The year 2025 paints a clear picture of an industry in hyper-growth mode. From the physics of the B200 chip to multi-billion dollar nuclear deals, every indicator points to sustained demand in the market.
Chicago, Jan. 07, 2026 (GLOBE NEWSWIRE) — The global offsite data center power infrastructure market size was valued at USD 15.9 billion in 2025 and is projected to hit the market valuation of USD 79.76 billion by 2035 at a CAGR of 17.50% during the forecast period 2026–2035.
The global digital landscape is undergoing a seismic shift driven by the physics of artificial intelligence. As computational demands escalate, the offsite data center power infrastructure market is witnessing an unprecedented trajectory of growth and capital infusion. Wherein, stakeholders are currently navigating a complex environment defined by gigawatt-scale power requirements, nuclear renaissance, and massive supply chain constraints. The following analysis dissects the critical market dynamics for 2024 and 2025.
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Key Findings
- By Offerings, the solution segment captured the dominant market share
- By Verticals, IT and telecom is projected to achieve the fastest CAGR through the forecast period.
- Asia Pacific offsite data center power infrastructure market will register the highest growth rate during the forecast period.
North American Inventory Surge In Primary and Secondary Markets
Construction activity has exploded across key geographic hubs. Total North American data center capacity under construction reached 6,350 MW at the end of 2024. Primary market supply in the US surged to 6,922.6 MW of total inventory. Phoenix added 150.8 MW of new supply in the first half of 2024 alone. The Offsite data center power infrastructure market is witnessing rapid densification in these specific zones.
Phoenix total inventory reached 510 MW in 2024, surpassing Silicon Valley. Developers currently have 334.3 MW under construction in the Phoenix market. Dallas reached a total IT load capacity of 2,390 MW as of Q2 2024, with 605.6 MW actively under construction. EdgeCore broke ground on a 216 MW campus in Culpeper, while DataBank commenced a 20 MW expansion in Loudoun County. Regional markets are absorbing massive capital inflows to support distributed network loads.
Blackwell Chip Physics Driving Unprecedented Rack Density Requirements
Fundamental changes in chip architecture are forcing a total overhaul of the Offsite data center power infrastructure market. The transition to NVIDIA’s Blackwell B200 GPU has elevated peak power consumption per chip to between 1,000 Watts and 1,200 Watts. Such intensity has rendered legacy cooling and power delivery systems obsolete. Average rack density requirements have consequently surged from a historical 4–6 kW to a new industry standard of 12 kW in 2024. AI-specific clusters now demand up to 120 kW of power capacity per rack to function efficiently.
Infrastructure operators must urgently upgrade facilities to handle these loads. A single NVIDIA DGX B200 chassis now draws 14.3 kW, necessitating entirely new substations and switchgear assets. These physical realities are the primary catalyst for market expansion. The Offsite data center power infrastructure market is no longer just about adding capacity. It involves engineering entirely new delivery mechanisms to support the thermal and electrical intensity of next-generation silicon.
Solutions Segment Commands Highest Share Prioritizing Grid Independence and Sustainability
The Solutions segment, comprising hardware such as switchgear, UPS, and busway systems, successfully secured a commanding market share in offsite data center power infrastructure market. While reliability remains a baseline, the primary driver for this overwhelming dominance has shifted toward grid independence and sustainability mandates. Data center operators are no longer simply purchasing backup power; they are actively investing in microgrid-ready infrastructure to circumvent increasingly unstable public utility grids. This has triggered a massive replacement cycle where legacy lead-acid based systems are being swapped for advanced Lithium-Ion (Li-ion) UPS solutions. Li-ion systems, which now account for over 30% of new deployments, offer higher power density and faster recharge rates, essential for managing the variable loads of modern computing.
Furthermore, the dominance of the Solutions segment is reinforced by the stringent Scope 3 emissions targets adopted by major colocation providers. To meet these regulatory frameworks, operators are procuring “green” power infrastructure, including SF6-free switchgear and high-efficiency transformers that minimize energy waste. The capital allocation for these physical assets is immense because they are the only mechanism to bridge the gap between volatile renewable energy sources and the constant load required by servers. Consequently, the revenue volume for physical infrastructure continues to eclipse services, as the modernization of aging facilities in North America and Europe necessitates complete hardware overhauls rather than simple maintenance.
