The data center UPS market is expected to expand at a compound annual growth rate (CAGR) of 7.3%, from USD 8.76 billion in 2025 to USD 12.47 billion by 2030. Three main factors are causing the market to change more quickly. Operators are being forced to implement robust UPS architectures that can support multi-megawatt computing environments with minimal latency and fault tolerance due to the increase in hyperscale AI workload power demand. In order to maintain continuous power stability, UPS systems that offer superior scalability, improved load control, and advanced thermal performance are becoming increasingly necessary in high-performance and AI-optimized facilities due to rising rack power densities.
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By configuration type, online double conversion segment to account for largest market share during forecast period
The evolution of double online conversion UPS systems is reshaping data center power infrastructure as facilities prioritize ultra-reliable, energy-efficient designs. The latest systems integrate advanced inverter control, modular architecture, and high-efficiency operating modes to reduce total energy losses without compromising protection. Vendors are investing in next-generation semiconductor materials, such as silicon carbide and gallium nitride, to improve switching efficiency and thermal performance. In February 2025, Riello UPS launched its Multi Power2 MP2 300 and MP2 600 series, achieving 98.1% efficiency in double conversion mode. ABB had introduced its HiPerGuard medium-voltage UPS in September 2023, delivering 98% efficiency at voltages up to 24 kV. These developments highlight how double conversion designs now merge reliability with sustainability, supporting AI, hyperscale, and HPC workloads that require consistent, disturbance-free power. For vendors and solution providers, the competitive edge lies in developing double conversion systems that blend efficiency with digital intelligence. Integrating advanced monitoring, adaptive load sharing, and AI-based fault prediction will enable data centers to achieve lower operational costs and reduced carbon impact. Vendors that emphasize serviceability, modular expansion, and regulatory alignment will benefit most as customers seek scalable systems that sustain uptime while meeting energy compliance targets. The market opportunity is moving from power protection alone to holistic energy-aware resilience.
By design type, modular segment to register significant growth rate during forecast period
The modular UPS segment is expected to exhibit a high CAGR in the data center UPS market. Modular UPS systems represent a distinct class of data center power protection solutions built from scalable, self-contained modules rather than a monolithic block. Each module typically includes its own inverter, rectifier, and control electronics. In an active modular architecture, the system aggregates module outputs to supply critical loads, enabling direct redundancy and hot-swappable replacement of individual modules without interrupting operation. This design supports pay-as-you-grow deployment, aligns with double conversion online topologies, and facilitates granular scaling in response to changing demand. Because modules can be added or maintained in an isolated fashion, modular UPS suites dramatically reduce single points of failure and aid operational continuity. Adoption of modular UPS is being reinforced by vendor innovation and strategic partnerships. In December 2024, Schneider Electric unveiled its Galaxy VXL modular UPS series, delivering 500 to 1,250 kW in a compact footprint while achieving up to 97.5% efficiency in double conversion mode. This signals that modular conversion is becoming viable even in high-density and high-load environments. For solution providers, modular UPS offers an opportunity to differentiate through tailored scaling, dynamic redundancy, and lifecycle services. By embedding intelligence, predictive maintenance, and modular topologies into their portfolios, emerging vendors can capture share in greenfield and retrofit deals. The path forward lies in aligning modular UPS offerings with evolving client demands for availability, flexibility, and total cost control in dense, AI-centric, and mission-critical data centers.
North America to account for largest market share during forecast period
The North America data center UPS market, encompassing the US and Canada, is expanding rapidly as hyperscale and AI-driven workloads accelerate power density and uptime requirements. CBRE reported that primary-market inventory reached 8,155 MW in H1 2025, up 43% year-over-year, with vacancy dropping to a record low of 1.6% amid strong preleasing. Rising pricing for 10 MW-plus leases in core hubs is prompting operators to adopt modular, high-efficiency UPS architectures optimized for 40–100 kW-per-rack environments and rapid scalability. In the US, Northern Virginia leads with 2,078 MW under construction and 538 MW of net absorption. Meanwhile, utilities are reshaping power economics through new tariffs, grid flexibility programs, and regulations, such as Texas SB 6 and PJM curtailment mandates, which emphasize on-site or backup generation. UPS systems are evolving from traditional standby functions to grid-interactive energy assets, increasingly integrated with battery energy storage to support grid stability and AI-heavy campus operations. Supplier investment is intensifying, with Schneider Electric committing over USD 700 million to expand its US production capacity. In Canada, Ontario plans to build 16 new data centers over the next decade, representing approximately 13% of the province’s projected power demand, while Hydro-Québec anticipates an additional 4.1 TWh of data center load by 2032. Québec currently has nearly 500 MW under construction, while Alberta lists over 10 GW of proposed capacity. The AWS Canada West (Calgary) region is driving new hyperscale activity, collectively boosting demand for scalable, high-efficiency UPS systems across the region’s clean energy, cold climate data center landscape.
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Unique Features in the Data Center UPS Market
Lithium-ion batteries are displacing traditional VRLA batteries in many new deployments because they deliver higher energy density, longer cycle life, smaller footprint and lower total cost of ownership — enabling shorter runtime cabinets or smaller battery rooms for the same backup capability. Many market reports highlight lithium-ion as a major technology shift for UPS in hyperscale and enterprise data centers.
