Dublin, Aug. 26, 2024 (GLOBE NEWSWIRE) — The “Data Center Power Market – Global Outlook and Forecast 2024-2029” report has ResearchAndMarkets.com Provided.
The data center power market is expected to be valued at USD 22.46 billion in 2023 and reach USD 41.3 billion by 2029, growing at a CAGR of 10.69%.
Demand for high performance computing (HPC) driven by artificial intelligence (AI) and other advanced technologies is driving data center rack density to new heights. From 2018 to 2023, the average server rack density has increased significantly. HPC demand will drive rack density up to 200 kW and above.
Renewable energy sources such as wind and solar are increasingly powering data centers: Microsoft, for example, announced in 2023 a commitment to power its data centers with renewable energy by 2025.
Lithium-ion batteries are gaining attention in data center UPS systems due to their sustainability and efficiency, with companies such as Amazon Web Services (AWS) announcing their adoption of lithium-ion batteries in 2023 to improve UPS performance.
AI and ML are shaping industries and driving demand for compute resources in data centers. A collaboration between technology companies aims to accelerate the adoption of AI in industrial operations to drive sustainability and intelligence.
Segmentation Insights
- The Uninterruptible Power Supply (UPS) market in the data center power market has undergone significant evolution and plays a key role in ensuring uninterrupted power at various levels of the infrastructure. Deployed in centralized, row level, and rack level locations, UPS systems are increasingly being customized to support loads ranging from 750 kVA to 1,500 kVA, with smaller systems under 500 kVA also making a significant contribution. The choice of UPS system is driven by the specific IT and cooling load requirements, and backing up the cooling infrastructure to maintain optimal temperatures is becoming increasingly important. Innovations in UPS solutions include offering UPS as a service and combining smart UPS systems with monitoring services for increased efficiency and cost savings.
- UPS systems are growing in battery technology with the integration of environmentally friendly options such as nickel-zinc and lithium-ion batteries. These innovations aim to ensure consistent performance while addressing environmental concerns. Intelligent control within UPS systems enables predictive maintenance and improves reliability, and redundant capacity continues to be preferred, especially in mid-size and hyperscale data centers. Reduced operational and maintenance costs are driving the transition from traditional VRLA batteries to lithium-ion batteries.
- The generator market is dominated by diesel generators, especially in areas with power grid problems, but natural gas generators are gaining popularity due to their environmental benefits. The data center power market is seeing a trend towards renewable energy sources and innovations, such as HVO biodiesel and eco-diesel generators, that align with sustainability goals. Diesel Rotating Uninterruptible Power System (DRUPS) systems are gaining popularity, especially in regions such as Latin America and Southeast Asia, as they combine the functionality of UPS and generators.
Segmentation Analysis
Segmentation by Electric Infrastructure
- UPS Systems
- Generator
- Transfer Switches and Switchgear
- PDUs
- Other Electrical Infrastructure
Segmentation by UPS System Capacity
- <=500kVA
- >500-1,000kVA
- >1,000kVA
Segmentation by Generator Capacity
Segmentation by Generator Type
- DRUPS System
- Diesel, Gas and Bi-Fuel Generators
- HVO Fuel
- Fuel Cells
Segmentation by Switchgear Type
- Low Voltage Switchgear
- Medium Voltage Switchgear
- High Voltage Switchgear
Segmentation by tier criteria
- Tier I and II
- Tier III
- Tier IV
Geographic Analysis
- In terms of data center power capacity, North America continues to dominate the market, exhibiting steady growth throughout the forecast period 2020-2029. North America continues to expand its power capacity at a respectable CAGR of 9.24%, reflecting robust investments in data center infrastructure. In particular, regions within North America such as Northern Virginia, Texas, and California stand out as major contributors to the data center power market growth owing to the increasing demand for data processing and storage capabilities.
- While North America continues to maintain its leading position, other regions are also witnessing significant growth in the global data center power market. For example, Latin America has shown notable growth at a CAGR of 9.14%, indicating the rising demand for data center power infrastructure in the region. Countries such as Brazil, Mexico, and Chile have emerged as key players in the fast-growing data center market in Latin America, attracting investments and facilitating power capacity growth.