IT and Telecom Seizes Highest Market Share Driven by Data Sovereignty and Edge Regionalization
The IT and Telecom vertical firmly holds a massive 55% market share of the offsite data center power infrastructure market, a dominance driven by the strategic shift toward data sovereignty and regionalization. Unlike the centralized hub model of the past decade, 2024 has witnessed hyperscalers and telecom providers aggressively building out “Edge” facilities in Tier 2 and Tier 3 cities to comply with local data residency laws. Governments across Europe and Asia are mandating that citizen data remain within national borders, compelling tech giants to construct distributed offsite facilities. Each of these localized data centers requires its own redundant power infrastructure, effectively multiplying the volume of power equipment needed per region compared to a single centralized hyperscale campus.
Moreover, the convergence of IT and Telecom is creating a new demand profile for “Carrier-Neutral” facilities. As enterprises shut down their on-premise server closets to migrate to the cloud, they are moving workloads to these colocation centers, consolidating global power consumption into the IT & Telecom vertical. This sector leads the market because it is the primary purchaser of high-density power modules designed to support hybrid cloud environments. The relentless expansion of subsea cable landing stations, which serve as the nerve centers for global connectivity, also falls under this vertical, requiring industrial-grade power protection that further cements the sector’s overwhelming market majority.
Hyperscale Capital Expenditure Allocations Reach Historic Highs
Major technology firms are deploying capital at record velocities to secure physical assets in the offsite data center power infrastructure market. In line with this, Microsoft allocated USD 55.7 billion in capital expenditure for the fiscal year ending June 2024, with funds heavily directed toward infrastructure build-out. The company has further earmarked USD 80 billion for data center and AI infrastructure spending in fiscal year 2025. Amazon similarly projected its infrastructure capital expenditure to reach USD 75 billion for the full year 2024. Such spending confirms the aggressive expansion of the market.
Investment flows are equally robust across the broader market. Google reported USD 13 billion in infrastructure spending in Q1 2024 alone. Specific project commitments underscore this trend. Microsoft committed USD 3.3 billion solely for phase one of its Mount Pleasant campus. Google executed a USD 1 billion investment for a new United Kingdom facility in 2024. Blackstone confirmed a staggering pipeline of USD 200 billion in data center development projects. These figures signal a sustained, multi-year construction boom.
Nuclear Power Resurgence Through Dedicated Plant Acquisitions
The offsite data center power infrastructure market is bypassing grid congestion by securing dedicated nuclear assets. Amazon signed a pivotal deal with Talen Energy to secure 1,920 MW of nuclear capacity from the Susquehanna Steam Electric Station. The agreement commits to an initial delivery of 300 MW, ensuring immediate baseload power. Talen Energy expects to generate USD 18 billion in revenue over the life of this contract. Such moves indicate a structural shift within the Offsite data center power infrastructure market toward behind-the-meter generation.
Microsoft matched this aggression by signing a 20-year power purchase agreement with Constellation Energy to restart Three Mile Island Unit 1. Constellation Energy will invest USD 1.6 billion to refurbish the facility. The deal secures 835 MW of carbon-free capacity for Microsoft. The restart project is projected to create 3,400 direct and indirect jobs. These transactions validate nuclear power as a critical component for stabilizing future data center operations.
Small Modular Reactors Securing Future Gigawatt Capacity
Long-term strategies now rely heavily on Small Modular Reactors (SMRs). Google signed a master agreement with Kairos Power to deploy 500 MW of SMR capacity, targeting the first commercial reactor deployment by 2030. Plans ultimately aim to scale this fleet to the full 500 MW capacity by 2035. The Offsite data center power infrastructure market is clearly betting on advanced nuclear technology to solve 2030 energy deficits.
Meta partnered with Constellation Energy to secure 1,121 MW of new capacity, with agreements stipulating power delivery beginning in 2027. Google also backed Elementl Power to develop 3 distinct nuclear fusion and fission projects. Each project is scoped for 600 MW of generation capacity. These forward-looking contracts provide the financial certainty required to commercialize next-generation nuclear technologies. Stakeholders are securing power decades in advance to guarantee operational stability.
