Data Center Power Market Size, Share, Trends Analysis Report by Power Infrastructure (Uninterruptible Power Supply (UPS) Systems, Generators, Power Distribution Units (PDUs), Transfer Switches & Switchgears, and Others); UPS Systems (<=500kVA, 500−1,000kVA, and >1,000 kVA); Generators (<1 MW, 1−2 MW, and >2 MW); Tier Standards (Tier I & II, Tier III, and Tier IV); and Geography (North America, Western Europe, Nordic, Central Eastern Europe, Middle East, Africa, APAC, and Latin America); Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021-2026
|MARKET SIZE ( INVESTMENT)||USD 22 BILLION (2026)|
|MARKET SIZE (POWER CAPACITY)||8200 MW (2026)|
|Market Segments||Power Infrastructure (UPS Systems, Generators, PDUs, Transfer Switches & Switchgears, and Others); UPS Systems (<=500kVA, 500−1,000kVA, and >1,000 kVA); Generators (<1 MW, 1−2 MW, and >2 MW); Tier Standards (Tier I & II, Tier III, and Tier IV)|
|Geographic Analysis||North America, Western Europe, Nordic, Central Eastern Europe, Middle East, Africa, APAC, Southeast Asia, and Latin America|
|Countries Covered||US, Canada, Brazil, UK, Germany, France, Netherlands, Ireland, Denmark, Norway, Sweden, Finland & Iceland, Russia & Czech Republic, Poland & Austria, GCC, South Africa, Kenya, China & Hong Kong, Australia & New Zealand, India, Japan, Singapore, Malaysia, Thailand, Indonesia, Other Latin American Countries, Other Western European Countries, Other CEE Countries, Other Middle Eastern Countries, Other African Countries, Rest of APAC, and Other Southeast Asian Countries.|
The global data center power market size to grow from USD 16.8 billion in 2020 to USD 22 billion in 2026, growing at a Compound Annual Growth Rate (CAGR) of 5% during the forecast period. The data center power market is witnessing an array of innovations in power technology. Power infrastructure include UPS systems, generators, switchgears, and PDUs, continue to dominate the market. However, the efficiency of these systems is continuously enhanced by vendors and operators. Also, the possibility of fuel cells replacing traditional systems is high in locations such as California. Hyperscale operators have carried out multiple innovations in the use of power infrastructure solutions in their data centers. The successful run of the underwater data center is expected to affect the market in deployments significantly. The underwater facilities use renewable energy sources and use AI-based monitoring systems. Microsoft is involved in testing the feasibility of hydrogen-powered fuel cells generator as backup systems instead of diesel generators. In May 2020, Rolls-Royce and Daimler teamed up to develop fuel-cells generators as a carbon neutrality alternative to diesel generators. The increased demand for sustainable data center power systems, which reduce CAPEX and OPEX, is expected to influence the forecast period.
The adoption of lithium-ion batteries is likely to increase during the forecast period as their price will decline. Colocation service providers are expected to adopt high lithium-ion UPS solutions. Single rack-based prefabricated data center solutions will include single-phase lithium-ion systems with a power capacity of lower than 10 kVA. Decreased in the OPEX via low maintenance costs and reduced UPS battery failures are expected to aid lithium-ion UPS systems' growth.
The continual construction of large and mega facilities across the globe is likely to aid the generator market. Several facilities in North America and Europe, where the requirement for generators with higher redundancy is lower, are powering their data centers via renewable energy sources and highly reliable power grids. The adoption of Diesel Rotary Uninterruptible Power Supply (DRUPS) systems is growing with data center operators in Latin America, Southeast Asia, and Oceania. As facilities now being designed and constructed to withstand a high capacity, the importance of transfer switches, which support several applications in the data center environment, is expected to grow. The market is witnessing an increasing deployment of intelligent PDU solutions as these units help to reduce power consumption and wastage in the facilities. The adoption of basic PDUs will continue to decline during the forecast period, aiding the growth of intelligent PDU products in the market.
