| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2020-2023 |
| Base Year |
2024 |
| Forecast Period |
2025-2032 |
| North America AC-DC Power Supply in Data Center Market Size 2023 |
USD 4,052.29 Million |
| North America AC-DC Power Supply in Data Center Market, CAGR |
7.88% |
| North America AC-DC Power Supply in Data Center Market Size 2032 |
USD 7,434.56 Million |
Market Overview
The North America AC-DC Power Supply in Data Center Market is projected to grow from USD 4,052.29 million in 2023 to an estimated USD 7,434.56 million by 2032, with a compound annual growth rate (CAGR) of 7.88% from 2024 to 2032.
Key drivers for the market include the growing demand for data centers, the increasing need for reliable and energy-efficient power solutions, and advancements in power conversion technologies. Additionally, the push toward sustainability and green energy solutions is promoting the use of more efficient power supplies in data centers. Trends such as the integration of smart grids and renewable energy sources are reshaping the market dynamics, focusing on reducing energy consumption while ensuring system reliability.
Geographically, North America dominates the AC-DC Power Supply in Data Center Market, driven by the presence of major data center hubs and large-scale IT infrastructure. The U.S. holds a significant share due to its advanced technological infrastructure and investments in data center expansion. Key players in the market include ABB Ltd., Delta Electronics, Schneider Electric, and Emerson Electric, who are actively driving innovations in power supply solutions for data centers.
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Market Insights
- The North America AC-DC Power Supply in Data Center Market is projected to grow from USD 4,052.29 million in 2023 to USD 7,434.56 million by 2032, with a CAGR of 7.88% from 2024 to 2032.
- Rising demand for data centers, cloud computing, and AI technologies are key drivers pushing the market, as they require efficient, scalable, and reliable power supply systems.
- Sustainability trends and the increasing emphasis on energy-efficient power solutions are encouraging the adoption of advanced AC-DC power supplies in data centers.
- High initial investment costs and the complexity of integrating advanced power systems with existing data center infrastructure can limit market growth.
- Innovations in modular power systems, smart grids, and digital power management are improving operational efficiency and providing more flexible solutions for data center operators.
- The United States leads the market due to its extensive technological infrastructure, investments in cloud services, and large-scale data center expansions, contributing to 70-75% of the market share.
- The increasing rollout of 5G networks and the rise of edge computing present new opportunities for power supply providers to meet the growing needs of distributed data centers and edge applications.
Market Drivers
Increasing Demand for Data Centers and Cloud Computing Services
The rise in data generation, particularly from industries like e-commerce, healthcare, banking, and social media, has led to a growing demand for data centers. With data becoming a critical asset for businesses and individuals alike, organizations are turning to cloud-based platforms and services for efficient data storage, management, and analytics. Cloud computing services, in particular, require large-scale infrastructure, including advanced AC-DC power supply systems that provide reliable and efficient power to data centers. These power supplies ensure the continuous operation of high-performance servers, storage devices, and network equipment. With the expansion of cloud services and the increasing reliance on data-driven solutions, the need for robust and scalable power solutions is more pronounced. This surge in demand for data center infrastructure and the growing cloud computing market directly contributes to the increased adoption of AC-DC power supplies in North America. For instance, the deployment of over 300 colocation projects in recent years highlights the growing need for data center infrastructure to support cloud computing services.
Energy Efficiency and Sustainability Trends
As data centers consume a significant amount of electricity to support their operations, there is a growing emphasis on reducing energy consumption and minimizing the environmental footprint. AC-DC power supplies are increasingly designed to be energy-efficient, capable of converting high amounts of power with minimal losses. These power supplies are also becoming more green-friendly by integrating renewable energy sources, such as solar and wind, to reduce dependency on fossil fuels. Governments and regulatory bodies in North America are implementing strict regulations around energy efficiency and sustainability for infrastructure systems. For instance, data centers are being encouraged to adopt energy-efficient equipment as part of their green building certifications, such as LEED (Leadership in Energy and Environmental Design). These regulations are pushing operators to modernize their power systems to meet stringent energy-saving targets, boosting the demand for next-generation AC-DC power supplies. Additionally, advancements in power conversion technologies, such as low-power standby modes, smart monitoring systems, and advanced cooling techniques, are further driving the adoption of energy-efficient solutions in the data center market. For instance, the U.S. Department of Energy announced resources of up to $42 billion to support the development of energy-efficient, high-performance cooling solutions for data centers, reflecting the push towards sustainability.
