The global offsite data center power infrastructure industry is projected to reach USD 35.4 billion by 2030, showing a growth from the estimated USD 13.4 billion in 2024, with a compound annual growth rate (CAGR) of 17.6% from 2024 to 2030. Various new revenue pockets within the global offsite data center power infrastructure market are emerging as a result of several changing trends and demand determinants. One key area of growth is the increasing adoption of edge computing. With the search to handle data closer to the source to minimize latency and enhance performance, the demand for smaller, modular data centers has increased at edge locations. This change will require robust and scalable power infrastructure solutions – providing new possibilities for companies who provide current power modules, UPS systems, and energy-effective cooling solutions designed for edge environments. Renewable energy is another significant area of opportunity for offsite data centers. Players in this market are increasing emphasis on sustainable solutions. This includes reduction of carbon footprints along with string environmental regulatory compliances. These sources are solar and wind energy sources. The trend in sustainable energy generation has an impact on the need for advanced energy storage solutions, smart grid interconnections and power management systems that can best integrate and optimize the use of renewable energy. This area can lead to large opportunity in revenue potential for some companies.
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As companies move toward cloud-based platforms and the use of IoT devices, the adoption of new and complex technologies is creating new revenue opportunities. Specifically, the growing demand for reliable power infrastructure that is scalable to a certain extent is also contributing to the growing revenue potential. Companies specializing in high-capacity power solutions, next-generation power monitoring and management technologies, and power backup solutions are poised to benefit from the demand for power solutions that support the digital transformation that many companies are undertaking. Moreover, with the emergence of AI and ML, which are data-intensive technologies, companies are creating additional revenue streams that necessitate substantial computational power and, therefore, require robust power infrastructure in order to operate continuously and efficiently as designed. Vendors that can offer specialized power solutions that support the high-performance needs of AI and ML workloads are poised to capitalize on this growing market segment.
Services segment captures the second largest market share in the global offsite data center power infrastructure market. It is due to the immense need of these services throughout the lifecycle of offsite data centers. There is an increasing requirement of specialised skills and knowledge, which helps to drive demand for professional services. Design and consulting services are important to enhance operational excellence. Installation and implementation services are important for smooth operations of power infrastructure. Also, maintenance services are essential for achieving reliability and optimal performance of power systems, decreasing the downtime. Therefore, these servies are critical for the offsite data center power infrastructure and its growth.
The media and entertainment segment captures the fifth-largest market share in the global offsite data center power infrastructure market. There is an increasing demand to manage increasing volume of digital content and online streaming services. Offsite data center power infrastructure market is significant for these services. Media and entertainment companies require robust power infrastructure with an increase in the usage of high-definition video, virtual reality adoption, and other solutions. Hence, this need for secure, reliable, and high-capacity data management solutions drives this segment’s growth.
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South America has the fifth largest market share in the global offsite data center power infrastructure market. It is due to the growing digital economy and rapid adoption of cloud services along with the emphasis on digital transformation. There is a significant growth in the e-commerce, social media usage, and mobile connectivity in the countries such as Brazil, Argentina, and Chile, which fuels the demand for comprehensive offsite data center power infrastructure. Also, the region has favorable regularoty frameworks and government initiatives which help to boost market growth in the region. There is a good presence of key players and investments in the region regarding renewable energy sources. This helps to bolster South America’s position in the market. Since businesses in this region focus on digitalization and scalability, the need for scalable, efficient, and reliable data management solutions is paramount. This creates huge demand for offsite data center power infrastructure solutions.