Market Size and Overview:

The Global Offsite Data-Center Power Infrastructure Market was valued at USD 13.4 billion in 2024 and is projected to reach a market size of USD 36.49 billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 22.18%.  

The Offsite Data-Center Power Infrastructure Market refers to the ecosystem of power systems and solutions designed to support data centers located away from primary business premises. These infrastructures ensure reliable, scalable, and energy-efficient power supply for data centers, which are critical for handling vast volumes of data and digital services. The market includes components such as backup generators, uninterruptible power supplies (UPS), power distribution units (PDUs), and energy storage systems. Growing demand for cloud computing, increasing digitalization across industries, and the need for business continuity are fueling investments in robust and sustainable offsite power infrastructure solutions.

Key Market Insights:

The Offsite Data-Center Power Infrastructure Market is witnessing strong growth due to the rising number of data centers globally. With increasing reliance on cloud services, it's estimated that over 70% of enterprises are shifting towards hybrid or multi-cloud environments, leading to greater demand for remote, energy-efficient power solutions. Additionally, the rise in AI-driven applications and high-performance computing is pushing data centers to adopt high-density power infrastructure to handle complex workloads efficiently.

Energy efficiency and sustainability have become major priorities in this market. Reports indicate that nearly 50% of data center operators now include carbon reduction as part of their operational goals. As a result, companies are rapidly integrating renewable energy sources and advanced energy storage systems to reduce dependency on traditional power grids. This shift is also promoting innovations in UPS systems and modular power designs to improve power usage effectiveness (PUE) ratios.

Furthermore, reliability and uptime are critical drivers influencing infrastructure upgrades. With the average cost of a data center outage reaching over $500,000 per incident, organizations are increasingly investing in redundant and resilient power systems. This includes dual power feeds, automated switching systems, and intelligent monitoring tools that ensure continuous operations and real-time issue detection even during grid failures.
 
Offsite Data-Center Power Infrastructure Market Drivers:

Rising Digital Transformation Across Industries Is Fueling the Demand for Reliable Offsite Data-Center Power Infrastructure

The rapid adoption of digital technologies such as cloud computing, AI, IoT, and big data across all major sectors has drastically increased the demand for robust and scalable data storage and processing solutions. As organizations continue to migrate their operations online, the need for uninterrupted, high-performance data centers has become critical. This shift has directly influenced the development of offsite data centers, which offer the advantage of reduced physical infrastructure on business premises while maintaining operational efficiency. To support these centers, the demand for reliable power infrastructure has surged, as even brief downtime can lead to significant financial losses, service disruption, and reputational damage. 

Increasing Energy Efficiency Goals Are Driving the Adoption of Sustainable Power Infrastructure Solutions

Energy consumption in data centers has become a major concern for enterprises and governments alike, prompting an industry-wide shift toward more sustainable and energy-efficient power infrastructure. With nearly half of the operators now prioritizing carbon footprint reduction, there is growing demand for power systems that align with green energy objectives. This includes the integration of solar, wind, and battery storage solutions, as well as the adoption of high-efficiency power distribution and cooling systems. Offsite data centers, due to their flexibility and modularity, are especially suitable for implementing such sustainable technologies. By lowering energy consumption and improving Power Usage Effectiveness (PUE), these facilities not only meet regulatory compliance but also significantly reduce operational costs, creating a win-win for both the business and the environment.

Growing Focus on Business Continuity and Disaster Recovery Is Accelerating Infrastructure Investments

As data becomes the most valuable asset for many businesses, ensuring its safety, accessibility, and availability has become a top priority. Offsite data centers play a crucial role in business continuity and disaster recovery plans by offering geographically distributed backup locations with secure power infrastructure. The risk of cyberattacks, natural disasters, and power outages has made companies more aware of the importance of having secondary or tertiary offsite facilities equipped with autonomous and resilient power systems. This rising concern has led to significant investment in backup generators, dual power sources, real-time load balancing systems, and advanced fault detection technologies. These investments are not just seen as insurance but as strategic enablers that maintain uptime and protect critical operations during unforeseen disruptions.

