On-Site Photovoltaic Solar Power For Data Centers Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

On-Site Photovoltaic Solar Power For Data Centers Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The on-site photovoltaic solar power for data centers market is expected to grow at a CAGR of more than 15% during the forecast period. The primary drivers for the market include the growing sustainable business practices of having an independent and renewable power source for data centers rather than depending upon fossil fuel-powered national power grid that impacts the environment by releasing toxic carbon particles. However, the lack of space on small data centers to install solar panels is expected to hinder the market growth during the forecast period.

• A decrease in solar power installation costs is likely to drive the market during the forecast period.
• With increasing carbon emission, the governments of various nations are taking initiatives to increase its renewable energy share in total electricity production. Moreover, the governments, along with private entities, are developing technologies like polymer solar cells, which are expected to be cheaper, flexible, lightweight, and are 1000 times thinner than the existing silicon cell technology. The development of such technology is expected to boost the market and is expected to create an opportunity for the growth of the market.
• With a significant presence of on-site solar photovoltaic facilities on the data centers in 2019, North America is likely to dominate the market during the forecast period.

• Data centers are defined as a part of a building, a building itself, or a cluster of buildings dedicated to housing computer systems, storage systems, telecommunication systems, and all other associated components. Uninterrupted power supply with backup power is the utmost important in data centers for data capturing.
• A typical data center consumes power in between few kilowatts to several tens of megawatts. High dependency on the power supply is one of the high operating costs of the data center.
• To reduce the operating cost and to have a less environmental impact, several data centers are opting for onsite renewable power sources like solar photovoltaic. With a decrease in solar power installation cost from USD 4621 per kilowatt in 2010 to nearly USD 1210 per kilowatt in 2018 and solar panel cost from USD 3.79 per watt in 2015 to almost USD 3.05 per watt in 2018, several entities have started adopting it.
• In March 2020, Amazon has planned to install renewable power source in it four data centers around the globe, that include data centers in Australia, Sweden, Spain, and Virginia. The expected power generation from these data centers is estimated to be around 840-gigawatt hours.
• Moreover, Microsoft is planning to run 100% of its data center by renewable energy by the end of 2025. Thus, with a decrease in installation cost, onsite solar photovoltaic facilities are expected to grow over the years.

• North America includes 23 countries, with a cumulative GDP of around USD 24 trillion in 2018. The major country with a significant number of data centers in United States that has adopted solar photovoltaic projects to run its data centers.
• As of 2018, there are nearly 3 million data centers in United States, which indicates one data center for every 100 people.
• Emerson data center in Missouri is one of the key data centers in United States that is using solar photovoltaic technology on its campus to power its data center. The center has a 100-kilowatt solar panel facility, that was installed at the cost of around USD 50 million.
• Aiso.net in California, i/o Data Centers in Arizona are few other data centers that are facilitated with onsite photovoltaic solar power facilities.
• Apart from United States, Canada is planning to facilitate its data center with renewable power. The compass data center is expected to come up with a solar facility in its under-construction data center in Toronto, completion of which is expected to expand the market in the near future.

The on-site photovoltaic solar power for data centers market is consolidated. The key players in the market include Amazon.com Inc, Alphabet Inc, Microsoft Corporation, Alibaba Group Holding Ltd, Facebook Inc, Dell Technologies Inc, and Affordable Internet Services Online Inc among others.

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