“Global Offsite Data Center Power Infrastructure Market to reach a market value of USD 35.6 Billion by 2031 growing at a CAGR of 17.2%”
The Global Offsite Data Center Power Infrastructure Market size is expected to reach $35.6 billion by 2031, rising at a market growth of 17.2% CAGR during the forecast period.
The Asia Pacific region recorded a strong growth in 2023. This strong growth can be attributed to the rapid expansion of digital economies in countries like China, India, and Japan, where increased internet penetration, cloud adoption, and the rise of e-commerce drive demand for data centers. Also, the Asia Pacific region would acquire nearly 30% of the total market share by 2031.
The shift towards cloud computing and colocation services has become a significant force driving the growth of this power infrastructure. Simultaneously, colocation services are crucial in shaping the offsite data center landscape. Colocation allows businesses to rent physical space, network bandwidth, and power from third-party providers instead of maintaining their data centers. Hence, the growing reliance on cloud computing and colocation services drives the need for larger, more energy-efficient data centers, pushing demand for innovative power infrastructure solutions.
Additionally, the expansion of edge computing is rapidly transforming the data processing and storage landscape, significantly impacting the demand for specialized power infrastructure. This shift towards processing data at the edge has led to the proliferation of smaller, distributed data centers, often called edge data centers. Thus, the rise of edge computing is driving a fundamental shift in data center power infrastructure requirements.
However, Establishing and maintaining data centers involves considerable financial outlay, particularly in building the power infrastructure necessary to support these facilities. Additionally, the rapid evolution of data center technologies places ongoing pressure on organizations to invest in upgrades. Power infrastructure must be constantly updated to meet the increasing demands for processing power, energy efficiency, and sustainability. Hence, high capital expenditure is one of the most significant barriers to expanding the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
On the basis of vertical, the market is classified into BFSI, IT & telecom, media & entertainment, healthcare, government & defense, retail, manufacturing, and others. The IT & telecom segment recorded 20% revenue share in the market in 2023. Increased demand for high-speed connectivity, 5G technology, and the rapid expansion of cloud services were the primary factors driving this growth.
Based on offering, the market is bifurcated into services and solutions. The services segment procured 28% revenue share in the market in 2023. The services segment is propelled by the critical role of ongoing maintenance, monitoring, and management in ensuring the smooth operation of data center power infrastructure.
Free Valuable Insights: Global Offsite Data Center Power Infrastructure Market size to reach USD 35.6 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment acquired 36% revenue share in the market in 2023. The region's well-established data center industry, particularly in the United States, continues to expand as cloud computing giants, colocation providers, and enterprises invest in new data centers and power upgrades.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 10.1 Billion |
| Market size forecast in 2031 | USD 35.6 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 17.2% from 2024 to 2031 |
| Number of Pages | 214 |
| Number of Tables | 299 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Offering, Vertical, Region |
| Country scope |
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| Companies Included | ABB Group, Schneider Electric SE, Eaton Corporation plc, Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), Johnson Controls International PLC, Delta Electronics, Inc., Altron a.s., Vertiv Holdings Co. and Hubbell Incorporated |
By Offering
By Vertical
By Geography
This Market size is expected to reach $35.6 billion by 2031.
Shift towards cloud computing and colocation services are driving the Market in coming years, however, Substantial upfront costs associated with building and maintenance restraints the growth of the Market.
ABB Group, Schneider Electric SE, Eaton Corporation plc, Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), Johnson Controls International PLC, Delta Electronics, Inc., Altron a.s., Vertiv Holdings Co. and Hubbell Incorporated
The expected CAGR of this Market is 17.3% from 2024 to 2031.
The Solutions segment led the Market by Offering in 2023; thereby, achieving a market value of $24.9 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $12.4 billion by 2031.
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![North America Offsite Data Center Power Infrastructure Market Size [2031]](https://www.kbvresearch.com/upload/cover/north-america-offsite-data-center-power-infrastructure-market.jpg "North America Offsite Data Center Power Infrastructure Market Size [2031]")
![LAMEA Offsite Data Center Power Infrastructure Market Size [2031]](https://www.kbvresearch.com/upload/cover/lamea-offsite-data-center-power-infrastructure-market.jpg "LAMEA Offsite Data Center Power Infrastructure Market Size [2031]")
![Europe Offsite Data Center Power Infrastructure Market Size [2031]](https://www.kbvresearch.com/upload/cover/europe-offsite-data-center-power-infrastructure-market.jpg "Europe Offsite Data Center Power Infrastructure Market Size [2031]")
![Asia Pacific Offsite Data Center Power Infrastructure Market Size [2031]](https://www.kbvresearch.com/upload/cover/asia-pacific-offsite-data-center-power-infrastructure-market.jpg "Asia Pacific Offsite Data Center Power Infrastructure Market Size [2031]")
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