Global Data Center Power Market Landscape 2024-2029

Global Data Center Power Market Landscape 2024-2029

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

KEY HIGHLIGHTS

• Data centers across North America, APAC, and Europe increasingly prefer battery types like lithium-ion, nickel-zinc, VRLA, and Prussian blue sodium-ion for their UPS systems in data centers.
• In the global generator type, Japan stands out in the APAC region for its innovation in diverse fuel sources like DRUPS, fuel cells, and natural gas. Leading companies, including Hitachi Energy, FuelCell Energy, Bloom Energy, Panasonic, and Toshiba, provide cutting-edge solutions that boost data center efficiency.
• The rise of fuel cell generators poses a significant challenge to diesel generator systems, which are projected to gain widespread adoption by 2025 globally.

KEY TRENDS

• In the ever-changing world of data center operations, a noticeable trend toward sustainability is growing, pushing the adoption of novel solutions. One such idea is the integration of fuel-cell generators to meet the high-power demands of data center facilities. Equinix, for example, intends to explore the viability of using hydrogen-powered fuel cells to power its Singapore data centers.
• AI adoption is skyrocketing across APAC, Europe, and North America, fueling a rise in AI data centers. To meet the high energy demands, operators like NTT Global Data Centers and Equinix may collaborate with power infrastructure vendors in the coming years to find better renewable energy solutions to meet their sustainability needs.
• Diesel generators are still the most popular choice for procurement data centers in the global region. However, some facilities are switching to gas generators; for instance, the Tokyo Otemachi data center of Colt Data Center Services has 4,500 kVA gas turbine generators with N+1 redundancy.
• Operators in the data center power market in North America, Europe, EMEA, and APAC increasingly invest in UPS batteries like lithium-ion, Prussian blue sodium-ion, and nickel-zinc. Additionally, VRLA batteries are also gaining popularity in the market.
• In the APAC region, rising industrial demand has led governments to increase diesel prices, impacting the cost of operating diesel generators in data centers. For example, Malaysia's diesel prices surged by over 50% in 2024 due to the removal of fuel subsidies, driving the shift towards fuel cell generators.
• Worldwide, small-scale data centers in developing nations like India, Egypt, South Africa, Indonesia, and South Korea favor generators with less than 1 MW capacity for cost-effectiveness in modular data center setups. Additionally, portable generators are increasingly utilized in these nations.

GEOGRAPHICAL ANALYSIS

• North America leads the global data center power market through advanced development and significant power capacity investments. The U.S. is a key driver, while Canada is steadily growing and expanding its market presence. Furthermore, Latin America is an emerging market driven by digital growth in Brazil, Mexico, Chile, and Colombia. These countries are rapidly advancing in digitalization and connectivity.
• Western Europe is a rapidly growing market for data center development, driven primarily by the UK, Germany, and France. Despite some investment restrictions in Ireland and the Netherlands, there's notable growth in greenfield and modular data centers. The region, however, faces land and power constraints in 2023, especially in FLAPD regions, with Ireland's EirGrid imposing a de facto moratorium on new data centers.
• Data center operators favor the Nordics for their cooler climate, which lowers cooling costs and improves PUE. Additionally, they are partnering with renewable energy providers, like Telia and Telenor’s PPA with Better Energy for a Danish solar park, to enhance sustainability and reduce carbon emissions.
• South Africa dominates Africa’s data center capacity, holding over 50%, with Nigeria, Kenya, and other nations contributing to the data center market. Cloud services, smart city projects, and enhanced fiber connectivity fuel ongoing investments.
• The APAC data center power market is booming, driven by strong government backing, expanding submarine cable networks, and increasing investments from cloud providers and global colocation firms. Governments in the region are also pushing for renewable energy, with Taiwan aiming to source 20% of its electricity from renewables by 2025. With a growing focus on AI and modular data centers, expect a significant rise in power usage and investments in countries like Indonesia, Singapore, India, China, and Japan.

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 highly competitive, with significant players like ABB, Eaton, and Schneider Electric leading in power infrastructure. In 2023 and 2024, Cummins and Caterpillar will dominate the generator segment.
• In 2024, global investors are set to drive major mergers and acquisitions in the data center sector, spurred by AI's growing demand for digital infrastructure. This surge will likely boost the development of renewable-powered infrastructure to meet AI's energy needs and improve IT efficiency. Regions like India, Africa, Ireland, the UK, and Brazil are expected to see a rise in UPS and generator markets to address power availability challenges.

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. How big is the data center power market?

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

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