Technological Advancements in Power Supply Systems
Ongoing advancements in power conversion technology are significantly contributing to the growth of the North America AC-DC Power Supply in Data Center Market. The shift toward high-density power solutions, such as modular power supplies and multi-output power systems, has improved operational flexibility, scalability, and power efficiency for data center operators. These modern power supplies are capable of handling higher power loads with better control, stability, and less heat generation, addressing the growing demand for high-performance computing and artificial intelligence (AI) applications. Furthermore, digital power management and intelligent control systems are becoming integral features in AC-DC power supplies. These features enable real-time monitoring, fault detection, and automated system adjustments to optimize power consumption. Such technological innovations not only help data centers reduce operational costs but also ensure the reliability and uptime required for mission-critical applications. These advancements in power supply technology enhance operational efficiency, providing a compelling reason for data centers to invest in modern AC-DC systems. For instance, the integration of renewable energy sources like solar and wind into data center operations is becoming more common, with companies like Microsoft securing long-term renewable energy agreements for their data centers in Texas and Iowa.
Expansion of Edge Computing and 5G Networks
The rise of edge computing and the implementation of 5G networks are reshaping the demand for data center power solutions in North America. With edge computing, data processing is pushed closer to the source of data generation, reducing latency and improving response times for end-users. This trend necessitates the construction of smaller, distributed data centers located near edge devices, such as smart sensors, IoT (Internet of Things) devices, and autonomous vehicles. These micro data centers require efficient and compact AC-DC power supplies capable of meeting higher energy demands within constrained physical spaces. Similarly, the rollout of 5G networks drives the need for more robust, distributed data infrastructure capable of handling vast amounts of data generated by high-speed mobile connections. Both edge computing and 5G require reliable power supplies to support the growth of IoT devices and connected services. As these technologies continue to gain traction, the demand for AC-DC power supply systems that can meet the unique needs of edge computing and 5G infrastructure is expected to expand, further boosting market growth in North America. For instance, the deployment of edge data centers is being facilitated by technologies like 5G, which requires data centers to be closer to the end-users to reduce latency, as seen with the strategic placement of edge data centers in urban areas and at the base of cell towers.
Market Trends
Shift Toward Energy-Efficient and Sustainable Power Solutions
The growing emphasis on energy efficiency and sustainability is one of the most prominent trends in the North America AC-DC Power Supply in Data Center Market. Data centers are notorious for their high energy consumption, and as environmental regulations become stricter, there is increasing pressure on operators to reduce their carbon footprint. For instance, in a case study by Intel, the implementation of advanced telemetry and control systems in a data center resulted in a Power Usage Effectiveness (PUE) improvement from 2.0 to less than 1.5, showcasing significant energy savings through better power management. As a result, data center operators are focusing on adopting green technologies and energy-efficient systems to meet these sustainability goals. AC-DC power supplies play a crucial role in this shift, as they are becoming more energy-efficient by minimizing power loss during conversion processes. Power supply manufacturers are integrating advanced technologies such as high-efficiency switching regulators, power factor correction, and advanced power management systems that reduce energy consumption, thus helping data centers cut operational costs. Additionally, renewable energy sources such as solar and wind energy are being incorporated into power supply designs, enabling data centers to rely more on clean energy. For instance, Sify Technologies has contracted 231 MW of renewable energy power, significantly reducing the carbon footprint and operational costs. This trend is expected to continue, with increasing demand for certified sustainable power solutions such as those that meet Energy Star and IEC efficiency standards, further driving the adoption of AC-DC power supplies with lower energy consumption and improved overall system performance.
