The U.S. data center power market by investment is expected to grow at a CAGR of 11.63% from 2023 to 2029.
KEY HIGHLIGHTS
A shift toward sustainability is evident in data center operations, driving the adoption of innovative solutions. Fuel cells in one such innovation in the U.S. data center power market. For instance, in 2024, Bloom Energy partnered with Intel Corporation to deploy fuel cell-based Energy Servers at Intel's Santa Clara data center, boosting its power capacity by several megawatts.
AI adoption is on the rise in the U.S., driving the expansion of AI data centers. U.S. President, Joe Biden endorsed Microsoft's USD 3.3 billion investment in an AI data center in Racine, Wisconsin, emphasizing that it will generate 2,300 construction jobs and 2,000 permanent positions.
Growing industrial demand has caused the U.S. government to raise electricity prices, affecting data center operations. For instance, average energy costs increased from USD 0.169 per kWh in July 2023 to USD 0.178 per kWh in July 2024.
SEGMENTATION INSIGHTS
U.S. developers aim to boost battery storage capacity to over 30 GW by the end of 2024, outpacing petroleum liquids, geothermal, and wood-based energy. California leads with 7.3 GW, followed by Texas at 3.2 GW, while other states contribute 3.5 GW, driven by the rise in wind and solar energy generation.
Diesel generators remain the preferred option in the U.S. data center power market, though some are transitioning to gas generators. TC Energy Corporation, a major North American natural gas pipeline operator, predicts that the growing energy demands of data centers will drive a significant increase in natural gas use for electricity generation in the US.
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
Diesel, Gas & Bi-fuel Generators
HVO Fuel
Fuel Cells
Segmentation by Tier Standards
Tier I & II
Tier III
Tier IV
REGIONAL ANALYSIS
Rising investments in cloud and colocation services in the U.S. drive the demand for next-generation generators. In 2023 and 2024, Northern Virginia and the Midwest notably increased their adoption of advanced power infrastructure.
Northern Virginia, Dallas, and Silicon Valley lead in adopting diverse fuel options, such as DRUPS systems, fuel cells, and natural gas. Hitachi Energy, FuelCell Energy, and Bloom Energy drive innovation, improving data center efficiency through strategic collaborations.
VENDOR LANDSCAPE
The US data center power market is highly competitive, with major players such as ABB, Eaton, and Schneider Electric leading in power infrastructure. Cummins, Hitachi Energy, and Caterpillar dominate the generator segment of the U.S. data center power industry.
In 2024, global investors are expected to lead significant mergers & acquisitions (M&As) in the data center sector, driven by the need for digital infrastructure driven by artificial intelligence (AI). This trend is anticipated to promote renewable-powered infrastructure and boost the UPS and generator markets in the Southwestern, Western, and Northeastern U.S. to tackle power challenges.
Key Vendors Profiles
ABB
Caterpillar
Cummins
Eaton
Legrand
Rolls-Royce
Schneider Electric
Vertiv
Other Prominent Vendors
Aggreko
Aksa Power Generation
AEG Power Solutions
AMETEK Powervar
Anord Mardix
Artesyn Embedded Power (Advanced Energy)
Aten
Austin Hughes Electronics
BACHMANN
BENNING Elektrotechnik Und Elektronik
Borri
Canovate
CENTIEL
Chatsworth Products
Cisco Systems
Controlled Power Company
Cyber Power Systems
Dataprobe
Delta Electronics
Detroit Diesel
EAE Elektrik
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
Panduit
Piller Power Systems
Plug Power
Powertek
Pramac
Riello Elettronica
Rittal
SAFT(TOTAL)
Shenzhen KSTAR Science & Technology (KSTAR)
Siemens
Socomec
SolarEdge Technologies
Thycon
Toshiba
VYCON
WTI - Western Telematic
ZAF Energy Systems
ZincFive
KEY QUESTIONS ANSWERED:
1. What is the growth rate of the U.S. data center power market?
2. How big is the U.S. data center power market?
3. How many MW of power capacity is expected to reach the U.S. data center power market by 2029?
1. ABOUT ARIZTON
2. ABOUT OUR DATA CENTER CAPABILITIES
3. WHAT’S INCLUDED
4. SEGMENTS INCLUDED
5. RESEARCH METHODOLOGY
6. MARKET AT A GLANCE
7. PREMIUM INSIGHTS
8. INVESTMENT OPPORTUNITIES
8.1. INVESTMENT: MARKET SIZE & FORECAST
8.2. POWER CAPACITY: MARKET SIZE & FORECAST
9. MARKET DYNAMICS
9.1. MARKET OPPORTUNITIES & TRENDS
9.2. MARKET GROWTH ENABLERS
9.3. MARKET RESTRAINTS
9.4. SITE SELECTION CRITERIA
10. MARKET SEGMENTATION
10.1. ELECTRICAL INFRASTRUCTURE
10.2. UPS SYSTEM CAPACITY
10.3. GENERATOR CAPACITY
10.4. GENERATOR TYPE
10.5. TIER STANDARD
11. GEOGRAPHY SEGMENTATION
12. US
12.1. MARKET SNAPSHOT & KEY HIGHLIGHTS
12.2. US DATA CENTER POWER MARKET BY INVESTMENT
12.3. US DATA CENTER POWER MARKET BY POWER CAPACITY
12.4. US DATA CENTER POWER MARKET BY INFRASTRUCTURE
13. MARKET PARTICIPANTS
13.1. KEY ELECTRICAL INFRASTRUCTURE PROVIDERS
13.2. OTHER PROMINENT ELECTRICAL INFRASTRUCTURE PROVIDERS