U.S. Data Center Substation Market Size, Share & Trends Analysis Report By Component, By DC Type, By Voltage Type (33kV - 110kV, 110kV - 220kV, 220 kV - 500 kV, Above 500 kV), By Channel Partners Type (OEMs, TSOs/DSOs), And Segment Forecasts, 2025 - 2030

U.S. Data Center Substation Market Trends

The U.S. data center substation market size was estimated at USD 3.44 billion in 2024 and is projected to grow at a CAGR of 9.1% from 2025 to 2030, driven by the rapid expansion of cloud computing, artificial intelligence (AI), and big data analytics. As businesses and consumers increasingly rely on digital services, hyper-scale data centers are scaling up their operations, necessitating robust power infrastructure. Substations play a critical role in ensuring a reliable electricity supply to these facilities, supporting high-density server racks and energy-intensive cooling systems. The demand for efficient, high-capacity power distribution solutions has surged, particularly in major tech hubs such as Northern Virginia, Silicon Valley, and Dallas, where data center construction is growing. 

The increasing focus on renewable energy integration and grid modernization is also driving the growth of the U.S. data center substation industry. Data center operators are under pressure to meet sustainability goals, prompting investments in substations that can handle power from solar, wind, and other green energy sources. Government incentives and regulations promoting clean energy adoption further accelerate this trend. In addition, the rise of edge computing and 5G networks is spurring the development of smaller, decentralized data centers, which require localized substations to ensure uninterrupted power. With the growing complexity of power demands and the need for resilient infrastructure, the U.S. data center substation industry is poised for continued expansion in the coming years.

The deployment of 5G networks and edge computing is driving demand for smaller, distributed data centers located closer to end-users. These edge facilities require localized substations to ensure low-latency power delivery, particularly in urban areas where grid constraints exist. As telecom companies and cloud providers expand their edge footprints, the need for modular and compact substations that can be rapidly deployed will grow, creating new opportunities for substation manufacturers and utilities.

Federal and state-level initiatives, such as the Infrastructure Investment and Jobs Act (IIJA) and state-level tax incentives for data center development, are accelerating the U.S. data center substation industry. Government programs aimed at improving grid resilience and expanding broadband access indirectly boost demand for data center power infrastructure. Moreover, the push for cybersecurity enhancements in critical infrastructure, including electrical substations, is driving investments in modern, secure substation designs tailored for data center applications.

Component Insights

Based on component, the power transformer segment led the market with the largest revenue share of 23.7% in 2024, driven by a commitment to energy efficiency and sustainability in data center operations. Modern power transformers, including advanced designs such as amorphous core and liquid-filled transformers, provide higher efficiency and lower energy losses compared to traditional models. According to the U.S. Department of Energy (DOE), in 2023, data centers consumed about 4.4% of the total electricity in the U.S., and this number is expected to rise to approximately 6.7% to 12% by 2028.

The relays segment is anticipated to grow at the fastest CAGR of 17.9% during the forecast period, driven by the rise of smart grid and automation technologies. Modern data center substations are becoming more digitized, with advanced control systems that enable remote monitoring, diagnostics, and real-time adjustments. Relays are designed with advanced communication capabilities, allowing them to interface with SCADA systems and provide remote control and monitoring.

DC Type Insights

Based on DC type, the new builds segment led the market with the largest revenue share of 65.3% in 2024. The growth of high-performance computing (HPC) is contributing to the growth of the new build DC type segment. HPC applications, such as artificial intelligence, machine learning, and big data analytics, require processing power and significant electrical capacity. New builds of substations are increasingly designed to cater to these high-demand computing environments, which require robust, scalable power solutions.

The retrofit segment is expected to grow at the fastest CAGR over the forecast period. The modernization of aging infrastructure is crucial for many existing data centers, which were originally designed and built years ago. As these data centers undergo retrofit projects to update and enhance their substations, there is a growing demand for new power distribution equipment, such as transformers, switchgear, and busbars.

Voltage Type Insights

Based on voltage, the 33kV - 110kV segment led the market with the largest revenue share of 35.5% in 2024. The shift toward modular and scalable designs in data center substations is influencing the growth of the 33kV - 110kV voltage type segment. Modular data center designs are becoming increasingly popular as they allow for more flexible and scalable infrastructure. These modular systems often require high-voltage substations to provide consistent power to each module, especially as the demand for processing power increases.

