| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2019-2022 |
| Base Year |
2023 |
| Forecast Period |
2024-2032 |
| UK AC-DC Power Supply In Data Center Market Size 2023 |
USD 518.70 Million |
| UK AC-DC Power Supply In Data Center Market, CAGR |
7.84% |
| UK AC-DC Power Supply In Data Center Market Size 2032 |
USD 948.56 Million |
Market Overview
The UK AC-DC Power Supply In Data Center Market is projected to grow from USD 518.70 million in 2023 to an estimated USD 948.56 million by 2032, reflecting a CAGR of 7.84% from 2024 to 2032.
The market’s growth is driven by the rising demand for energy-efficient and scalable power solutions in data centers. Technological advancements in power conversion, integration of renewable energy sources, and the shift towards hyperscale data centers are key trends shaping the industry. Additionally, stringent regulations on carbon emissions and energy efficiency are prompting data center operators to invest in innovative power supply technologies, enhancing overall system reliability and reducing operational costs.
Geographically, London and other key metropolitan areas dominate the market due to their high concentration of data centers and increasing cloud service adoption. Additionally, the demand for edge computing in regional locations is expanding market opportunities. Leading players in the market include Schneider Electric, ABB, Delta Electronics, Huawei Technologies, Eaton Corporation, and Vertiv Group, which focus on innovations in power efficiency, modular solutions, and sustainability initiatives to gain a competitive edge.
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Market Insights
- The market is projected to grow from USD 518.70 million in 2023 to USD 948.56 million by 2032, driven by increasing data center demand and advancements in power supply technology.
- Rising energy consumption in data centers is fueling demand for high-efficiency AC-DC power solutions, optimizing power usage and reducing operational costs.
- Cloud computing, 5G adoption, and AI-driven workloads are driving investments in scalable and modular power supply infrastructure.
- Stricter carbon emission regulations and energy efficiency mandates are encouraging data centers to adopt eco-friendly and renewable energy-integrated power solutions.
- The adoption of advanced AC-DC power systems and sustainability initiatives faces challenges due to high capital expenditure and complex integration requirements.
- London and metropolitan hubs dominate the market due to high data center density, strong cloud adoption, and strategic connectivity.
- Leading players such as Schneider Electric, ABB, and Eaton are investing in AI-driven power management, modular designs, and energy-efficient solutions to stay ahead in the market.
Market Drivers
Growing Demand for Energy-Efficient Power Solutions
The rising need for energy efficiency in data centers is a major driver of the UK AC-DC power supply market. Data centers consume substantial amounts of electricity, making energy efficiency a critical priority for operators looking to reduce operational costs and minimize environmental impact. Governments and regulatory bodies in the UK have introduced strict energy efficiency standards and carbon reduction goals, prompting data center operators to invest in high-efficiency power conversion technologies. Modern AC-DC power supply units integrate advanced power factor correction (PFC) techniques, gallium nitride (GaN) semiconductors, and digital power management to enhance energy conversion efficiency. Additionally, innovations such as modular power architectures and AI-driven power management systems help optimize power consumption, reducing overall energy waste. For instance, to support this growing demand, Bloom Energy has developed strategies like virtualization and server consolidation, significantly reducing the physical server count and, consequently, the overall power requirements for power and cooling. The growing emphasis on green data centers and sustainability initiatives is expected to accelerate the adoption of next-generation AC-DC power supply solutions across the UK.
Expansion of Cloud Computing and Hyperscale Data Centers
The rapid growth of cloud computing, artificial intelligence (AI), and big data analytics is fueling the expansion of hyperscale data centers in the UK. Major cloud service providers, including Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, are investing in large-scale data center infrastructure to meet increasing demand for cloud-based applications and storage solutions. These hyperscale facilities require robust, scalable, and reliable AC-DC power supply systems to ensure uninterrupted operations and high computing efficiency. Additionally, the rise of multi-cloud and hybrid cloud strategies among enterprises is driving the need for redundant and scalable power supply solutions that can support diverse workloads. For instance, AWS has implemented server consolidation and virtualization strategies to achieve significant energy efficiencies, reducing energy consumption across its massive scale of operations. AC-DC power supplies with high power density, fault tolerance, and intelligent monitoring capabilities are becoming essential for data center operators aiming to optimize energy consumption and improve system resilience. The growing dependence on cloud-based digital transformation initiatives will further accelerate investments in advanced AC-DC power supply systems in the coming years.
