Data Center Transformer Market Report 2026

Data Center Transformer Market Overview

• Data Center Transformer market size has reached to $9.29 billion in 2025 • Expected to grow to $15.02 billion in 2030 at a compound annual growth rate (CAGR) of 10% • Growth Driver: Increasing Adoption Of Cloud Computing Fueling The Growth Of The Market Due To Rising Demand For Efficient And Scalable Power Infrastructure • Market Trend: Advanced Voltage Protection Improves Power System Resilience • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Data Center Transformer Market?

A data center transformer is the specialized electrical equipment that steps down high-voltage power to safe, usable levels for servers and critical IT infrastructure, ensuring stable and efficient energy distribution within data facilities. Its primary goal is to provide consistent, reliable power while minimizing energy loss, supporting uninterrupted operations, and preventing electrical failures. It also enhances overall energy performance, reduces overheating risks, supports load management, and contributes to the long-term reliability and sustainability of data centers. The main types of data center transformer are liquid-immersed transformer and dry-type transformer. Liquid-immersed transformer refers to transformers that use insulating oil for cooling and insulation, offering high efficiency, durability, and load-handling capacity suitable for large-scale data center operations. It is categorized by cooling type into oil-cooled and air-cooled systems. It finds applications in step-up transformers and step-down transformers, serving end users including enterprise data centers, colocation data centers, hyperscale data centers, and edge data centers.

What Is The Data Center Transformer Market Growth Forecast?

The data center transformer market size is expected to see rapid growth in the next few years. It will grow to $15.02 billion in 2030 at a compound annual growth rate (CAGR) of 10.0%. The growth in the forecast period can be attributed to rising hyperscale data center deployments, adoption of liquid-immersed and bio-based oil transformers, increased demand for energy-efficient transformers, growth in edge computing facilities, integration of predictive maintenance and IoT-based monitoring. Major trends in the forecast period include adoption of energy-efficient transformer designs, integration of smart monitoring and predictive maintenance systems, increased use of bio-based and low-loss insulating oils, deployment of modular and scalable transformer units, rising demand for transformers in hyperscale and edge data centers.

Global Data Center Transformer Market Segmentation

1) By Type: Liquid-Immersed Transformer, Dry-Type Transformer 2) By Cooling Type: Oil-Cooled, Air-Cooled 3) By Application: Step-Up Transformers, Step-Down Transformers 4) By End-User: Enterprise Data Centers, Colocation Data Centers, Hyperscale Data Centers, Edge Data Centers Subsegments: 1) By Liquid-Immersed Transformer: Oil-Filled Transformers, Bio-Based Oil Transformers, Silicone Oil Transformers, Mineral Oil Transformers 2) By Dry-Type Transformer: Cast Resin Transformers, Vacuum Pressure Impregnated Transformers, Encapsulated Dry Transformers, Air-Cooled Dry Transformers

What Is The Driver Of The Data Center Transformer Market?

The increasing adoption of cloud computing is expected to propel the growth of the data center transformer market. Cloud computing refers to delivering computing resources, such as storage, servers, and software, over the internet, enabling scalable, on-demand access without physical infrastructure. The increasing adoption of cloud computing is due to scalability and flexibility, as it allows businesses to easily adjust resources on demand without heavy upfront infrastructure costs. Data center transformer supports cloud computing adoption by delivering efficient and reliable power distribution, ensuring uninterrupted operation of servers and storage systems. They enhance energy efficiency and scalability, enabling seamless performance for expanding cloud infrastructure. For instance, in December 2023, according to Eurostat, a Luxembourg-based government agency, 45.2% of enterprises purchased cloud computing services. Therefore, the increasing adoption of cloud computing and digital services is driving the growth of the data center transformers industry.

Key Players In The Global Data Center Transformer Market

Major companies operating in the data center transformer market are Hitachi Ltd., General Electric Company, Schneider Electric SE, Mitsubishi Electric Corporation, Siemens Energy AG, ABB Ltd., Toshiba Corporation, Eaton Corporation Public Limited Company, Legrand SA, Fuji Electric Co. Ltd., Bharat Heavy Electricals Limited, HD HyundAI Electric Co. Ltd., Virginia Transformer Corporation, Ormazabal Electric S.L.U., Hammond Power Solutions Inc., MGM Transformer LLC, Hyosung Heavy Industries Corporation, Kirloskar Electric Company Limited, JCL Energy LLC, Wilson Power Solutions Limited

Global Data Center Transformer Market Trends and Insights

Major companies operating in the data center transformer market are focusing on developing technologically advanced solutions, such as transient voltage protection (TVP) technology, to enhance reliability, operational safety, and resilience against transient overvoltages. Transient voltage protection (TVP) technology refers to an advanced technology designed to safeguard transformers from sudden voltage spikes and electrical transients while enhancing insulation performance, improving reliability, and extending operational lifespan in high-stress power environments. For instance, in November 2023, Hitachi Energy Ltd., a Switzerland-based power technology company, launched its new range of liquid-filled transformers equipped with transient voltage protection (TVP) technology, marking a significant advancement in transformer design. This innovation enhances insulation performance and protects equipment from harmful voltage transients, improving reliability and extending service life. It supports growing demands in industries such as data centers, renewables, and utilities for stable and efficient energy systems.

What Are Latest Mergers And Acquisitions In The Data Center Transformer Market?

In August 2025, Eaton Corporation plc, an Ireland-based intelligent power management company, acquired Resilient Power Systems Inc. for an undisclosed amount. Through this acquisition, Eaton Corporation plc aims to strengthen its advanced power management portfolio by integrating Resilient Power Systems’ solid-state transformer technology, enhancing energy efficiency, power reliability, and operational resilience in data center and critical infrastructure environments. Resilient Power Systems Inc. is a US-based energy solutions company that provides solid-state transformer technology for data centers.

Regional Outlook

North America was the largest region in the data center transformer market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Data Center Transformer Market?

The data center transformer market consists of sales of modular and compact transformers, oil-free eco-friendly transformers, isolation and converter transformers, medium voltage transformers, and cast resin transformers. Values in this market are ‘factory gate’ values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Data Center Transformer Market Report 2026?

The data center transformer market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the data center transformer industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.