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Offsite Data Center Power Infrastructure Market

The market for Offsite Data Center Power Infrastructure was estimated at $16.0 billion in 2025; it is anticipated to increase to $35.8 billion by 2030, with projections indicating growth to around $80.2 billion by 2035.

Report ID:DS2409004
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Energy & Power
E&P Miscellaneous
Offsite Data Center Power Infrastructure
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Report Summary
Market Data
Methodology
Table of Contents

Global Offsite Data Center Power Infrastructure Market Outlook

Revenue, 2025

$16.0B

Forecast, 2035

$80.2B

CAGR, 2026 - 2035

17.5%

The Offsite Data Center Power Infrastructure industry revenue is expected to be around $16.0 billion in 2026 and expected to showcase growth with 17.5% CAGR between 2026 and 2035. Building on this outlook, the Offsite Data Center Power Infrastructure market is solidifying its role as a mission-critical backbone for always-on digital services, underpinned by rapid cloud migration, data-intensive applications, and stringent uptime requirements from hyperscalers and colocation data centers. Demand is further reinforced by accelerating digital transformation in regulated sectors, with BFSI and Others end-use segments together accounting for 49.1% of the market, highlighting the importance of resilient and compliant data center power solutions. Centralized power infrastructure remains the dominant configuration, with centralized offerings generating approximately $8.66 billion in revenue in 2025, reflecting strong preference for unified control, optimized load management, and streamlined maintenance in large-scale facilities. Across regions, operators are prioritizing energy efficiency, grid-interactive capabilities, and advanced monitoring, ensuring that Offsite Data Center Power Infrastructure continues to evolve in line with cybersecurity, sustainability, and cost-optimization imperatives.

Offsite Data Center Power Infrastructure encompasses the integrated ecosystem of centralized and distributed electrical systems that support remote data halls, including high-availability switchgear, uninterruptible power supplies, backup generators, battery storage, and intelligent distribution units designed for scalable, modular power systems. Its key features include redundant architectures, real-time power quality monitoring, remote management, and energy-efficient power systems that minimize downtime risks while optimizing total cost of ownership. Major applications span BFSI data centers, cloud and colocation campuses, telecom and content delivery facilities, government and public sector environments, and diversified enterprise others segments requiring secure, offsite hosting of critical workloads. Recent trends driving demand include the adoption of modular power architectures for faster deployment, integration of low-carbon and renewable-backed backup power solutions, deployment of AI- and analytics-driven predictive maintenance, and the reconfiguration of power capacity to support high-density computing, edge locations, and hybrid cloud infrastructures.

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

Market Key Insights

  • The Offsite Data Center Power Infrastructure market is projected to grow from $16.0 billion in 2025 to $80.2 billion in 2035. This represents a CAGR of 17.5%, reflecting rising demand across UPS Systems, Generators, and PDUs.

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

  • U.S. and Germany are the top markets within the Offsite Data Center Power Infrastructure market and are expected to observe the growth CAGR of 16.8% to 24.5% between 2025 and 2030.

  • Emerging markets including India, Brazil and Singapore are expected to observe highest growth with CAGR ranging between 13.1% to 18.2%.

  • Transition like Shift to Renewable Power Sources is expected to add $5 billion to the Offsite Data Center Power Infrastructure market growth by 2030.

  • The Offsite Data Center Power Infrastructure market is set to add $64.2 billion between 2025 and 2035, with manufacturer targeting Media & Entertainment & Government & Defense Application projected to gain a larger market share.

  • With

    growing demand for data storage and cloud computing, and

    Focus on Energy Efficiency and Sustainability, Offsite Data Center Power Infrastructure market to expand 402% between 2025 and 2035.

offsite data center power infrastructure market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Offsite Data Center Power Infrastructure - Country Share Analysis

Opportunities in the Offsite Data Center Power Infrastructure

Offsite Data Center Power Infrastructure for colocation facilities in Southeast Asia targets enterprises outsourcing IT loads. Many operators still rely on disparate backup power infrastructure, creating opportunity for integrated offsite data center power solutions with unified design, lifecycle services, and renewable energy integration. Global services revenues of about $5.02 billion in 2025 are also expected to reach $11.58 billion by 2030, with the fastest growth in ASEAN colocation projects requiring scalable, service-led power infrastructure deployments.

Growth Opportunities in North America and Asia-Pacific

North America is one of the most influential markets for Offsite Data Center Power Infrastructure, with BFSI emerging as the most critical End-Use due to stringent uptime, latency, and compliance requirements for financial transactions and trading platforms. Key drivers include rapid adoption of hyperscale cloud, tighter cyber and energy regulations, and the replacement of legacy on-premise systems with resilient offsite data center power solutions integrated into Tier III facilities. Competitive intensity is high, with established OEMs, specialist engineering firms, and colocation operators competing on differentiated mission-critical power systems, service-level guarantees, and data center sustainability performance. Strategic opportunities center on grid-interactive designs that combine microgrids and battery energy storage, modular power architectures tailored to BFSI workloads, and premium service models that bundle monitoring, lifecycle maintenance, and energy optimization for offsite facilities. Vendors that can demonstrate audit-ready resilience, verifiable energy efficiency, and low total cost of ownership will be best positioned to secure long-term BFSI and regulated-industry contracts.
Asia-Pacific represents a fast-scaling hub for Offsite Data Center Power Infrastructure, where the others End-Use segment covering cloud service providers, telecom, and digital platforms holds the highest relevance as regional data traffic and content delivery accelerate. Market drivers include aggressive rollouts of edge computing nodes, rapid digitalization of enterprises, and policy support for local data residency, all of which intensify demand for flexible, high-density data center power solutions. Competition is fragmented, with global technology vendors, regional EPC contractors, and domestic power system integrators vying to localize designs, reduce capex, and align with country-specific grid and permitting regimes. Strategic expansion opportunities lie in scalable, prefabricated offsite power blocks for new hyperscale campuses, high-efficiency UPS and distribution systems optimized for hot and humid climates, and renewable-ready architectures that ease integration of on-site solar and utility green tariffs. Investors should prioritize partnerships with regional colocation facilities and cloud operators, focusing on differentiated offerings around sustainable data center operations, rapid deployment, and lifecycle service capabilities across key APAC metros.

Market Dynamics and Supply Chain

01

Driver: Rising Cloud Computing Adoption and Expansion of Colocation Facilities Boost Power Infrastructure Demand

The offsite data center power infrastructure market is also primarily driven by the rapid growth of cloud computing services and the simultaneous expansion of colocation data centers worldwide. Cloud service providers are also investing heavily in offsite data centers to support increased demand for storage, computing, and AI workloads. This also drives the need for reliable UPS systems, generators, and PDUs to maintain continuous operations and prevent downtime. Separately, colocation operators expanding their footprint in high-density markets require scalable and efficient power infrastructure to serve multiple tenants. Together, these trends encourage deployment of modular and intelligent UPS systems, high-capacity generators, and advanced PDUs, ensuring operational reliability, energy efficiency, and business continuity in critical IT environments.
Innovations in intelligent power management technologies are also accelerating the adoption of offsite data center power infrastructure. Smart PDUs, automated UPS monitoring, and predictive maintenance systems allow operators to optimize energy usage, monitor loads in real time, and prevent failures before they occur. These advancements improve overall power usage effectiveness, reduce operational costs, and enhance reliability. Data centers increasingly adopt these technologies to meet growing performance demands, support sustainable operations, and ensure high availability for critical enterprise and cloud applications, reinforcing modernization of power infrastructure across global markets.
02

Restraint: High Capital and Operating Costs Slow Deployment of Offsite Data Center Power Infrastructure

A key restraint for offsite data center power infrastructure is the significant capital expenditure and ongoing operating costs associated with UPS systems, generators, and PDUs. High upfront costs for modular or high‑efficiency UPS and robust standby generators can deter smaller colocation operators and enterprise users from upgrading or expanding infrastructure. For example, a mid‑sized data center may delay investment in advanced UPS and power distribution units due to budget constraints, impacting short‑term revenue growth for suppliers. Operating costs, including fuel for generators and maintenance of backup systems, further dampen demand. These cost pressures limit rapid infrastructure scaling and slow overall market expansion.
03

Opportunity: Edge Data Centers Supporting European Smart Manufacturing and Logistics and Rising Hyperscale Cloud Providers Demanding Resilient Power in North America

Offsite Data Center Power Infrastructure enabling edge data centers for European smart manufacturing remains an early-stage opportunity. Industrial users need resilient, low-latency offsite data center power solutions to support automation, digital twins, and analytics at production lines. Related offerings already exceed $2.30 billion in 2025 and could reach $5.55 billion by 2030, implying CAGRs near 19.24%, with the fastest growth in edge deployments across Germany, France, and Northern Europe using compact, modular power systems.
Offsite Data Center Power Infrastructure for hyperscale cloud providers in North America remains underpenetrated, even as workloads shift to campuses. Operators are prioritizing offsite data center power solutions with advanced redundancy, intelligent monitoring, and modular power systems to add capacity without utility lead times. Solutions revenues already exceed $8.66 billion globally and are projected to reach $18.67 billion by 2030, making high-availability infrastructure for North American hyperscale campuses the fastest-growing type within the solutions segment.
04

Challenge: Regulatory and Environmental Compliance Requirements Increase Complexity and Limit Market Adoption

Another major restraint is the growing regulatory and environmental pressure associated with power infrastructure components. Emission standards for diesel generators, noise restrictions, and sustainability mandates are tightening, particularly in North America and Europe. Data centers must invest in low‑emission generators, sound mitigation systems, and renewable backup options to comply with local laws. For instance, an operator in an urban market may postpone generator upgrades pending environmental approval, reducing immediate demand. These compliance requirements add complexity and cost, altering buying behavior and slowing adoption of traditional power infrastructure solutions in favor of greener alternatives.

