Data Center UPS Market Overview

The global Data Center UPS market is poised for significant expansion over the forecast period, driven by the surging demand for data storage, cloud computing, and continuous digital operations across industries. By 2025, the market is projected to reach a value of around USD 6.2 Billion. Looking ahead to 2033, it is expected to expand further to about USD 11.0 Billion. This represents an annual growth rate of 7.5% over the ten years.

Data center UPS Systems play a prominent role in securing continuous performance and protection of servers and other network resources should an unexpected power outage or power variation occur. The Data Center UPS Market Growth is being driven by many factors, including the growth in cloud-based services, increased internet traffic driven by IoT and AI, and the growth of edge computing networks. Ongoing concerns regarding the availability of power, integrity, and business continuity require enterprises to invest in higher levels of UPS systems, including modular and scalable UPS systems. The market is seeing a trend of more interest in energy-efficient UPS systems and lithium-ion UPS systems, which offer additional lifecycle benefits and lower maintenance than traditional battery technologies. Government regulations regarding data security and the growth of segments such as BFSI, IT & telecom, healthcare, and manufacturing further contribute to market expansion.

Data Center UPS Market Drivers and Opportunities

Surge in Data Center Construction and Expansion is anticipated to lift the Data Center UPS market during the forecast period

​The demand for data processing and storage, driven by massive digital transformation, is spurring the global growth of data centers. Cloud, edge, big data, and AI technologies are substantially raising the demand for solid data center infrastructure. With businesses in various industries extending their digital presence, the deployment of colocation and hyperscale data centers is gathering momentum. Data centers need high power availability and uptime, and for this, UPS solutions are a key factor. UPS solutions help insulate servers and networking devices from power outages, resulting in unnecessary downtime and lost data at considerable cost. The trend towards intelligent cities, IoT devices, and 5G deployment also increases the need for data processing centers, further propelling the use of UPS. Major players are investing in next-generation UPS systems with scalable and modular designs, which are more energy-efficient and space-saving, aligning with evolving data center needs. This continuous expansion in data centers is forecasted to remain a primary driver for market growth throughout the forecast period.

Growth in Cloud-Based Services and Colocation Facilities is a vital driver for influencing the global Data Center UPS Industry market Growth

​ One major reason for the rise of more sophisticated UPS systems is the rise of colocation data centers and the widespread use of cloud services. As enterprises continue to outsource their data housing, looking to save on infrastructure costs and add agility to their business, there is an upsurge of cloud data centers and colocation facilities being created worldwide. These facilities are reliant on a dependable and redundant UPS infrastructure so they can continue to service their customers. In addition, cloud service providers are spurring the shift towards energy-efficient and sustainable solutions, creating a move towards UPS systems that deliver the best efficiency ratings and are environmentally friendly. As businesses adopt a hybrid IT infrastructure that consists of on-premise, cloud, and edge systems, the added complexity of power management exacerbates the importance of sophisticated UPS systems. The market for UPS systems that enable these transitions is only going to grow as more companies migrate to the cloud, providing many opportunities for manufacturers and service providers.

Innovation in Lithium-ion and Modular UPS Systems is poised to create significant opportunities in the global Data Center UPS market

​The advancement of lithium-ion batteries and modular designs for UPS systems is expected to fuel growth in the Data Center UPS Industry. Historically, lead-acid batteries have powered uninterruptible power supplies, characterized by bulkiness, heavy maintenance requirements, and operational configuration rigidity. Lithium-ion technology offers data centers advantages in terms of operating life, footprint, and total cost of ownership, making it logical that market adoption is accelerating. Modular UPS systems also permit easy growth of data center capacity; operators can utilize modular systems to build up capacity in line with increased demand without requiring major overhauls to their infrastructure. Modular UPS systems also allow operators to realize increased energy efficiencies and lower costs of operation, which aligns with the growing emphasis on sustainability in IT operations. As innovation continues, UPS manufacturers are even beginning to develop UPSs powered by lithium-ion batteries, with integrated AI-enabled tools and predictive analytics to enhance reliability and support predictive rather than reactive maintenance. The move towards smarter, modular, and energy-efficient UPS systems in the industry will create expansive revenue opportunities for companies in logistics, particularly in countries that are currently rapidly evolving their digital and IT infrastructure projects.

Data Center UPS Market Scope

Data Center UPS Market Report Segmentation Analysis

The global data center UPS market industry analysis is segmented by UPS type, by tier type, by application, by end-user industry, and by region.

The Double Conversion segment is anticipated to hold the highest of the global Data Center UPS market share during the projected timeframe

By UPS Type, the market is segmented into Double Conversion, Line Interactive, and Standby. The Double Conversion segment is anticipated to hold the highest share of 44.2% in the global Data Center UPS market during the projected timeframe. Double conversion UPS systems offer superior protection by converting incoming AC power to DC and then back to AC, ensuring a constant, clean, and uninterrupted power supply. This makes them highly suitable for critical data center environments where power fluctuations or outages can lead to significant operational and financial losses. Their ability to isolate sensitive equipment from power anomalies makes them the preferred choice for large-scale data centers, especially those supporting cloud services, colocation, and mission-critical workloads. As data centers continue to scale in capacity and complexity, the demand for reliable power backup through double conversion systems is expected to drive their market dominance.