Technological Advancements and Modular Infrastructure Designs Are Enhancing Scalability and Deployment Speed

The development of modular and prefabricated power solutions has revolutionized the way offsite data centers are planned, built, and powered. These plug-and-play infrastructures offer faster deployment, reduced installation complexity, and easier scalability compared to traditional setups. Coupled with advancements in power automation, AI-powered monitoring systems, and digital twin simulations, businesses can now forecast and manage power consumption with precision. This flexibility enables data centers to scale rapidly in response to growing digital workloads while maintaining consistent energy performance and reliability. As organizations continue to demand agile infrastructure that grows with their business, modular and intelligent power solutions have become a central driver in the expansion of the offsite data-center power infrastructure market.

Offsite Data-Center Power Infrastructure Market Restraints and Challenges:

High Capital Investment and Complex Integration Pose Significant Restraints for Market Growth

Despite the growing demand, the offsite data-center power infrastructure market faces notable restraints due to the high initial capital investment required for setting up advanced power systems, including UPS units, backup generators, and energy storage solutions. Many small and medium-sized enterprises (SMEs) struggle to allocate sufficient budget for such large-scale infrastructure upgrades, slowing adoption. Additionally, integrating new power solutions with existing IT systems and ensuring seamless interoperability across multiple locations remains a complex challenge. Compliance with evolving environmental regulations, the need for skilled technicians, and ongoing maintenance costs further complicate implementation, making it difficult for organizations to fully optimize their offsite power capabilities.

Offsite Data-Center Power Infrastructure Market Opportunities:
The offsite data-center power infrastructure market is poised for remarkable growth as emerging technologies and global sustainability initiatives open new avenues for innovation. The increasing adoption of AI-driven energy management systems, smart grids, and predictive maintenance tools is enabling data centers to optimize power usage and reduce downtime with greater efficiency. Moreover, the global push toward carbon neutrality is encouraging organizations to invest in renewable energy integration, such as solar panels and battery storage, specifically tailored for offsite facilities. Governments and private players are also offering incentives and funding for green infrastructure projects, creating a favorable environment for market expansion. These trends present a strong opportunity for infrastructure providers to deliver scalable, eco-friendly, and technologically advanced power solutions that cater to both large enterprises and smaller data-driven businesses.

Offsite Data-Center Power Infrastructure Market Segmentation:

Market Segmentation: By Component:

•    Solution
•    Services

In the Offsite Data-Center Power Infrastructure Market, the solution segment is currently the dominant category, accounting for a major share of deployments. This includes power hardware such as uninterruptible power supplies (UPS), backup generators, power distribution units (PDUs), transfer switches, and energy storage systems. These components form the backbone of a reliable power infrastructure, making them essential for ensuring continuous operations in offsite facilities. As the volume and complexity of data center operations continue to expand, enterprises are prioritizing the stability and resilience of their power systems, leading to strong and sustained demand for core hardware solutions. Moreover, the increasing emphasis on energy efficiency and system reliability has prompted widespread upgrades and replacements, reinforcing the dominance of the solution segment.

On the other hand, the services segment is emerging as the fastest growing, fueled by the increasing need for expert consultation, system integration, maintenance, and real-time monitoring. As organizations move toward more complex and distributed data center models, they require specialized services to design, implement, and maintain their power infrastructure effectively. The rise of remote infrastructure management, predictive maintenance using AI, and the growing adoption of renewable energy integration services have all contributed to this rapid growth. Furthermore, with companies aiming to reduce in-house technical burdens and improve operational efficiency, there is a clear shift toward outsourcing critical support services, making the services segment a key area of opportunity in the evolving market landscape.

Market Segmentation: By Vertical:

•    BFSI
•    Media & Entertainment
•    Government & Defense
•    Healthcare
•    Manufacturing
•    IT & Telecom
•    Retail

The IT & Telecom sector stands as the dominant vertical in the offsite data-center power infrastructure market, primarily due to its massive data processing and storage requirements. With the rapid expansion of cloud services, 5G networks, and data-intensive technologies such as AI and IoT, IT and telecom companies are consistently investing in high-performance, energy-efficient data centers. These firms heavily depend on uninterrupted data access and real-time communication, making power reliability a top priority. As a result, they are at the forefront of adopting advanced power infrastructure solutions, including modular UPS systems, backup generators, and intelligent power management tools that support scalability and reliability across global data hubs.

