts to 2030 - Global Analysis By Voltage Level (Low Voltage and Medium Voltage ), Component, Power Rating, Data Center Size, Application, End User and Geography

According to Stratistics MRC, the Global Data Center Low Voltage (LV) Or Medium Voltage (MV) Power Distribution Market is accounted for $3.1 billion in 2024 and is expected to reach $6.3 billion by 2030, growing at a CAGR of 12.4% during the forecast period. Data Center Low Voltage (LV) and Medium Voltage (MV) Power Distribution refers to the electrical distribution system used to supply power within a data center facility. It involves using either low voltage or medium voltage lines to distribute power to various components and equipment. The facility initially receives medium voltage electricity, which is then efficiently distributed across the data center before being stepped down to lower voltages suitable for mechanical systems and networking equipment. This system ensures reliable and continuous power supply, crucial for the uninterrupted operation of data centers that demand significant power.

According to the U.S. Department of Energy, data centers consumed about 73 billion kilowatt-hours of electricity in 2020, which is about 1.8% of total U.S. electricity consumption.

Market Dynamics:

Driver:

Rising demand for data centers

The increasing adoption of cloud computing, big data analytics, and digital services is driving rapid growth in data center construction and expansion. This is creating strong demand for efficient and reliable power distribution systems to support the growing energy needs of data centers. As more businesses migrate to the cloud and data volumes explode, the market for LV/MV power distribution solutions expands to meet the power requirements of new and upgraded data center facilities.

Restraint:

Complexity of power distribution systems

Designing and implementing power distribution systems for data centers is becoming increasingly complex due to higher power densities, redundancy requirements, and the need to integrate renewable energy sources. This complexity can lead to higher costs, longer implementation times, and potential reliability issues if not managed properly. The intricate nature of modern data center power architectures may deter some organizations from upgrading their systems, limiting market growth.

Opportunity:

Advancements in smart grid technology

The development of smart grid technologies presents opportunities for more efficient and flexible power distribution in data centers. Smart grids enable better monitoring, control, and optimization of power flows. This can improve energy efficiency, reduce costs, and enhance reliability for data center operators. As smart grid solutions mature, their integration with data center power systems could drive innovation and new market opportunities in the LV/MV power distribution space.

Threat:

Power outages and reliability risks

Data centers require continuous, uninterrupted power to maintain operations. Any power outages or instability can lead to costly downtime and data loss. This puts pressure on power distribution systems to deliver extremely high reliability. However, the increasing complexity of power architectures and growing power demands make it challenging to eliminate all risks. High-profile outages could damage confidence in certain power distribution solutions and impact market growth.

Covid-19 Impact:

The pandemic accelerated digital transformation and cloud adoption, driving demand for data center capacity and associated power infrastructure. However, it also caused supply chain disruptions and construction delays that temporarily slowed some data center projects. Overall, COVID-19 had a mixed but largely positive impact on the LV/MV power distribution market by increasing long-term data center power needs.

The large data centers segment is expected to be the largest during the forecast period

The large data centers segment is expected to hold the largest market share during the forecast period. Large data centers, exceeding 10,000 square feet, require extensive and sophisticated power distribution systems to support their massive computing infrastructure. These facilities often have power requirements in the tens or hundreds of megawatts range. The growing trend towards hyperscale and cloud data centers is driving significant demand for high-capacity LV/MV power distribution solutions. Additionally, large data centers also tend to implement cutting-edge power technologies to optimize efficiency and reliability at scale, further boosting this segment's market share.

The IT and telecom segment is expected to have the highest CAGR during the forecast period

During the forecast period, the IT and telecom sector is estimated to witness lucrative growth in data traffic and digital services, necessitating continuous expansion of data center capacity. This sector is at the forefront of adopting advanced technologies like 5G, edge computing, and artificial intelligence, all of which require robust and scalable power distribution infrastructure. As IT and telecom companies invest heavily in new data centers and upgrade existing facilities to meet evolving digital demands, their spending on LV/MV power distribution solutions is expected to grow at the highest rate.

Region with largest share:

Over the forecast period, North America is expected to lead the market due to its large concentration of technology companies, cloud service providers, and data center operators. The region has a mature digital infrastructure and continues to see strong investment in data center construction and upgrades. Stringent reliability requirements and a focus on energy efficiency drive adoption of advanced power distribution solutions. The presence of major industry players and early adoption of new technologies further solidify North America's dominant market position.

Region with highest CAGR:

During the forecast period, Asia Pacific is estimated to witness the highest growth in data center development, driven by increasing internet penetration, digital transformation initiatives, and supportive government policies. Countries like China, India, and Singapore are emerging as major data center hubs. The region's rapidly expanding cloud computing market and growing adoption of technologies like 5G and IoT are fueling demand for data center capacity. This translates to high growth potential for LV/MV power distribution solutions to support the burgeoning data center industry in Asia Pacific.

Key players in the market

Some of the key players in Data Center Low Voltage (LV) Or Medium Voltage (MV) Power Distribution Market include ABB Ltd., Schneider Electric, Eaton Corporation, Siemens AG, Cisco Systems Inc., Vertiv Group Corp., Huawei Technologies Co., Ltd. Mitsubishi Electric Corp., General Electric Company, Legrand, Rittal GmbH & Co. KG, Fujitsu Ltd., Black Box Corporation, Generac Power Systems, Inc., CyrusOne, Equinix Inc., N1 Critical Technologies, and Raman Power Technologies.

Key Developments:

In March 2024, Schneider Electric unveiled the MasterPacT MTZ Active, a revolutionary new low voltage air circuit breaker, at Data Centre World London. This product enables real-time power monitoring and measurement to inform decision-making, reduce downtime, and accelerate sustainability goals.

In November 2023, Vertiv introduced Vertiv SmartMod Max CW, a prefabricated modular data center supporting up to 200kW of total IT load in a single system.

In October 2023, ABB added ZincFive as an approved supplier for its UPS systems, offering nickel-zinc as a battery option alongside lithium-ion and lead-acid for uninterruptible power supply systems.

Voltage Levels Covered:

• Low Voltage (LV)
• Medium Voltage (MV)

Components Covered:

• Hardware
• Services

Power Ratings Covered:

• Up to 1,000 kVA
• 1,001-5,000 kVA
• Above 5,000 kVA

Data Center Sizes Covered:

• Small and Medium-Sized Data Centers
• Large Data Centers

Applications Covered:

• Colocation Data Centers
• Hyperscale Data Centers
• Enterprise Data Centers
• Edge Data Centers

End Users Covered:

• Banking, Financial Services and Insurance (BFSI)
• Energy
• Government
• Healthcare
• Manufacturing
• IT and Telecom
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances