Strong Market Growth Expected for Solid-state Transformers for U.S. Data Centers
A new report projects the market to rise from $40.3 million in 2025 to $154 million by 2030.
DELRAY BEACH, Fla.—The solid-state transformers market for U.S. data centers is expected to reach USD 154.0 million by 2030, up from USD 40.3 million in 2025, according to a new report from management consulting firm MarketsandMarkets™.
The projected increase represents an expected compound annual growth rate of 30.8 percent during the forecast period, the company said in a May release revealing some of the trends and insights underpinning its forecast.
The solid-state transformers market for U.S. data centers is witnessing strong growth driven by increasing investments in AI-driven hyperscale infrastructure, medium-voltage power distribution systems, and high-density computing environments, according to the release. Growing deployment of GPU-intensive AI clusters and liquid-cooled data centers is accelerating demand for efficient and intelligent power conversion technologies. Additionally, the rising integration of renewable energy, battery energy storage systems, and grid-interactive power infrastructure is driving the adoption of SST-based architectures in modern U.S. data center facilities.
Advancements in silicon carbide (SiC) and gallium nitride (GaN) semiconductor technologies are further improving power density, energy efficiency, and operational reliability for next-generation AI data center power systems, the company said in the release.
By power rating, the 5–20 MVA segment is projected to account for the largest market share of approximately 44–48 percent due to increasing deployment of high-capacity power infrastructure for AI-driven hyperscale and liquid-cooled data center environments.
By voltage level, the medium-voltage (1–35 kV) segment is expected to dominate the market with a share of approximately 68 percent to 72 percent due to the rising adoption of medium-voltage power distribution architectures across hyperscale and AI-focused data center facilities.
By application, the renewable integration segment is expected to dominate the market, with a share of approximately 34 percent to 38 percent. The expectation is reportedly driven by the increasing deployment of renewable-powered data center campuses and battery energy storage systems for AI-driven infrastructure.
During the forecast period, the South region is expected to account for the largest share of approximately 38 percent to 42 percent of the solid-state transformers market for U.S. data centers. Growth is supported by the rapid expansion of hyperscale and AI-driven data center campuses across Texas, Virginia, Georgia, and North Carolina.
Growth in the solid-state transformers market for U.S. data centers is reported to be driven by increasing power demand from AI workloads and the expansion of hyperscale computing infrastructure. Rising rack densities and higher electricity consumption are accelerating demand for advanced medium-voltage power distribution and intelligent energy management systems.
“Increasing integration of renewable energy, battery energy storage systems, and backup power infrastructure is supporting the adoption of bidirectional SST architectures across large-scale data center facilities,” the release stated. “The growing deployment of liquid-cooled AI servers is also increasing the need for compact, high-efficiency electrical infrastructure solutions.”
In addition, advancements in silicon carbide (SiC) and gallium nitride (GaN) power semiconductor technologies are said to be improving SST efficiency, thermal performance, and power density. Increasing investments in modular power systems, grid-connected energy infrastructure, and resilient data center operations are also creating significant opportunities for intelligent solid-state transformer deployment across the U.S. data centers market, the company said in the release.
Based on data center type, the hyperscale segment is expected to exhibit the highest compound annual growth rate in the solid-state transformers market for U.S. data centers during the forecast period. Fueling this expectation is the rapid expansion of AI-driven computing infrastructure.
“Large cloud service providers are increasing their investments in high-density facilities that require advanced medium-voltage power distribution systems,” the release noted. “Hyperscale data centers require high-capacity, energy-efficient electrical infrastructure to support GPU-intensive AI workloads and meet continuous power demand. SST systems help improve power efficiency, reduce distribution losses, and optimize space utilization across large-scale facilities.”
The increasing deployment of liquid-cooled AI clusters and modular power architectures is said to be further accelerating SST adoption in hyperscale environments. In addition, the growing integration of renewable energy and battery storage systems is driving demand for intelligent, bidirectional power conversion technologies across hyperscale U.S. data centers, the company said.
Based on application, the renewable integration segment is expected to account for the largest share of the solid-state transformers market for U.S. data centers, due to the increasing adoption of clean energy across hyperscale facilities. Large data center operators are expanding renewable energy sourcing to support sustainability targets and rising AI-driven electricity demand, the release stated.
“Solid-state transformers enable efficient integration of solar power, wind energy, and battery energy storage systems within modern data center power infrastructure. These systems support bidirectional power flow, fast voltage regulation, and improved energy management across grid-connected facilities. Growing investments in on-site renewable energy generation and microgrid-enabled data center campuses are further supporting growth,” the company said in the release.
In addition, increasing focus on reducing carbon emissions and improving power reliability is reported to be accelerating the deployment of SST-based renewable integration systems across U.S. data centers.
