Data Center UPS Market Surges to $12.47 billion by 2030 | CAGR 7.3%
Delray Beach, FL , Nov. 21, 2025 (GLOBE NEWSWIRE) -- According to MarketsandMarkets™, the Data Center UPS Market is projected to grow from USD 8.76 billion in 2025 to USD 12.47 billion by 2030, at a CAGR of 7.3%.
Browse 250 market data Tables and 220 Figures spread through 300 Pages and in-depth TOC on "Data Center UPS Market - Global Forecast to 2030"
Data Center UPS Market Share & Growth:
- Market Size Available for Years: 2020–2030
- 2025 Market Size: USD 8.76 billion
- 2030 Projected Market Size: USD 12.47 billion
- CAGR (2025–2030): 7.3%
Data Center UPS Market Analysis & Forecast:
- Growth is driven by rising AI and cloud data traffic, hyperscale expansion, and demand for efficient, resilient, low-carbon UPS systems.
- Three-phase UPSs are expected to record the highest CAGR in the data center UPS market.
- By battery type, the lead-acid segment is set to command the largest share in the data center UPS space during the forecast period.
- By configuration type, Online Double Conversion segment to showcase 8.9% CAGR.
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The demand for data center UPS systems is driven by the increasing need for resilient, energy-efficient power infrastructure that supports high-density computing and AI workloads. Increasing grid instability, escalating energy costs, and stricter reliability standards accelerate the shift toward high-efficiency, modular UPS architectures with intelligent battery management and power conditioning. Operators emphasize reduced power losses through advanced conversion technologies, lithium-ion integration, and predictive monitoring that enhances uptime while lowering operational expenses.
The market is shifting from conventional, static backup units to scalable, digitally managed UPS systems that offer resilience and grid interactivity. As enterprises prioritize continuous availability, optimized energy use, and compliance with sustainability goals, UPS solutions are becoming essential to balancing power reliability with efficiency across hyperscale, colocation, and enterprise data center environments.
The data center UPS market is undergoing rapid transformation driven by growing power reliability needs, sustainability mandates, and advances in intelligent energy storage. ABB’s August 2023 introduction of the MegaFlex DPA UPS expanded high-capacity, modular backup solutions designed for hyperscale and colocation environments, optimizing efficiency and fault tolerance under fluctuating grid conditions. Eaton’s July 2025 launch of its lithium-ion–based 93PM G2 UPS series enhanced energy density and service life, enabling data centers to reduce maintenance costs and operational downtime. Schneider Electric’s June 2024 Galaxy VL UPS line expansion with hybrid-ready configurations integrated higher conversion efficiency and grid-interactive capabilities, supporting renewable energy adoption in mission-critical operations.
In parallel, Vertiv’s February 2024 acquisition of CoolTera Power Systems strengthened the company’s UPS portfolio through digital monitoring and thermal management integration, aligning with sustainability-driven efficiency goals. Meanwhile, increasing regulatory pressure to improve energy performance and reduce carbon footprint reshapes deployment models, prompting enterprises to adopt scalable, eco-efficient UPS architectures that combine digital intelligence with sustainability. These developments are positioning data center UPS systems as the backbone of resilient, energy-optimized infrastructure, enabling uninterrupted operations while aligning with global energy efficiency standards.
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Three-phase UPSs are expected to record the highest CAGR in the data center UPS market. Three-phase UPS remains the foundation of high-capacity, mission-critical power protection in modern data centers. These systems support high loads (often above 20 kVA) with balanced three-phase voltage to reduce stress on infrastructure and improve efficiency.
In June 2025, ABB launched its AI-optimized MegaFlex UL 415 V three-phase UPS for large data centers, positioning it for evolving AI power profiles. Similarly, in April 2025, Schneider Electric introduced its Galaxy VXL 3-phase UPS in the 500–1,250 kW range, integrating modular scaling, cybersecurity, and software control for high-density deployments. These launches illustrate vendors racing to offer three-phase architectures tailored to cloud, AI, and hyperscale operators.
Three-phase UPS offers advantages including superior load distribution, reduced current per line, better fault tolerance under heavy load, and greater alignment with data center power distribution units (PDUs). Vendors that deliver modular, scalable three-phase systems gain an advantage in colocation and cloud ecosystems. In March 2025, CyberPower reported doubling sales in its modular three-phase UPS segment, attributing the increase to accelerating data center modernization via channel partnerships. For solution providers, the opportunity lies in offering integrated three-phase systems with predictive monitoring, lithium battery options, and plug-and-play modularity. As facility operators demand ever higher resiliency and energy efficiency, emerging UPS vendors that position themselves in system integration, lightweight conversion, and hybrid battery plus grid support will be well-positioned to capture a share in the three-phase domain.