Surge in Edge Computing and 5G Network Deployments
The increasing adoption of edge computing and 5G networks is reshaping the UK data center landscape, driving demand for decentralized power infrastructure. Unlike traditional centralized data centers, edge data centers process data closer to the source, reducing latency and enhancing real-time application performance. This shift has created a need for compact, high-efficiency AC-DC power supply solutions that can support smaller, distributed data center environments with limited space and power availability. Additionally, 5G networks generate enormous volumes of data, requiring low-latency, high-power computing infrastructure at the edge to handle data processing efficiently. For instance, Infineon has developed compact AC-DC power supplies with peak efficiency exceeding 96%, tailored for outdoor edge computing applications to ensure reliable power with minimal energy loss. To meet these demands, manufacturers are developing power supply units with enhanced energy efficiency, voltage stability, and intelligent thermal management. The deployment of microgrids and renewable energy-powered edge data centers is also influencing the adoption of advanced AC-DC power solutions. As edge computing and 5G technologies continue to gain traction, the need for reliable, high-performance power supply systems will remain a significant growth driver for the market.
Increasing Focus on Power Resilience and Uninterrupted Operations
Ensuring uninterrupted power supply and resilience has become a top priority for data center operators in the UK as even minor power disruptions can lead to significant financial losses and data integrity risks. Factors such as grid instability, cyber threats, and extreme weather conditions necessitate the use of highly reliable AC-DC power supply solutions with advanced backup mechanisms. Modern systems incorporate redundant power modules, real-time monitoring, and intelligent fault detection to mitigate risks associated with fluctuations or failures. Moreover, battery energy storage systems (BESS) and renewable energy integration further enhance resilience in data centers. For instance, Mitsubishi Electric offers Uninterruptible Power Supplies (UPS) specifically designed for edge data centers with capacities typically under 750kVA to ensure smaller-scale facilities maintain operations during disruptions. Operators are also investing in intelligent PDUs (Power Distribution Units), UPS systems, and software-driven management tools to ensure seamless operations. The emphasis on business continuity, data security, and system uptime is expected to drive sustained demand for high-efficiency AC-DC power supply solutions across UK data centers.
Market Trends
Adoption of High-Efficiency and Sustainable Power Solutions
One of the most significant trends in the UK AC-DC power supply in data center market is the shift towards high-efficiency and sustainable power solutions. Data centers consume vast amounts of electricity, and as energy costs continue to rise, operators are investing in advanced power conversion technologies to improve efficiency and reduce energy wastage. For instance, Navitas Semiconductor has introduced an 8.5kW power supply unit for AI and hyperscale data centers, achieving 98% efficiency with high-power GaNSafe and Gen-3 Fast SiC MOSFETs. The increased adoption of gallium nitride (GaN) and silicon carbide (SiC) semiconductors in AC-DC power supplies is enhancing energy efficiency by enabling faster switching speeds, lower power losses, and higher thermal performance. Additionally, modular and digital power supply solutions are becoming popular, allowing data centers to scale power requirements efficiently while optimizing energy use.Sustainability remains a core focus, with data center operators actively integrating renewable energy sources such as solar and wind power into their power supply infrastructure. Hybrid power architectures that combine grid power, battery storage, and renewable energy sources are gaining traction, ensuring reliable and clean power delivery. Leading manufacturers are also incorporating advanced power management algorithms and AI-driven optimization techniques to enhance power efficiency and minimize carbon footprints. This trend is further reinforced by government policies and industry regulations promoting energy efficiency and carbon reduction, pushing data centers to invest in eco-friendly AC-DC power supply technologies.
Growing Demand for AI-Optimized and Intelligent Power Management Systems
With the increasing complexity of data center operations, AI-driven and intelligent power management systems are becoming integral to AC-DC power supply infrastructure. The deployment of AI-powered predictive analytics and real-time monitoring solutions enables data center operators to optimize power consumption, prevent failures, and enhance overall system efficiency. For instance, Siemens’ Datacenter Clarity LC uses AI-powered tools to analyze individual servers, detect anomalies, and optimize power usage. These advanced systems leverage machine learning algorithms to analyze power usage patterns, predict load fluctuations, and adjust power delivery dynamically, ensuring optimal energy distribution and system reliability.AI-driven power management also plays a crucial role in reducing downtime and improving fault detection. Traditional power supply systems relied on manual monitoring and periodic maintenance, which often led to inefficiencies and unplanned outages. In contrast, intelligent AC-DC power supply solutions equipped with AI and IoT-enabled sensors provide real-time diagnostics and automated responses to power anomalies, significantly improving system resilience. Additionally, AI-powered software platforms allow remote management and automation of power distribution units (PDUs), uninterruptible power supplies (UPS), and battery energy storage systems (BESS).As AI adoption in data centers continues to expand, the integration of smart power supply solutions will become a key differentiator for operators seeking to improve efficiency, reduce operational costs, and enhance sustainability. The increasing reliance on real-time analytics, automation, and intelligent power optimization will further drive the demand for AI-enhanced AC-DC power supply systems in the UK.