The above 500kV segment is expected to grow at a significant CAGR over the forecast period. The collaboration between data centers and transmission utilities in shared energy infrastructure is driving the growth of above 500kV substation deployments. Data centers are increasingly co-investing in substations alongside regional transmission organizations (RTOs), creating multi-client energy hubs that can serve campuses, microgrids, or neighboring energy-intensive industries. This collaborative model transforms substations from a backend necessity into a strategic asset that enhances power reliability and resilience for multiple stakeholders

Channel Partners Insights

Based on channel partners, the OEMs segment led the market with the largest revenue share of 59.1% in 2024. The geographic expansion of data center hubs into new markets has also created opportunities for OEMs. As operators build facilities in regions with less mature power infrastructure, they increasingly rely on OEMs to provide turnkey substation solutions that can adapt to local grid conditions and regulatory requirements. Partnerships between OEMs and utilities are becoming more common, ensuring compatibility between data center power systems and regional transmission networks.

The TSOs/ DSOs segment is expected to grow at a significant CAGR over the forecast period. TSOs and DSOs are increasingly turning to cost-sharing models and public-private partnerships to deploy large substations near strategic data center corridors. These collaborative financing models help mitigate the risk of stranded infrastructure while ensuring that substation deployments are aligned with both regional power strategy and digital infrastructure expansion.

Key U.S. Data Center Substation Company Insights

Key players operating in the U.S. data center substation industry are Schneider Electric, Hitachi Energy Ltd., GE Vernova, Eaton, and ABB. Companies are focusing on various strategic initiatives, including new product development, partnerships & collaborations, and agreements to gain a competitive advantage over their rivals.

Recent Developments

• In March 2025, ABB acquired a minority stake in DG Matrix, a North Carolina-based company focused on advancing solid-state power electronics. The investment aims to accelerate the rollout of DG Matrix's innovative Power Router platform, designed for generative AI data centers and renewable energy microgrids. This next-generation solution integrates multiple functions into a single, compact system up to five times smaller than traditional setups and offers energy efficiency up to 98%.

• In February 2025, Schneider Electric inaugurated a new data center and microgrid research labs at its Global R&D Center in Andover, Massachusetts, U.S. The Power Distribution Unit (PDU) lab includes three testing bays and is equipped to test high-voltage systems developed for AI-driven data centers. The facility also supports the testing of fully operational microgrids, enabling faster development and deployment of microgrid solutions for customer applications.

U.S. Data Center Substation Market Report Scope

U.S. Data Center Substation Market Report Segmentation

This report forecasts revenue growth at a country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. data center substation market report based on component, DC type, voltage type, and channel partner type.

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Power Transformer

    • Dry-type

    • Oil-immersed

  • Switchgear

    • Air Insulated

    • Gas Insulated

    • Hybrid

  • Structures & Support

    • Steel Structures

    • Concrete Structures

  • Instrument Transformers

    • Current Transformers

    • Voltage Transformers

  • Relays

    • Overcurrent

    • Solid-State Relays

    • Others

  • Capacitor

    • Power Factor Correction Capacitors

    • Filter Capacitors

    • Energy Storage Capacitors

  • Busbars & Conductors

    • Copper Busbar

    • Aluminum Busbar

    • Conductors

  • Ground Grid

    • Grounding Systems

    • Grounding Electrodes

  • Surge

    • Surge Arresters

    • Surge Suppressors

    • Transient Voltage Surge Suppressors (TVSS)

  • Protection & Control Systems

  • Disconnect Switches

  • Connectors

  • Insulators

  • Lightning Arresters

  • Others

• DC Type Outlook (Revenue, USD Million, 2018 - 2030)

  • New Builds

  • Retrofit

• Voltage Type Outlook (Revenue, USD Million, 2018 - 2030)

  • 33kV - 110kV

  • 110kV - 220kV

  • 220kV - 500kV

  • Above 500kV

• Channel Partners Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Original Equipment Manufacturers (OEMs)

  • TSOs/DSOs