Data Center Power Market - Global Outlook & Forecast 2024-2029

Data Center Power Market - Global Outlook & Forecast 2024-2029

The global data center power market is expected to grow at a CAGR of 10.68% from 2023 to 2029.

KEY TRENDS & ENABLERS

• The demand for high-performance computing (HPC), driven by artificial intelligence (AI) and other advanced technologies, is pushing data center rack densities to new heights. From 2018 to 2023, average server rack densities rose significantly. Demand for HPC drives rack densities up to 200 kW and beyond.
• Renewable sources like wind and solar are increasingly powering data centers. For instance, Microsoft announced 2023 its commitment to powering its data centers with renewable energy by 2025.
• Lithium-ion batteries are gaining traction in data center UPS systems for sustainability and efficiency. Companies like Amazon Web Services (AWS) announced in 2023 their adoption of lithium-ion batteries to enhance UPS performance.
• AI and ML are shaping industries, driving demand for computational resources in data centers. Technology companies' collaboration aims to accelerate AI adoption in industrial operations, fostering sustainability and intelligence.

SEGMENTATION INSIGHTS

• The Uninterruptible Power Supply (UPS) market within the data center power market is undergoing significant evolution, with a pivotal role in ensuring uninterrupted power supply at various levels of infrastructure. UPS systems, deployed at centralized, row-level, and rack-level positions, are increasingly being tailored to support loads ranging from 750 kVA to 1,500 kVA, with smaller systems below 500 kVA making notable contributions. The selection of UPS systems is driven by specific IT and cooling load requirements, with a growing emphasis on backing up cooling infrastructure to maintain optimal temperatures. Innovations in UPS solutions include offering UPS as a service and combining smart UPS systems with monitoring services for enhanced efficiency and cost reduction.
• Battery technologies are growing within UPS systems, integrating environment-friendly options such as nickel-zinc and lithium-ion batteries. These innovations aim to address environmental concerns while ensuring consistent performance. The intelligent controls within UPS systems enable predictive maintenance, enhancing reliability, while redundant capacity remains preferred, especially among medium and hyperscale data centers. Reducing operational expenses and maintenance costs drive the transition from traditional VRLA batteries to lithium-ion batteries.
• In the generator market, diesel generators dominate, particularly in regions with power grid issues, although natural gas generators are gaining traction due to their environmental benefits. The data center power market is witnessing a trend toward renewable energy sources and innovations, including HVO biodiesel and eco-diesel generators, which align with sustainability objectives. Diesel Rotary Uninterruptible Power System (DRUPS) systems are gaining popularity for their combined UPS and generator functionalities, particularly in regions such as Latin America and Southeast Asia.

SEGMENTATION ANALYSIS

Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgears
• PDUs
• Other Electrical Infrastructure

Segmentation by UPS System Capacity

• <=500 kVA
• >500–1,000 kVA
• >1,000 kVA

Segmentation by Generator Capacity

• 0-1.5 MW
• 1.5–3 MW
• >3 MW

Segmentation by Generator Type

• DRUPS Systems
• Diesel, Gas & Bi-fuel Generators
• HVO Fuel
• Fuel Cells

Segmentation by Switchgear Type

• Low-Voltage Switchgears
• Medium-Voltage Switchgears
• High-Voltage Switchgears

Segmentation by Tier Standards

• Tier I & II
• Tier III
• Tier IV

GEOGRAPHICAL ANALYSIS

• Regarding data center power capacity, North America maintains its supremacy in the market, exhibiting steady growth throughout the forecast period from 2020 to 2029. With a commendable CAGR of 9.24%, North America continues to expand its power capacity, reflecting its robust investment in data center infrastructure. Notably, the regions within North America, such as North Virginia, Texas, and California, stand out as key contributors to the data center power market growth owing to the increasing demand for data processing and storage capabilities.
• While North America retains its leadership position, other regions demonstrate significant growth in the global data center power market. Latin America, for instance, showcases notable expansion with a CAGR of 9.14%, indicating a rising demand for data center power infrastructure in the region. Countries including Brazil, Mexico, and Chile emerge as key players in Latin America's burgeoning data center market, attracting investments and driving growth in power capacity.
• Similarly, the Asia Pacific (APAC) region displays remarkable data center power capacity growth, with a commendable CAGR of 10.38%. Nations, including China, India, and Singapore, are in charge of the APAC data center power market, fueled by the rapid digitization of economies and the proliferation of cloud services across the region. Southeast Asian countries, such as Malaysia and Indonesia, contribute significantly to the region’s expanding power capacity, driven by increasing investments in data center infrastructure.

