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Data Center UPS Market

The market for Data Center UPS was estimated at $8.5 billion in 2025; it is anticipated to increase to $12.3 billion by 2030, with projections indicating growth to around $17.7 billion by 2035.

Report ID:DS2407022
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Energy & Power
Energy Storage
Data Center UPS
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Report Summary
Market Data
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Table of Contents

Global Data Center UPS Market Outlook

Revenue, 2025

$8.5B

Forecast, 2035

$17.7B

CAGR, 2026 - 2035

7.6%

The Data Center UPS industry revenue is expected to be around $8.5 billion in 2026 and expected to showcase growth with 7.6% CAGR between 2026 and 2035. This sustained expansion underscores the critical role of Data Center UPS as the backbone of data center power protection, safeguarding uptime for cloud, colocation, and enterprise facilities amid accelerating digital transformation. Demand is being reinforced by cloud computing growth, rising adoption of AI and big data analytics, and stringent regulatory expectations for business continuity across sectors. IT & telecommunications and BFSI data centers together account for 41.8% of global end-use demand, reflecting the heavy reliance of digital communications and financial transactions on high-availability uninterruptible power supply for data centers. Within the technology mix, modular UPS systems, particularly Modular Phase Type architectures, dominate the landscape with around $4.75 billion in sales in 2025, as operators prioritize scalable, serviceable, and energy-efficient critical infrastructure power solutions that can be rapidly adapted to evolving load profiles.

Data Center UPS solutions are engineered to deliver continuous, conditioned power through battery-backed and increasingly lithium-ion-based architectures, combining advanced power electronics, three-phase UPS technology, and intelligent monitoring to protect IT loads from outages, voltage sags, and harmonics. Key features include high efficiency at partial loads, modular and scalable designs that support both core and edge data centers, redundancy configurations such as N+1 and 2N, and seamless integration with generators and power distribution units across hyperscale facilities and enterprise sites. Major applications span mission-critical environments in IT & telecommunications, banking and financial services, healthcare, government, and industrial automation, where even milliseconds of downtime can disrupt operations. Recent trends driving demand include the rapid build-out of cloud and colocation capacity, tighter sustainability targets favoring high-efficiency and energy-storage-optimized designs, the expansion of distributed and edge computing topologies, and the adoption of AI-enabled analytics within Data Center UPS platforms to enhance predictive maintenance and lifecycle performance.

Data Center UPS market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Data Center UPS Market Outlook

Market Key Insights

  • The Data Center Ups market is projected to grow from $8.5 billion in 2025 to $17.7 billion in 2035. This represents a CAGR of 7.6%, reflecting rising demand across IT & Telecommunications, Healthcare, and Media & Entertainment.

  • Schneider Electric, Vertiv Group Corp., and Eaton are among the leading players in this market, shaping its competitive landscape.

  • U.S. and China are the top markets within the Data Center Ups market and are expected to observe the growth CAGR of 4.9% to 7.3% between 2025 and 2030.

  • Emerging markets including Brazil, Indonesia and South Africa are expected to observe highest growth with CAGR ranging between 8.7% to 10.5%.

  • Transition like Shift Towards Modular UPS Systems is expected to add $1 billion to the Data Center Ups market growth by 2030.

  • The Data Center Ups market is set to add $9.2 billion between 2025 and 2035, with manufacturer targeting BFSI & Healthcare Application projected to gain a larger market share.

  • With

    rising demand for cloud services and increasing adoption of iot, and

    Growing Concerns over Data Loss and Downtime, Data Center Ups market to expand 108% between 2025 and 2035.

data center ups market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Data Center UPS - Country Share Analysis

Opportunities in the Data Center UPS

The rollout of 5G networks and smart-city IoT platforms across Asia-Pacific is also accelerating investment in compact edge data centers, creating a strong opportunity for scalable Data Center UPS deployments. Single-phase UPS and modular UPS solutions are favored for distributed micro-sites supporting latency-sensitive applications, from autonomous logistics to telemedicine. Global single-phase UPS revenue is expected to rise from $3.77 billion in 2025 to $5.31 billion by 2030, with above-average growth coming from telecom-owned and municipal edge facilities in emerging economies over time.