Integration of Digital Power Management and Smart Monitoring Systems
Another significant trend in the North America AC-DC Power Supply in Data Center Market is the integration of digital power management and smart monitoring systems. These systems allow for more precise control and optimization of power usage within data centers. Traditional power supplies were limited in terms of their ability to provide real-time data and proactive diagnostics; however, with the advent of intelligent power supplies, operators now have access to digital interfaces that allow them to monitor and manage energy consumption, predict failures, and make adjustments remotely. For instance, the use of IoT for data center monitoring, as described by HiveMQ, allows for real-time analytics and detailed reporting on infrastructure health, enhancing energy efficiency and reducing downtime. By implementing IoT-enabled devices and cloud-based monitoring platforms, operators can gain a deeper understanding of their energy requirements and adjust their power consumption patterns accordingly. These systems not only enhance the operational efficiency of data centers but also extend the lifespan of equipment by detecting potential faults before they become critical issues. Additionally, smart power management allows data centers to optimize load distribution, ensure voltage stability, and improve the overall reliability of their power systems. The increasing adoption of these digital solutions is driving the trend toward more sophisticated and intelligent power supply systems that can meet the growing demands of modern data centers.
Growth of Modular and Scalable Power Supply Solutions
The demand for modular and scalable power supply solutions is another important trend currently shaping the North America AC-DC Power Supply in Data Center Market. As data centers continue to expand to meet the rising demand for data storage and processing, there is a need for power systems that can grow alongside this expansion. Modular power supplies, which consist of self-contained, easily replaceable units, offer the flexibility and scalability that data centers require to meet fluctuating power demands. For instance, a major cloud data provider faced with grid constraints during its data center expansion utilized a modular power solution from Aggreko, which included forty-eight low-emissions 1200 kW Tier 4 Final generators, providing an additional 48 MW of continuous power. These modular systems allow operators to add or remove power modules as needed without disrupting the overall power infrastructure. This is particularly valuable in environments where high availability and continuous operation are essential. Furthermore, modular designs offer better efficiency because they allow for power supplies to be distributed more evenly across the system, minimizing wastage and improving overall energy performance. This trend toward modular systems also enables operators to implement hot-swappable components and redundancy features, which are crucial in maintaining uninterrupted service and minimizing downtime in mission-critical applications. As data centers increasingly look for ways to scale their power infrastructure cost-effectively and efficiently, modular and scalable power supplies are becoming a preferred solution in the market.
Adoption of High-Density Power Systems for Advanced Applications
The increasing demand for high-performance computing (HPC) and the growing implementation of AI, big data analytics, and machine learning technologies have led to the rise of high-density power systems in data centers. These advanced applications require more processing power, which in turn demands greater and more efficient power delivery. High-density power supplies, capable of delivering large amounts of power within a smaller physical footprint, are becoming essential for supporting the complex workloads associated with these technologies. For instance, the adoption of high-density computing in data centers has led to power densities increasing from an average of 4-5 kW per rack a decade ago to around 12 kW today, with some data centers pushing towards 50 kW per rack to support AI and machine learning applications. These power supplies provide the required output without the need for large and bulky equipment, allowing data centers to manage power demands more efficiently. Additionally, as workloads become more power-hungry, data center operators are increasingly seeking high-efficiency AC-DC power supply systems that can handle high wattage while maintaining minimal energy loss. This trend is closely tied to the adoption of cutting-edge technologies like quantum computing, which requires not only more power but also the most reliable and efficient power systems to function effectively. High-density power systems are particularly beneficial in hyperscale data centers, where space constraints and energy efficiency are critical concerns. The growing reliance on advanced computational technologies in data centers ensures that the trend toward high-density AC-DC power supplies will continue to gain momentum.
Market Challenges
High Initial Investment Costs and Maintenance Expenses
One of the key challenges faced by operators in the North America AC-DC Power Supply in Data Center Market is the high initial capital investment required for acquiring and installing advanced power supply systems. Cutting-edge AC-DC power supplies that meet the increasing demand for energy efficiency, scalability, and performance come with a substantial upfront cost. Additionally, data centers often require ongoing maintenance and upgrades to ensure the long-term reliability of these systems. Over time, power supplies need to be serviced, replaced, or expanded to accommodate growing power needs. These maintenance costs can quickly add up, particularly for large-scale data centers. Smaller and mid-sized businesses, in particular, may struggle to justify these upfront expenses despite the long-term savings offered by efficient power systems. As a result, the high cost of acquisition and maintenance poses a significant barrier to entry for certain market players, limiting the adoption of more sophisticated and energy-efficient AC-DC power solutions.