The global generator market is poised for growth, with cumulative investments crossing USD 30 billion during 2021-2026. Diesel engine generators, which will continue to grow in the coming years, are also likely to experience steady growth through concerns over carbon emissions are looming large. Generators with a capacity of <1 MW are mostly adopted in modular data center deployments. The adoption of these systems is expected to grow with the increasing deployment of edge data centers. The increase in construction of hyperscale facilities in developing countries will reduce the dependency on low-capacity generators.
1-2 MW generators with power capacity typically between 1.5 MW and 1.75 MW observe high adoption in data centers. These systems are adopted in combination with high capacity (>2 MW) in data centers to support varied requirements or supply backup energy to cooling systems. The development of large and mega facilities is likely to fuel the demand for >2 MW generators. Moreover, the adoption of the DRUPS system contributes to the growth of the data center generator market. Fuel cell generators that are newly installed are carbon-free generators are expected to take over the diesel systems market by 2026.
The <=500 kVA UPS market growth will boost through the deployment of edge data centers. The growth of <=500 kVA UPS systems is identified to be higher among prefabricated and hyperscale data center operators. There are multiple small- and medium-sized facilities with a power density of less than 1 MW capacity that are adopting these UPS systems with a capacity of <500 kVA as an on-premise installation. Hence, prefabricated facilities and hyperscale data center operators deploying OCP-based infrastructure design are expected to propel market growth over the next few years.
Data center infrastructure providers are the major adopter of 500–1,000 kVA UPS systems. These systems are used in multiple data halls and support up to 3 MW of IT load capacity per hall. These systems are expected to dominate the data center power market share during the forecast period. Medium and large facilities are witnessing an increased adoption of UPS systems with a capacity of >1,000kVA. Moreover, colocation service providers are increasingly adopting UPS systems with a capacity of >1,000 kVA.
Over 35% of the data centers in the US are hyperscale facilities, with more than 50% built as Tier-IV facilities. Several facilities in the US are built according to the Tier-III specifications, however, they can be modified into Tier-IV facilities as per requirements because of the incorporation of flexible designs. In the UK, most facilities are either Tier III or Tier IV certified by the Uptime Institute due to their high standard design and construction that includes redundant configuration. There is an increase in the deployment of N+1 redundant power systems. In Norway, several data centers are Tier III facilities; however, there are Tier IV data centers in the region. The minimum power redundancy adopted in Tier III facilities is N+1, whereas Tier IV facilities offer a redundancy ranging from N to 2(N+1). The market has witnessed the installation of energy-efficient power infrastructure within the last few years. Mega data center projects in China & Hong Kong are designed to be of Tier III and Tier IV standards, with the increased deployment of 2N redundant UPS systems.
North America is expected to offer cumulative revenue opportunities of over $61 billion in terms of power infrastructure during 2020–2026. The demand for cost-effective and efficient power solutions has increased, with increased facilities being developed as green data centers. This demand has also led to growth in rack power density for data centers, with the deployment of high-density rack-power solutions. The increased construction of hyperscale facilities will offer new opportunities for power infrastructure providers, thereby increasing revenue opportunities. The US has witnessed investments in data centers, which use sophisticated and redundant systems. It will also experience a rise in the number of edge information centers, along with China.
ABB, Eaton, Caterpillar, Cummins, Rolls-Royce Power Systems, Legrand, Schneider Electric, and Vertiv are the leading vendors in the infrastructure market. The global data center power market is witnessing high competition due to increased innovations, especially on the battery technology front, and likely to see intense competition in fuel-cell generators innovations over the next two years. Also, competition in offering innovative products with maximum efficiency and reliability will continue in the market. Varied requirements of data center operators are prompting vendors to develop innovative products that reduce OPEX by up to 50%.
By Power Infrastructure
By Tier Standards
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