What Has Been the Progress and Growth of the Data Center Generator Market in Recent Years?
The data center generator market has seen considerable growth due to a variety of factors.
• In recent times, the data center generator market has seen significant growth. It's anticipated to expand from a size of $6.42 billion in 2024 to $6.74 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 5.0%. The historical period growth has been driven by factors such as increased data consumption, expansion of data centers, stringent reliability norms, digital transformation, risks of power outages, and enhanced energy efficiency.
How Does the Forecast Look for the Data Center Generator Market Size In The Coming Years?
The Data Center Generator market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of data center generators is predicted to experience a robust expansion in the coming years, with an anticipated size of $8.99 billion by 2029, and a compound annual growth rate (CAGR) of 7.5%.
This escalation in the predicted timeframe is credited to the surge in data use, an emphasis on business continuity, the incorporation of renewable energy, transition to edge computing, and energy efficiency norms. Key trends anticipated during this forecast period are a heightened focus on dependability and longevity, the embrace of fuel efficiency systems, swift deployment strategies, predictive maintenance, and remote and unstaffed data center operations.
What Are The Leading Drivers Of Growth In The Data Center Generator Market?
The anticipated expansion of data centers is predicted to fuel the growth of the data center generator market. Characterized by a large array of connected computer servers, businesses typically use a data center for remote processing, data storage, or the transfer of large data volumes. Digital transformation and the advent of cloud services are causing a surge in demand for data center capacity. Hyperscale operators and consumer-focused cloud providers are actively expanding their operations, necessitating the use of data center generators. A data center generator, for example, can provide back-up power in case of any utility power failure. In April 2024, Brightlio, a US technology solutions provider reported approximately 10,978 global data centers in 2023. The leading countries included the United States with 5,388, followed by Germany with 522, the U.K. with 517, China with 449, and Canada with 336. Therefore, the growth of the data center generator market is expected to be driven by an increase in the number of data centers.
How Are The Segments Defined Within The Global Data Center Generator Market?
The data center generator market covered in this report is segmented –
1) By Product: Diesel, Gas, Other Products
2) By Capacity: < 1 MW, 1 MW-2MW, >2MW
3) By Tier Standard: Tier I And II, Tier III, Tier IV
Subsegments:
1) By Diesel: Standard Diesel Generators, Tier 4 Diesel Generators
2) By Gas: Natural Gas Generators, Biogas Generators
3) By Other Products: Propane Generators, Hybrid Generators, Renewable Energy Generators
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How Are New Trends Expected To Influence The Growth Of The Data Center Generator Market?
Major firms in the data center generator market are forging strategic partnerships to explore technologies that utilize hydrogen as a green fuel source for essential data center structures. These alliances often involve companies capitalizing on each other's resources and strengths to realize shared benefits and successes. As an example, in September 2022, Equinix Inc., a company providing internet services based in the US, collaborated with the Singapore's Center for Energy Research & Technology (CERT). Together, they will launch the first global research initiative to contrast the effectiveness of proton-exchange membrane (PEM) fuel cells and fuel-flexible linear generator technologies. PEM fuel cells are a prominent option for hydrogen energy, while fuel-flexible linear generators accommodate smooth transitions between various clean fuel options, such as hydrogen, biogas, and numerous renewable liquid fuels. Implementing these technologies may allow data centers to reduce carbon emissions while meeting growing needs for data, colocation, and interconnection services. The collaborative research by Equinix and CERT will include an extensive assessment of how well these technologies suit tropical data centers, factoring in regional climate conditions, site restrictions, energy requirements, supply chain factors, fuel storage capacities, and compliance with local regulations.
Who Are the Key Players In The Data Center Generator Market?
Major companies operating in the data center generator market include:
• Alphabet Inc.
• Amazon.com Inc.
• Equinix Inc.
• Microsoft Corp.
• Oracle Corp.
• SAP SE
• International Business Machines Corp.
• Cisco Systems Inc.
• Huawei Investment & Holding Co. Ltd.
• Google LLC
• Meta Platforms Inc.
• Digital Realty
• CyrusOne
• GDS Holdings Limited
• KDDI’s Telehouse
• Hewlett Packard Enterprise Company LP
• Dell Technologies Inc.
• Fujitsu Limited
• Schneider Electric SE
• Eaton Corporation
• Vertiv Co.
• Delta Electronics Inc.
• Rittal GmbH & Co. KG
• ABB Ltd.
• Siemens AG
• Hitachi Ltd.
• NEC Corporation
What Is The Most Dominant Region In The Data Center Generator Market?
North America was the largest region in the data center generator market share in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center generator market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