According to the release, the Southern U.S. region is expected to witness the highest compound annual growth rate in the solid-state transformers industry for U.S. data centers, due to rapid hyperscale and AI data center expansion. States such as Texas, Virginia, Georgia, and North Carolina are attracting significant investments in large-scale digital infrastructure projects. The growing availability of land, lower power costs, and strong renewable energy development are supporting new hyperscale data center deployments across the region.
Increasing electricity demand from AI workloads is also reported to be accelerating investments in advanced medium-voltage power distribution systems. In addition, rising integration of solar energy, battery storage systems, and grid-connected backup infrastructure is creating demand for intelligent solid-state transformer technologies. Expanding construction of liquid-cooled AI facilities and high-density computing campuses is further supporting SST adoption across the Southern U.S. data centers market, the company said.
The report profiles key players in solid-state transformers companies for U.S. data centers, including DG Matrix (U.S.), Heron Power (U.S.), Amperesand Technologies (Singapore), Hitachi Energy (Switzerland), and Eaton (Ireland). These companies are actively developing solid-state transformer technologies for AI-driven and hyperscale data center power infrastructure. They have adopted various organic and inorganic growth strategies, including product developments, technology partnerships, pilot deployments, strategic investments, collaborations with data center operators, and advanced power electronics integration initiatives, the release said.
Data Center Chip Market Projected to Reach $687.65 Billion by 2032
The market is expected to grow as hyperscale cloud providers increasingly shift toward workload-specific and custom silicon development to boost performance efficiency.
DELRAY BEACH, Fla.—A new report by management consulting firm MarketsandMarkets™ forecasts the global data center chip market to increase from USD 283.16 billion in 2026 to USD 687.65 billion by 2032, registering a compound annual growth rate of 15.9 percent during the forecast period.
According to a release from the company, the report offers insights into the market and identifies key market trends. It states that the data center chip market is fueled by the rapid growth of hyperscale data centers and cloud-native architectures that support better processing efficiency, optimized resource use, and scalable performance with advanced chips. These, in turn, enable faster data handling and dependable computing operations.
The report analyzes the data center chip market by component, data center size, end user, and region. By component, it projects the memory segment to register the highest CAGR of 16.7 percent. By data center size, it forecasts the medium-sized segment to grow at the fastest rate from 2025 to 2032.
In the end user category, the cloud service provider segment is expected to dominate the market.
By region, the North America data center chip market is reported to have accounted for a 36.7 percent revenue share in 2025.
“The data center chip market will grow as hyperscale cloud providers increasingly shift toward workload-specific and custom silicon development to boost performance efficiency and lower total ownership costs,” the release stated. “As standardized processors become less suitable for diverse and compute-heavy applications, companies are designing in-house chips tailored for particular workloads like AI inference, cloud-native applications, and data analytics. This shift allows for better hardware-software co-optimization, lower latency, and enhanced energy use.”
The report also points out that the rising emphasis on data sovereignty and supply chain resilience is prompting regional investments in semiconductors and localized chip design capabilities. This is reported to be further increasing the demand for specialized, scalable, and cost-effective data center chips.
Although the medium-sized data center segment is projected to grow at the fastest rate from 2025 to 2032, large data centers are expected to hold the largest market share during the forecast period.
“Large data centers hold the largest share in the data center chip market because of their ability to support extensive, high-density computing tasks like AI, cloud services, and real-time data processing,” the release stated. “These facilities deploy a much higher volume of advanced chips, including CPUs, GPUs, and specialized accelerators, to meet demanding performance and scalability needs.”
In addition, the strong financial resources of many large data centers enable ongoing investment in next-generation semiconductor technologies. At the same time, economies of scale lead to more efficient power use, cooling, and cost savings. “As a result, large data centers consume more chips than smaller facilities, dominating the market,” the release stated.
The memory component segment is expected to record the highest CAGR in the data center chip market during the forecast period due to the increasing demands of data-intensive workloads like AI, machine learning, and real-time analytics, which require high-speed data access, low latency, and large memory capacity. As modern data center architecture shifts to being more memory-focused, performance relies more on memory bandwidth than solely on processing power, fueling the demand for advanced solutions such as HBM and DDR, according to the release.
Also, the growing deployment of AI training and inference models, along with the need to handle massive datasets in parallel computing environments, is increasing memory integration per server. Continuous improvements in memory technologies and their closer integration with processors are further boosting adoption, leading to faster growth of the memory segment compared to other components, the company said in the release.
North America is reported to have dominated the data center chip industry in 2025 due to the strong presence of hyperscale cloud providers, advanced digital infrastructure, and early adoption of AI and high-performance computing technologies. The region benefits from significant investments in data center expansion and next-generation workloads like generative AI, which demand high-performance chips at scale.
