North America Data Center Transformer and Switchgear Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2025-2034

North America Data Center Transformer and Switchgears market was valued at USD 5.65 billion in 2024, is expected to grow at a CAGR of 7.4% during 2025 - 2034. This growth is primarily driven by the increasing demand for high-performance transformers, especially in three-phase configurations, and switchgears with voltage ratings of up to 1 kV for data centers across the region. With the rapid expansion of data centers due to the growing demand for cloud computing, digital services, and data storage, the market for transformers and switchgears is poised for significant growth, particularly in the U.S., which remains a leader in the global data center industry.

Transformers and switchgears are critical components for ensuring the efficient, reliable, and safe operation of data centers. As the data center industry in North America expands to accommodate the surge in digital services, there is an increasing need for reliable electrical infrastructure to support high-capacity, uninterrupted power supply. The demand for transformers in three-phase configurations, which provide higher efficiency and reliability, is rising in tandem with the growth of data center infrastructure. Additionally, switchgears with voltage ratings up to 1 kV are becoming essential for protecting electrical circuits from faults and ensuring smooth, continuous operations in data centers.

The transformer segment is forecasted to generate USD 5.9 billion 2034, driven by the increasing number of data center installations and the growing demand for high-performance electrical equipment. Data centers require transformers to step down or step up voltage, ensuring that the electrical systems operate efficiently and safely. With the growing reliance on digital infrastructure, the demand for transformers is intensifying. Specifically, transformers designed for high-capacity operations, including power distribution and load management, are becoming crucial for data centers in North America. As the region increasingly shifts toward high-demand applications, such as artificial intelligence, big data analytics, and cloud computing, the demand for specialized transformers is expected to grow substantially.

Three-phase transformers segment generated 3.7 billion in 2024 due to their ability to efficiently deliver high and consistent power. The three-phase configuration provides a continuous power flow, reduces electrical losses, and increases the overall reliability of the data center's electrical systems. This makes them ideal for data centers that require large-scale operations, as they ensure uninterrupted service and enhanced operational efficiency. The adoption of three-phase transformers is expected to rise as more data centers expand their capacity to meet the growing demand for cloud services and digital solutions.

The voltage rating segment, specifically transformers and switchgears rated up to 1 kV, generated USD 3.05 billion in 2024. Low-voltage transformers and switchgears, with ratings up to 1 kV, are crucial for data center infrastructure as they provide efficient power distribution while ensuring electrical safety and minimizing the risk of power failures. These low-voltage systems are often used in conjunction with three-phase transformers to meet the diverse power needs of data centers. With the increasing demand for energy-efficient, cost-effective, and safe power solutions, data centers are opting for systems that offer high capacity and reliability while maintaining low energy consumption.

U.S. Data Center Transformer and Switchgears Market generated USD 5.39 billion in 2024. The U.S. is home to some of the largest data center providers and technology companies, driving the demand for reliable and efficient electrical infrastructure. As the digital transformation accelerates across industries and cloud computing services expand, the U.S. market for data center transformers and switchgears will continue to thrive. Moreover, advancements in renewable energy integration and smart grid technologies are expected to further support market growth, as data centers adopt more sustainable and energy-efficient solutions. The robust research and development activities within the U.S. also contribute to innovation and the development of next-generation transformer and switchgear technologies tailored for data center applications Show more