Offsite Data Center Power Infrastructure Market - Global Forecast 2026-2032

The Offsite Data Center Power Infrastructure Market size was estimated at USD 5.68 billion in 2025 and expected to reach USD 6.25 billion in 2026, at a CAGR of 9.95% to reach USD 11.04 billion by 2032.

Offsite data center power infrastructure has become essential as cloud-based platforms and Internet of Things ecosystems continue expanding, generating, transmitting, and processing enormous volumes of data that require robust, scalable electrical support. As organizations migrate to colocation and hyperscale facilities to manage surging digital workloads, the demand for reliable uninterruptible power systems, efficient energy storage, and advanced power distribution has intensified. The uninterrupted availability of power is critical not only for maintaining service continuity but also for upholding stringent service level agreements and regulatory compliance in highly competitive markets.

Moreover, hyperscale operators and colocation providers are driving investments in offsite power infrastructure to support continuous operations of multi-megawatt sites. Over 700 hyperscale data centers are operational globally, with hundreds more in development, underscoring the scale and complexity of modern digital infrastructure. As digital transformation accelerates across all industries, power infrastructure emerges as a strategic enabler, ensuring operational resilience, optimizing energy efficiency, and laying the foundation for future technological innovations.

Recent years have witnessed transformative shifts reshaping power infrastructure design for offsite data centers. Advances in renewable integration and decentralized architectures have enabled the adoption of embedded microgrids, where data centers can leverage localized energy networks combining solar, wind, and traditional grid supplies to enhance reliability and sustainability. This approach mitigates supply chain risks and reduces dependence on centralized utilities by integrating battery storage and on-site generation, fostering greater operational agility.

Concurrently, the proliferation of artificial intelligence and high-performance computing workloads has driven unprecedented power density requirements. Data centers increasingly deploy modular power systems and prefabricated solutions, such as modular pod architectures, to meet extreme rack power demands while accelerating deployment timelines and reducing capital expenditure. At the same time, the rising focus on carbon reduction and efficiency has propelled innovations in energy management, with AI-driven monitoring platforms optimizing real-time energy distribution and demand response strategies to lower overall carbon footprints and operational costs.

Throughout 2025, a series of new United States tariffs have exerted upward pressure on the cost of critical components and raw materials used in offsite data center power infrastructure. Effective March 12, 2025, a 25 percent tariff on all steel and aluminum imports applies not only to primary metals but also to derivative products unless domestically produced, significantly affecting the pricing of switchgear, transformers, and rack enclosures. In parallel, recent policy measures have introduced levies ranging from 10 to 49 percent on renewable energy components, including lithium-ion battery cells and related storage systems, with battery imports facing combined duties of over 80 percent by the end of the decade.

These tariff changes have led major generator manufacturers such as Generac to announce price increases of up to eight percent on air-cooled units and ten percent on liquid-cooled models for projects slated for delivery in early Q3 2025. As a result, project budgets are being recalibrated to account for higher equipment costs and extended procurement lead times. Industry stakeholders are pursuing strategic procurement planning, supplier diversification, and increased domestic manufacturing to mitigate tariff-driven inflationary impacts on capital expenditure and operational continuity.

Analyzing offsite data center power infrastructure through a segmentation lens reveals nuanced insights that inform strategic planning. In uninterruptible power supply systems, line-interactive configurations dominate the mid-range capacity segment, with scaled options from under 20 kVA up to above 60 kVA catering to enterprise and hyperscale deployments. Offline standby solutions address low-power backup needs for edge and small-colocation sites, whereas online double-conversion units ensure continuous, clean power for mission-critical installations, highlighting the importance of matching UPS topology to workload criticality.

