Market Summary

The global Data Center UPS market size was valued at USD 8.90 billion in 2025 and is projected to reach USD 22.80 billion by 2033, growing at a CAGR of 12.60% from 2026 to 2033 The market for data center UPSs is growing at a consistent compound annual growth rate (CAGR) due to the rapid expansion of cloud computing, hyperscale data centers, and growing digitalization across industries that depend on reliable power infrastructure. Dependency on dependable backup power solutions is growing due to increased data traffic and AI-driven workloads

Market Size & Forecast

• 2025 Market Size: USD 8.90 Billion
• 2033 Projected Market Size: USD 22.80 Billion
• CAGR (2026-2033): 12.60%
• North America: Largest Market in 2026
• Asia Pacific: Fastest Growing Market

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Key Market Trends Analysis

• Due to significant expenditures in hyperscale data centers, widespread cloud use, and ongoing infrastructure improvements, North America continues to dominate the market. Large-scale deployments in the US increase demand for high-capacity UPS systems that support crucial workloads and operational continuity.
• The fast growth of hyperscale and colocation facilities, the rising use of lithium-ion batteries, and the emphasis on energy-efficient power backup systems define the US industry. The need for sophisticated UPS architectures is being reinforced by growing AI workloads and digital services.
• Growing data consumption, increased internet penetration, and growing cloud infrastructure in China, India, and Japan are all contributing to Asia Pacific's rapid growth. Scalable and flexible UPS solutions are becoming more widely used across facilities due to the quick building of new data centers.
• Double conversion or online Because UPS systems can provide continuous power conditioning, zero transfer time, and improved protection against voltage disturbances, they are becoming more and more popular worldwide for mission-critical applications and high-availability data center operations.
• As hyperscale and large colocation facilities expand infrastructure to support high-density computing, UPS systems above 1,000 kVA are in high demand. Operators are concentrating on high-efficiency systems that optimize energy consumption and support long-term scalability requirements within large-scale environments.
• Due to their longer lifespan, higher energy density, and lower maintenance needs, lithium-ion batteries are becoming more and more popular. This allows data center operators to increase operational efficiency and space utilization while also lowering total cost of ownership and supporting sustainability goals.
• As more and more businesses move their workloads to cloud platforms, cloud and hyperscale data centers continue to be the most popular deployment models. This encourages ongoing investment in scalable and redundant UPS infrastructure that can handle continuous operations and quickly expanding processing demands.
• As businesses create and handle more data, cloud storage applications are growing quickly. This has increased demand for dependable power protection systems that guarantee data availability, reduce downtime risks, and enable large-scale storage environments to run continuously.
• The continuous growth of digital services, the deployment of 5G infrastructure, and the increase in data traffic volumes, IT and telecommunications continue to drive end-user demand, which in turn encourages investments in cutting-edge UPS solutions that can sustain network operations without interruption and guarantee service reliability across vital communication systems.

So, The sector devoted to supplying continuous power supply systems that guarantee data centers continue to function even in the event of power outages or disruptions is known as the data center UPS market. UPS systems avoid data loss and operational downtime by shielding vital IT infrastructure from voltage swings, power outages, and electrical interruptions. Data centers are becoming crucial pieces of infrastructure enabling cloud computing, business operations, and internet services due to our growing reliance on digital platforms. The proliferation of hyperscale data centers worldwide, growing cloud computing use, and increased data generation are the main factors propelling market growth. To support high-density computing environments, increase power reliability, and improve energy efficiency, organizations are investing in cutting-edge UPS technology. By enabling scalable and economical deployments, the combination of modular UPS systems with lithium-ion batteries is further revolutionizing the market. Additionally, businesses are being encouraged to bolster their power backup infrastructure by the increasing significance of business continuity and data protection regulations. Long-term demand for cutting-edge data center UPS solutions is anticipated to be sustained by edge computing, artificial intelligence workloads, and growing digital transformation projects across industries.

