According to Arizton’s latest research report, the data center UPS market is growing at a CAGR of 15.17% during 2024-2030.
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Report Scope:
Market Size – Investment (2030): $20.75 Billion
Market Size – Investment (2024): $8.89 Billion
CAGR – Investment (2024-2030): 15.17%
Power Capacity (2030): 19.883 MW
Historic Year: 2021-2023
Base Year: 2024
Forecast Year: 2025-2030
Market Segmentation: Battery Technology, UPS Capacity, Tier Standards, and Geography
Geographical Analysis: North America, Latin America, Western Europe, Nordics, Central & Eastern Europe, Middle East, Africa, APAC, Southeast Asia
Data Center UPS Market Overview
The global deployment of 5G technology has significantly boosted the demand for data centers, driving growth in the global data center UPS market. This surge in colocation investments from data center operators has created new opportunities for UPS vendors. The increasing use of technologies like IoT, big data, and AI across sectors such as BFSI, education, government, and private enterprises has also contributed to the rise in data generation. Most UPS vendors now offer Li-ion-based systems, which are expected to further accelerate market growth in the coming years.
UPS systems are a significant investment in data center power infrastructure, contributing to 30% to 40% of facility failures. Modern, highly redundant UPS systems are essential for reliable operations. Li-ion battery technology is expected to capture about 50% of the market share in the next decade, as cobalt mining challenges ease, leading to reduced costs. Li-ion batteries are set to become the industry standard, especially in edge data centers, providing substantial income for vendors.
Key UPS providers like ABB, Vertiv, Schneider Electric, and Piller Power Systems continue to innovate in the market. Vertiv and ZincFive are collaborating to introduce Nickel-Zinc batteries, which focus on reducing power constraints while addressing sustainability and environmental concerns in data centers.
Hyperscale Self-Built Data Centers to Gain Momentum
Tech giants like Microsoft, Google, AWS, Meta, and Apple are rapidly expanding their hyperscale data center operations, increasing demand for UPS systems and power infrastructure. These facilities require significant energy and power capacity to support their operations.
- Microsoft is building new data centers worldwide, including projects in the U.S., South Africa, and Canada, with a focus on AI and geothermal technology.
- Google is investing heavily in new data centers in the U.S., Europe, and Latin America, including projects in South Carolina, Norway, and Mexico, and a major investment in Thailand.
- AWS is expanding its presence with new facilities in Australia, Chile, and Italy, contributing to the growing demand for power infrastructure.
- Meta is also building new campuses, including facilities in Indiana, Alabama, and Louisiana, with a focus on increasing its data center capacity.
These expansions highlight the growing need for robust power solutions, driving demand for advanced UPS systems to ensure continuous operations of these large-scale data centers.
The Future of UPS Systems in the Growing Digital Economy
The demand for data center UPS systems is growing rapidly due to increasing digital transformation and the need for reliable power sources. Industries such as e-commerce, telecommunications, and finance rely heavily on data centers, fueling the demand for efficient UPS systems to ensure continuous power during outages.
Li-ion batteries, which have evolved since the 1970s, are increasingly replacing traditional VRLA (lead-acid) batteries in data centers due to their sustainability and efficiency. Li-ion batteries offer several benefits, including reduced operational costs, less space requirement, and fewer replacements. However, they also come with challenges, such as the need for cell protection, aging effects, and safety concerns related to overheating.
Several data centers are adopting Li-ion batteries, such as AWS’s upcoming facility in Sydney, STACK Infrastructure’s ZUR02 in Zurich, EdgeCore Digital Infrastructure’s Ashburn campus, and Vertiv’s installations in Sweden. Additionally, Energy Vault is collaborating with RackScale Data Centers to incorporate Li-ion battery energy storage systems (BESS) to support up to 1.6 GWh of power. These advancements signal the shift towards more sustainable, efficient, and powerful UPS systems in the data center market.