Expansion of Edge Data Centers and Distributed Power Infrastructure
The rapid growth of edge computing and decentralized IT infrastructure is reshaping the UK data center landscape, directly influencing AC-DC power supply requirements. Unlike traditional large-scale data centers, edge data centers operate closer to end-users, enabling faster data processing and reducing latency. For instance, AWS Local Zones offer single-digit millisecond latency by bringing AWS infrastructure closer to the edge. This trend is particularly driven by 5G network rollouts, IoT expansion, and increasing demand for real-time data analytics.The rise of distributed edge computing necessitates compact, highly efficient, and resilient AC-DC power supply solutions that can operate in challenging environments with space and power constraints. Edge data centers require redundant and scalable power systems capable of handling fluctuating workloads while maintaining continuous uptime. As a result, manufacturers are developing customized AC-DC power supply units with high power density, modular design, and intelligent load balancing features.Another key aspect of this trend is the growing adoption of microgrids and hybrid energy solutions for edge computing environments. Given the remote nature of many edge data centers, operators are increasingly integrating renewable energy sources, battery storage, and advanced power management technologies to ensure energy independence and operational stability. Additionally, remote monitoring and predictive maintenance are becoming essential to manage distributed power infrastructure efficiently, ensuring cost-effective and sustainable operations.
Rising Investments in Power Resilience and Redundant Power Architectures
The increasing reliance on digital services, cloud computing, and AI-driven applications has made power resilience a critical concern for data center operators in the UK. Even minor power disruptions can lead to significant financial losses, data corruption, and operational downtime, making highly reliable AC-DC power supply systems a top priority. For instance, Microsoft in Ireland received approval to build a 170-megawatt gas-fired power plant to support its data center campus, ensuring power resilience during grid disconnections. To mitigate these risks, data centers are investing in redundant power architectures, backup power solutions, and real-time power monitoring technologies.The implementation of dual power supply units (PSUs), battery backup systems, and automated failover mechanisms is becoming a standard practice to ensure uninterrupted power flow. Modern AC-DC power supply solutions incorporate hot-swappable modules, fault-tolerant designs, and intelligent power routing systems that enable seamless power transitions in case of failures. Additionally, the integration of UPS systems with lithium-ion battery storage is gaining traction, offering longer lifespan, faster recharging, and improved energy efficiency compared to traditional lead-acid battery backups.The trend of software-defined power management (SDPM) is also emerging, allowing data centers to dynamically adjust power distribution and prioritize critical workloads in real-time. SDPM solutions leverage machine learning and automation to enhance power availability, optimize load balancing, and improve overall energy efficiency. As cyber threats and extreme weather events continue to pose risks to data center operations, the demand for advanced, resilient, and intelligent AC-DC power supply systems will continue to grow.
Market Challenges
Rising Energy Costs and Stringent Regulatory Compliance
One of the most significant challenges facing the UK AC-DC power supply in data centers is the rising cost of electricity and increasingly stringent energy regulations. Data centers are among the highest consumers of power, and with the UK government’s focus on reducing carbon emissions and improving energy efficiency, operators face strict compliance requirements. Policies such as the UK’s Net Zero Strategy and Minimum Energy Efficiency Standards (MEES) impose stringent mandates on data centers to reduce their carbon footprint, necessitating costly upgrades to high-efficiency power supply solutions. Additionally, volatile energy prices and rising operational costs put financial pressure on data center operators, especially those running hyperscale and colocation facilities. The transition towards renewable energy integration and battery storage systems adds complexity, as ensuring consistent power supply and grid stability remains a challenge. While modern AC-DC power supply units offer improved efficiency, the high initial investment costs and ongoing maintenance expenses pose financial constraints for smaller operators. Balancing cost-effectiveness, regulatory compliance, and sustainability goals remains a critical challenge for market players.
