Data centre UPS market to reach USD $12.47 billion by 2030
The global market for data centre uninterruptible power supply (UPS) systems is poised for substantial expansion, according to MarketsandMarkets, with revenues expected to grow from USD $8.76 billion in 2025 to USD $12.47 billion by 2030. The sector is being driven by the surging demands of hyperscale artificial intelligence workloads, higher rack power densities, and ongoing efforts to support uninterrupted data centre operation in high-load environments.
Market drivers
Data centre operators are increasing their focus on continuous uptime and energy efficiency as both AI and cloud-based applications raise average rack power consumption. Operators are turning to scalable, modular, and energy-optimised UPS architectures to boost performance and lower the total cost of ownership. The use of lithium-ion batteries, grid-interactive designs, and integrated battery energy storage solutions is on the rise. These changes are delivering higher energy efficiency and enhanced system reliability while supporting corporate energy optimisation targets.
However, the market also faces barriers. Limited grid power availability in high-demand regions and longer equipment lead times, linked to supply chain challenges and manufacturing bottlenecks, are constraining expansion. Delays in deployment and cost pressures are notable for hyperscale and colocation providers managing large-scale builds.
Capacity trends
The 1,001-2,000 kVA capacity segment is emerging as a critical zone for large-scale and hyperscale data centres. These UPS systems support expansive compute pods, storage clusters, and AI-based workloads. Systems in this category provide redundancy, cut down the number of required parallel strings, optimise floor space, and deliver high levels of efficiency and thermal control. Their design simplifies expansion and supports high-density operations in mission-critical environments.
Recent deployments in this area include a modular UPS platform launched by Huawei, with configurations across the 1,000-2,000 kVA range for cloud data centres and colocation campuses in China, and new 1.5 MVA UPS installations from ABB at a hyperscale site in Northern Europe. These projects illustrate strong demand for higher-capacity installations capable of delivering enhanced parallel and synchronisation functions.
Modular and rack-mounted
Rack-mounted UPS systems are gaining prominence in facilities where optimising space and maintaining high power density are priorities. Installed directly inside IT racks and typically handling loads of up to 50 kVA, these compact units reduce cabling complexity and bolster airflow. Their design supports modular and edge environments, as well as larger enterprise data centres with space constraints.
For manufacturers and solution providers, the development of compact, intelligent UPS units presents an opportunity to offer integrated, remotely managed systems that facilitate predictive maintenance and scalable growth. Recent industry activity includes Eaton's partnership with Fengsheng Electric to extend distribution of single-phase rack-mounted systems in Singapore, and Vertiv's acquisition of Great Lakes Data Racks & Cabinets to reinforce its integrated rack and UPS offering.
Regional outlook
North America is establishing itself as the primary driver of demand within the data centre UPS market. This is fuelled by rapid hyperscale expansion, increasing prevalence of AI workloads, and higher rack-level energy requirements. Operators in North America are investing in modular, lithium-ion-based UPS architectures that enhance scalability and energy performance, and are integrating with battery energy storage solutions for improved grid resilience.
Regional trends in the US highlight significant investments in next-generation UPS technology in areas such as Northern Virginia, Dallas, and Phoenix, where power availability has become a limiting factor. Canada's focus on renewable energy and low-carbon policies is also contributing to UPS deployment in provinces like Ontario and Québec. Regulatory requirements regarding carbon compliance and grid readiness are further shaping the deployment and specification of UPS systems across the region.
