AI surge powers boom in data centre UPS market
As AI and cloud computing reshape digital infrastructure, power resilience, efficiency and sustainability are becoming central to data centre operations. Operators are prioritising UPS solutions that ensure uninterrupted service while also reducing energy consumption and carbon footprints. This shift is spurred by grid instability, rising energy costs and tighter environmental regulations. High-efficiency UPS systems with intelligent battery management, modular scalability and advanced power conditioning are becoming the industry standard.
Three-phase UPS systems are leading the market growth, owing to their ability to manage high-density computing loads with superior voltage balancing and fault tolerance. Products like ABB’s AI-optimised MegaFlex UL and Schneider Electric’s Galaxy VXL reflect a focus on integrating cybersecurity, modular scaling and software-driven control into mission-critical power systems.
Battery technology remains a key area of innovation. Lead-acid batteries, especially valve-regulated and absorbent glass mat types, continue to dominate due to their reliability and cost-efficiency, particularly in smaller data centres. Although they lag behind lithium-ion in energy density and lifespan, advancements in corrosion resistance and battery management are extending their viability. Schneider Electric’s SmartConnect programme, which offers extended warranties, highlights efforts to boost customer confidence.
At the same time, lithium-ion UPS systems are gaining traction for their longer life and lower maintenance. Vendors such as Eaton are capitalising on this shift with modular, grid-interactive systems like the 93PM G2 series, which cater to the rising demand for smart, digitally managed power resilience.
The US market illustrates this trend vividly. Hyperscale developments and AI-driven infrastructure pushed capacity to 8,155 MW in the first half of 2025, up 43% year on year, with a vacancy rate of just 1.6%. Northern Virginia leads the expansion, followed by Silicon Valley and Phoenix. These pressures are driving adoption of modular UPS units with integrated battery storage and grid connectivity. Utilities such as Duke Energy and Dominion Energy are updating tariffs and investment plans to accommodate soaring loads and ensure grid stability.
Across the industry, UPS systems are becoming a cornerstone of resilient, energy-optimised digital infrastructure. Businesses are deploying scalable, hybrid UPS architectures that combine power conversion with predictive maintenance and digital monitoring. These systems ensure operational continuity while meeting growing sustainability expectations.
Rising AI chip demand – forecast by AMD to generate USD 100 billion in annual revenue by 2030 – underscores the connection between data growth and infrastructure needs. Utilities like CenterPoint Energy are responding with multi-billion-dollar capital projects to meet peak demand increases expected to hit 50% by 2031.
As AI transforms digital landscapes, vendors offering intelligent, modular and eco-efficient UPS solutions will be best positioned to lead. These technologies are fast becoming as essential to digital resilience as cloud computing itself.
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