Data centers’ prep for power

September 17, 2026Reliable power conversion technologies—components that convert direct current to alternating current and vice versa—are critical for facilities such as data centers. As these centers require higher power densities and greater reliance on high-efficiency uninterruptible power supply systems, the value pool for data center power conversion equipment is expected to reach $29 billion in 2030, McKinsey’s Christian Jansen, Harald Bauer, and their coauthors note. North America is likely to remain the largest market for this equipment, accounting for $11 billion of the total and with a compound annual growth rate (CAGR) of 19 percent. Meanwhile, the global market for data center power conversion equipment is projected to expand at a CAGR of 23 percent.

This set of stacked bar charts shows the data center power conversion equipment market is forecast to grow from $8 billion in 2024 to $29 billion in 2030 (a base case scenario), a rate of +23% per annum. Each bar is split into four regions — EU-27 + UK, North America, Greater China, and Rest of world. North America is the largest segment throughout, increasing from $4 billion in 2024 to $11 billion in 2030. Over that same time period, Greater China increases from $2 billion to $8 billion, EU-27 + UK increases from $1 billion to $5 billion, and Rest of world increases from $1 billion to $6 billion. In terms of CAGR from 2024 to 2030, Rest of world grows fastest at a 34% CAGR, followed by EU-27 + UK at 25%, Greater China at 22%, and North America at 19%.

To read the article, see “The power conversion market: Decarbonization and growth opportunities,” September 10, 2026.