Data Center Power Market Set to Hit $220 Billion With AI-Driven Upgrades

What happened

Bloomberg analyzed on July 3, 2026 how next-generation AI factories — high-power-density data centers — are forcing power equipment manufacturers to rethink their portfolios. The power equipment market for data centers is expected to exceed $220 billion annually.

Context and impact

AI servers consume tens of kilowatts per rack — orders of magnitude more than traditional IT. This requires fundamental reconstruction of power systems, cooling, and UPS. It creates asymmetry: companies supplying high-power infrastructure (Eaton, ABB, Vertiv) face record demand, while traditional lower-power IT supply chains are under pressure. The total AI infrastructure investment cycle exceeds $1 trillion through 2028.

Details

• Power equipment market for data centers: >$220B annually
• AI servers: tens of kW/rack vs. single kW for traditional IT
• Transformers, cooling, and UPS are primary beneficiaries
• Potential winners: Eaton, ABB, Vertiv, Schneider Electric
• Traditional lower-power IT supply chains under pressure
• Total AI infrastructure investment cycle: >$1T through 2028