Data Center UPS Market Segmentation

By UPS Type

• Online / Double Conversion UPS

Converting incoming AC to DC and back to AC, online or double conversion UPS systems ensure zero transfer time during outages and provide continuous power conditioning. In mission-critical data centers, where power quality and uptime are crucial, these systems are extensively used. Strong demand for this topology is nevertheless supported by growing hyperscale deployments and sensitive IT workloads.

• Line-Based Interactive UPS

Automatic voltage regulation is used by line-interactive UPS systems to control voltage variations when transitioning to battery power during outages. They are frequently used in small and medium-sized data centers where modest power protection and cost effectiveness are top concerns. In business settings with laxer uptime standards, adoption is steady.

• Offline / Standby UPS

Basic backup protection is provided by offline or standby UPS systems, which only turn on in the event of a power outage. Because of their simpler design and cheaper cost, these systems are typically utilized in smaller facilities or for non-critical IT applications. However, because of their inferior power conditioning capabilities and transfer delay, their application in large data centers is restricted.

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By Power Capacity

• Below 500 kVA

Small and edge data centers with minimal power density requirements are the usual locations for UPS systems under 500 kVA. Demand in this market is being supported by expansions in edge deployments and distributed computing. Businesses looking for backup solutions that are both scalable and space-efficient also help the market grow.

• 500 kVA – 1,000 kVA

Medium-sized data centers that need to balance redundancy and scalability are served by this capacity range. The industry gains from colocation expansion and enterprise IT modernization, where dependable backup systems are necessary for moderate power demands. This category is being further strengthened by the growing use of modular UPS.

• Above 1,000 kVA

Large colocation data centers with significant power consumption and hyperscales are the main applications for UPS systems larger than 1,000 kVA. Workloads caused by AI and growing need for cloud computing are speeding up adoption in this market. High-efficiency systems are given priority by operators in order to lower operating expenses and energy losses.

By Battery Type

• Valve-Regulated Lead-Acid (VRLA) Battery

Demonstrated dependability and reduced initial cost, VRLA batteries are still commonly used in data center applications. They are frequently used in cost-sensitive deployments and legacy installations. However, replacement trends are rapidly being influenced by maintenance requirements and a shorter lifecycle when compared to newer technology.

• Lithium-Ion Battery

Lithium-Ion Battery has greater energy density, longer lifespan, and lower maintenance needs, lithium-ion batteries are becoming more and more popular. Lithium-ion solutions are becoming more and more popular among data center operators that want to maximize space utilization and reduce total cost of ownership. They are especially popular in high-density and hyperscale settings.

• Nickel-Cadmium Battery

Nickel-cadmium batteries are prized for their resilience and functionality in challenging environmental circumstances, such as elevated temperatures. They are employed in specific applications where cost considerations are subordinated to dependability. However, widespread implementation is constrained by greater initial costs and environmental concerns.

• Flywheel UPS

Flywheel-based energy storage systems offer little maintenance, excellent dependability, and short-duration backup power. In order to fill power shortfalls during transitions, these systems are frequently combined with generators. Facilities looking for battery-free and ecologically friendly solutions are seeing an increase in adoption.

By Data Center Type

• Enterprise Data Center

UPS systems are essential for enterprise data centers to safeguard internal IT infrastructure and guarantee business continuity. Digital transformation and the growing need for data processing across businesses are driving demand. But investment patterns are gradually changing as a result of the shift to cloud settings.

• Colocation Data Center

In order to accommodate numerous tenants with varying uptime needs, colocation data centers need extremely dependable UPS systems. Because businesses are outsourcing data center operations, the market is growing. In order to uphold service-level agreements, operators give priority to scalable and redundant UPS structures.

• Cloud / Hyperscale Data Center

Due to their continuous operations and enormous computing workloads, cloud and hyperscale data centers are a significant demand driver. Large-scale infrastructure requires UPS systems with high capacity and energy efficiency. This market is still growing thanks to advancements in cloud computing, AI, and big data analytics.

• Edge Data Center

To support decentralized computing environments, edge data centers need small and effective UPS systems. Adoption is accelerating because to growing demand for 5G infrastructure, IoT, and low-latency applications. Modularity, remote monitoring, and quick deployment capabilities are highlighted in these deployments.

