Data Center Generators

Global Data Center Generators Market to Reach US$13.8 Billion by 2030

The global market for Data Center Generators estimated at US$10.0 Billion in the year 2024, is expected to reach US$13.8 Billion by 2030, growing at a CAGR of 5.6% over the analysis period 2024-2030. Diesel, one of the segments analyzed in the report, is expected to record a 5.4% CAGR and reach US$6.7 Billion by the end of the analysis period. Growth in the Gas segment is estimated at 5.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$2.6 Billion While China is Forecast to Grow at 8.4% CAGR

The Data Center Generators market in the U.S. is estimated at US$2.6 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$3.1 Billion by the year 2030 trailing a CAGR of 8.4% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.7% and 4.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.1% CAGR.

Global Data Center Generators Market – Key Trends & Drivers Summarized

What Are Data Center Generators and Why Are They Critical for Data Center Operations?

Data center generators are backup power systems designed to provide continuous power to data centers during grid outages or disruptions, ensuring uninterrupted operation. Data centers house critical digital infrastructure and services for industries such as finance, healthcare, retail, and technology. In these environments, even a brief power outage can lead to data loss, service downtime, and significant financial losses. Generators mitigate these risks by providing reliable, on-demand backup power that activates immediately when a power failure occurs, safeguarding data integrity and ensuring seamless service continuity.

Data center generators typically run on diesel, natural gas, or bi-fuel, with diesel being the most commonly used fuel due to its high energy density and reliability. Natural gas and bi-fuel options are increasingly popular for their reduced environmental impact. These generators are often paired with uninterruptible power supply (UPS) systems to bridge the gap until generators are fully operational. For data centers managing sensitive information or running mission-critical applications, the reliability and rapid response of backup generators are essential, making them a foundational element in data center infrastructure planning and risk management.

How Are Technological Advancements Enhancing Data Center Generators?

Technological advancements are enhancing data center generators by making them more efficient, sustainable, and responsive. One significant development is the adoption of dual-fuel and bi-fuel generators, which combine diesel and natural gas to reduce emissions while maintaining reliable performance. Hybrid generators that integrate renewable energy sources, such as solar power, with traditional fuel-based systems are also gaining traction, allowing data centers to reduce their carbon footprint. These hybrid systems optimize fuel use and can switch seamlessly between renewable and conventional sources, contributing to both sustainability and cost savings.

Advancements in monitoring and automation technologies are also transforming data center generators. Modern generators are now equipped with remote monitoring capabilities, allowing data center operators to track performance metrics, fuel levels, and maintenance needs in real-time. Predictive maintenance, powered by IoT sensors and data analytics, enables operators to identify potential issues before they lead to failure, improving uptime and reducing maintenance costs. Additionally, improvements in generator start-up times and automatic load management ensure a faster and more efficient response during power disruptions, minimizing downtime and enhancing the reliability of data center operations.

Why Is There Growing Demand for Data Center Generators in Hyperscale and Edge Data Centers?

The demand for data center generators is increasing in hyperscale and edge data centers due to the expansion of cloud services, big data, and IoT applications, all of which require continuous and reliable processing power. Hyperscale data centers, operated by major cloud providers like Amazon, Google, and Microsoft, host vast amounts of data and serve millions of users worldwide. For these facilities, even a minor disruption can have far-reaching implications. Generators are therefore crucial for maintaining consistent uptime and supporting rapid scaling of capacity, essential features in hyperscale environments where reliability and resilience are paramount.

Edge data centers, located closer to end users to reduce latency, are also driving demand for generators. As more IoT devices and connected services require low-latency processing, edge data centers have become essential for delivering data services in real-time. These smaller, decentralized data centers rely on backup generators to ensure uninterrupted power, particularly in areas with less reliable grid access. The ability of data center generators to provide reliable power under varying conditions makes them indispensable in both hyperscale and edge facilities, where they support seamless connectivity, minimize downtime, and enhance customer satisfaction.

What Factors Are Driving Growth in the Data Center Generators Market?

The growth in the data center generators market is driven by the rising demand for data storage and processing power, the increase in hyperscale and edge data center development, and regulatory emphasis on data security and infrastructure resilience. As the global reliance on digital services grows, the demand for reliable data centers continues to surge, particularly with the expansion of cloud computing, e-commerce, and video streaming services. Data center operators are investing in robust backup power solutions to prevent costly outages, with generators serving as a critical component in ensuring uptime and protecting against data loss.

Environmental regulations and sustainability initiatives are also influencing market growth, as data centers seek eco-friendly power solutions. The shift toward lower-emission generators, hybrid systems, and renewable energy integration reflects the industry’s commitment to reducing carbon emissions while maintaining reliable backup power. Additionally, technological advancements in remote monitoring, predictive maintenance, and fuel efficiency are making generators more attractive and cost-effective, further supporting market expansion. Together, these factors are driving rapid growth in the data center generators market, as operators prioritize resilience, efficiency, and environmental responsibility in an increasingly digital world.

SCOPE OF STUDY:

The report analyzes the Data Center Generators market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Product Type (Diesel, Gas, Other Product Types); Capacity (Less Than 1 MW, 1-2MW, Above 2MW); Tier Standards (Tier I & II, Tier III, Tier IV)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 34 Featured) -

• Aggreko plc
• Atlas Copco AB
• Caterpillar Inc.
• Cummins Inc
• Deutz AG
• Euro-Diesel
• Generac Power Systems, Inc.
• Hitec Power Protection
• HITZINGER GmbH
• Inmesol S.L.U.
• Innio
• KOEL (Kirloskar Group)
• KOHLER (SDMO)
• Mitsubishi Motors Corporation
• Onis Visa
• Perkins Engines Company Limited
• Piller Group GmbH
• Pramac
• Rolls Royce Power Systems AG
• Yanmar Group (HIMOINSA)

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs CBob geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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