Global Data Centre Power Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

Data Centre Power Market Growth

The unprecedented and rapid increase in the amount of data consumed and produced by various organizations, companies, and individuals has resulted in increased demand for data storage, which in turn has led to an increase in the number of data centres. The rising adoption of cloud data centres is expected to drive the growth of the data centre power market. The industry is also being aided by the growth of technologies and services, which are dependent on data centres.

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Data Centre Power Market Trends

The IT and telecommunication sector is expected to be the fastest-growing application sector in the coming years due to the rising need to manage a large amount of data produced by the sector and can boost the data centre power demand. The increasing digitisation is expected to drive the growth of the BFSI segment.

Recent Developments

As per the data centre market dynamics and trends, there has been a surge in research and development in Indian data centres as the companies are implementing the latest generation of intelligent rack PDUs as they offer superior visibility and reporting related to the power metrics.

Industry Outlook

As per the data centre power industry analysis, key factors driving the growth of the global market include the increasing demand for energy-efficient solutions and the rapid expansion of data centers due to rising data consumption and cloud computing.

The global distribution of data centers is led by the USA, which hosts 2,924 data centers, making up 38.7% of the total. This dominant share is followed by the United Kingdom, with 360 data centers accounting for 4.8%, and Germany close behind with 356 data centers, representing 4.7% of the total. Canada contributes 239 data centers, making up 3.2%, while India and Australia both hold around 3.1%, with 235 and 231 data centers, respectively, which can boost the growth of the data centre power industry. France follows with 218 data centers, which constitute 2.9% of the total. The Netherlands, with 169 data centers (2.2%), is also a notable contributor to the global data center landscape, focusing on expanding capabilities to meet increasing data storage and processing needs. The concentration of large data centers in these key regions drives demand for efficient and scalable power solutions in the global data center power market.

The global spending on data center construction is projected to reach $48.3 billion by 2030. In 2022, the total spending was $31.7 billion, with $22.9 billion allocated to co-location companies and $8.8 billion to hyperscalers, which contributed to the data centre power industry revenue. By 2025, spending is expected to increase to $37.5 billion, with co-location companies' expenditure rising to $28.3 billion and hyperscalers to $9.2 billion. The substantial growth in spending highlights the necessity for advanced power solutions to support these expanding facilities, directly impacting the market.

What Factors are Driving the Growth of the Global Market?

• Increasing Data Demand: The surge in data from IoT devices, cloud computing, and big data analytics requires more data centers and, consequently, more power solutions.
• Energy-efficient Technologies: Innovations in power management and cooling reduce energy consumption and operational costs, encouraging further data center investments and aiding data centre power demand growth.
• Regulatory Standards: Stricter energy efficiency and environmental standards drive the adoption of advanced, sustainable power solutions in data centers.
• Infrastructure Investments: Significant investments by tech giants and co-location companies in expanding data center capacities globally boost the demand for robust power infrastructure.

Challenges Impacting the Global Market Along with High Energy Consumption:

• Transition to Renewable Energy: Difficulty in integrating renewable energy sources, like solar and wind, into existing power infrastructures due to their intermittent nature and the need for advanced energy storage solutions.
• High-Density Computing Demand: Challenges in scaling power distribution and cooling systems to support high-density computing environments, such as those required for AI and machine learning workloads can impact data centre power demand forecast.
• Grid Reliability Issues in Emerging Markets: Frequent power outages and unstable grid infrastructure in emerging markets lead to increased reliance on costly backup generators and uninterruptible power supplies (UPS).
• Heat Dissipation for High-Performance Servers: Managing the heat output of high-performance servers, which requires sophisticated cooling systems like liquid cooling, increasing both capital and operational expenditures.

Key Trends Shaping the Global Data Centre Power Market:

• Adoption of Renewable Energy: Increasing use of solar, wind, and other renewable energy sources to power data centres can increase data centre power market opportunities.
• Edge Computing Growth: Expansion of edge data centres closer to users to reduce latency and improve performance.
• Hybrid Cloud Solutions: Integration of on-premises, private, and public cloud services, requiring flexible and scalable power solutions.
• Advanced Cooling Technologies: Implementation of innovative cooling methods like liquid cooling to improve energy efficiency and reduce operational costs.

Competitive Factors in the Global Data Centre Power Market

Competitive factors boosting the global data centre power market value include technological innovation, with companies focusing on advanced power management and cooling solutions to enhance efficiency and reliability. 

Market players also compete on sustainability, aiming to meet stringent environmental standards and reduce carbon footprints. Additionally, strategic partnerships and mergers are pivotal, enabling companies to expand their service offerings and geographical presence. Cost competitiveness and scalability of solutions further differentiate leaders in this rapidly evolving market.

Key Players in the Global Data Centre Power Market Share and their Strategic Initiatives

• ABB Ltd.: Focuses on developing advanced power and automation solutions, investing in sustainable energy technologies, and forming strategic partnerships to enhance their data center offerings.
• Black Box Corporation: Specializes in comprehensive IT infrastructure solutions, including power management, and emphasizes tailored services for data center optimization that can boost data centre power market revenue.
• Eaton Corporation Plc.: Innovates in power management technologies, enhancing energy efficiency and reliability, and actively invests in smart grid solutions and energy storage systems.
• General Electric Company: Offers a wide range of power solutions, focusing on integrating renewable energy sources and advanced cooling technologies to improve data center efficiency.
• Generac Power Systems, Inc.: Provides backup power solutions and invests in expanding its product portfolio to include renewable and sustainable power technologies.
• Huawei Technologies Co., Ltd.: Develops integrated data center power solutions, emphasizing digital and intelligent power management, and collaborates with global partners to advance its technological capabilities.

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Data Centre Power Industry Segmentations

Data centre power management refers to a specific process that allows the management, measurement, and monitoring of power generation, usage, and optimization within a data centre facility. Its major types can be categorised as:

• Solutions
  • Power Distribution Unit
  • UPS
  • Busway
  • Other Solutions
• Services
  • Consulting
  • System Integration
  • Professional Service

The data centre power industry can be further categorised based on its applications into:

• IT and Telecommunications
• BFSI
• Government
• Energy
• Healthcare
• Retail
• Others

The EMR report looks into the regional data centre power markets like North America, Latin America, Europe, the Middle East and Africa, and the Asia Pacific regions.

Competitive Landscape

The report presents a detailed analysis of the following key players in the global data centre power industry, looking into their capacity, competitive landscape, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions:

• ABB
• Black Box Corporation
• Eaton Corporation Plc.
• General Electric Company
• Generac Power Systems, Inc.
• Huawei Technologies Co., Ltd
• Others

The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.

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Data Centre Power Market Regional Analysis

Regionally, North America is the largest market driven by the high presence of data centres in the region, and the various government regulations focussed on conserving energy and reducing the carbon footprint. The rising number of data centres in India and China is expected to support the demand of data centre power market in the Asia Pacific region, which is projected to grow with the fastest CAGR in the forecast period.