This market research report on data center power market in the US offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by type (UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure), by tier standards (Tier I and Tier II, Tier III, and Tier IV), and by regions (South Eastern US, South Western US, Mid-Western US, Western US, and North Eastern US).
The increasing investments from colocation and cloud services providers on data center are propelling the growth of the data center power market in US. The boost in investments added approximately 1GW of power in the US market during 2017. The colocation data center development contributed to around 80% in 2017, with major investments were made in the South Eastern and South Western Regions across states such as Virginia and Texas. Hyperscale operators are investing in new projects that focus on states such as Iowa and Oregon. CyrusOne, Digital Realty, Vantage Data Centers, CoreSite Reality Corp, Facebook, Apple, Infomart, RagingWire Data Centers (NTT), and Equinix are the leading companies investing in projects across the US market. The emergence of lithium-ion UPS systems and fuel cell technology will revolutionize the data center market over the next few years. The players are also focusing on offering products that help improving efficiency, reducing cost, and providing modular solutions for reducing space in the facilities. Such product innovation will help vendors occupy a larger data center power market size in US.
The development of flexible power infrastructure designs with redundant systems that are integrated as per the consumers’ operation requirement for colocation facilities will boost the demand for these services in the US market. The growing adoption of high-performance infrastructure will increase the rack power density among all data center market in US. The data center power market in US is projected to generate revenues of more than $4 billion by 2023 and is expected to grow at a CAGR of approximately 5% during the forecast period.
US Data Center Power Market Size in Revenue
The rising procurement of renewable energy sources for facilities will attribute to the evolution of the data center power market in US. The increasing efforts to reduce power consumption and carbon footprint is encouraging many data center service providers to purchase clean, renewable energy to power their existing and new facilities across the US market. The use of renewable energy sources such as solar, wind, fuel cells, geothermal, and micro-hydro power will result in sustainable facility operations that aid in reducing power wastage and environmental pollution. Hyperscale data center operators such as Microsoft, Facebook, Apple, Google, and Amazon Web Services are the leading investors for renewable power projects across the US market. For instance, Mircosoft’s green operation goals offer increase efficiency of existing facilities by up to 50% and achieving a PUE of 1.12.
This market research report includes a detailed segmentation of the market by type, tier standards, and regions.
Segmentation of US Data Center Power Market
The adoption of lithium-ion UPS systems and fuel cells will continue to grow during the forecast period
The data center market in US by type is segmented into UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure. Data center UPS systems dominated the market size in US in 2017 and are expected to grow at a CAGR of approximately 5% during the forecast period. The introduction of modular rack-level UPS systems that have a capacity of up to 40Kw is fueling the growth of this segment in the US market. The data center operators are designing data center facility with minimum N+1 redundant power infrastructure to reduce OPEX charges and increase the efficiency of the facilities. Various operators are also procuring 2N redundant UPS and rack PDU infrastructure to attract more consumers and gain a larger market share in the US. These innovative infrastructures have N+N configuration for generators, medium to high voltage switchgear, dual diverse power distribution paths from the substation to the data center, on-site substation, and renewable energy power plants.
Around 65 data centers of Tier III are under development in the data center market in US
The tier standard segment in the data center power market in US is classified into Tier I and Tier II, Tier III, and Tier IV. Tier III standard occupied the largest data center power market in US in 2017 and is anticipated to grow at a CAGR of around 6% during the forecast period. The increase in rack power density and increasing number of critical applications in these facilities is augmenting the adoption of Tier III standards in the US market. The tier III data centers under development in the US market are integrating 2N redundant power infrastructure such as UPS, utility power delivery solutions, and PDUs to increase the efficiency and reduce power consumption. The introduction and use of dual power paths from switchgear are expected to transform the data center market in US over the next few years.
Virginia and Texas are identified as the high investment states in the US data center market
The regional segmentation in the data center power market in US is categorized by South Eastern US, South Western US, Mid-Western US, Western US, and North Eastern US. The South Eastern region dominated the data center power market in US in 2017 and is estimated to grow at a CAGR of over 5% during the forecast period. Google, Digital Realty, CyrusOne, and RangingWire are investing billions in Virginia, Alabama, and North Carolina for expansion projects that will boost the demand for power infrastructure in these regions. The availability of cheap power, locational benefits of strong fiber connectivity, and low tax incentives are some of the factors fueling the growth of this region in the US market.
The data center power market in US is driven by the presence of both international and regional players who offer specific products or complete power infrastructure solutions for data centers. The leading players are focusing on developing multiple innovations that improve efficiency, scalability, and offer high-performance computing infrastructure. These technologically advanced systems will help reduce OPEX charges, increase operational efficiencies, and assist vendors in attracting more consumers in the US market. The growing fuel cell deployments for data centers will aid leading companies to gain a larger market share in the US market.
The major vendors in the market are:
Other prominent vendors include Active Power (Piller Power Systems), Rittal, Caterpillar, Cummins, Cyber Power Systems, Delta Group, Geist Global, Generac Power System, HighPower, Hitec Power Protection, Legrand, Methode Electronics, Mitsubishi Electric Corporation, MTU on Site Energy (Rolls-Royce Power Systems AG), Nlyte Software, Toshiba, Bloom Energy (Fuel Cells), and Tripp Lite.
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