PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1662583
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1662583
According to Stratistics MRC, the Global Offsite Data Center Power Infrastructure Market is accounted for $13.4 billion in 2024 and is expected to reach $36.7 billion by 2030 growing at a CAGR of 18.2% during the forecast period. The systems that supply dependable power to data centers situated distant from an organization's main facilities are referred to as offsite data center power infrastructure. Power distribution units (PDUs), backup generators, utility power connections, and uninterruptible power supplies (UPS) are all included. By reducing power outages and fluctuations, these parts guarantee continuous operation, which is essential for preserving uptime and data integrity in offsite data center settings.
According to a U.S. Department of Energy-backed report, data centers in the United States consumed approximately 176 terawatt-hours (TWh) of electricity in 2023, accounting for about 4.4% of the nation's total electricity usage.
Rising demand for data centers
The increasing reliance on cloud computing, IoT, and big data analytics is driving the demand for offsite data center power infrastructure. As businesses prioritize digital transformation, the need for reliable and scalable power solutions to support data storage and processing grows. Additionally, the proliferation of hyperscale data centers and colocation facilities further accelerates market growth. These trends are fueled by the expansion of 5G networks and edge computing, which require robust power systems to ensure uninterrupted operations and efficiency.
Dependency on reliable connectivity
Offsite facilities rely heavily on stable internet connections for seamless operations, but disruptions due to natural disasters, technical failures, or cyberattacks can lead to downtime. Such interruptions compromise data accessibility and security, impacting customer trust. Furthermore, ensuring redundancy and backup connectivity adds complexity and cost to infrastructure management, limiting adoption in regions with underdeveloped network infrastructure.
Innovations in battery and energy storage
The integration of lithium-ion batteries, fuel cells, and renewable energy sources enhances energy efficiency and sustainability in data centers. These innovations reduce operational costs while ensuring uninterrupted power supply during outages. Additionally, AI-driven energy management systems optimize power usage, enabling better scalability for growing data demands. As organizations increasingly adopt green energy solutions to meet regulatory requirements, these innovations drive market expansion.
Cybersecurity risks
The rising number of cyberattacks targeting power management systems can disrupt operations and compromise sensitive data. As offsite facilities rely on interconnected systems for monitoring and control, vulnerabilities increase. Ensuring robust cybersecurity measures adds complexity to infrastructure design and maintenance. Additionally, compliance with evolving security regulations requires continuous investment, creating challenges for operators in maintaining secure environments.
The COVID-19 pandemic significantly accelerated the demand for offsite data center power infrastructure as businesses shifted to remote work and digital platforms. Increased reliance on cloud computing, video conferencing, and e-commerce drove higher utilization of data centers. While initial disruptions in supply chains impacted construction timelines, the overall market experienced growth due to surging demand for reliable digital infrastructure. The pandemic underscored the critical role of offsite facilities in supporting global connectivity during unprecedented times.
The solutions segment is expected to be the largest during the forecast period
The solutions segment is expected to account for the largest market share during the forecast period due to its comprehensive offerings that include uninterruptible power supplies (UPS), generators, PDUs, and advanced cooling systems. These solutions ensure continuous operations by providing reliable power management across diverse applications like colocation centers and hyperscale facilities. The rising adoption of modular power units and renewable energy integration further strengthens this segment's position as organizations prioritize energy efficiency and sustainability.
The IT & telecom segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the IT & telecom segment is predicted to witness the highest growth rate due to rapid advancements in digital technologies like 5G networks and IoT applications. These developments drive demand for robust data center power infrastructure to support high-speed connectivity and secure data storage. Additionally, increasing investments in cloud-based services by IT & telecom companies further boost this segment's growth as they expand their digital footprints globally.
During the forecast period, the North America region is expected to hold the largest market share due to its advanced technological landscape and strong presence of major cloud service providers like AWS, Microsoft Azure, and Google Cloud. The region's focus on sustainability drives investments in green energy solutions for data centers. Additionally, widespread adoption of edge computing technologies supports demand for scalable power infrastructure, solidifying North America's dominance.
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR due to increasing internet penetration, cloud adoption, and e-commerce expansion in countries like China, India, and Japan. The region's push toward smart cities and industrial digitalization drives demand for efficient offsite data center power solutions. Investments in renewable energy integration further enhance growth prospects as Asia Pacific becomes a key hub for global digital transformation initiatives.
Key players in the market
Some of the key players in Offsite Data Center Power Infrastructure Market include ABB Limited, Schneider Electric SE, Eaton Corporation plc, Vertiv Holdings Co, Huawei Digital Power Technologies Co., Ltd., Comfort Systems USA, Johnson Controls International plc, Yondr Group, Hubbell Incorporated, Modubuild, Altron A.S., InnovIT AG, MAVAB, Rittal GmbH & Co. KG and Delta Electronics, Inc.
In December 2024, ABB and Shinohara Electric of Japan announced their collaboration on digital energy management for containerized data centers. The ABB Ability(TM) Energy Manager simplifies the process of monitoring and tracking energy, providing clear and practical information to help optimize consumption.
In April 2024, Vertiv, a global provider of critical digital infrastructure and continuity solutions, today announced a new portfolio of high-density data center infrastructure solutions to support the higher cooling and power requirements of the accelerated computing IT stack. The new Vertiv(TM) 360AI solutions are designed to accelerate AI adoption through pre-engineered infrastructure solutions, digitized management, and end-to-end service, resulting in up to 50% less deployment time compared to typical infrastructure installation.