Technological Complexity and Integration Challenges
Another challenge in the North America AC-DC Power Supply in Data Center Market lies in the complexity of integrating advanced power systems with existing data center infrastructure. As technologies evolve rapidly, there is a constant need for power supply systems to integrate seamlessly with various other components of the data center, such as cooling systems, network equipment, and server hardware. The diversity of technologies in use, along with the need for customization, makes it difficult for operators to choose power solutions that meet both current and future requirements without disrupting operations. Furthermore, legacy power systems in older data centers may not be compatible with newer, more efficient AC-DC solutions, requiring complex retrofitting or even complete system overhauls. This challenge increases the operational complexity and can lead to downtime during installation, which can significantly impact business continuity. The integration of advanced digital power management systems and intelligent control features further adds to the technological complexity, necessitating skilled personnel for effective deployment and operation.
Market Opportunities
Rising Adoption of Edge Computing and 5G Networks
The rapid expansion of edge computing and the deployment of 5G networks present significant opportunities for the North America AC-DC Power Supply in Data Center Market. As businesses increasingly adopt edge computing to enable faster processing of data closer to the source, the demand for smaller, distributed data centers is rising. These edge data centers require efficient, compact, and reliable AC-DC power supplies capable of supporting the high-performance computing required for real-time data processing. Similarly, the rollout of 5G networks will drive the need for enhanced data infrastructure, with edge computing and IoT devices generating vast amounts of data that require continuous, stable power. For instance, in October 2024, IBM launched Granite 3.0, featuring high-performing AI models designed for business, which are ideal for CPU-based implementations and edge computing applications due to their low latency capabilities. This trend opens avenues for power supply providers to offer tailored solutions for the specific needs of edge data centers and 5G infrastructure, capitalizing on the growing need for scalable, energy-efficient power systems in this space.
Technological Advancements in Power Supply Solutions
There is a significant opportunity for market players to capitalize on technological advancements in AC-DC power supplies. With the increasing focus on energy efficiency, smart monitoring systems, and digital power management, manufacturers have the chance to innovate and develop cutting-edge solutions. The demand for high-efficiency power systems that reduce energy consumption while improving performance is on the rise. Additionally, the push toward modular power solutions offers a compelling opportunity, as these systems provide flexibility, scalability, and lower operational costs for data center operators. For instance, in June 2024, onsemi unveiled a complete power solution that uses the T10 PowerTrench family and EliteSiC 650V solution, which can reduce power losses by an estimated 1% in data centers, potentially saving 10 TWh annually if implemented globally. By continuing to innovate in these areas, suppliers can position themselves as leaders in meeting the evolving needs of modern data centers, tapping into a growing market focused on sustainability, reliability, and cost-effectiveness.
Market Segmentation Analysis
By Product Type
The North America AC-DC Power Supply in Data Center Market is segmented by product type into AC-DC Converters, DC-DC Converters, and UPS Systems. AC-DC Converters dominate the market as they are essential for converting grid-supplied alternating current (AC) into direct current (DC), ensuring a stable power supply for high-performance servers, storage devices, and networking equipment. DC-DC Converters are also in high demand, particularly for applications requiring multiple voltage levels, as they enhance power efficiency and reduce losses, making them ideal for modular and scalable systems. Meanwhile, UPS (Uninterruptible Power Supply) Systems play a critical role in providing backup power during outages, ensuring continuous operations and data security, which remain key priorities for data center operators.
By Application
The market is segmented by application into Blade Servers, Micro Data Centers, Rack-Mounted Systems, and Standalone Systems. Blade Servers require compact and energy-efficient AC-DC power supplies to support intensive processing workloads. Micro Data Centers, deployed at the edge to meet low-latency demands, drive the need for smaller, efficient power solutions. Rack-Mounted Systems, dominant in traditional data centers, require high-density power solutions to support multiple servers and storage devices. Standalone Systems, used in smaller or less dense environments, demand reliable power solutions without extensive infrastructure requirements.
