The data center generator market is expected to reach US$ 6,729.53 million by 2028 from US$ 4,693.00 million in 2021; it is estimated to grow at a CAGR of 5.3% from 2021 to 2028.
The data center generator market has been categorized into North America, Europe, Asia Pacific (APAC), Middle East & Africa, and South & Central America. In Europe, countries such as Germany, France, the UK, the Netherlands, and Italy play a significant role in the data center generator market. The growth of the European data center generator market is expected to increase as the adoption of more renewable energy sources continues. To achieve carbon neutrality by 2030, AWS, Google, Equinix, Interxion, OVH Cloud, Scaleway, Aruba, and 17 other industry associations have pledged to use 100% renewable energy sources in their facilities. According to the Climate Neutral Data Centre Pact, 75% of the power supplied to data centers in Europe will be sourced from renewable or carbon-free sources by December 31, 2025, with the aim of reaching 100% by December 31, 2030. This declaration is expected to have a significant impact on the size of the European data center generator market.
The market size of data center generators in Southeast Asia is divided into four segments: Singapore, Malaysia, Thailand, and the Rest of Southeast Asia. Southeast Asia's data center generator industry is proliferating, with various developments taking place in Singapore, Indonesia, Malaysia, Vietnam, Cambodia, and Thailand. The digital market in Southeast Asia is one of the fastest-growing worldwide. The increasing demand for faster internet networks and the subsequent need for data centers to store the data generated by these networks is driving the production of new data centers in the region, thereby boosting the market share of the data center generator market.
The MEA data center generator market growth is classified into South Africa, the UAE, Saudi Arabia, and the Rest of MEA. The market in the MEA region is experiencing a surge due to the increasing number of data centers being established. Moreover, the number of internet users in the region is continuously increasing. For instance, as of March 2021, the UAE had 3,269,359 internet subscribers and 17,075,188 active mobile phone subscribers, according to the UAE's Telecommunications Regulatory Authority (TRA). Additionally, the UAE is one of the most connected countries globally, leading to a rise in data storage capacity needs and subsequently, a growth in the number of data centers, boosting the expansion of the data center generator market.
The data center generator market experienced a setback in the early months of 2020 due to the closure of manufacturing facilities and supply chain disruptions from various component manufacturers caused by the pandemic. Additionally, the shortage of fuels like diesel required to power data center generators also had a negative impact on the market in 2020. Furthermore, the decrease in electricity demand due to the slowdown in business activities during the pandemic resulted in minimal investments in the generator industry for the year. Nonetheless, the overall market benefited from the COVID-19 pandemic as the number of hyperscale facilities increased.
The global data center generator market is segmented based on product type, capacity, and tier. Based on product type, the data center generator market is segmented into diesel, natural gas, and others. In terms of capacity, the data center generator market is segmented into less than 1 MW, 1-2 MW, and greater than 2 MW. Further, based on tier, the data center generator market is segmented into tier 1 & 2, tier 3, and tier 4.
The power supply for large data centers typically begins with a connection to the main grid, which is provided by a local utility provider. To ensure uninterrupted operations during large-scale power outages, data centers are usually equipped with at least one diesel or gas backup generator. Both the local utility company and the backup generator supply medium voltage electricity, which is then converted to low voltage for use within the data center by one or more transformers. The low-voltage electricity is then distributed to various endpoints, such as uninterrupted power supply (UPS) systems or load banks, through main distribution boards (MDBs) that house fuses, circuit breakers, and ground leakage protection units. MDBs are also responsible for detecting power outages and switching over to backup power from the main grid or starting the backup generator. Most data centers maintain a sufficient supply of fuel to run the generator for 24-48 hours to protect sensitive data and prevent downtime that could result in significant revenue losses for businesses. To ensure uninterrupted power supply and improve efficiency, data centers require immediate, uninterruptible power supply (UPS) systems with backup power, power switching control, and generator synchronization management. To meet the growing demand for stable backup power, modular and containerized backup power systems use gas turbines and power modules, as well as hybrid modules that combine gas with renewables and energy storage technologies. These backup power systems are simple to set up and provide sufficient backup power to keep data center operations running during a main power outage. As a result, the availability of various generator systems and the increasing need for data centers are driving the growth of the data center generator market share.
ABB; Atlas Copco AB; Caterpillar; Cummins Inc.; DEUTZ AG; Generac Power Systems, Inc.; HITEC Power Protection; Kirloskar; Kohler Co.; and MITSUBISHI MOTORS CORPORATION are among the key players operating in the global data center generator market.