According to the report published by Virtue Market Research in AI Data Center Power Infrastructure Market was valued at USD 15.68 billion in 2025 and is projected to reach a market size of USD 35.87 billion by the end of 2030. Over the forecast period of 2026 to 2030, the market is expected to grow at a robust compound annual growth rate of 18%.
Request Sample Copy Of This Report @ https://virtuemarketresearch.com/report/ai-data-center-power-infrastructure-market/request-sample
The AI data center power infrastructure market is growing as artificial intelligence becomes part of daily digital life. AI systems need massive computing power, and that power must flow smoothly, safely, and without interruption. Data centers built for AI workloads consume far more electricity than traditional facilities because they run advanced processors day and night. This makes power infrastructure a core backbone rather than a support function. Over the long term, the strongest market driver is the global rise of data creation and real-time decision making. Every search, image, voice command, and automated task adds pressure on data centers to scale. As AI models grow larger and smarter, they require stable, high-density power systems that can handle sudden load changes without failure. This long-term need keeps pushing investments in transformers, power distribution units, backup systems, and energy management tools.
The COVID-19 pandemic had a noticeable impact on this market. During lockdowns, people moved work, education, shopping, and entertainment online almost overnight. This caused a sudden spike in data traffic and cloud usage. Data centers were forced to operate at high capacity for extended periods, revealing weaknesses in older power setups. At the same time, supply chain disruptions delayed equipment deliveries and slowed new installations.
Segmentation Analysis:
By Component: Transformers, Switchgear & Circuit Breakers, Uninterruptible Power Supply Systems, Power Distribution Units, Busway & Power Cables, Generators and Power Backup Systems, and Others
In the AI Data Center Power Infrastructure Market, components work together like parts of a living machine, each carrying a different load of responsibility. Transformers quietly handle voltage changes, while switchgear and circuit breakers guard systems against sudden faults. Uninterruptible power supply systems act like invisible shields, keeping AI workloads alive during brief power losses. Power distribution units and busway systems guide electricity with precision to dense racks, and generators step in when grids fail.
By Power Capacity: Below 10 MW, 10–50 MW, 50–100 MW, and Above 100 MW
Power capacity defines how much energy an AI data center can safely digest without strain. Smaller facilities below 10 MW serve edge and enterprise needs, while mid-range capacities support regional AI workloads. Large-scale centers operating above 100 MW resemble energy cities, drawing power at levels once reserved for industrial zones. The largest subsegment here is the 10–50 MW range, as it balances scalability with manageable investment and fits many AI expansion plans. The fastest growing during the forecast period is the above 100 MW category, fueled by hyperscale AI projects that demand massive, concentrated power to train and run complex models at unmatched speed.
By Configuration: Centralized Power Configuration, Modular Power Configuration
Configuration shapes how power flows inside AI data centers. Centralized systems rely on large, fixed setups that distribute electricity from a single core, offering stability and traditional control. Modular power configuration breaks infrastructure into repeatable blocks that can be added or shifted as needs change. Centralized power configuration remains the largest subsegment because many existing facilities were built around this familiar structure. However, modular power configuration is the fastest growing during the forecast period, as AI demand behaves unpredictably and operators favor designs that bend, stretch, and grow without heavy reconstruction or long shutdowns.
By Data Center Type: Hyperscale AI Data Centers, Colocation Data Centers, Enterprise AI Data Centers, Edge AI Facilities
Different data center types reflect different AI missions. Hyperscale AI data centers run enormous workloads for global platforms, while colocation sites share space among multiple users. Enterprise AI data centers focus on internal analytics, and edge AI facilities bring computing closer to users. Hyperscale AI data centers are the largest subsegment due to their unmatched scale and constant appetite for power infrastructure. The fastest growing during the forecast period is edge AI facilities, as real-time applications like autonomous systems and smart cities demand nearby processing supported by compact yet robust power systems.
By End-User: Cloud Service Providers, AI & Machine Learning Companies, Enterprises (BFSI, Healthcare, Manufacturing, Retail), Telecom Operators, Government & Defense Organizations
End-users shape demand patterns in the AI Data Center Power Infrastructure Market. Cloud service providers consume vast power resources to serve millions of users, while AI and machine learning companies focus on training and experimentation. Enterprises use AI for operations, telecom operators support network intelligence, and governments apply AI for security and planning. Cloud service providers form the largest subsegment because their platforms host countless AI services simultaneously. The fastest-growing during the forecast period is enterprises across BFSI, healthcare, manufacturing, and retail, as AI adoption spreads beyond tech firms into everyday business operations.
By Cooling-Power Integration: Traditional Air-Cooled Power Systems, Liquid-Cooling Compatible Power Infrastructure, High-Density Rack Power Systems (>30 kW per rack)
Cooling and power integration have become a delicate dance as AI racks grow hotter and hungrier. Traditional air-cooled systems still operate widely, moving air like steady wind through corridors. Liquid-cooling compatible power infrastructure supports advanced processors that generate intense heat. High-density rack power systems deliver electricity to tightly packed equipment exceeding 30 kW per rack. Traditional air-cooled power systems remain the largest subsegment due to widespread installation and familiarity. The fastest-growing during the forecast period is liquid-cooling compatible power infrastructure, as next-generation AI hardware demands tighter thermal and electrical coordination.
Read More @ https://virtuemarketresearch.com/report/ai-data-center-power-infrastructure-market
Regional Analysis:
Regional dynamics add another layer to the AI Data Center Power Infrastructure Market. North America benefits from early AI adoption and strong cloud ecosystems. Europe emphasizes efficiency and regulation-aware designs. Asia-Pacific experiences rapid digital expansion, while South America and the Middle East & Africa steadily build capacity. North America is the largest regional subsegment, supported by dense hyperscale deployments and advanced grid access.
Latest Industry Developments:
- Focus on Modular, Flexible Power and Energy Partnerships: The market trend shows companies adopting modular, scalable power solutions and flexible infrastructure designs to capture larger market shares. This includes the development of advanced uninterruptible power systems, modular UPS units, and scalable distribution systems that can be deployed quickly and expanded as demand rises. In parallel, partnerships with renewable energy providers and grid operators are becoming common, bringing together power generation and consumption planning to improve reliability and sustainability.
- Pursuit of AI-Driven Optimization and Service Differentiation: Another market trend is the integration of AI and digital tools into power infrastructure management. Vendors are incorporating predictive maintenance capabilities, real-time load balancing, and automated energy optimization into their offerings. This digital layer enhances uptime, reduces energy waste, and lowers operating expenses, making power solutions more attractive to hyperscale and enterprise clients alike.
- Expansion through Strategic Alliances and Portfolio Enhancements: Strategic collaborations and expansions into adjacent segments are shaping how market players grow their share. Alliances with cloud operators, chip makers, and global data center builders allow power infrastructure firms to secure long-term contracts and co-develop tailored solutions. Additionally, expanding product portfolios to include liquid-cooling compatibility, energy storage integration, and high-density rack support aligns with evolving customer needs.