The Healthcare sector is emerging as the fastest growing vertical, driven by the digital transformation of healthcare services, including electronic health records, telemedicine, and real-time diagnostics. The sector's increasing reliance on secure, uninterrupted access to patient data and critical applications has made robust offsite data centers a necessity. Additionally, the growing regulatory focus on data security and disaster recovery is encouraging hospitals and healthcare providers to invest in resilient power infrastructure. These facilities must meet high standards of uptime and compliance, pushing healthcare organizations to rapidly adopt advanced energy backup systems and managed power services.
 

Market Segmentation: Regional Analysis:

•    North America
•    Asia-Pacific
•    Europe
•    South America
•    Middle East and Africa

North America holds the dominant position in the offsite data-center power infrastructure market, accounting for the largest share due to its highly developed digital ecosystem, strong presence of hyperscale data centers, and early adoption of advanced technologies. The region is home to major cloud service providers, tech giants, and colocation data center companies that operate large-scale facilities requiring uninterrupted and resilient power infrastructure. Additionally, strict regulatory standards regarding energy efficiency and data protection, combined with high enterprise IT spending, have led to widespread deployment of sophisticated power systems such as modular UPS units, energy storage, and real-time monitoring solutions. 

Asia-Pacific is the fastest growing region in the offsite data-center power infrastructure market, driven by rapid digitalization, massive internet user base, and increasing investments in IT infrastructure across countries like China, India, Japan, and Southeast Asia. Governments and private organizations are heavily investing in cloud infrastructure, smart cities, and digital economy initiatives, all of which demand robust offsite data centers with reliable power systems. Additionally, the surge in data consumption, growth of mobile applications, and expansion of 5G networks are fueling the need for scalable, energy-efficient power infrastructure. The region's growing emphasis on renewable energy integration, combined with supportive policies and rising awareness of sustainability, is further accelerating adoption. 

COVID-19 Impact Analysis on the Global Offsite Data-Center Power Infrastructure Market:

The COVID-19 pandemic had a mixed impact on the global offsite data-center power infrastructure market. While initial disruptions in supply chains and construction activities delayed several infrastructure projects, the accelerated shift to digital services, remote work, and cloud computing during the pandemic significantly boosted long-term demand for reliable offsite data centers. As businesses and governments increasingly depended on digital platforms for communication, operations, and service delivery, the need for resilient and scalable power infrastructure became more urgent. This led to renewed investments in backup power systems, energy storage, and remote monitoring technologies to ensure uninterrupted data center operations amid uncertainties. 

Latest Trends/ Developments:

One of the latest trends in the offsite data-center power infrastructure market is the rising adoption of AI and automation in power management. Data centers are increasingly using AI-driven systems to predict energy consumption patterns, optimize load distribution, and automate fault detection and response. These technologies help reduce energy waste, improve uptime, and lower operational costs. Digital twins are also gaining traction, allowing operators to simulate and test power infrastructure performance in virtual environments before real-world deployment. This enables smarter planning, better risk management, and efficient infrastructure scaling, especially in high-density data center environments.

Another major development is the shift toward sustainable and modular power solutions. As data centers face pressure to lower their carbon footprint, companies are integrating renewable energy sources like solar and wind along with advanced battery storage systems to reduce dependency on conventional grids. Modular power units, which offer flexibility and faster deployment, are being widely adopted to meet changing capacity needs without overhauling entire systems. Additionally, there's a rising focus on liquid cooling systems and power-efficient hardware that help maintain performance while significantly reducing energy usage. These advancements reflect a broader industry movement toward greener, scalable, and future-ready data center power infrastructure.

Key Players:

•    ABB (Switzerland)
•    Schneider Electric (France)
•    Eaton (Ireland)
•    Vertiv (US)
•    Huawei Digital Power Technologies Co., Ltd
•    (China), Comfort Systems USA (UK)
•    Johnson Controls (US)
•    Yondr (Netherlands), Hubbell (US)
•    Modubuild (Ireland)
•    Altron A.S. (Czech Republic)