By Application

• Cloud Storage

Applications for cloud storage need a steady power source to preserve data accessibility and avoid service interruptions. The need for dependable UPS systems is being supported by growing data volumes and enterprise cloud adoption. In order to control operating expenses, operators concentrate on energy-efficient alternatives.

• Data Warehousing

Large-scale data processing and analytics are required for data warehousing applications, which need for a steady and uninterrupted power source. UPS systems are essential for preserving processing continuity and preventing data loss. This application category is being supported by an increase in analytics-driven decision-making.

• ERP Systems

High uptime is necessary for ERP systems to support vital corporate processes and prevent interruptions. Enterprise dependence on integrated digital systems is the primary driver of UPS adoption in this market. Power reliability is a top priority for organizations in order to maintain data integrity and workflow.

• Application Servers

Business-critical software environments that need steady power availability are supported by application servers. The need for dependable backup solutions is being driven by an increase in digital services and enterprise applications. UPS solutions support operational continuity and reduce downtime.

• File Servers

Because file servers handle and preserve corporate data, power protection is crucial to preventing loss or corruption. During outages, UPS deployment guarantees safe shutdown and data protection. In both enterprise and mid-sized data center settings, demand is constant.

• CRM Systems

CRM systems must be always available in order to facilitate customer interaction and operational effectiveness. UPS systems guarantee continuous access to corporate operations and client data. Infrastructure investments are still influenced by the increasing use of cloud-based CRM platforms.

By End User

• IT & Telecommunications

Due to high data traffic volumes and ongoing network operations, the IT and telecoms industry has the highest UPS requirement. Infrastructure investments are accelerating due to the expansion of 5G networks and cloud services. High scalability and dependability are still important requirements for purchases.

• BFSI

For BFSI firms to enable data security, transaction processing, and regulatory compliance, electricity must be available continuously. In crucial financial processes, UPS systems aid in preserving operational continuity. The market is expanding thanks to the growing use of fintech and digital banking.

• Government & Defense

For safe and vital operations, government and military data centers need extremely dependable power backup systems. Data security and operational preparedness are guaranteed by UPS deployment. Constant demand is supported by investments in cybersecurity infrastructure and digital governance.

• Healthcare

Electronic medical records, diagnostic tools, and telemedicine platforms that need constant power availability are all supported by healthcare data centers. UPS systems are essential for maintaining operational continuity and the integrity of patient data. Demand is being driven by the growing usage of digital healthcare.

• Manufacturing

Data centers are essential for industrial control systems, automation, and monitoring in manufacturing operations. UPS systems guard against production losses and downtime brought on by power outages. Initiatives for smart factories and Industry 4.0 are driving up adoption.

• Energy & Utilities

UPS systems provide grid management, monitoring, and control systems for energy and utility companies. System stability and uninterrupted operations are guaranteed by dependable power backup. Two major development drivers are the implementation of smart grids and the upgrade of infrastructure.

• Media & Entertainment

Data centers for media and entertainment handle massive amounts of digital content, need constant power supply. UPS systems support the upkeep of broadcasting, streaming, and content processing activities. Demand is being supported by an increase in the use of digital media.

• Retail & E-commerce

Data centers are essential for transaction processing, inventory control, and customer engagement technologies on retail and e-commerce platforms. UPS systems guard against income losses during outages and guarantee continuous online operations. Adoption is still being driven by the online retail industry's explosive growth.

Regional Insights

North America remains a mature market supported by extensive data center infrastructure across the United States, Canada, and Mexico. Due to the robust presence of hyperscale operators and cloud service providers, the United States leads the region in demand, while Canada and Mexico are gradually growing thanks to investments in digital infrastructure. Technology adoption in the region is still influenced by energy saving programs and the renovation of existing structures. Regulations focusing on sustainability and energy efficiency in Germany, the UK, France, Spain, Italy, and the rest of Europe are driving the continent's steady expansion. In order to adhere to environmental standards, nations with robust digital economies are concentrating on modernizing data center electrical infrastructure.

