Data centers push for energy-efficient power systems by 2025

On May 21, 2025, a significant report on the data center power infrastructure market was released, highlighting global trends and ambitious energy efficiency goals. This report notes the increasing demand for energy-efficient power solutions as rack densities rise in response to the skyrocketing computational needs associated with artificial intelligence (AI) and high-performance computing (HPC). As data centers strive to comply with sustainability mandates and reduce costs, adopting advanced power distribution methods becomes essential. Particularly in Europe, operations are focusing on green data center initiatives fueled by stringent efficiency standards. The report also indicates the emergence of specialized HPC facilities and edge data centers on the rise, contributing to the complexity of meeting advanced power requirements. These new facilities particularly highlight the necessity for robust and flexible infrastructure capable of supporting intense workloads. Furthermore, the report outlines a notable trend towards adopting distributed and modular power architectures within these AI-centric facilities. This shift is partly stimulated by the surging demand for GPU servers and HPC clusters, which require higher capacity and efficiency from power systems. The transition towards fully DC distribution, however, demands major upgrades to existing infrastructure, necessitating thorough staff training and a shift in maintenance protocols. Given the anticipated labor-intensive process, some operators may choose gradual upgrades over immediate comprehensive changes. In the broader context, the demand for energy-efficient solutions is being echoed globally, with significant developments in the Middle East focusing on renewable energy investments and moderate growth reported in Latin America. Major industry players such as Dell, Hewlett Packard Enterprise, and Schneider Electric are actively involved in advancing these technologies to capture market space. The report emphasizes the urgency and inevitability of adopting innovative power conversion and distribution solutions, as they become critical for operators looking to enhance their competitive edge while simultaneously meeting critical environmental goals.