- Similarly, the Asia Pacific (APAC) region is witnessing a notable increase in data center power capacity, registering a high compound annual growth rate (CAGR) of 10.38%. Countries such as China, India, and Singapore are driving the APAC data center power market, driven by the rapid digitization of their economies and the prevalence of cloud services across the region. Southeast Asian countries such as Malaysia and Indonesia are contributing significantly to the power capacity expansion in the region, driven by increasing investments in data center infrastructure.
Vendor Landscape
- The global data center power market is witnessing fierce competition among power infrastructure providers. The major market players are ABB, Eaton, Caterpillar, Cummins, Legrand, Schneider Electric, Siemens, Rolls-Royce, and Vertiv.
- Cummins and Caterpillar have a strong presence in the data center generator market. With growing demand for sustainability, operators are looking to replace traditional diesel generators and UPS systems with natural gas or hydrogen fuel cell generators, lithium-ion batteries, and intelligent PDUs to improve the efficiency of their facilities.
- The data center power market is becoming more competitive, with power solution providers innovating their products to deliver maximum efficiency and reliability. Diverse requirements of data center operators are pushing vendors to develop products that reduce OPEX by up to 50%.
- Vendors that can accommodate operators’ changing requirements are garnering a larger market share. Large vendors offering UPS systems and generators should consider adding fuel deployment expertise to their portfolios, either as standalone solutions or through partnerships with smaller fuel cell suppliers.
- Moreover, the increasing adoption of OCP-based infrastructure designs will also change the market demand. Vendors such as Schneider Electric, Rittal, HPE, Delta Electronics, Huawei, etc. are offering infrastructure based on OCP designs. Many organizations prefer solutions such as 48V DC UPS systems, which will lead to increased market revenue for these vendors.
Leading Data Center Support Infrastructure Providers
- ABB
- Caterpillar
- Cummins
- Eaton
- Legrand
- Rolls Royce
- Schneider Electric
- Vertive
Other major vendors
- AEG Power Solutions
- Aggreko
- AXA Power Generation
- AMETEK Power Bar
- Arnold Maldix
- Artesyn Embedded Power (Advanced Energy)
- Aten
- Austin Hughes Electronics
- Bachmann
- BENNING Elektrotechnik and Elektronik
- Boli
- Bloom Energy
- Kanobate
- Sentiel
- chatsworth products
- Cisco Systems
- Managing power company
- Cyber Power Systems
- Data Probe
- Delta Electronics
- Detroit Diesel
- EAE Electric
- Elcom International
- Enconex
- Enlogic
- EverExceed Industry
- Exide Technologies
- Fuji Electric
- Generac Power Systems
- General Electric
- Genesal Energy
- Hewlett Packard Enterprise
- Himoinsa (Yanmar)
- Hitachi Hi-Release Power Electronics
- HITEC Power Protection
- Hitzinger
- Huawei
- Inio
- KEHUA Data (KEHUA Tech)
- KOEL (Kirloskar)
- Cola
- Marathon Power
- Mitsubishi Electric
- MPINarada
- Natron Energy
- Narada
- Panduit
- Pillar Power Systems
- Plug power
- Power Tech
- Pramac
- Liero Electronica
- Rittal
- SAFT(Total)
- Shenzhen KSTAR Science and Technology Center (KSTAR)
- Siemens
- Socomec
- SolarEdge Technologies
- Tikhon
- Toshiba
- Virtual Power System (VPS)
- Vicon
- WTI – Western Telematics
- ZAF Energy Systems
- Zinc Five
Main features
| Report Attributes | detail |
| Number of pages | 731 |
| Forecast Period | 2023-2029 |
| Estimated market value in 2023 (USD) | $22.46 billion |
| Market value forecast to 2029 (USD) | $41.3 billion |
| Compound Annual Growth Rate | 10.6% |
| Target area | global |
For more information on this report, please visit: https://www.researchandmarkets.com/r/t9awit
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