Data Center Generator Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Product Type, Capacity, and Tier

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 overall market has been segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa, and South & Central America. Germany, France, the UK, the Netherlands, and Italy are a few key contributors to the European data center generator market. The Europe data center generator market growth is likely to expand as more renewable energy sources are adopted. AWS, Google, Equinix, Interxion, OVH Cloud, Scaleway, Aruba, and 17 other industry associations have agreed to make their facilities carbon neutral by 2030 by using 100% renewable energy sources. According to the Climate Neutral Data Centre Pact, by December 31, 2025, 75% of the power supplied to data centers in Europe would come from renewable or carbon-free sources, to reach 100% by December 31, 2030. This announcement will likely provide a significant boost to the European data center generator market size.

The data center generator market size in Southeast Asia is segmented into Singapore, Malaysia, Thailand, and the Rest of Southeast Asia.With many developments in Singapore, Indonesia, Malaysia, Vietnam, Cambodia, and Thailand, Southeast Asia’s data center generator industry is rapidly expanding.

Southeast Asia is one of the world’s fastest-growing digital markets.The demand for faster internet networks and the subsequent demand for data centers to store data created by the networks has increased due to the rise in internet usage and social media trends.

These trends are boosting the production of new data centers in Southeast Asia, which is propelling the data center generator market share.

The data center generator market growth in the MEA is segmented into South Africa, the UAE, Saudi Arabia, and the Rest of MEA.The market in the MEA is booming due to an increase in the number of data centers across the region.

The number of internet users across the region is rising continuously.For instance, according to the UAE’s Telecommunications Regulatory Authority (TRA), there were 3,269,359 internet subscribers and 17,075,188 active mobile phone subscribers in the UAE as of March 2021.

Further, the UAE is one of the world’s most connected countries. This is leading to an increase in data storage capacity requirements, leading to a rise in the number of data centers, further propelling the growth of the data center generator market.

The data center generator market faced a negative impact of the pandemic in the initial months of 2020 with the closing of manufacturing facilities and disruption in the supply chain of various component manufacturers.Also, the supply chain disruption of fuels such as diesel required to run data center generators caused a negative impact in 2020.

Besides, the electricity demand dropped as business activities slowed down during the pandemic.Therefore, very few investments have been made in the generator industry in 2020.

However, the overall market witnessed a positive impact of the COVID-19 pandemic because of the increase in number of hyper scale facilities.

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.

Every large data center’s power supply begins with a link to the main grid, provided by a local utility provider.Data centers are often connected to at least one diesel or gas backup generator to ensure operations are running even during a large-scale power outage.

Medium voltage electricity is delivered from both the local utility company and the backup generator.One or more transformers convert the medium-voltage electricity to low voltage for usage within the data center.

Main distribution boards (MDBs)—which are panels or enclosures that house fuses, circuit breakers, and ground leakage protection units—take low-voltage electricity and distribute it to several endpoints such as uninterrupted power supply (UPS) systems or load banks.When a power outage is detected, MDBs also handle the incoming power from the main grid and can start the backup generator.

Most data centers maintain enough fuel on hand to run the generator for 24–48 hours. To preserve sensitive data, data centers require dependable backup power. Datacenter outages can cause substantial access issues, resulting in significant revenue losses for businesses. Outages can potentially harm critical equipment, jeopardizing the ability to resume normal operations. To avoid these costly and damaging downtimes and boost efficiency, immediate, uninterruptible power supply (UPS) systems with backup power, power switching control, and generator synchronization management are required. Gas turbines and power modules and hybrid modules that combine gas with renewables and energy storage technologies are used in modular and containerized backup power systems to meet stable backup power requirements. These systems are simple to set up and provide enough backup power to keep data center operations going in the case of the main power outage. Thus, the availability of various generator systems and the rising need for data centers are propelling 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.