Supply Chain Disruptions and Technological Complexity
The UK AC-DC power supply market faces supply chain disruptions and increasing technological complexities, which impact the availability and deployment of high-performance power solutions. The global semiconductor shortage, raw material price fluctuations, and logistics challenges have slowed the manufacturing and delivery of critical AC-DC power supply components, leading to delays in data center expansion projects. Furthermore, as power management systems become more advanced, integrating AI-driven power monitoring, digital twin simulations, and modular designs requires specialized expertise and technical capabilities. Data center operators must invest in skilled professionals and advanced training programs to efficiently manage and maintain next-generation power supply infrastructures, increasing operational complexity and costs.
Market Opportunities
Growing Demand for Energy-Efficient and Sustainable Power Solutions
The increasing emphasis on energy efficiency and sustainability presents a significant opportunity for the UK AC-DC power supply in data center market. As data centers seek to reduce operational costs and carbon footprints, the demand for high-efficiency AC-DC power supply solutions is rising. Next-generation power supplies equipped with advanced semiconductor technologies such as gallium nitride (GaN) and silicon carbide (SiC) offer improved power conversion efficiency, reduced heat dissipation, and lower energy consumption. Additionally, the integration of renewable energy sources, smart grid connectivity, and AI-powered energy optimization is gaining traction, enabling data centers to enhance efficiency while complying with UK’s Net Zero emissions targets. For instance, Colt DCS’s expansion plans in Hayes, West London, focus on securing power based on renewable energy to support high-density AI workloads. This reflects the shift toward sustainable and scalable power solutions that align with green data center initiatives. Similarly, the UK government’s classification of data centers as Critical National Infrastructure underscores the need for eco-friendly, high-performance power solutions to ensure continuous operation while reducing environmental impact. Manufacturers focusing on developing such solutions are poised to benefit from increasing investments in green initiatives across the sector.
Expansion of Hyperscale and Edge Data Centers
The rapid expansion of hyperscale and edge data centers in the UK is creating lucrative growth opportunities for AC-DC power supply providers. With cloud computing, AI-driven applications, and 5G network rollouts accelerating, there is a growing need for scalable, redundant, and intelligent power solutions that ensure continuous uptime and efficient load balancing. Edge data centers, in particular, require compact, high-density power supply systems capable of operating in remote and space-constrained environments. This shift is driving demand for modular power architectures, AI-enabled predictive maintenance, and advanced battery energy storage systems (BESS).For instance, Nscale’s investment in a new UK data center in Loughton, Essex, with a total power allocation of up to 90MW, highlights the demand for scalable and efficient power solutions to support AI-driven applications and high-performance computing (HPC). Similarly, Microsoft’s plan to build a hyperscale data center in Leeds on the site of a former power station demonstrates the need for sustainable yet powerful energy systems to meet growing operational demands. These examples illustrate how providers of innovative AC-DC power supply systems can capitalize on the expanding hyperscale and edge data center market in the UK.
Market Segmentation Analysis
By Product Type
AC-DC Converters are essential for transforming grid-supplied alternating current (AC) into stable direct current (DC) for data center equipment, with rising demand driven by efficiency improvements and energy reduction efforts. DC-DC Converters play a key role in voltage regulation and efficient power distribution, with their demand expected to grow alongside the expansion of modular data centers. Uninterruptible Power Supply (UPS) Systems ensure continuous operation and backup during power failures, with increasing adoption driven by the need for power resilience and redundancy in data centers.
By Application
Blade servers require high-density power solutions for space and energy efficiency, driven by the growing adoption of cloud computing and AI-driven workloads. The rise of edge computing has increased demand for compact, high-efficiency power solutions in micro data centers. Rack-mounted systems, widely used in hyperscale and enterprise data centers, require scalable AC-DC power supply units with redundant configurations. Meanwhile, large-scale standalone data centers demand robust, high-power AC-DC systems to ensure uninterrupted operations.
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
- London & Southeast UK
- Midlands & Northern UK
- Scotland & Wales
Regional Analysis
London (40%):
As the nation’s capital and a global financial hub, London commands approximately 40% of the UK’s data center market share. This dominance is attributed to its advanced digital infrastructure, high connectivity, and access to a skilled workforce. The city’s strategic importance is further underscored by the presence of numerous subsea cables, positioning it as a critical node for international data traffic. Despite challenges like high real estate costs and stringent environmental regulations, London continues to attract substantial investments in data center facilities.
Southeast England (25%):
Encompassing areas such as Berkshire and West Sussex, the Southeast holds a significant 25% market share. Its proximity to London, combined with relatively lower operational costs, makes it an attractive location for hyperscale and colocation data centers. The region benefits from strong transport links, availability of space, and a favorable business environment, contributing to its growth as a data center hub.
