Data Centre Power Market Set to Hit $107.06 Billion

Polaris Market Research projects the data centre power and energy management market will reach USD $107.06 billion by 2034, up from USD $35.95 billion in 2025.

The forecast, reported on November 7, 2026, implies a compound annual growth rate (CAGR) of 12.9%. Polaris Market Research attributes that expansion to operator spending on power infrastructure for artificial intelligence (AI) workloads and other dense computing systems. That makes power systems a central investment decision, rather than support equipment added after construction.

What is driving the USD $107.06 billion forecast?

Polaris Market Research identifies electricity supply, power distribution and energy monitoring as central issues for data-centre developers. It links those pressures to rising rack power ratings and grid-connection delays that hold up new projects.

Power systems once treated as supporting infrastructure now sit closer to the centre of investment decisions, according to Polaris Market Research. Operators are replacing older electrical equipment with intelligent power distribution units (PDUs), higher-capacity uninterruptible power supply (UPS) systems and advanced switchgear, which controls and protects electrical circuits.

The report also says rack-level monitoring is becoming more common as workloads grow more power-intensive. Energy generation is forecast to be the fastest-growing solution segment, with annual growth of 13.5% through 2034.

Polaris Market Research says operators are turning to gas generator sets, solar installations, fuel cells and batteries to bring capacity online before utility connections arrive. The summary gives no project-level capacity or cost data for these systems.

The supplied research summary does not disclose the forecast model, regional definitions or sensitivity assumptions. That omission matters because the 12.9% CAGR is a projection, not an observed spending series. Takeaway: Faster grid connections and more efficient equipment will determine whether the forecast holds.

How do regulation and software shape operator spending?

Polaris Market Research says efficiency reporting in Europe has added pressure on operators to measure and improve facility performance. It expects public comparisons of power usage effectiveness (PUE), a measure of facility energy overhead, to influence investment choices. The summary identifies no specific directive, reporting deadline or mandatory threshold.

Polaris Market Research says hyperscale operators held 37.33% of the market in 2025, the largest customer group. The report says these companies increasingly set power architecture, onsite generation and monitoring requirements “at the design stage rather than adding them after a facility is built.” The research separately describes retrofitting live data centres as difficult because operators must maintain uptime.

Colocation providers, which sell power capacity to tenants, face different incentives. Polaris says rack-level metering and phased additions of protected capacity can directly affect revenue, while modular UPS systems let operators expand inside existing halls rather than build new space. Colocation spending is projected to grow at an annual rate of 12.7%.

Polaris Market Research says software is becoming a significant part of the market alongside physical equipment. Operators use predictive analytics, digital twins (software models of physical systems) and AI-led controls to estimate future power needs, support upgrade planning and adjust backup systems to free unused capacity. The report provides no adoption rates or measured savings for these tools, so their contribution remains unquantified.

Software can improve planning, but it cannot remove the need for grid connections or capital spending. Takeaway: The forecast assumes operators can turn software insight and modular hardware into usable power capacity.

Which regions account for the growth?

Polaris Market Research says North America held 38.58% of the market in 2025, equivalent to about USD $13.87 billion. It cites US Department of Energy estimates that data centres could consume 649 terawatt-hours (TWh) by 2030, or about 11.8% of US electricity.

The same research cites Department of Energy scenarios placing data centres at between 9.5% and 15.3% of US electricity demand by 2030. That range is material: 11.8% should be read as one cited estimate, not a single settled outcome.

• Europe: Polaris projects 12.3% annual growth and a regional market worth USD $27.7 billion by 2034. It says efficiency rules and grid constraints are pushing colocation providers towards smart power systems, storage and renewable energy.
• Asia Pacific: Polaris forecasts the fastest regional growth, at 14.6% annually, with the market reaching USD $30.2 billion by 2034. Expansion in China, India, Japan and Australia drives the increase.
• Middle East and Africa: Polaris projects 13.6% growth, supported by demand for efficient equipment in hot climates and interest in solar energy. It says grid reliability issues in parts of Africa also increase the value of backup and onsite power.
• Latin America: Polaris projects 13.4% growth, combining renewable energy resources with rising hyperscale demand.

Asia-Pacific therefore has the fastest percentage growth, while North America starts from the largest base. Takeaway: Regional expansion depends on grid conditions and capital spending as much as demand for computing capacity.

Which companies are expanding their power offerings?

Polaris Market Research describes consolidation and product development as suppliers extend their reach across power equipment, cooling and control systems. The strategy broadens the product categories available from each vendor, although the supplied summary provides no revenue mix, pricing or customer-adoption figures.

• Polaris reports that Schneider Electric has worked with AMD on a reference design for racks of up to 246 kW. The company has also introduced software-defined medium-voltage switchgear.
• Polaris says ABB has launched a direct current portfolio for artificial intelligence facilities.
• It says Eaton bought Boyd Thermal for USD $9.5 billion to combine liquid cooling (liquid-based heat removal) with power systems.
• It says Vertiv agreed to acquire UtilityInnovation Group for about USD $1.45 billion. The deal expands its microgrid controls (local, partly self-contained power networks) and behind-the-meter (customer-side of the utility meter) offering.
• It says Generac is buying Enercon for switchgear and enclosures.
• It reports that Bloom Energy expanded its partnership with Oracle to up to 2.8 GW of fuel cells, with 1.2 GW contracted.
• It notes that Cummins announced what it described as its largest battery storage system for a US data centre. The summary provides no capacity, duration or location for that system.

Those reports use different language, and the distinctions matter. Eaton bought Boyd Thermal, Vertiv agreed to acquire UtilityInnovation Group, Generac is buying Enercon, and Bloom Energy expanded its Oracle partnership. The summary does not provide closing dates, contract terms or a breakdown of how much revenue each deal contributes to the market forecast.

Polaris Market Research suggests that high-voltage direct current (HVDC) distribution, battery storage and microgrid controls will move from trial deployments into broader commercial use. It describes those technologies as “moving from trial deployments towards broader commercial use” as operators seek faster and more flexible ways to secure electricity.

The phrase signals direction, not project-level adoption. The supplied research gives no rollout schedule, deployment timetable or comparison of installed capacity. Takeaway: Vendors are positioning power, cooling and controls as one package, but the summary offers no proof of technical performance.

Can power systems scale without bottlenecks?

Polaris Market Research identifies three barriers to the forecast. Advanced power systems require significant upfront spending, and retrofitting live data centres is difficult because operators must integrate new equipment with legacy infrastructure without losing uptime. Connected electrical equipment also increases cybersecurity risks, which may slow adoption among smaller enterprise operators.

The research does not quantify those costs, downtime risks or cyber incidents. It also provides no financing path for smaller operators, even as hyperscalers account for the largest market share. Takeaway: By 2034, faster HVDC, storage and microgrid deployment must offset grid delays without increasing retrofit downtime or cybersecurity exposure.