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Data Center Power Market Size, Share, Trends Analysis Report by Infrastructure (Uninterruptible Power Supply (UPS) Systems, Generators, Power Distribution Units (PDUs), Transfer Switches & Switchgears); 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 (South Eastern US, South Western US, Western US, Mid-Western US, and North Eastern US); Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021-2026
|MARKET SIZE (INVESTMENT)||USD 10 BILLION (2026)|
|MARKET SIZE (POWER CAPACITY)||3306 MW (2026)|
|Market Segments||Infrastructure (Uninterruptible Power Supply (UPS) Systems, Generators, Power Distribution Units (PDUs), Transfer Switches & Switchgears); 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||United States|
|Countries Covered||South Eastern US, Western US, South Western US, Mid-Western US, North Eastern US|
The U.S. data center power market size to cross USD 10 billion by 2026, growing at a CAGR of 4% during the forecast period. The growing popularity of Internet of Things (IoT), emergence of 5G networks, COVID-19 pandemic, and the growing demand for quick streaming of online entertainment content are major drivers for U.S. data center market growth. The Northern Virginia region witnessed a strong demand for construction or expansion of existing data centers from hyperscale operators due to the rapid increase in the use of online services. The media and health industries emerging as the largest end-users in the region. The colocation uptake led to multiple new announcements toward data center development in Q3 2020. Investments in the power infrastructure increased by 15% in 2020 compared to the previous years.
The U.S. data center power market has been observing continuous development of hyperscale facilities with Facebook, Digital Realty, Equinix, Google, QTS Realty Trust, Switch, Vantage Data Centers, NTT Global Data Centers, Aligned, Apple, and COPT Data Center Solutions emerging as the significant contributors. In terms of investments, the US data center market witnessed investments in approx. 47 hyperscale projects in 2020, with strong contribution from Facebook toward self-built hyperscale facilities. Hence, the increased construction of hyperscale data centers will lead to the adoption of efficient power infrastructure including UPS, generators, and power distribution units. The market is likely to witness the use of hydrogen fuel cell generators as a replacement to diesel generators.
This research report includes a detailed segmentation by:
For the optimal performance, the data center power infrastructure is an essential component. It supplies power to IT equipment, cooling infrastructure, networking equipment, and other related infrastructure. The adoption of lithium-ion batteries is growing significantly YOY in the US market. A continued decline in prices of lithium-ion batteries will fuel the adoptions among data centers. It is expected that the contribution from colocation providers will be high in terms of lithium-ion UPS solutions. The installation of generators with higher redundancy is low in the US, and facilities are powered via renewable energy sources. The adoption of Diesel Rotary Uninterruptible Power Supply (DRUPS) systems is comparatively lower than stand-along UPS systems and diesel generators. The growing complexity of data center infrastructure is propelling the growth of automated switchgear technology. Transfer switches and switchgear are expected to grow during the forecast period due to the increased data center construction in the US. Most US operators are installing intelligent PDUs due to the growing awareness to reduce power consumption and wastage in data centers.
In South Western US, diesel generators are more likely to be adopted than bi-fuel or natural gas ones. Generators are usually built with N+1 redundancy in the region. Diesel generators are expected to decline in the coming years because of increasing concerns over carbon emissions. Fuel cell generators will also is likely to slow down the demand for other generator systems by 2026. The use of portable generators is also growing in the US market. With operators moving toward edge data centers, the adoption of less than 1 MW generator systems is expected to grow during the forecast period. The deployment of modular data centers is expected to be a major driver for less than 1 MW generator systems during the forecast period.
Data center facilities operating a hall capacity of up to 2 MW are the major end-users of 1−2 MW generators. DRUPS solutions are likely to witness increasing demand with multiple modules having a total capacity of up to 2 MW with N+N or 2N redundant configurations. The increasing deployment of more than 2 MW generators by hyperscale operators is likely to generate revenue during the forecast period.
The (<=)500 kVA UPS market is higher among small- and medium-sized data centers. The growth of less than 500 kVA UPS system will be high among prefabricated and hyperscale operators. There are multiple small- and medium-sized data centers with a power density of less than 1 MW capacity that are adopting these UPS systems with a capacity of less than 500 kVA. Also, the emergence of edge data center facilities is likely to contribute to the growth of less than equal to 500 kVA rack-level or in-row UPS systems.
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 market during the forecast period.
Data centers in South Western US are designed to be Tier III and Tier IV standards and are equipped with power systems redundancy of N & N+1. Mid-Western US are developing data centers of Tier III and Tier IV standards with the basic redundancy of N+1. Data centers in North Eastern US are built according to Tier III specifications, which could be modified to Tier-IV facilities as per requirements. They have redundancy of N+N for power infrastructures such as UPS, PDUs, and generators. In 2020, over 90 data center projects opened and under construction came under the Tier III category. A majority of under-developed projects in the US fall under the Tier III category.
South Eastern US is the developed data center market. In 2020, around 35 data centers witnessed investment in South Eastern US. Colocation providers dominate the market with the overall share of 80%. South Eastern US received an investment of over $3 billion from hyperscale operators such as Apple, Facebook, Microsoft, Google. The increased construction of new facilities in the region will offer new opportunities for power infrastructure provider. The region is likely to experience a rise in the number of edge data centers to accomplish activities, with low latency and high efficiency, which will further contribute to an increase in the cumulative revenue opportunity for power infrastructure providers. The region is also experiencing increase in the procurement of renewable energy to power data centers. Major states in the region observed the adoption of N+1 power redundancy in 2020. The adoption of rack PDUs supporting over 10 kW is expected to increase with the use of high-performance computing infrastructure.
The U.S. data center power market is becoming highly competitive due to increased innovations in power solutions to offer maximum efficiency and reliability. Operators are more susceptible to procuring energy-efficient power infrastructure solutions. Evolving requirements of operators are prompting vendors to develop innovative products that reduce OPEX. In terms of UPS and rack PDU infrastructure, ABB, Eaton, Legrand, Schneider Electric, and Vertiv are the leading market players. Over the next few years, data center operators are more likely to consider the adoption of lithium-ion batteries, fuel cell technology, and intelligent PDUs to improve the facility efficiency. The emergence of nickel-zinc batteries and Prussian sodium-ion batteries will continue to intensify the competition among UPS systems vendors.
By Tier Standards
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