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U.S. DATA CENTER POWER MARKET SIZE BY INVESTMENT IS EXPECTED REACH OVER $8 BILLION BY 2025
U.S. Data Center Power Market Size, Share, & Trends Analysis Report Segmentation by Power Infrastructure (UPS, Generators, Transfer Switches & Switchgears, PDUs, Other), By Generator (<=1MW, 1–2MW, >=2MW), By UPS (<=500kVA, 500–1,000kVA, >=1,000kVA), By Tier Standards (Tier I & Tier II, Tier III, Tier IV), By Geography (North Eastern US, South Eastern US, Mid-western US, South Western US Western US). Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2025
South Eastern U.S. is one of the major contributors to the U.S. data center power market. With a power capacity share of over 40%, the region attracted high initial investments, especially Virginia, which witnessed over $1 billion in 2019. States such as Virginia, Arizona, Illinois, Nevada, California, Texas, Ohio, Tennessee, Iowa, and North Carolina have received significant investments in recent years. Colocation providers are the major investors, accounting over 50% share, with enterprises, hyperscale operators, and government entities contributing to the rest of the investments. North America is likely to dominate the global data center power market with over 50 hyperscale development projects to be operational in the United States and Canada in the coming years. The U.S. market is likely to experience a rise in edge data center computing to deliver services with low latency and high efficiency. There is a significant rise in the number of data centers that run blockchain and cryptocurrency workloads across the U.S. market. These blockchain and cryptocurrency facilities consuming hundreds of megawatts of capacity. This is likely to boost the U.S. power market growth during the forecast period.
- The switchgear adoption will grow as the construction of large and mega facilities requiring medium and high-voltage switchgear is increasing across the United States.
- The revenue share of the UPS systems segment is likely to rise during the forecast period due to the wide adoption of modular, scalable, and lithium-ion powered systems.
- Gas and bi-fuel generators are likely to experience steady growth on account of growing concerns over carbon emissions in the United States.
- Data center operators such as Equinix, Digital Realty, Amazon, Google, Apple, and Microsoft have a strong commitment to procure renewable energy sources
- The adoption of metered, monitored, switched, and managed power distribution units (PDU) is contributing to the majority of revenue towards rack PDU adoption.
The U.S. data center power market share by investment is expected to grow at a CAGR of over 3% during the period 2019–2025.
U.S. DATA CENTER POWER MARKET SEGMENTATION
This research report includes a detailed segmentation by power infrastructure, UPS systems, generators, tier standards, and geography.
INSIGHTS BY POWER INFRASTRUCTURE
The adoption of lithium-ion batteries is growing significantly during the forecast period as their price will continue to decline. Since most vendors are offering lithium-ion based UPS systems, the market is likely to become highly competitive during the forecast period. The U.S. generator market will continue to grow because of the construction of large and mega facilities. However, with growing concerns over carbon emissions, the use of diesel generators is expected to decline, thereby providing growth opportunities to natural gas generators. The growing complexity of data center infrastructure is propelling the growth of automated switchgear technology. With the increased construction of data centers across the country, the market for transfer switches and switchgears is also expected to grow during the forecast period. The adoption of rack PDUs supporting up to 20 kW will increase with the use of high-performance computing infrastructure in the United States.
INSIGHTS BY UPS SYSTEMS
Most data centers have a minimum of N+1 power redundancy configuration in their UPS systems in the South-Western U.S. A prominent vendor in the region procured UPS with Eco Mode designed flexibility to support up to 2N+1 redundant configuration. Several facilities in the Mid-western region are equipped with dedicated UPS systems with minimum N+1 power redundancy. Most UPS systems in the Western US are installed with a capacity of 500–750 kVA. Data centers facilities with below 10 MW of power capacity will commonly comprise 500 kVA of capacity per unit, whereas there are facilities with a power capacity above 10 MW that will comprise up to over 750 kVA UPS units in the North Eastern U.S. The application of <=500 kVA UPS systems will be higher among prefabricated and hyperscale operators in the United States. Vendors such as Delta, Mitsubishi, Schneider Electric, Eaton, and Vertiv have a strong presence in the market. These systems are used in data centers built across multiple data halls, supporting up to 3 MW of IT load capacity per hall.
INSIGHTS BY GENERATORS
Diesel generators are more likely to be adopted than biofuel or natural gas ones in South Western US. Generators are usually built with N+1 redundancy in the region. In Mid-western US, diesel generators are mainly adopted among data centers with N+1 redundancy scalable up to 2N redundancy. The western US is more focused on adopting diesel generators with on-site fuel storage, supporting power backup up to 100 hours. In addition, a data center operator in New Jersey is equipped with around 16 generators and 100,000 gallons of on-site fuel to support N+2 or 2N redundant configuration. A prominent data center operator has installed six diesel generators of 2 MW capacity with N+1 redundant configuration. Several facilities in this region are built to support a rack power density of around 15 kW. The adoption of
INSIGHTS BY TIER STANDARDS
A majority of under-developed projects across the US fall under the Tier III category. There were about 115 Tier III data center projects, which were opened and under construction in 2019. However, several operators are expected to shift to the Tier IV category based on the growth in rack power density and critical applications during the forecast period. There were over 15 Tier IV data center projects that either opened or under construction in 2019. All self-built hyperscale data centers are considered as part of Tier IV infrastructure. Southeastern US is dominating the US Tier IV data centers market, followed by other regions. These facilities generate more revenue for the market, with focused investment on highly efficient power systems.
INSIGHTS BY GEOGRAPHY
The US is the major data center operations market. Colocation and cloud service providers are the major contributions to the market growth. Over 130 projects were identified in the US, which is likely to be operational between January 2019 and June 2020. The South Eastern US is the major location, it accounted for over 40% of the market investment in 2019, and there are around 50 projects, which are opened and under construction between 2019 and June 2020. South Eastern is followed by Western US, Mid-western US, and the South Western US.
INSIGHTS BY VENDORS
The US data center power market is witnessing an increasing competition among power infrastructure providers. The market is becoming highly competitive as power solution providers are offering innovative products with maximum efficiency and reliability. Data center operators are more open to procuring energy-efficient power infrastructure solutions. Varied requirements of operators are prompting vendors to develop innovative products that reduce OPEX by up to 50%.
The U.S. data center power market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Segmentation by Power Infrastructure
- Transfer Switches & Switchgears
- System Capacity
Segmentation by UPS Systems
- System Capacity
Segmentation by Tier Standards
- Tier I & Tier II
- Tier III
- Tier IV
Segmentation by Geography
- North Eastern US
- South Eastern US
- Mid-western US
- South Western US
- Western US
Key Questions Answered
- What is the U.S. data center power market size and growth forecast?
- What are the factors impacting the growth of the U.S. data center power market forecast?
- What are the leading drivers, trends, and restraints in the data center power market in the US?
- Who are the leading vendors and what are their market shares?
- What impact the COVID-19 Pandemic has on the market?
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