Segments
Based on product type
- AC-DC Converter
- DC-DC Converter
- UPS Systems
Based on Application
- Blade
- Micro Data Centers
- Rack-Mounted
- Standalone
Based on end User
- Government & Healthcare
- IT Industry
- Telecommunication Industry
- Others
Based on power Converter
- Multiple Output
- Quad Output
- Triple Output
- Dual Output
- Single Output
Based on Power rating
- 1000W to 10kW
- 10kW to 50kW
- 500W to 1000W
- Less Than 500W
- More Than 50kW
Based on region
Regional Analysis
United States (70-75%)
The United States holds the largest market share in the North America AC-DC Power Supply in Data Center Market, accounting for approximately 70-75% of the total market. This dominance is largely attributed to the country’s extensive technology infrastructure, high number of data centers, and the growing demand for cloud computing, artificial intelligence (AI), and big data services. The U.S. is home to major players in the tech and telecommunication sectors, including companies like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, which rely heavily on data centers to power their services. Additionally, the country’s focus on the development and deployment of 5G networks and edge computing further fuels demand for efficient AC-DC power supplies. The U.S. government’s regulations promoting energy efficiency and sustainability in data centers also drive the adoption of advanced power solutions that are both cost-effective and environmentally friendly. These factors position the United States as the primary market driver in the region.
Canada (20-25%)
Canada represents a smaller portion of the market, contributing approximately 20-25% to the total share of the North American AC-DC Power Supply in Data Center Market. Although the Canadian market is smaller, it is experiencing significant growth due to increasing data storage needs and the adoption of advanced technologies like cloud computing and IoT. Canada’s focus on sustainable energy and the push for green technologies further bolster the demand for energy-efficient and renewable-powered data center infrastructure. The Canadian government’s policies promoting the use of green energy and energy-efficient solutions in data centers are encouraging operators to modernize their power supply systems. The low-cost electricity in some provinces and the country’s stable regulatory environment are also attracting new investments in the data center sector, contributing to the market’s expansion.
Key players
- ABB
- Advanced Energy
- AEG Power Solutions
- Cummins
- Delta Electronics
- Eaton
- Eltek
- Emerson
- Generac Power Systems
- INVT Power
- Schneider Electric
- Server Technology
- Siemens
- Tripp Lite
- Vertiv
- XP Power
Competitive Analysis
The North America AC-DC Power Supply in Data Center Market is highly competitive, with several key players offering diverse product portfolios. Companies like ABB, Schneider Electric, and Emerson are market leaders, providing comprehensive solutions encompassing energy-efficient AC-DC converters, UPS systems, and digital power management systems. These players leverage their global presence, strong R&D capabilities, and robust product innovation to maintain their leadership position. Delta Electronics, Eaton, and Vertiv are also strong contenders, focusing on modular, scalable power systems that meet the growing demands of hyperscale data centers. Generac Power Systems and Cummins are notable for their backup power solutions, providing reliable UPS systems and generators for critical applications. Emerging players like INVT Power and Server Technology are gaining traction through their cost-effective solutions and niche offerings, contributing to the diverse competitive landscape. The market is characterized by continuous technological advancements, with a strong emphasis on energy efficiency, modular design, and sustainability.
Recent Developments
- In July 2024, ABB announced a partnership with IO to develop modular data centers powered by high-voltage DC, showcasing their commitment to advancing data center power solution.
- In October 2024, Advanced Energy Industries, Inc. showcased its cutting-edge ultra-efficient power shelves, power supplies, and power converter technologies tailored for enterprise and hyperscale data centers at the Open Compute Project (OCP) Global Summit.
- In July 2024, AEG Power Solutions was awarded to provide AC and DC UPS redundant systems to secure power supply for green hydrogen production and renewable energy storage at Crosswinds HO.
- In November 2024, Cummins participated in Data Centre World Asia 2024, focusing on optimizing backup power solutions for data centers.
- In January 2025, Delta showcased energy-saving power, cooling, and ICT infrastructure solutions for cloud to edge AI data centers at COMPUTEX 2024.
