Data Center UPS Market Set to Double by 2031 on AI and Hyperscale Demand
Event summary
- Global data center UPS market valued at $14.24B in 2025, projected to reach $30.74B by 2031 (CAGR of 13.69%).
- Power demand expected to grow to 28.3 GW by 2031, driven by hyperscale and AI-ready data centers.
- North America leads with 48% of UPS investments, followed by APAC and Europe.
- Lithium-ion battery investment projected to increase from $5.98B in 2025 to $16.29B by 2031.
- >1,000 kVA UPS segment is the fastest-growing capacity segment.
The big picture
The data center UPS market is expanding rapidly due to the proliferation of AI and hyperscale data centers, which demand higher power capacities and more resilient infrastructure. This growth is being fueled by advancements in battery technology, particularly lithium-ion, and the integration of intelligent UPS systems that leverage AI for real-time monitoring and management. The strategic shift towards integrated power architectures, combining UPS with onsite power systems and energy storage, underscores the industry's focus on enhancing power resilience and efficiency.
What we're watching
- Regional Dynamics
- How the Middle East & Africa's strong growth momentum will impact global UPS market share.
- Technological Shifts
- Whether AI and ML integration in UPS systems can sustain operational efficiency gains.
- Competitive Landscape
- The pace at which lithium-ion UPS adoption will outpace VRLA UPS in high-density facilities.
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