Growth Opportunities in North America and Asia Pacific

In North America, the Data Center UPS market is primarily driven by IT & Telecommunications workloads in hyperscale data centers and high-density computing environments, creating strong demand for modular UPS architectures, energy-efficient UPS designs, and lithium-ion battery technology tailored for cloud data centers and edge computing deployments; the strongest opportunities lie in retrofitting legacy enterprise facilities and tier 3 data centers with scalable critical power solutions that support AI, machine learning, and low-latency applications, while competition centers on differentiated service models, software-defined power management, and long-term lifecycle contracts rather than simple hardware price; manufacturers can gain share by targeting colocation and managed service providers with flexible, software-integrated Data Center UPS platforms that optimize total cost of ownership and ensure compliance with stringent uptime and sustainability KPIs.
In Asia Pacific, Data Center UPS demand is increasingly anchored in BFSI and Government end uses, where rapid digitization, financial inclusion, and national cloud programs drive large greenfield builds and the rollout of secure, compliant tier 3 data centers across both mature and emerging economies; the top opportunities are in delivering compact, modular UPS systems for urban edge sites and regional disaster-recovery facilities, as well as high-resilience critical power solutions for new fintech, e-government, and healthcare platforms, all optimized for energy efficiency and grid instability; competitive dynamics are shaped by intense price pressure from local vendors and integration-focused global players, so winning strategies emphasize localized engineering, flexible financing, and Data Center UPS portfolios that combine remote monitoring, predictive maintenance, and high-efficiency topologies specifically tuned to support rapid expansion of colocation, cloud, and sovereign data center infrastructure.

Market Dynamics and Supply Chain

01

Driver: Rapid Growth Of Cloud Computing And Increasing Demand For Continuous Power Protection

The data center UPS market is also primarily driven by the exponential growth of cloud computing services and the rising need for continuous power protection. Expansion in cloud infrastructure, driven by enterprises, hyperscale data centers, and telecom operators, has also increased dependency on uninterrupted power supply, as even minimal downtime can also lead to revenue losses and service disruptions. Concurrently, critical applications in IT, finance, and e-commerce require high-quality, stable power, prompting the adoption of online double-conversion and modular UPS systems. These technologies ensure voltage regulation, redundancy, and scalability, supporting seamless operation of sensitive equipment. Together, the demand for reliable cloud infrastructure and robust power protection accelerates UPS deployments, also drives technological innovation, and encourages investments in high-capacity, energy-efficient systems to support modern digital operations.
Ongoing innovations in UPS technologies act as a key driver for market growth. Features such as modular scalability, lithium-ion battery integration, and intelligent power management improve energy efficiency, reduce total cost of ownership, and enhance reliability. Advanced monitoring and predictive maintenance allow data centers to optimize load distribution and prevent downtime. Lithium-ion-based UPS solutions offer longer lifespan, smaller footprint, and faster recharge times compared to traditional lead-acid batteries, making them ideal for modern, high-density data center applications. These technological advancements increase adoption rates and support sustainability initiatives in enterprise and hyperscale facilities.
02

Restraint: High Upfront Capital Costs And Maintenance Expenses Limit UPS Adoption In Smaller Facilities

One major restraint for the data center UPS market is the high initial investment and ongoing maintenance costs. Advanced UPS systems with features like modular scalability and lithium‑ion battery technology require significant capital outlay, which can deter small and medium enterprises from upgrading or installing robust solutions. For example, a regional IT facility may delay deployment of a high‑capacity UPS due to budget constraints, increasing vulnerability to power disruptions. These cost barriers can slow overall market adoption, restrict demand to larger data centers, and influence purchasing decisions toward lower‑cost or less resilient alternatives.
03

Opportunity: Hyperscale cloud Data Center UPS expansion in North America and Modular UPS for high-density AI workloads in global colocation facilities

Rapid expansion of hyperscale cloud platforms is driving robust demand for high-capacity Data Center UPS, particularly three-phase UPS systems supporting multi-megawatt loads in North America. As providers consolidate regional facilities into fewer, larger campuses, operators seek energy-efficient UPS architectures with advanced monitoring, lithium-ion batteries, and renewable energy integration. Three-phase UPS revenue is projected to grow from $4.75 billion in 2025 to $6.98 billion by 2030, with the fastest growth concentrated in cloud-oriented Tier III and Tier IV sites globally over time.
Surging adoption of generative AI and high-density GPU clusters is reshaping power architectures in colocation facilities, increasing the need for flexible Data Center UPS configurations. Operators are prioritizing modular UPS systems and energy-efficient UPS designs that can be right-sized per rack, deliver higher power density, and support concurrent maintenance without downtime. This favors three-phase UPS in multi-tenant halls, while premium uninterruptible power supply offerings with enhanced visibility and control gain traction among cloud, fintech, and AI-focused enterprise tenants managing critical AI workloads.
04

Challenge: Battery Life Limitations And Replacement Challenges Impact Total Cost Of Ownership

Another key restraint is the limited lifespan of UPS batteries and the complexity of replacements. Traditional lead‑acid batteries in UPS units often require replacement every three to five years, adding significant lifecycle costs. Even with lithium‑ion alternatives, which can last longer, the higher replacement price and need for specialized handling can deter organizations from frequent upgrades. For instance, healthcare facilities may postpone expanding UPS capacity due to anticipated recurring battery expenses, affecting long‑term revenue growth for UPS providers and slowing overall market expansion.

