North America Data Center power Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America Data Center power Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North America Data Center Power Market is expected to grow at a CAGR of 5.8% from 2021-2026. Further, the market is expected to witness steady growth during the forecast period.

Key Highlights

• The rising adoption of IoT and cloud computing technologies in North America will drive the market demand. In 2020, the US market contributed to around 47% of the total investment in the global power market, with South Eastern US leading investments within the US with around 36% of the investment.
• Significant investments by hyperscale data center operators, namely Facebook, Google, Microsoft, and AWS, will grow the adoption of rack-level UPS systems of <=500 kVA capacity, with sizable contribution from edge data center deployments across North America.
• Companies are launching new and unique power solutions and advanced cooling systems to cater to the needs of the modern data center. The adoption of VRLA batteries will continue to dominate the market; however, the penetration of lithium-ion UPS among data center operators is growing YoY.
• Further, Diesel gensets and Li-Ion batteries are competing with UPS systems. The growing number of data centers and the declining UPS prices will result in steady growth for the data center UPS market until 2030.
• Due to the pandemic, “Online life” emerged as the new normal during the coronavirus pandemic, leaving many businesses to turn to digital platforms to continue their operations remotely. This new shift put more pressure on data centers service and equipment providers to keep up with the much heavier data flow.

Key Market TrendsTelecommunication Industry to Show Significant Growth

• The demand for data centers is growing at an accelerated pace, and keeping these facilities constant, operational is essential. The telecom sector is driving the demand for data centers to deliver content, mobile, and cloud services. In this phase, interconnecting data centers and WAN connectivity are paramount network requirements that create high storage resources with high-energy consumption, for which an efficient power management system is essential.
• Since the advent of the internet, telecommunication has been one of the major driving forces behind global development and value creation. Recently, there were many changes occurring in the telecom industry that is attributed to the advancement in technology. Telecom companies and virtually all businesses that access telecom networks are expected to feel both the immediate as well as far-reaching impacts because of these major trends that are currently being circulated in the telecom sector.
• The market is witnessing several strategic acquisitions and partnerships over the years due to the growing demand for data centers in the telecommunication industry. For instance, in November 2021, American Tower Corp announced to buy U.S. data center operator CoreSite Realty Corp for USD 7.51 billion in cash to tap into a sector that has seen a boom in demand during the COVID-19 pandemic.

United States to Hold the Highest Market Share

• The United States has maintained a continued growth in data center infrastructure solutions. Modular data center investments in tier-2 cities are responsible for data center facilities to rise, especially for local users, which is driving the growth of the data center power market.
• Several efforts have been made by the United States to modernize its infrastructure. In a plan to achieve this, the US Army planned to spend up to USD 249 million to deploy private cloud computing services and data centers. General Dynamics, HP, and Northrop Grumman are among the service providers selected for the Army Private Cloud contract, which will provide cloud computing services to consolidate data centers using a secure private cloud.
• Further leading players in the market are launching new cloud solutions for efficient power consumption of data centers. For instance, in February 2021, IBM announced new capabilities available on the IBM Power Systems platform to help meet business needs, no matter what point you are at in transforming your data center for the hybrid cloud era.

Competitive Landscape

The North America Data Center Power market is moderately fragmented and consists of several major players. In terms of market share, few of the major players currently dominate the market. However, with innovative and sustainable packaging, many of the companies are increasing their market presence by securing new contracts and by tapping new markets.

• September 2020 - Nlyte Software announced partnering with Automated Logic to introduce integrated data-center management (IDCM) solution to augment operational transparency and reduce costs. Integrating Automated Logic’s building automation system and Nlyte’s DCIM software would help data-center clients improve uptime in their data centers, leading to additional energy savings.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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