Supply Chain Landscape

1

Power Components

ABBEaton
2

Offsite Power Infrastructure

Schneider ElectricVertiv Group Corp
3

System Deployment

Huawei Digital Power Technologies Co. Ltd.Schneider Electric
4

Data Center Operators

Colocation data centersCloud service providersEnterprise IT facilities
Offsite Data Center Power Infrastructure - Supply Chain

Use Cases of Offsite Data Center Power Infrastructure in UPS Systems & PDUs

UPS Systems : Uninterruptible Power Supply (UPS) systems are a core component of offsite data center power infrastructure, providing immediate backup power during outages or voltage fluctuations. Typically, modular and online double-conversion UPS systems are used by cloud service providers, colocation operators, and enterprise data centers to ensure continuous operations and protect sensitive IT equipment. UPS systems improve reliability by maintaining stable voltage levels, preventing data loss, and reducing hardware stress. Their rapid response time and scalable configurations allow data centers to meet high availability requirements while optimizing energy efficiency and reducing overall operational risk in mission-critical environments.
Generators : Generators serve as a critical component of offsite data center power infrastructure, offering long-duration backup power during extended grid failures. Diesel and natural gas generators are most commonly deployed by large hyperscale data centers and financial institutions that require uninterrupted operations. Generators complement UPS systems by providing sustained energy supply when primary power is unavailable, supporting continuous workloads and critical applications. Their integration ensures business continuity, allows maintenance of high uptime standards, and enhances overall resilience against power disruptions, making generators indispensable for mission-critical environments where downtime can result in significant financial and operational consequences.
PDUs : Power Distribution Units (PDUs) are essential for delivering controlled, reliable power to IT equipment within offsite data centers. Typically, intelligent and rack-mounted PDUs are used by colocation providers and enterprise data centers to distribute power efficiently, monitor energy consumption, and manage loads remotely. PDUs optimize power usage effectiveness, reduce the risk of overloads, and improve operational efficiency. By providing precise power monitoring, remote management, and automated load balancing, PDUs enhance energy efficiency, support preventive maintenance strategies, and ensure uninterrupted operations of servers, storage, and networking equipment in high-density, mission-critical computing environments.

Recent Developments

Recent developments in offsite data center power infrastructure show increased adoption of modular UPS systems, battery energy storage, and intelligent power distribution units to improve power reliability and energy efficiency. A key market trend is the shift toward scalable backup power solutions that support high‑density workloads and hybrid cloud environments. Data center operators are integrating real‑time power monitoring, predictive maintenance, and renewable backup sources to minimize downtime, reduce operational costs, and enhance power usage effectiveness across distributed IT facilities.

December 2024 : Vertiv Group Corp. launched the PowerUPS 9000, a high‑efficiency, modular UPS system delivering up to 1,250 kW with a compact footprint and double‑conversion efficiency up to 97.5%. This system enhances reliability for space‑constrained data centers and supports hybrid battery options, expanding Vertiv’s critical power infrastructure portfolio.
June 2025 : ABB Ltd. rolled out its AI‑optimized MegaFlex UL 415 V three‑phase UPS, tailored for colocation, hybrid, and hyperscale data centers. The new UPS enhances efficiency and reliability for next‑generation workloads, reinforcing ABB’s leadership in intelligent power continuity solutions.

Impact of Industry Transitions on the Offsite Data Center Power Infrastructure Market

As a core segment of the E&P industry, the Offsite Data Center Power Infrastructure market develops in line with broader industry shifts. Over recent years, transitions such as Shift to Renewable Power Sources and Adoption of Modular UPS and Battery Systems have redefined priorities across the E&P sector, influencing how the Offsite Data Center Power Infrastructure market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Shift to Renewable Power Sources

The accelerating shift to renewable power sources is becoming a primary growth engine for Offsite Data Center Power Infrastructure, moving sustainability from a compliance topic to a core investment thesis. As hyperscale and colocation operators pursue sustainable data centers, renewable energy integration and green power solutions are expected to unlock an additional $5 billion in market growth by 2030, driven by clean energy procurement, carbon reduction mandates, and rising energy prices. Providers that redesign architectures around hybrid power systems, improved grid resiliency, and advanced data center energy efficiency will capture disproportionate share, as enterprises prioritize partners that can de-risk energy supply while meeting stringent ESG goals. This transition reframes power infrastructure decisions from short‑term cost optimization to long‑term TCO and resilience, structurally lifting demand for innovative offsite power platforms.
02

Adoption of Modular UPS and Battery Systems

The offsite data center power infrastructure industry is undergoing a shift toward modular UPS and battery systems to meet evolving scalability and reliability demands. Modular UPS units allow operators to add capacity incrementally, reducing upfront costs and enabling flexible deployment in colocation, hyperscale, and enterprise data centers. Battery-based systems, including lithium-ion solutions, complement modular setups by providing rapid response during power disruptions and improving energy efficiency. For example, hyperscale cloud providers have adopted modular UPS systems to support growing AI workloads without overprovisioning infrastructure, while financial institutions use scalable battery backups to maintain uninterrupted operations. This transition enhances operational agility, lowers energy waste, and supports high-density computing environments across diverse industries.