Supply Chain Landscape

1

UPS Battery Systems

Samsung SDILG Energy SolutionPanasonic Industry
2

Modular UPS Assembly

Schneider ElectricVertiv Group Corp.Eaton
3

Critical Power Distribution

ABBDelta ElectronicsLegrand
4

Data Center UPS

Cloud Data Center OperatorsColocation and Hosting Providers
Data Center UPS - Supply Chain

Use Cases of Data Center UPS in IT & Telecommunications & Healthcare

IT & Telecommunications : Data center UPS systems are essential for IT and telecommunications infrastructure, providing uninterrupted power to servers, network equipment, and critical communication systems. Online double-conversion UPS units are predominantly used in these applications due to their ability to deliver continuous, clean power and isolate sensitive equipment from voltage fluctuations and outages. By maintaining stable power, these systems prevent data loss, downtime, and service interruptions, ensuring smooth network operations. Organizations such as cloud service providers, data centers, and telecom operators benefit from increased reliability, optimized system performance, and enhanced service-level agreements, which are vital in today’s always-on digital economy.
Healthcare : In the healthcare sector, data center UPS systems safeguard mission-critical medical equipment, patient monitoring devices, and hospital IT networks. Online and modular UPS solutions are commonly deployed to ensure redundancy and scalability, supporting emergency power supply for sensitive medical instruments and electronic health record systems. These systems maintain operational continuity during blackouts or voltage disturbances, protecting patients and critical data. Hospitals, diagnostic centers, and research laboratories rely on UPS technology to comply with strict regulatory requirements, minimize operational risks, and enhance patient safety while supporting the seamless delivery of healthcare services.
Media & Entertainment : Media and entertainment companies use data center UPS systems to protect high-performance computing clusters, content delivery networks, and storage servers that handle streaming, broadcasting, and production workloads. Double-conversion online and high-capacity modular UPS units are favored for their ability to provide consistent, reliable power to power-hungry applications. These systems prevent data corruption, production delays, and downtime, ensuring smooth content delivery and high-quality media services. Studios, broadcasters, and online streaming platforms benefit from uninterrupted operations, improved equipment longevity, and the ability to meet tight production schedules in a fast-paced, technology-driven industry.

Recent Developments

The worldwide market for Data Center Uninterruptible Power Supply systems has shown substantial expansion during recent times. The market expansion stems from rising requirements for continuous power supply which enables data centers to function without interruptions since they serve as critical infrastructure for modern digital operations. The digital transformation along with rising data analysis needs have created additional market demand for dependable Data Center UPS systems. The market now shows a clear direction toward modular UPS systems as its main development pattern.

November 2025 : Schneider Electric secured a $373 million Supply Capacity Agreement with data center operator Digital Realty for uninterruptible power supplies, low voltage switchgear, and prefabricated power skids. This long‑term supply contract supports rising demand for critical UPS infrastructure in large‑scale data centers and improves supply chain resilience.
May 2025 : Schneider Electric expanded collaboration with Huawei Technologies to co‑develop advanced data center UPS and energy management solutions. This strategic partnership targets improved reliability and performance of power continuity systems in hyperscale and enterprise data centers.

Impact of Industry Transitions on the Data Center UPS Market

As a core segment of the Energy Storage industry, the Data Center UPS market develops in line with broader industry shifts. Over recent years, transitions such as Shift Towards Modular UPS Systems and Adoption of Lithium Ion Batteries have redefined priorities across the Energy Storage sector, influencing how the Data Center UPS market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Shift Towards Modular UPS Systems

The accelerating shift toward modular UPS systems is reshaping the Data Center UPS market from fixed, overprovisioned architectures to agile, right-sized power ecosystems and is projected to add approximately $1 billion in incremental Data Center UPS market growth by 2030. By enabling granular scalability, modular Data Center UPS platforms align capacity with real-time load, lowering total cost of ownership while improving energy efficiency and resilience for mission-critical applications across IT & telecommunications. This transition allows operators of cloud computing hubs, edge data centers, and colocation facilities to defer capital expenditure, optimize space, and maintain higher availability through hot-swappable modules and streamlined maintenance. As a result, scalable power infrastructure is becoming a strategic differentiator, accelerating global adoption of advanced Data Center UPS solutions.
02

Adoption of Lithium Ion Batteries

The Data Center UPS industry has experienced a significant change through its adoption of lithium ion batteries as a power storage solution. Data centers used to depend on valve regulated lead acid batteries for backup power systems. Lithium ion batteries provide better performance than Valve Regulated Lead-Acid batteries because they last longer and take up less space while needing less upkeep. The shift to lithium ion batteries creates major effects on e commerce and cloud service operations because any data center outage leads to substantial financial losses.