The region's emphasis on lowering operating energy usage is reflected in the growing use of lithium-ion batteries and modular UPS systems.With the help of fast digitalization and rising cloud ecosystems, Asia Pacific is the fastest-growing area, lead by China, Japan, India, South Korea, Australia, and New Zealand. South America, which includes Argentina and Brazil, is growing gradually as a result of growing enterprise digital adoption. Due to smart city projects and rising expenditures in digital infrastructure, the Middle East and Africa region specifically Saudi Arabia, the United Arab Emirates, and South Africa is becoming a hub for data centers.

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Recent Development News

• February2025, The Galaxy series UPS portfolio has been expanded and improved by Schneider Electric with the goal of enhancing data center operations' sustainability, modular scalability, and energy efficiency. In order to meet industry need for robust and low-carbon power infrastructure, the development focuses on supporting hyperscale and colocation data centers with greater efficiency ratings and enhanced lifecycle management capabilities..

(Source:https://www.se.com/za/en/about-us/newsroom/news/press-releases/schneider-electric-announces-galaxy-vxl-ups-%E2%80%93-the-industry%E2%80%99s-most-compact-high-density-power-protection-system-for-ai-data-centre-and-large-scale-electrical-workloads-67b9a32dc9befc0e5002df80?utm_source=chatgpt.com)

• December 2024, The Vertiv PowerUPS 9000, a small, high-efficiency uninterruptible power supply system intended for large, high-density data center situations, was introduced by Vertiv. With its 97.5% double-conversion efficiency and support for scalable deployments, the system meets the growing demands for power density brought on by workloads involving cloud computing and artificial intelligence. The goal of the product is to maximize space utilization in contemporary data centers while improving energy efficiency.

(Source:https://prod.vertiv.cn/en-us/about/news-and-insights/corporate-news/vertiv-introduces-compact-high-power-density-ups-for-large-data-centers-and-other-critical-applications)

Key Data Center UPS Company Insights

Schneider Electric holds a strong position in the data center UPS market through its comprehensive power management ecosystem and globally recognized APC brand portfolio. Scalable deployments for hyperscale and enterprise facilities are made possible by the company's integration of UPS systems with energy management software, edge-ready infrastructure, and modular data center solutions. Its emphasis on sustainability, lithium-ion battery integration, and energy efficiency fits well with the changing needs of data centers for lower operating costs and a smaller carbon impact. Schneider Electric is a leading player in the data center infrastructure markets of North America, Europe, and Asia Pacific thanks to its strong global distribution, service capabilities, and alliances with colocation and hyperscale operators.

Key Data Center UPS Companies:

• Schneider Electric SE
• Eaton Corporation plc
• Vertiv Holdings Co.
• ABB Ltd.
• Delta Electronics, Inc.
• Huawei Technologies Co., Ltd.
• Mitsubishi Electric Corporation
• Riello Elettronica S.p.A.
• Socomec Group S.A.
• Legrand SA
• Toshiba Corporation
• Fuji Electric Co., Ltd.
• Hitachi Energy Ltd.
• Cyber Power Systems, Inc.
• Piller Power Systems GmbH

Global Data Center UPS Market Report Segmentation

By UPS Type

• Online / Double Conversion UPS
• Line-Interactive UPS
• Offline / Standby UPS

By Power Capacity

• Below 500 kVA
• 500 kVA – 1,000 kVA
• Above 1,000 kVA

By Battery Type

• Valve-Regulated Lead-Acid (VRLA) Battery
• Lithium-Ion Battery
• Nickel-Cadmium Battery
• Flywheel UPS

By Data Center Type

• Enterprise Data Center
• Colocation Data Center
• Cloud / Hyperscale Data Center
• Edge Data Center

By Application

• Cloud Storage
• Data Warehousing
• ERP Systems
• Application Servers
• File Servers
• CRM Systems

By End User

• IT & Telecommunications
• BFSI
• Government & Defense
• Healthcare
• Manufacturing
• Energy & Utilities
• Media & Entertainment
• Retail & E-commerce

Regional Outlook

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • Germany
  • United Kingdom
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • Australia & New Zealand
  • South Korea
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • United Arab Emirates
  • South Africa
  • Rest of the Middle East & Africa