Tax Incentives and Power Resources Boosts Growth in Global Data Center Power Market


Ariztons recent market research report on the global data center power market provides comprehensive industry analysis, trend forecasts, and competitive analysis. The research study segments the market by electrical infrastructure (UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure), by UPS systems (<=500 kVA, 500 kVA - 1000 kVA, and >1000 kVA), by generators (<1 MW, 1 MW - 2 MW, and >2 MW), by tier standards (Tier I & II, Tier III, and Tier IV), by geography (Americas, EMEA, and APAC), and offers detailed competitive analysis.

The global data center power market is anticipated to generate revenues of around $19 billion by 2023, growing at a CAGR of over 6% during 2017-2023.

The growing focus on developing advanced systems that control the cost, reliability, efficiency, and maintainability will create new avenues in the global data center power market. The integration of intelligent real-time monitoring software with power infrastructure that can predict maintenance requirements, component failures, and automatic switchovers for uninterrupted operations will transform the global market.

Request for your free sample today!

The top 3 drivers and trends contributing to the development of the global data center power market are discussed below:

Availability of Power Resources and Tax Incentives 

The increasing availability of tax incentives, renewable energy sources, and reliable power supply are some of the primary factors attributing to the growth of the global data center power market. Regions such as Brazil, Southeast Asia, and India are investing heavily in redundant power infrastructures such as generators and UPS systems to ensure uninterrupted operations across facilities in the market. Major facilities operators are focusing on procuring renewable energy sources to attain tax incentives offered by various government regulatory bodies in the global data center power market. Several state and local governments are providing investment, job creation, and sales tax incentives to attract new datacenter operators in the market. These tax breaks will enable hyperscale facility operators to save billions of dollars in the market. Countries such as Sweden, Norway, Finland, Denmark, and Iceland are reducing their taxes to attract new investments from facility operators across the global market. These regions also facilitate the operations of facilities through 100% renewable energy sources, thereby, boosting growth in the global data center power market. For instance, in 2017, Sweden reduced electricity tax rates by 97% to promote datacenter development.

Check our latest report on - U.S. Data Center Power Market- Industry Outlook and Forecast 2020-2025

Use of Fuel Cells in Data Center

The global data center power market is witnessing the use of hydrogen-powered fuel cells that are designed to provide pricing and reliability benefits to end-users. These fuel cells are a viable option in cities where the electricity pricing is rising and cities with frequent power fluctuation in the electricity grid in the market. Companies such as eBay, Microsoft, Google, Equinix, and CenturyLink are some of the major users of fuel cells in the global market. These products enable operators to reduce carbon dioxide emission and improve operating efficiency, resulting in the growth of the global data center power market. Fuel cells have the potential to replace major infrastructures such as UPS systems, generators, switchgear, and electricity feed from traditional grids. Modular and edge datacenter is expected to be the largest end-users of these products in the global market over the next few years. A containerized datacenter that is powered by 250 kW of IT infrastructure, including UPS systems and generators for power backup can be replaced by fuel cells during the forecast. The increasing adoption of fuel cells is projected to revolutionize the global data center power market.

Request for your free sample today!

Increase in adoption of Diesel-Rotary UPS Systems

The growing adoption of diesel-rotary UPS systems (DRUPS) is fueling the development of the global data center power market. DRUPS have a greater fault clearing capability because of low impedance and are considered more efficient compared to order systems available in the global market. These systems are designed to consist of flywheel or battery powered UPS along with a diesel generator. The increasing installation of these systems will create new avenues for leading vendors in the global data center power market. Owing to the increase in innovation in improving the efficiency of UPS systems, the adoption of DRUPS is likely to be steady in the market over the next few years. Hitec, one among the major DRUPS provider in the global data center power market. The increasing efficiency of these systems will revolutionize the market.

The leading vendors in the global data center power market are ABB, Caterpillar, Cummins, Eaton, Schneider Electric,  and Vertiv.

The complete overview of the latest market research report on global data center power market by Arizton is now available.

The report also offers a detailed study of major trends, drivers, challenges, and also provides the market size and forecast for major geographical regions and key countries.

Check our latest report on - Data Center Power Market- Global Outlook and Forecast 2020-2025

About Arizton

Arizton – Advisory and Intelligence is an innovation and quality-driven firm, which offers cutting-edge research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.

We offer comprehensive market research reports on industries such as consumer goods & retail technology, automotive and mobility, smart tech, healthcare and life sciences, industrial machinery, chemicals and materials, IT and media, logistics and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.

Arizton comprises a team of exuberant and well-experienced analysts who have mastered in generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.


Call: +1-312-465-7864

Recent Press