Energy storage and battery systems segmentation shows a clear shift toward lithium-ion technologies, valued for their extended lifecycle and higher energy density, while flywheel and lead-acid systems persist in specialized use cases. Within backup generator offerings, diesel generators remain prevalent for high-power requirements, gas generators provide lower-emission alternatives, and hybrid units combining renewable feeds and traditional fuel enhance sustainability. Power distribution units differ in functionality, with basic PDUs serving fundamental power delivery, metered units enabling remote power usage analytics, and switched PDUs allowing granular load control. Power management and monitoring solutions extend across cloud-based platforms, hardware-integrated controllers, and software-focused analytics tools, enabling holistic energy visibility. Finally, switchgear and transformer segmentation underscores the roles of low- and medium-voltage switchgear-available in air-insulated and gas-insulated variants-and transformer options like dry-type and oil-cooled units in distributing high-voltage power safely and efficiently.

Moreover, segmentation analysis enables stakeholders to optimize capital expenditures and lifecycle management by aligning component selection with service level requirements, environmental objectives, and total cost of ownership considerations. For instance, selecting high-efficiency lithium-ion storage with integrated battery management can reduce maintenance costs, while specifying gas-insulated medium-voltage switchgear can minimize footprint in space-constrained urban facilities.

In the Americas, robust investment in cloud computing, digital services, and hyperscale infrastructure continues to underpin growth in offsite data center power infrastructure. The United States leads with significant expansions of colocation and enterprise facilities, supported by renewable energy purchase agreements, tax incentives for clean energy projects, and a growing emphasis on data sovereignty and resiliency. Major energy management companies are scaling up domestic manufacturing and R&D investments to navigate evolving tariff landscapes and ensure stable supply chains, reinforcing North America’s position as a dynamic market for power systems.

Across Europe, the Middle East, and Africa, operators face a dual challenge of meeting stringent environmental regulations while addressing grid reliability concerns. Initiatives such as Europe’s Sustainable Data Centres guidelines and local incentives for renewable energy integration drive adoption of efficient power distribution and energy storage solutions. Meanwhile, regions prone to power disruptions are increasingly deploying microgrid-equipped data centers to maintain uptime and manage costs. The Middle East is emerging as a strategic hub for hyperscale and edge facilities, leveraging planned investments in solar and natural gas–based generation to support expanding data processing demands.

In the Asia-Pacific markets, rapid digital transformation, 5G rollout, and IoT proliferation are fueling unprecedented demand for data center capacity. Governments in China, India, Australia, and Southeast Asia are incentivizing green data center standards, including mandatory PUE thresholds and renewable power targets, to align growth with sustainability objectives. Cloud service providers and hyperscalers are investing heavily in purpose-built offsite facilities with advanced power management and storage systems to support edge computing and AI workloads. This combination of regulatory support and technological innovation has positioned the region as one of the fastest-growing segments for offsite data center power infrastructure.

Schneider Electric has solidified its leadership in the offsite data center power infrastructure arena by launching AI-ready modular solutions and deepening strategic partnerships. Its recent Prefabricated Modular EcoStruxure Pod Data Center combines liquid cooling, high-power busways, and high-density racks to address the extreme power demands of AI clusters, supporting densities up to one megawatt per pod while reducing deployment timelines and space requirements. Complementing this is its Galaxy VXL uninterruptible power supply, offering up to 1.25 megawatts of modular UPS capacity with unprecedented power density, enabling more efficient power protection in constrained footprints.

Vertiv continues to expand its presence in high-density and edge applications with innovative UPS offerings and storage partnerships. The company’s PowerUPS 9000 UPS delivers a compact, high-power-density solution for mixed AI and traditional workloads, compatible with lithium-ion and VRLA battery systems for flexible deployment, while its collaboration with ZincFive introduces nickel-zinc battery cabinets to provide a low-maintenance, environmentally friendly alternative for UPS energy storage. Meanwhile, Eaton has forged a high-profile alliance with NVIDIA to develop high-voltage direct current (HVDC) power architectures tailored for AI data centers, accelerating the shift to efficient grid-to-chip power distribution and enabling support for one-megawatt rack deployments and beyond.

Industry leaders must adopt a proactive stance to secure resilient and cost-effective power infrastructure for offsite data centers. A comprehensive multiyear procurement strategy is crucial, enabling organizations to lock in pricing, optimize inventory levels, and build strategic alliances with key equipment manufacturers. By integrating scenario-based planning into procurement cycles, stakeholders can anticipate tariff changes, supply chain disruptions, and evolving regulatory requirements, thereby reducing exposure to sudden cost inflation.