The Tier II segment dominated the market in 2024 and is predicted to grow at the highest CAGR over the forecast period

By Tier Type, the market is segmented into Tier I, Tier II, Tier III, and Tier IV. The Tier II segment dominated the market in 2024 and is predicted to grow at the highest CAGR over the forecast period. Tier II data centers offer improved redundancy and reliability over Tier I centers by incorporating components such as redundant capacity components and a single path for power and cooling distribution. These facilities strike a balance between cost-efficiency and moderate fault tolerance, making them attractive to mid-sized enterprises and emerging markets. The growing need for scalable yet affordable data centers to support digital services, especially in developing regions, is driving the adoption of Tier II infrastructures. Moreover, the expansion of edge data centers and hybrid IT environments is also contributing to the growth of this segment.

The Cloud Storage segment is predicted to grow at the highest CAGR over the forecast period

By data center UPS market Application, the market is segmented into Cloud Storage, Enterprise Resource Planning (ERP) System, Data Warehouse, File Servers, Application Servers, and Customer Relationship Management (CRM) Systems. The Cloud Storage segment is predicted to grow at the highest CAGR over the forecast period. As businesses increasingly migrate workloads to the cloud, there is a soaring demand for cloud storage infrastructure backed by reliable and uninterrupted power solutions. UPS systems are essential to prevent data loss, ensure service continuity, and maintain compliance with data protection standards. The proliferation of SaaS platforms, IoT data, and real-time analytics has driven massive growth in storage needs, necessitating large-scale and energy-efficient UPS systems. This trend, combined with global cloud adoption across industries, continues to fuel the growth of UPS systems, specifically supporting cloud storage operations.

The IT & Telecom segment is expected to dominate the market during the forecast period

By End-User Industry, the market is segmented into IT & Telecom, Banking, Financial Services, and Insurance (BFSI), Healthcare, Government, Retail & E-commerce, Media & Entertainment, Energy & Utilities, and Education. The IT & Telecom segment is expected to dominate the market during the forecast period. The ongoing global digitalization and expansion of telecom infrastructure—including 5G rollouts—have exponentially increased data traffic and the need for high-performance data centers. These facilities require uninterrupted power supplies to ensure network reliability, service uptime, and data security. Telecom companies and IT service providers are investing in robust UPS systems to support their core infrastructure and mitigate the risks associated with power outages. With the sector increasingly relying on virtualization, AI workloads, and cloud-based operations, the need for highly efficient, scalable, and redundant UPS solutions is critical, thereby securing the segment’s dominant position in the overall market.

The following segments are part of an in-depth analysis of the global data center UPS market:

Data Center UPS Market Share Analysis by Region

North America is projected to hold the largest share of the global Data Center UPS market over the forecast period

North America dominated the global Data Center UPS market in 2024, accounting for a substantial 36.5% share, and is expected to maintain its leadership throughout the forecast period. The Data Center UPS Market Region’s dominance is primarily attributed to the high concentration of data centers, cloud service providers, and hyperscale facilities across the United States and Canada. The widespread adoption of digital technologies, combined with the rapid expansion of 5G infrastructure, AI, and IoT, has significantly increased data processing demands, driving the need for highly reliable and efficient power backup systems. Moreover, strict regulatory requirements regarding data integrity and operational continuity, especially in sectors such as BFSI, healthcare, and government, have further reinforced the need for advanced UPS systems. The presence of major technology players, early adoption of innovative UPS architectures, and increased investments in energy-efficient and modular data center solutions also support North America's continued dominance in the market.

Meanwhile, the Asia Pacific region is forecasted to grow at the highest CAGR during the projection period. This growth is fueled by the rapid digital transformation across emerging economies like China, India, and Southeast Asian nations, along with rising investments in cloud computing, e-commerce, and telecommunications. The increasing number of data centers to meet the region’s expanding online population and digital economy is driving demand for reliable UPS infrastructure. Additionally, government-led initiatives supporting digitalization and smart city developments are expected to accelerate the adoption of data center UPS solutions in the Asia Pacific region.

Data Center UPS Market Competition Landscape Analysis

The global data center UPS market is led by key players including Schneider Electric, Eaton, Toshiba, Emerson Network Power, Clary Corp, Intellipower, GE Electrical Systems, Belkin International, and Power Innovations International. These industry leaders are enhancing their competitive positioning through strategic product development, partnerships, and collaborations to address evolving power protection needs in data centers worldwide.

Global Data Center UPS Market Recent Developments News:

• December 2023: Eaton introduced its 93T UPS series, delivering reliable power protection for small data centers and server rooms. The solution supports mission-critical operations across IT, finance, government, and healthcare sectors, ensuring uninterrupted power for sensitive applications.
• April 2023: Schneider Electric unveiled the Easy UPS 3-Phase Modular, featuring Live Swap capability for seamless maintenance without downtime. The system provides robust protection for critical loads, enhancing operational resilience in demanding environments.

The Global Data Center UPS Market is dominated by a few large companies, such as

●        ABB

●        Schneider Electric

●        Eaton

●        Vertiv Group Corp

●        Mitsubishi Electric Corporation

●        N1 Critical Technologies

●        Legrand

●        Delta Electronics, Inc.

●        Huawei Digital Power Technologies Co., Ltd.

●        Toshiba Corporation

●        LITE-ON Technology Corporation

●        Power Innovations International, Inc.

●        SOCOMEC

●        Borri S.p.A.

●        Fuji Electric Co., Ltd.

●        Hitachi Hi-Rel Power Electronics Private Limited

●        KOHLER Uninterruptible Power Limited

●        Others