Data Center LV/MV Power Distribution Market Size

Data Center LV/MV Power Distribution Market Size

Data Center LV/MV Power Distribution Market size was valued at USD 2.8 billion in 2022 and is estimated to grow at over 11% CAGR between 2023 and 2032. The notable uptick in data construction and the subsequent rise in storage demands in various industries has prompted governments and organizations worldwide to undertake initiatives to expand and improve the existing data center infrastructure. For instance, the Global Switch Data Center Initiative, led by Global Switch, a leading owner, operator, and developer of data centers, aims to build a network of data centers across Europe and the Asia Pacific.

Likewise, the National Data Center Optimization Initiative led by the U.S. Department of Energy, in collaboration with numerous public-private sector partners, focuses on improving the efficiency and sustainability of data centers in the U.S. This surge in data center construction and expansion projects has created a need for efficient power distribution systems to ensure reliable and uninterrupted operation, strengthening the data center LV/MV power distribution industry outlook through 2032.
 

Due to the rapid digital transformation worldwide, technologies like cloud computing, big data analytics, and the Internet of Things (IoT) have gained tremendous popularity. The rising adoption of these technologies has amplified the demand for data centers, owing to the need for scalable infrastructure, storage capacity, and real-time data processing capabilities, consequently boosting the market for power distribution solutions.
 

In contrast, high initial investment costs associated with implementing advanced power distribution systems and growing concerns about the environmental impact of data centers and the carbon footprint associated with power distribution activities may limit market growth over the coming years.