By battery type, the lead-acid segment is set to command the largest share in the data center UPS space during the forecast period. Lead-acid batteries, particularly valve-regulated lead-acid (VRLA) and absorbent glass mat (AGM) variants, continue to hold a dominant position in the data center UPS segment due to their mature technology, broad supplier ecosystem, and lower upfront costs compared to advanced chemistries. Their electrochemical design is stable and time-tested, with decades of optimization in plate architecture, separator materials, and charging efficiency for reliable UPS performance.
In many installations, lead-acid modules serve as dependable power sources for small to medium-sized data centers with moderate runtime requirements. In October 2024, a survey of data center operators revealed that over one-third (37%) continued to rely on VRLA batteries for centralized UPS applications, reflecting sustained trust in their operational stability and cost-effectiveness.
Despite their advantages, lead-acid systems face limitations in energy density, lifecycle, and maintenance frequency. However, innovation is reshaping the segment through the use of corrosion-resistant alloys, improved electrolyte formulations, and the integration of battery management systems (BMS), which enhance monitoring and extend service life. In August 2023, Schneider Electric introduced its SmartConnect program, extending warranties for registered lead-acid UPS units to strengthen service reliability and customer confidence. For vendors and solution providers, opportunities exist to develop modular, intelligent lead-acid systems that offer greater scalability, predictive maintenance capabilities, and retrofitting potential for legacy UPS infrastructures.
The data center UPS market is set for continued expansion as operators prioritize resilient, energy-efficient, and intelligent power infrastructure to support uninterrupted digital operations. Opportunities exist to address hyperscale and AI-driven workloads that demand higher power density, grid interaction, and sustainability compliance. Providers can capitalize on these opportunities by developing modular, lithium–ion–based UPS systems with advanced monitoring, predictive maintenance, and grid-support functionalities.
Integrating energy storage capabilities and smart power conversion can enhance reliability and reduce operational costs. Strategic partnerships with battery manufacturers, renewable energy suppliers, and digital management platform vendors can strengthen technology portfolios and enable adaptive, low-carbon backup solutions. By aligning product innovation with efficiency standards, circular economy goals, and evolving regulatory frameworks, market participants can enhance operational resilience, ensure compliance, and position themselves as key enablers of sustainable and high-availability digital infrastructure.
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The US data center UPS market is witnessing unprecedented growth as hyperscale and AI-driven expansion reshape the nation’s digital infrastructure. According to CBRE’s North America Data Center Trends H1 2025 report, the US remains the world’s most active and rapidly evolving data center market. UPS demand reaches record levels to support increasing power density and capacity requirements. Primary market inventory reached 8,155 MW in H1 2025, marking a 43% year-over-year rise, while vacancy rates fell to a record low of 1.6% due to vigorous pre-leasing activity.
Northern Virginia leads with 2,078 MW under construction and 538 MW of net absorption, followed by key hubs such as Silicon Valley, Phoenix, Chicago, and Atlanta. UPS deployments are accelerating in tandem with hyperscale leasing and expanding power infrastructure. CBRE data indicate that constrained power availability and rising rack density drive price increases, influencing UPS system design. Lease rates for 250–500 kW deployments have increased by 2.5%, and large-scale projects of 10 MW or more have seen surges of up to 19% in core markets.
As data centers operate at higher loads and AI workloads intensify, operators are adopting modular, high-efficiency UPS systems with scalable redundancy and battery energy storage integration to ensure operational continuity and grid flexibility. According to Data Center Frontier (October 2025), utilities such as Duke Energy, Dominion Energy, NV Energy, and the Tennessee Valley Authority are expanding capital programs and revising tariffs to manage multi-hundred-megawatt data center loads, while new regulations such as Texas Senate Bill 6 and PJM flexibility mandates position UPS systems as critical assets for grid stability, energy resilience, and compliance.
Companies in Data Center UPS Market:
Companies in Data Center UPS Market are Schneider Electric (France), Vertiv (US), Eaton (Ireland), Huawei (China), ABB (Switzerland), Delta Electronics (Taiwan), Legrand (France), Hitachi (Japan), and Toshiba (Japan).
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