Investment in intelligent energy management platforms and AI-driven analytics will be pivotal for operational efficiency. These systems can predict load patterns, optimize battery use, and orchestrate demand-response initiatives, lowering total energy costs and carbon footprints. Concurrently, diversifying energy sources by incorporating on-site generation and renewable PPAs will not only mitigate grid dependency but also support sustainability objectives and stakeholder expectations.

To enhance resilience, organizations should evaluate modular and prefabricated power solutions that enable rapid scale-up and standardized deployment across geographies. Standardizing on interoperable power system architectures and embracing high-voltage direct current topologies can improve power delivery efficiency and simplify integration with advanced computing loads. Lastly, fostering collaborative relationships with regulatory bodies and industry associations will ensure alignment with emerging standards and facilitate early access to incentive programs and pilot initiatives.

Collaborative innovation through consortiums and standards bodies will further accelerate the development of interoperable power solutions. By participating in working groups focused on grid interconnection standards, energy storage protocols, and liquid cooling benchmarks, industry leaders can help shape future technology roadmaps and reduce integration risks. Establishing cross-disciplinary teams that bridge power, IT, and facilities functions will ensure that infrastructure strategies align with evolving application requirements and sustainability targets.

This research leverages a rigorous, multi-step methodology combining primary and secondary data collection, expert interviews, and trend analysis to deliver comprehensive insights into offsite data center power infrastructure. Secondary research included a review of industry white papers, regulatory filings, technical specifications, and public company disclosures to establish baseline data on component segments and market drivers.

Primary research involved structured interviews with power systems engineers, data center operators, and technology vendors to validate key findings and uncover emerging trends. Insights from these discussions informed the segmentation framework, regional dynamics, and competitive landscape analysis. Qualitative insights were supplemented with quantitative data, including component deployment patterns and investment flows, to ensure robustness.

The analytical framework integrates scenario modeling to assess the impact of tariff regimes, technology diffusion, and regulatory shifts on cost structures and deployment strategies. All data were triangulated through cross-validation between multiple sources to enhance accuracy and reliability. Findings are presented in a standardized, modular format to support comparative analysis and strategic decision-making.

To maintain relevance in a rapidly changing environment, the research approach includes periodic reviews of emerging regulatory proposals, tariff announcements, and technological advancements. A dynamic data repository and dashboard allow stakeholders to track key indicators in real time, enabling agile adjustments to strategies and validated insights for long-term planning.

As digital infrastructures evolve to meet the accelerating demands of cloud computing, AI, and edge applications, offsite data center power infrastructure emerges as a strategic priority. The analysis underscores the criticality of resilient, efficient, and scalable power solutions, highlighting transformative shifts such as modular prefabrication, renewable integration, and AI-driven energy management that redefine industry practices. The cumulative impact of new tariff measures emphasizes the need for proactive supply chain strategies and diversified procurement approaches.

Segmentation insights reveal a dynamic landscape where traditional technologies coexist with emerging innovations, while regional dynamics underscore heterogeneous market growth driven by regulatory frameworks and infrastructure maturity. Leading companies continue to innovate through strategic partnerships and product advancements, shaping competitive benchmarks. By adopting the actionable recommendations outlined, stakeholders can navigate complexity, optimize operational performance, and position themselves for sustainable growth in an increasingly power-intensive digital ecosystem.

Ultimately, the convergence of technological innovation, regulatory evolution, and market dynamics will define the future trajectory of offsite data center power infrastructure. Organizations that blend foresight with operational rigor will be best positioned to harness digital transformation opportunities while managing risk and environmental impact.

To explore how these insights can drive your strategic initiatives and to gain exclusive access to detailed market data, connect with Ketan Rohom, Associate Director of Sales & Marketing. His expertise will guide you through tailored research solutions and provide the critical intelligence needed to stay ahead of evolving power infrastructure challenges. Schedule a briefing or request a customized proposal today to empower your organization with actionable intelligence and secure a competitive edge in the offsite data center power infrastructure domain