Key players
- ABB
- Generac Power Systems
- Schneider Electric
- Server Technology
- Siemens
- Advanced Energy
- AEG Power Solutions
- Cummins
- Delta Electronics
- Eaton
- Emerson
Competitive Analysis
The UK AC-DC power supply in data center market is highly competitive, with key players focusing on technological advancements, energy efficiency, and sustainability to maintain a competitive edge. Companies such as ABB, Schneider Electric, and Siemens lead the market due to their diverse product portfolios, strong R&D capabilities, and strategic partnerships. These firms emphasize modular power solutions, intelligent energy management, and integration of renewable energy sources to meet evolving data center demands.Meanwhile, companies like Eaton, Delta Electronics, and Generac Power Systems leverage their expertise in UPS systems, high-efficiency power conversion, and backup power solutions to cater to hyperscale and colocation data centers. Cummins and AEG Power Solutions focus on power resilience and industrial-grade energy solutions, ensuring uninterrupted operations.Overall, the market is driven by innovation, regulatory compliance, and sustainability goals, compelling players to enhance efficiency, reliability, and scalability in their power supply solutions.
Recent Developments
- In February 2024, ABB and Caterpillar introduced advanced hydrogen fuel cell generators designed for data center applications, showcasing a commitment to sustainable power solutions.
- In January 2024, Generac Power Systems announced its comprehensive backup power solutions for data centers, emphasizing scalability, sustainability, and 24/7 support through a nationwide network of Power Solutions Managers and certified technicians.
- In November 2024, Schneider Electric significantly increased the production capacity of its Barcelona prefabricated data center factory, now the largest in Europe, to meet the growing demand for high-compute workload data center solutions.
- In August 2024, Siemens Energy AG expects data centers to be a major source of growth as large providers install their own power supply to move faster, driven by the demand for AI and cloud computing.
- In November 2023, Cummins highlighted its focus on hydrogen fuel cells for data centers, indicating a shift towards sustainable power technologies.
Market Concentration and Characteristics
The UK AC-DC Power Supply in Data Center Market exhibits a moderate to high market concentration, with a few dominant players such as ABB, Schneider Electric, Siemens, Eaton, and Delta Electronics controlling a significant market share. These companies leverage their technological expertise, extensive product portfolios, and global presence to maintain a competitive edge. The market is characterized by strong demand for energy-efficient, scalable, and resilient power solutions, driven by rising data center expansions, cloud computing adoption, and sustainability mandates. Additionally, the market sees a high degree of innovation, with key players investing in advanced power conversion technologies, AI-driven power management, and renewable energy integration. Regulatory compliance, stringent carbon reduction targets, and evolving data center architectures further shape market dynamics, compelling manufacturers to develop next-generation AC-DC power supply solutions with enhanced efficiency, reliability, and sustainability. The competitive landscape continues to evolve as emerging players and startups introduce niche, high-efficiency power solutions, intensifying market competition.
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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
- Data centers will increasingly invest in high-efficiency AC-DC power supply units to reduce energy consumption and operational costs, aligning with the UK’s net-zero carbon targets.
- The growing demand for cloud services, AI-driven workloads, and big data analytics will drive the expansion of hyperscale and colocation data centers, increasing the need for scalable power solutions.
- AI-driven predictive analytics and IoT-enabled monitoring systems will optimize power efficiency, improve fault detection, and enhance overall power infrastructure resilience in data centers.
- The rise of 5G, IoT, and real-time processing will accelerate the deployment of edge data centers, necessitating compact, high-performance AC-DC power supply solutions with modular capabilities.
- Data centers will increasingly integrate solar, wind, and battery storage systems into their power infrastructure, fostering sustainable energy practices and reducing dependency on conventional grid power.
- Innovations in gallium nitride (GaN) and silicon carbide (SiC) power semiconductors will enhance power conversion efficiency, reduce thermal losses, and improve overall system reliability.
- To ensure uninterrupted operations and business continuity, data centers will invest in redundant power architectures, UPS systems, and automated power switching mechanisms.
- Stricter government regulations on energy efficiency and carbon emissions will push data center operators to adopt eco-friendly AC-DC power solutions that comply with sustainability standards.
- Modular AC-DC power supply units will gain popularity as data centers seek flexible, easily expandable power infrastructure that adapts to dynamic computing demands.
- Key industry players will focus on partnerships, R&D investments, and acquisitions to drive technological advancements, ensuring next-generation power solutions meet evolving data center requirements.
