Summary
- Arizton forecasts data-centre UPS investment rising from $14.24bn in 2025 to $30.74bn in 2031.
- UPS power capacity is forecast to reach 28,307MW by the end of the period.
- Higher rack densities and constrained grids are increasing demand for modular UPS, lithium-ion batteries, and more flexible electrical architectures.
Global investment in data-centre uninterruptible power supplies could more than double to $30.74bn by 2031 as operators expand electrical-resilience systems for larger and denser facilities.
Arizton values the market at $14.24bn in 2025 and forecasts a compound annual growth rate of 13.69% through 2031.
The research group expects UPS power capacity to reach 28,307MW by the end of the forecast period. Its study covers North America, Latin America, Western Europe, the Nordics, Central and Eastern Europe, the Middle East, Africa, and Asia-Pacific markets.
The projection is being driven by hyperscale construction, AI workloads, cloud and colocation expansion, and higher rack densities. All increase the amount of electrical load that must remain supported during utility disturbances and during the transition to backup generation or alternative sources.
UPS systems sit between the incoming power system and critical IT load, conditioning power and providing ride-through during interruptions. In conventional facilities, batteries typically bridge the period required for standby generators to start and stabilise.
AI infrastructure is changing the engineering requirement. Higher-density halls can concentrate much larger loads into a smaller area, meaning a disturbance can expose more compute capacity and customer revenue within the same electrical zone.
Operators are consequently examining larger modular systems, lithium-ion batteries, distributed architectures, and designs that integrate more closely with batteries and onsite power systems.
Arizton also points to greater deployment of microgrids and onsite generation as factors supporting advanced UPS systems. Grid connection constraints are encouraging developers to treat resilience equipment as part of a broader campus energy architecture rather than an isolated backup layer.
That distinction is important in Europe, where several major data-centre markets face lengthy connection programmes. Facilities may increasingly need to operate with demand management, battery storage, alternative generation, or phased grid capacity, all of which require more sophisticated control of the electrical system.
Battery choice is also changing. Lithium-ion technology can offer higher energy density, longer service life, and a smaller footprint than traditional valve-regulated lead-acid systems, although cost, fire protection, battery management, replacement strategy, and end-of-life treatment remain design considerations.
The UPS itself cannot compensate for an inadequate utility connection. Its principal purpose remains continuity and power quality, rather than supplying a site indefinitely. The wider market growth therefore reflects both expanding data-centre capacity and the increasing value attached to short-duration resilience as more compute is concentrated behind each electrical path.
Procurement risk is another factor. Growth in data-centre construction means UPS manufacturers are competing for many of the same semiconductors, batteries, switchgear components, and skilled commissioning resources required across other electrical infrastructure.
The market is dominated by established suppliers including ABB, Delta Electronics, Eaton, Legrand, Schneider Electric, Vertiv, and Piller Power Systems, according to Arizton. Competition is increasingly focused not only on efficiency but on modularity, power density, integration, maintainability, and ability to support rapidly changing AI architectures.
If Arizton’s forecast is realised, UPS investment will rise by more than $16bn between 2025 and 2031. That growth is another indication that the AI buildout is not confined to accelerators and server racks: every additional megawatt of critical compute also requires an electrical system designed to keep it operating through faults, switching events, and failures elsewhere in the power chain.