Segmentation by Geography

• North America
• The U.S.
• Canada
• Latin America
• Brazil
• Chile
• Mexico
• Colombia
• Rest of Latin America
• Western Europe
• The U.K.
• Germany
• France
• Netherlands
• Ireland
• Switzerland
• Italy
• Spain
• Belgium
• Other Western European Countries
• Nordic
• Denmark
• Norway
• Sweden
• Finland & Iceland
• Central and Eastern Europe
• Russia
• Poland
• Austria
• Czechia
• Other Central & Eastern European Countries
• Middle East
• UAE
• Saudi Arabia
• Israel
• Other Middle Eastern Countries
• Africa
• South Africa
• Kenya
• Nigeria
• Other African Countries
• APAC
• China
• Hongkong
• Australia
• New Zealand
• Japan
• India
• South Korea
• Taiwan
• Rest of APAC
• Southeast Asia
• Singapore
• Indonesia
• Malaysia
• Thailand
• Philippines
• Vietnam
• Other Southeast Asian Countries

VENDOR 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 market for generators. With increasing demand for sustainability, operators are considering substituting traditional diesel generators and UPS systems with natural gas and hydrogen fuel cell generators, lithium-ion batteries, and intelligent PDUs to improve the efficiency of their facilities.
• The data center power market is becoming very competitive, with power solution providers innovating their products to offer maximum efficiency and reliability. The varied requirements of data center operators are prompting vendors to develop products that reduce OPEX by up to 50%.
• Vendors who can accommodate operators' changed requirements have gained a bigger market share. Leading vendors offering UPS systems and generators should consider adding fuel deployment expertise to their portfolio as a standalone solution or through partnerships with small-scale fuel cell suppliers.
• In addition, the increasing deployment of OCP-based infrastructure design will shift market demand. Vendors such as Schneider Electric, Rittal, HPE, Delta Electronics, and Huawei provide infrastructure based on OCP design. This will aid in the growth of market revenues for these vendors as many organizations prefer solutions such as 48V DC UPS systems.

Key Data Center Support Infrastructure Providers

• ABB
• Caterpillar
• Cummins
• Eaton
• Legrand
• Rolls-Royce
• Schneider Electric
• Vertiv

Other Prominent Vendors

• AEG Power Solutions
• Aggreko
• Aksa Power Generation
• AMETEK Powervar
• Anord Mardix
• Artesyn Embedded Power (Advanced Energy)
• Aten
• Austin Hughes Electronics
• BACHMANN
• BENNING Elektrotechnik Und Elektronik
• Borri
• Bloom Energy
• Canovate
• CENTIEL
• Chatsworth Products
• Cisco Systems
• Controlled Power Company
• Cyber Power Systems
• Dataprobe
• Delta Electronics
• Detroit Diesel
• EAE Elektrik
• Elcom International
• Enconnex
• Enlogic
• EverExceed Industrial
• Exide Technologies
• Fuji Electric
• Generac Power Systems
• General Electric
• Genesal Energy
• Hewlett Packard Enterprise
• HIMOINSA (Yanmar)
• Hitachi Hi-Rel Power Electronics
• HITEC Power Protection
• HITZINGER
• Huawei
• INNIO
• KEHUA Data (KEHUA Tech)
• KOEL (Kirloskar)
• Kohler
• Marathon Power
• Mitsubishi Electric
• MPINarada
• Natron Energy
• Narada
• Panduit
• Piller Power Systems
• Plug Power
• Powertek
• Pramac
• Riello Elettronica
• Rittal
• SAFT(TOTAL)
• Shenzhen KSTAR Science & Technology (KSTAR)
• Siemens
• Socomec
• SolarEdge Technologies
• Thycon
• Toshiba
• Virtual Power Systems (VPS)
• VYCON
• WTI - Western Telematic
• ZAF Energy Systems
• ZincFive

KEY QUESTIONS ANSWERED:

1.What is the growth rate of the global data center power market?

2.How big is the global data center power market?

3.Who are the key players in the global data center power market?

4.How many MW of power capacity is expected to reach the global data center power market by 2029?

5.What are the key trends in the data center power market?