Supply Chain Lead Times and Hardware Availability Crises
Physical hardware constraints are currently the primary bottleneck for deployment. Lead times for large power transformers (LPTs) extended to an average of 120 weeks in 2024. Complex orders face maximum lead times reaching 210 weeks. The physical weight of these transformers ranges from 100 tons to 400 tons, creating immense logistical hurdles for offsite delivery. The Offsite data center power infrastructure market is grappling with these severe delays while demand accelerates.
Pricing volatility accompanies these delays. The cost of power transformers has increased by a factor of four to six times compared to 2020 baselines. High-voltage circuit breakers now have lead times approaching 3 years. Transmission cable orders see delivery timelines exceeding 2 years. To mitigate grid dependence, Google utilized a deal with NV Energy for 115 MW of geothermal power. Alternative sourcing strategies are now essential for maintaining construction schedules.
Escalating Rental Rates and Infrastructure Valuation Metrics
Supply scarcity has driven unit economics to record levels. Average asking rates for 250-500 kW requirements in primary markets hit USD 184.06 per kW per month. In Phoenix specifically, rental rates reached USD 174.06 per kW. High valuations extend to development partnerships. Microsoft’s deal with Brookfield Renewable to develop new capacity is valued at over USD 10 billion. The Offsite data center power infrastructure market now commands premium pricing power.
Strategic acquisitions further highlight the sector’s value. Motivair was acquired for USD 850 million to secure liquid cooling supply chains. Talen Energy’s valuation is bolstered by the USD 18 billion revenue backlog from its Amazon deal. Equipment manufacturers are also thriving. Caterpillar’s Energy & Transportation segment generated USD 28.9 billion in 2024 revenue. Cummins reported power generation sales of USD 7.8 billion. Financial metrics confirm that power infrastructure is the most valuable asset class in the digital economy.
Global Energy Consumption Loads and Renewable Procurement
Energy consumption metrics reveal the immense scale of the sector. Global data center electricity consumption was estimated at 415 TWh in 2024. The United States accounted for 180 TWh of this total, while China accounted for 102 TWh. Projections for 2030 demand reach as high as 1,065 TWh. The Offsite data center power infrastructure market must rapidly integrate renewable sources to meet these load requirements sustainably. Cooling infrastructure alone now accounts for 37 percent of total energy consumption.
Corporate procurement of renewables shattered records in 2024. Amazon backed 21.7 GW of clean energy projects in a single year, bringing its total portfolio to 33.6 GW. Microsoft signed a framework agreement with Brookfield Renewable for 10.5 GW of new capacity. Google secured over 8 GW of clean energy contracts in 2024, including 478 MW of offshore wind in the Netherlands and 100 MW in Scotland. Google’s Ohio deal secures 1.5 TWh annually. Meta contributes to an industry total of 100 GW contracted globally.
Backup Power Assets and Competitive Landscape Analysis
Resilience remains a critical investment vector. Bloom Energy signed a frame agreement with AEP to deploy up to 1 GW of solid oxide fuel cells, with an initial order covering 100 MW. Joule Capital Partners announced a massive project utilizing 700 Caterpillar generators. Cummins expanded its Centum Series with models rated between 1,750 kW and 3,000 kW. The Offsite data center power infrastructure market relies on these backup assets to ensure five-nines reliability.
Schneider Electric exemplifies the financial success of key players. The company reported full-year 2024 revenues of approximately USD 39.8 billion. Its Energy Management division contributed USD 32.4 billion to this total. Schneider closed 2024 with a record backlog of USD 22.4 billion. North American revenue in Q1 2024 reached USD 3.2 billion. The firm is investing USD 2.1 billion to expand manufacturing capacity. Net profit reached USD 4.47 billion, allowing for a dividend of USD 4.08 per share.
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Top Companies in the Offsite Data Center Power Infrastructure Market
- ABB
- Altron A.S.
- Comfort Systems USA
- Delta Electronics, Inc.
- Eaton
- Huawei Digital Power Technologies Co., Ltd.
- Hubbell
- InnovIT AG
- Johnson Controls
- MAVAB
- Modubuild
- Schneider Electric
- Vertiv
- Yondr
- Other Prominent Players
Market Segmentation Overview
By Offering
- Solution
- Software
By Vertical
- Government and Defense
- BFSI
- IT and telecom
- Manufacturing
- Media and Entertainment
- Retail
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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