Dublin, August 26, 2024 (GLOBE NEWSWIRE) — The report “Data Center Power Market – Global Outlook & Forecast 2024-2029” has been added to The Offer.
The data center power market was valued at $22.46 billion in 2023 and is expected to reach $41.30 billion by 2029, growing at a compound annual growth rate of 10.69%.
The demand for high-performance computing (HPC), driven by artificial intelligence (AI) and other advanced technologies, is driving rack density in data centers to new heights. From 2018 to 2023, the average server rack density has increased significantly. The demand for HPC is driving rack density up to 200 kW and more.
Renewable energy sources such as wind and solar are increasingly powering data centers. In 2023, Microsoft announced that it was committed to powering its data centers with renewable energy by 2025.
Lithium-ion batteries are becoming increasingly important in data center UPS systems due to their sustainability and efficiency. Companies such as Amazon Web Services (AWS) announced plans to introduce lithium-ion batteries in 2023 to improve UPS performance.
AI and ML are shaping industries and driving demand for computing resources in data centers. The collaboration between technology companies aims to accelerate the adoption of AI in industrial operations, thereby promoting sustainability and intelligence.
SEGMENTATION INSIGHTS
- The Uninterruptible Power Supply (UPS) market in the data center power space is undergoing significant development and is playing a pivotal role in ensuring uninterrupted power supply at various infrastructure levels. UPS systems deployed at central location, row and rack level are increasingly tailored to support loads between 750 and 1,500 kVA, with smaller systems below 500 kVA making a notable contribution. The choice of UPS systems is driven by specific IT and cooling load requirements, with securing the cooling infrastructure to maintain optimal temperatures becoming an increasing priority. Innovations in UPS solutions include offering UPS as a service and combining intelligent UPS systems with monitoring services to improve efficiency and reduce costs.
- Battery technologies are evolving in UPS systems, incorporating eco-friendly options such as nickel-zinc and lithium-ion batteries. These innovations aim to address environmental concerns while ensuring consistent performance. The intelligent controls in UPS systems enable predictive maintenance and improve reliability, while redundant capacity continues to be preferred, especially in mid- and hyperscale data centers. Reducing operational and maintenance costs is driving the transition from traditional VRLA batteries to lithium-ion batteries.
- The generator market is dominated by diesel generators, especially in regions with power grid issues, although natural gas generators are gaining ground due to their environmental benefits. The data center power market is experiencing a trend toward renewable energy sources and innovations, including HVO biodiesel and ecodiesel generators, which are compatible with sustainability goals. Diesel Rotary Uninterruptible Power System (DRUPS) systems are becoming increasingly popular due to their combined UPS and generator functions, especially in regions such as Latin America and Southeast Asia.
SEGMENTATION ANALYSIS
Segmentation by electrical infrastructure
- UPS systems
- Generators
- Transfer switches and switchgear
- Power distributor
- Other electrical infrastructure
Segmentation by UPS system capacity
Segmentation by generator capacity
Segmentation by generator type
- DRUPS systems
- Diesel, gas and bi-fuel generators
- HVO fuel
- Fuel cells
Segmentation by switchgear type
- Low-voltage switchgear
- Medium voltage switchgear
- High-voltage switchgear
Segmentation according to tier standards
- Level I and II
- Level III
- Level IV
GEOGRAPHICAL ANALYSIS
- In terms of data center power capacity, North America maintains its dominance in the market and exhibits steady growth during the forecast period from 2020 to 2029. With a remarkable CAGR of 9.24%, North America continues to expand its power capacity, reflecting its robust investments in data center infrastructure. In particular, the regions within North America such as Northern Virginia, Texas, and California are major contributors to the growth of the data center power market owing to the increasing demand for data processing and storage capacities.
- While North America maintains its leadership position, other regions are witnessing significant growth in the global data center power market. Latin America, for example, is showing notable expansion with a compound annual growth rate of 9.14%, indicating rising demand for data center power infrastructure in the region. Countries such as Brazil, Mexico, and Chile are emerging as major players in the emerging Latin America data center market, attracting investments and driving power capacity growth.
- Similarly, the Asia Pacific (APAC) region is showing remarkable growth in data center power capacity, with a remarkable compound annual growth rate of 10.38%. Countries such as China, India, and Singapore dominate the data center power market in the APAC region, driven by rapid digitization of the economy and the proliferation of cloud services across the region. Southeast Asian countries such as Malaysia and Indonesia are contributing significantly to the region’s growing power capacity, driven by increasing investments in data center infrastructure.
Provider landscape
- The global data center power market is witnessing intense competition among power infrastructure providers. The leading 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 power generator market. With increasing demand for sustainability, operators are considering replacing traditional diesel generators and UPS systems with natural gas and hydrogen fuel cell generators, lithium-ion batteries and smart PDUs to improve the efficiency of their facilities.
- The data center power market is becoming increasingly competitive. Power solution providers are constantly evolving their products to provide maximum efficiency and reliability. The diverse requirements of data center operators are prompting vendors to develop products that reduce operating costs by up to 50%.
- Suppliers that can meet operators’ changing needs have gained greater market share. Leading UPS and generator suppliers should consider adding fuel delivery expertise to their portfolio, either as a standalone solution or through partnerships with smaller fuel cell suppliers.
- In addition, the increasing use of OCP-based infrastructure design will change the market demand. Vendors such as Schneider Electric, Rittal, HPE, Delta Electronics and Huawei are offering infrastructure based on OCP design. This will support the growth of market revenues of these vendors as many companies prefer solutions such as 48V DC UPS systems.
Major providers of data center support infrastructure
- ABB
- caterpillar
- Cummins
- Eaton
- Legrand
- Rolls Royce
- Schneider Electric
- Vertiv
Other prominent providers
- AEG Power Solutions
- Aggreko
- Aksa Power Generation
- AMETEK Powervar
- Anord Mardix
- Artesyn Embedded Power (Extended Power)
- Athens
- Austin Hughes Electronics
- BACHMANN
- BENNING Electrical Engineering And Electronics
- Borri
- Bloom Energy
- Canovate
- CENTIEL
- Chatsworth Products
- Cisco systems
- Controlled energy company
- Cyber power systems
- Data sample
- Delta Electronics
- Detroit Diesel
- EAE Electrics
- Elcom International
- Enconnex
- Enlogic
- EverExceed Industry
- Exide Technologies
- Fuji Electric
- Generac Power Systems
- General Electrics
- General Energy
- Hewlett-Packard Enterprise
- HIMOINSA (Yanmar)
- Hitachi Hi-Rel Power Electronics
- HITEC power supply protection
- HITZINGER
- Huawei
- INNIO
- KEHUA Data (KEHUA Tech)
- KOEL (Kirloskar)
- Kohler
- MarathonPower
- Mitsubishi Electric
- MPINarada
- Sodium Energy
- Narada
- Panduite
- Piller power supply systems
- Plug-in power supply
- Powertek
- Pramac
- Riello Electronics
- Rittal
- JUICE (TOTAL)
- Shenzhen KSTAR Science and Technology (KSTAR)
- Siemens
- Socomec
- SolarEdge Technologies
- Thycon
- Toshiba
- Virtual Power Systems (VPS)
- VYCON
- WTI – Western Telematic
- ZAF Energy Systems
- ZincFive
Important features
| Report Attribute | Details |
| Number of pages | 731 |
| Forecast period | 2023–2029 |
| Estimated market value (USD) in 2023 | 22.46 billion US dollars |
| Projected market value (USD) until 2029 | 41.3 billion US dollars |
| Average annual growth rate | 10.6% |
| Regions covered | Generally |
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