Overview and Investment Outlook for Tier I and II Data Centers
Tier I data centers offer dedicated IT infrastructure with basic power and cooling systems but lack redundancy in critical components, relying on a single distribution path. They are generally used for non-critical applications, providing basic support for workloads beyond office environments.
Tier II data centers, while like Tier I in terms of infrastructure, offer partial redundancy in key components like UPS systems, electrical backup generators, and cooling equipment. This provides higher reliability and allows for select maintenance opportunities, making Tier II a more reliable and cost-effective option for small to medium-sized enterprises.
The market for Tier I and II data centers has seen a decline in recent years as more organizations are shifting towards more redundant infrastructure, recognizing the limitations of single-path systems. These data centers, often used by schools, colleges, government institutions, and banks, are typically on-premise deployments running non-critical applications. Despite this, the market still holds value for organizations seeking more affordable solutions with basic reliability.
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Key Vendor Profiles
- ABB
- Eaton
- Piller Power Systems
- Schneider Electric
- Vertiv
- AEG Power Solutions
- AMETEK Powervar
- Borri
- Canovate
- CENTIEL
- Cyber Power Systems
- Delta Electronics
- Enconnex
- EverExceed
- Exponential Power
- Fuji Electric
- Hewlett Packard Enterprise
- Hitachi Hi-Rel Power Electronics
- HITEC Power Protection
- HITZINGER Electric Power
- Huawei Technologies
- Kehua Data
- Rehlko (Kohler)
- Legrand
- Marathon Power
- Mitsubishi Electric
- Natron Energy
- Panduit
- Rittal
- Riello Elettronica Group
- Shenzhen KSTAR Science and Technology
- Socomec
- SolarEdge Technologies
- Thycon
- Toshiba
- Trystar
- VYCON
- ZincFive
Prominent Battery Providers
- EnerSys
- Exide Technologies
- FIAMM Energy Technology
- Haze Battery
- HBL Power Systems
- Power Sonic
- UNIPOWER
- Saft
- Vision Group (Shenzhen Center Power Tech)
- ZAF Energy Systems
Market Segmentation
Battery Technology
- VRLA
- Li-ion
- Flywheel
UPS Capacity
- <=500 kVA
- 500–1,000 kVA
- >1,000 kVA
Tier Standards
- Tier I & II
- Tier III
- Tier IV
Geography
North America
- The U.S.
- Canada
Latin America
- Brazil
- Mexico
- Chile
- Colombia
- Other Latin American Countries
Western Europe
- The U.K.
- Germany
- France
- Netherlands
- Ireland
- Switzerland
- Spain
- Italy
- Belgium
- Other Western European Countries
Nordics
- Sweden
- Denmark
- Norway
- Finland & Iceland
Central & Eastern Europe
- Russia
- Poland
- Other Central & Eastern European Countries
Middle East
- The UAE
- Saudi Arabia
- Israel
- Other Middle Eastern Countries
Africa
- South Africa
- Kenya
- Nigeria
- Other African countries
APAC
- China
- Hong Kong
- Australia
- New Zealand
- India
- Japan
- Taiwan
- South Korea
- The Rest of APAC
Southeast Asia
- Singapore
- Indonesia
- Malaysia
- Thailand
- Philippines
- Vietnam
- Other Southeast Asian Countries
The Arizton Advisory & Intelligence market research report provides valuable market insights for industry stakeholders, investors, researchers, consultants, and business strategists aiming to gain a thorough understanding of the data center UPS market. Request for Free Sample to get a glance of the report now: https://www.arizton.com/market-reports/data-center-ups-market-2025
What Key Findings Will Our Research Analysis Reveal?
How big is the global data center UPS market?
How many MW of power capacity is expected to reach the global data center UPS market by 2030?
What is the growth rate of the global data center UPS market?
What are the key trends in the data center UPS industry?
Who are the key vendors in the global data center UPS market?
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