Leading semiconductor companies, such as Intel Corporation, NVIDIA Corporation, and Advanced Micro Devices, Inc., are supporting ongoing innovation and rapid deployment of advanced processors. Robust collaboration within the technology ecosystem, along with high enterprise IT spending and a focus on scalable, energy-efficient infrastructure, is said to further solidify the region’s market leadership.
In addition to NVIDIA Corporation (U.S.), Advanced Micro Devices, Inc. (U.S.), and Intel Corporation (U.S.), key companies operating in the data center chip market are reported to include Samsung (South Korea), SK Hynix Inc. (South Korea), Google (U.S.), Amazon Web Services Inc. (U.S.), Monolithic Power Systems, Inc. (U.S.), and Texas Instruments Incorporated (U.S). They also include Micron Technology Inc. (U.S.), Analog Devices Inc. (U.S.), Microsoft (U.S.), and Altera Corporation (U.S.), among others.
AI Data Center Liquid Cooling Market Is Forecast to Reach $18.1 Billion by 2036
Market Decipher recently published a report that estimates the market will expand at a compound annual growth rate of 17.2 percent from 2026 to 2036.
PUNE, India—The global market for AI data center liquid cooling, valued at approximately $3.7 billion in 2026, is projected to surpass $11.2 billion by 2033 and extend toward $18.1 billion by 2036 at a compound annual growth rate (CAGR) of 17.2 percent, according to a release from market research firm Market Decipher.
Market Decipher recently published the report, “AI Data Center Liquid Cooling Market, 2026-2036,” which the company said offers critical insights into the rapidly expanding global market.
As AI chips grow more powerful, the heat they generate has quietly become one of the biggest cost problems in tech infrastructure. Data centers running today’s GPUs are hitting thermal limits that air cooling was never built to handle—and the bill for doing nothing is now higher than the bill for upgrading, the company said in the release.
“Liquid cooling has shifted from a capital expenditure debate to an operational necessity,” the release stated.
Direct-to-chip liquid cooling (DLC) is reported to command 42 percent to 47 percent of current market revenue and remains the dominant deployment architecture. Cold plates mounted directly on CPUs and GPUs remove 60 percent to 80 percent of component heat before it enters the airstream, supporting rack densities of 60–100 kW.
Microsoft, AWS, Google, and HPE have standardized DLC for AI server deployments. In February 2025, Microsoft formally mandated DLC for all new Azure AI infrastructure—a milestone that signals the technology’s shift from option to operational default, according to Market Decipher.
The company said immersion cooling is the fastest-growing segment, and is forecast to increase at a compound annual growth rate of 26 percent to 34 percent. Two-phase immersion systems, in which dielectric fluid boils and recondenses around submerged servers, are reported to be increasingly the architecture of choice for greenfield AI training facilities operating above 200 kW per rack. The segment is reported to be accelerating due to partnerships such as the G42–LiquidStack agreement in Abu Dhabi (May 2025) and the Equinix–Vertiv AI Powerhouse facility in Ashburn, Virginia (April 2025).
“The services segment—encompassing design, installation, and managed cooling service —is growing at 36 percent CAGR, the fastest of any component category,” the release stated. “As liquid cooling systems require specialized expertise to deploy and operate, cooling-as-a-service (CaaS) models are emerging as a high-margin recurring revenue layer, particularly attractive to enterprise and mid-market colocation operators unable to justify full capital deployment.”
Artificial intelligence and machine learning workloads are reported to have represented 34.8 percent of market spending in 2025 and are forecast to grow at a 25.98 percent CAGR through 2031. Hyperscale data centers account for 55 percent to 76 percent of total deployment share. Edge and micro data centers are reportedly the fastest-growing deployment type at approximately 25 percent CAGR, as AI inference is increasingly pushed to distributed, space-constrained environments.
“The companies that own certified liquid cooling capacity and integrated thermal IP are positioned at a structural chokepoint in the AI infrastructure buildout,” said Market Decipher Senior Analyst Rakesh Singh, in the release.
According to the release, North America is the market leader at 35 percent to 37 percent of global revenue, powered by Big Tech hyperscale investment and CHIPS Act tailwinds. Asia-Pacific follows as the fastest-growing region, with a 32.8 percent compound annual growth rate. Japan is “making immersion cooling a national energy priority,” the release said.
Meanwhile, Europe’s growth is described as compliance-driven, as EU mandates on waste-heat recovery make liquid cooling the default for new builds. At the same time, the Middle East is rapidly emerging, as G42, NEOM, and UAE’s national AI strategy are reportedly fueling “frontier-grade demand.”