To cut operating expense and heat load, vendors offer hybrid topologies (double-conversion on demand / eco/hybrid modes) and high-efficiency inverters that push efficiency toward the high-90s at typical load points. This reduces energy loss, lowers cooling requirements, and helps meet sustainability targets and PUE improvements.
As rack power draw rises (AI, GPUs, storage arrays), UPS designs emphasize higher power density per rack and smaller physical footprint — achieved via compact power electronics, higher bus voltages, and alternative battery chemistry — helping sites squeeze more compute into the same physical space.
The growth of edge computing has driven demand for smaller, ruggedized UPS units that can be deployed outside traditional datacenters (telecom huts, micro data centers, retail sites). These units prioritize remote management, environmental tolerances, and simplified serviceability.
Major Highlights of the Data Center UPS Market
The rapid expansion of hyperscale and colocation facilities is one of the strongest drivers of the Data Center UPS market. These massive data centers require highly reliable, scalable, and efficient power backup systems to ensure uninterrupted operations. As global cloud service providers and large enterprises continue to increase their compute capacity, the demand for advanced UPS systems is rising exponentially to maintain uptime and meet stringent SLAs.
A key market highlight is the industry-wide shift from lead-acid to lithium-ion batteries. Lithium-ion technology offers longer lifespan, faster recharge time, smaller footprint, and lower maintenance requirements. This transition is enabling data centers to achieve higher energy efficiency and reduce total cost of ownership, while also supporting sustainability goals through reduced waste and improved recyclability.
Sustainability and energy efficiency have become top priorities in data center operations. UPS manufacturers are developing eco-mode and hybrid topologies that deliver efficiencies of up to 98–99%, significantly reducing power losses and heat output. The market is witnessing strong adoption of energy-efficient UPS systems as operators strive to achieve lower Power Usage Effectiveness (PUE) and minimize their carbon footprint.
Modular UPS systems are gaining popularity due to their flexibility, redundancy, and scalability. These systems allow data centers to expand capacity in phases, minimize downtime during maintenance, and reduce upfront investment. The modular approach also aligns with the growing trend of distributed and edge data centers, where compact and scalable power systems are essential.
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Top Companies in the Data Center UPS Market
Some of the major players in the data center UPS market include Schneider Electric (France), Vertiv (US), Huawei (China), Eaton (Ireland), and ABB (Switzerland). These companies deploy and provide advanced data center UPS solutions to ensure reliable operations, meet energy regulations, and improve efficiency. From integrating modular and lithium-ion UPS systems to implementing intelligent power management, these solutions reduce losses, enhance uptime, and optimize performance. By stabilizing power delivery and supporting sustainability goals, data center UPS systems help enterprises minimize costs, maintain resilience, and sustain digital transformation in power-intensive environments.
EATON
Eaton is strengthening its position in the data center UPS market through strategies focused on power resilience, energy efficiency, and digital infrastructure optimization. Its approach centers on developing high-efficiency UPS architectures that integrate with intelligent monitoring and grid-interactive technologies to ensure operational continuity in hyperscale and enterprise environments. Eaton’s core competencies include advanced UPS systems, the Brightlayer digital platform, intelligent battery management, and modular power distribution solutions that enhance scalability and reduce total energy consumption. The company has undertaken several strategic activities to expand its UPS capabilities. In April 2025, Eaton acquired Fibrebond Corporation to enhance its modular power integration and enclosure portfolio for data centers and utilities. In July 2025, it acquired Resilient Power Systems Inc., adding solid-state transformer technology that improves UPS efficiency and power density. Earlier, in May 2024, Eaton acquired a UK-based thermal monitoring provider and made a 49% equity investment in NordicEPOD AS to strengthen its standardized power module offerings in Northern Europe. Through vertical integration of hardware, software, and digital platforms, along with horizontal expansion across electrification and energy management domains, Eaton is positioning itself as a leading provider of reliable, scalable, and intelligent UPS infrastructure for next-generation data centers.
SCHNEIDER ELECTRIC
Schneider Electric reinforces its position in the data center UPS market through strategies emphasizing energy-efficient power continuity, modular scalability, and digital innovation. The company’s focus lies in developing UPS solutions that support high-density, AI-driven environments while maintaining optimal energy utilization and system reliability. The company’s core competencies are integrated within the EcoStruxure platform, combining UPS systems, power distribution, DCIM, and predictive analytics for comprehensive visibility and control. Schneider has actively advanced its UPS portfolio through acquisitions and partnerships that strengthen its market reach. In October 2024, it acquired a 75% stake in Motivair to integrate power and thermal management for high-density data centers. In December 2024, it partnered with NVIDIA to co-develop AI data center reference architectures that incorporate UPS and cooling designs optimized for energy efficiency and rapid deployment. That same year, Schneider expanded EcoStruxure IT DCIM with automated power efficiency analytics to help operators comply with Europe’s Energy Efficiency Directive. Through vertical integration of hardware, software, and monitoring systems, complemented by horizontal alliances such as its multi-year partnership with Compass Datacenters, Schneider aligns UPS innovation with digital reliability, sustainability, and long-term data center efficiency.
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