- In December 2024, Eaton announced the launch of its Eaton Samsung Gen 3 lithium-ion battery system, providing battery backup for data center, medical, and industrial customers.
- In January 2025, Eltek announced the availability of the Flatpack2 48/3000 HE DC1, a new high-efficiency rectifier for data center applications.
- In December 2024, Emerson introduced a new data center reference design co-developed with NVIDIA to support liquid-cooled, high-density AI clusters, along with the Galaxy VXL uninterruptible power supply (UPS) for AI-ready data centers.
- In January 2025, Generac Power Systems highlighted its scalable data center backup energy solutions, emphasizing their 65 years of experience in providing reliable backup power.
- In July 2024, INVT Power announced the groundbreaking ceremony for the third phase of its Yangtze River Delta headquarters project, marking a new stage for high-quality development in Suzhou High-tech Zone.
- In December 2024, Schneider Electric introduced a new data center reference design co-developed with NVIDIA to support liquid-cooled, high-density AI clusters and unveiled the Galaxy VXL UPS, the industry’s most compact, high-density UPS.
- In January 2025, Siemens Energy highlighted its comprehensive portfolio of technologies for data centers, including gas turbines, renewables, and batteries, to address the growing electricity demand and carbon emission reduction targets.
- In January 2025, Tripp Lite, now part of Eaton, offers DC power supplies for various applications, including data centers.
- In December 2024, Vertiv introduced the Vertiv PowerUPS 9000, a compact, high-power density UPS system designed for large data centers and other critical application.
- In October 2024, XP Power announced the launch of its JMR03/10/20 series of ultra-compact DC-DC converters, available in 3W, 10W, and 20W models.
Market Concentration and Characteristics
The North America AC-DC Power Supply in Data Center Market is moderately concentrated, with a mix of established global players and emerging companies. Leading firms such as ABB, Schneider Electric, Delta Electronics, and Emerson dominate the market, leveraging their extensive portfolios, technological expertise, and strong brand recognition to capture significant market share. These key players focus on providing high-efficiency, modular, and scalable power solutions to meet the growing demand from large-scale data centers and hyperscale operators. At the same time, smaller players like INVT Power and Server Technology are also gaining traction by offering cost-effective and specialized products, addressing niche requirements within the market. The industry is marked by constant innovation, particularly in energy efficiency, digital power management, and sustainability, with companies striving to enhance power reliability and reduce environmental impacts in response to stringent regulatory demands.
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Report Coverage
The research report offers an in-depth analysis based on Product type, Application, End User, Power Converter, Power rating and Region. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook
- As sustainability becomes a top priority, the demand for energy-efficient AC-DC power supplies is expected to rise, driven by both regulatory pressure and the need to reduce operational costs in data centers.
- The expansion of edge computing and the deployment of 5G networks will drive the need for more distributed, high-performance power supply solutions in smaller, edge data centers.
- There will be a significant shift toward modular power supply systems, providing flexibility and scalability for data center operators to meet growing power demands without overprovisioning.
- Advanced digital power management systems integrated with IoT and AI will provide data center operators with real-time monitoring and optimization capabilities to enhance operational efficiency and reliability.
- As high-performance computing (HPC) and AI applications grow, high-density AC-DC power supplies capable of supporting demanding workloads in compact spaces will see increased adoption.
- Data center operators will continue to incorporate renewable energy sources like solar and wind power into their power supply systems, promoting sustainability and meeting energy efficiency targets.
- Ongoing advancements in power conversion technologies will lead to the development of more efficient, compact, and reliable power supply solutions, reducing energy losses and improving overall performance.
- The growing dependency on data-driven services will drive increased demand for uninterruptible power supply (UPS) systems, ensuring data centers remain operational during power outages or disruptions.
- The market for modular UPS systems will expand as operators seek more flexible, scalable, and easily serviceable solutions to ensure continuous data center uptime while managing energy costs effectively.
- With the increasing reliance on cloud services and AI-driven technologies, the demand for hyperscale data centers will continue to grow, driving the need for advanced power supply systems that can handle higher loads with better efficiency.
