The growth of data centers for artificial intelligence is prompting a reevaluation of a part of the infrastructure that typically receives much less attention than GPUs or cooling: how enormous amounts of electricity are distributed within the data center itself. MarketsandMarkets estimates that the global market for busbar systems for data centers will increase from $1.38 billion in 2026 to $3.01 billion in 2032, with a compound annual growth rate of 14%.
The key points about busbars for data centers in 20 seconds
- The market is projected to grow from $1.38 billion to $3.01 billion between 2026 and 2032.
- The infrastructure dedicated to AI will be the fastest-growing load segment, with an 18.8% annual increase.
- Hyper-scale data centers will advance at a rate of 14.6%.
- The increase in power per rack forces the distribution of higher currents.
- Asia-Pacific would be the region with the highest growth, at 16.4% annually.
Behind these forecasts lies a fairly straightforward physical problem. Installing more AI accelerators in a rack increases computing capacity, but also concentrates huge electrical demand into very limited space. That energy must travel from transformers, uninterruptible power supplies (UPS), electrical panels, and other components to the computing equipment.
Conventional cables continue to play an essential role, but as currents increase and installations need to rapidly change configuration, busbar systems or busbars are becoming more prominent.
What is a busbar and why is AI shifting its importance
A busbar is essentially an electrical distribution system based on conductive bars, generally made of copper or aluminum, housed within a protected and insulated structure. It can incorporate connections, joints, and tap points to deliver electricity where needed.
It’s not a new technology. It has been used for decades in industrial electrical installations, switchboards, and data centers. The difference now is in the amounts of electricity that the new AI-focused infrastructure begins to require.
MarketsandMarkets specifically identifies the increase in electrical density of racks and the building of AI clusters as key factors driving demand. The report estimates that the segment related to AI loads will grow at an 18.8% CAGR through 2032, outpacing the overall market.
The International Energy Agency (IEA) has also warned about the rapid rise in electrical needs of data centers. Its report Energy and AI estimates that the global electricity consumption of these centers could surpass 945 TWh by 2030, more than double the 2022 figures.
The internal electrical infrastructure will need to evolve simultaneously.
One advantage of busbars is that they allow high current transportation using relatively compact setups. They can also incorporate connection points that simplify adding, removing, or relocating racks without having to reconstruct significant parts of the wiring.
This feature is particularly useful where the distribution of computational load may change throughout the building’s lifespan.
Additionally, the report notes that busbars can reduce the number of contact points and have low impedance, factors that help limit electrical losses and localized heating when handling high currents.
From traditional racks to installations exceeding 100 MW
The scale is also changing.
MarketsandMarkets highlights, citing IEA data, that certain hyper-scale AI data centers can exceed 100 MW of power. To put that in perspective, it’s no longer just about powering multiple server rooms but designing electrical infrastructure comparable in capacity to large industrial facilities.
The hyper-scale segment is expected to be the fastest growing within the busbar market for data centers, with a forecasted compound annual growth rate of 14.6% from 2026 to 2032.
Another crucial factor is modularity.
A traditional data center might be designed with a relatively stable rack configuration in mind. AI installations introduce much higher loads and rapid technological evolution. Future generations of accelerators may again alter power requirements.
A modular system allows adding tap points and expanding parts of the electrical distribution without replacing the entire setup.
It can also reduce cable volume and facilitate phased construction, which is important in large campuses where computational capacity is added progressively.
The market is responding with products designed for increasingly high currents. For example, the report mentions the September 2025 launch of Legrand’s ORv3 Vertical DC Busbar, compatible with the OCP’s ORv3 specification, with configurations of 400, 700, and up to 1,400 amps, intended for high-density and AI installations.
The development also impacts direct current (DC). Although much of data center electrical distribution still relies on AC, the search for architectures with fewer conversions is increasing interest in DC distribution systems for certain parts of the infrastructure.
Copper, aluminum, and a new battle for electrical infrastructure
The growth of these systems raises another issue: materials.
Copper remains the dominant conductor because of its high electrical conductivity and capacity to handle substantial currents. MarketsandMarkets expects it to maintain the largest market share during the forecast period.
However, aluminum and hybrid solutions are expected to grow most rapidly.
Aluminum offers lower conductivity than copper but weighs less and generally costs less. In large-scale installations, these features can be advantageous, especially when large amounts of conductor material are needed.
Hybrid architectures combine both materials depending on the needs for conductivity, weight, cost, and design considerations of each part of the system.
The international standard IEC 61439-6 covers both copper and aluminum conductors for prefabricated busbar systems.
Dependence on these raw materials also introduces risks. Volatility in copper and aluminum prices can translate into higher manufacturing costs and complicate budgets for projects requiring large quantities of conductive material.
Furthermore, replacing conventional cabling with busbars is not always straightforward.
In operational data centers, modifications might include changing electrical panels, distribution systems, ceiling structures, or even rack arrangements. For 24/7 facilities, any intervention requiring downtime must be carefully planned.
Therefore, it’s likely that growth will be easier in new facilities designed with these architectures from the outset.
Asia-Pacific will grow faster, and Europe retains major manufacturers
Expansion will not be uniform.
MarketsandMarkets forecasts that Asia-Pacific will see a 16.4% annual growth rate, the highest among the regions analyzed. Construction of hyper-scale data centers, cloud growth, and investments in AI infrastructure are increasing electrical distribution demands in China, Japan, India, Australia, and other Asian markets.
The market also features a particularly strong European presence among manufacturers.
The consultancy lists Legrand, Schneider Electric, and Vertiv as leading suppliers by market share and product range, alongside others such as ABB, Eaton, Siemens, Mersen, Rittal, TE Connectivity, EAE Electric, Delta Power Solutions, and nVent.
The projected $3.01 billion market size in 2032 remains an estimate and not a guaranteed figure. Its realization will depend on the actual build-out rate of data centers, investments in AI, the evolution of rack electrical density, and the distribution technologies ultimately adopted by operators.
However, the shift goes beyond the busbar market. The push for increasing computing capacity is shifting pressure from chips to the entire physical chain that keeps them running: generation and electrical connections, transformers, UPS systems, internal distribution, cooling, and networks.
GPUs can pack increasing computing power. Ensuring they receive sufficient electricity safely, efficiently, and scalable becomes another major design challenge for AI data centers.
Frequently Asked Questions
What is a busbar in a data center?
A busbar is an electrical distribution system based on conductive bars, typically made of copper or aluminum. It can carry high currents and distribute electricity via tap points to racks and other equipment.
How much will the busbar market for data centers grow?
MarketsandMarkets estimates it will grow from $1.38 billion in 2026 to $3.01 billion in 2032, representing a 14% CAGR.
Why does artificial intelligence increase demand for busbars?
AI GPUs concentrate high electrical power per rack, requiring systems capable of handling larger currents and adaptable to increasing computational capacity.
Which companies produce busbars for data centers?
Manufacturers listed by MarketsandMarkets include Legrand, Schneider Electric, Vertiv, ABB, Eaton, Siemens, Mersen, Rittal, TE Connectivity, and EAE Electric, among others.
Sources:
- MarketsandMarkets, Data Center Busbar Market by IT Load, Data Center Type, Conductor Type, Power Source, Power Ampacity, Space Type and Region – Global Forecast to 2032, August 2026.
- International Energy Agency (IEA), Energy and AI, forecasts on the electrical demand of data centers.
