Data Center Generators Market is expected to reach US$ 6,729.53 million by 2028

Increase in Use of Renewable Energy in Data Centers Creating New Opportunities for Data Center Generator Market During 2021–2028

According to our latest market study on "Data Center Generator Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Product Type, Capacity, and Tier," the market is expected to grow from US$ 4,693.00 million in 2021 to US$ 6,729.53 million by 2028; it is estimated to grow at a CAGR of 5.3% during 2021–2028.

Generators serve as a backup power supply reservoir for data centers during a power outage. A total power outage in a data center may need a system restart, resulting in system downtime, startup challenges, and data loss. Hence, data centers are always backed by a backup power supply provided by generators to avoid such abnormalities and failures. The fundamental factors fueling the interest in renewables are environmental sustainability and energy savings. The cost of power in a data center is high, accounting for over half of the total operating expenses. When rising and unpredictable energy costs and levies linked with pending carbon emission regulations are considered, it is easy to see why operators are becoming more interested in renewables' role in lowering and stabilizing energy costs. Google's hyper-scale data centers have been pioneers in renewable energy programs, researching their inherent financial, environmental, and social value. Google chooses locations for its data centers based on various considerations, including the availability of reliable service and the opportunity for renewable energy. As a result, it employs renewable energy in the form of wind and solar to power over 35% of its operations through power purchase agreements (PPAs), a technique that encourages utility providers to increase the use of renewables. Facebook is constructing facilities in Iowa that will be powered entirely by a local wind project that the company helped establish. Microsoft has erected a 100% hydroelectric data center in Quincy, Washington, and is experimenting with using biogas from a local Cheyenne wastewater treatment facility to power a 200 kW data center in Wyoming. Apple has installed a 100-acre, 20-megawatt solar plant inside its Maiden, North Carolina site, allowing it to run entirely on renewable energy. In addition, Dubai Electricity and Water Authority launched the first phase of the Middle East & Africa's largest solar-powered data center as the emirate attempts to strengthen its green economy and focus on sustainable development.

Based on product type, the data center generator market is segmented into diesel, natural gas, and others. In 2021, the diesel segment led the data center generator market. Based on capacity, the data center generator market is segmented into below 1 MW, 1–2 MW, and greater than 2 MW. In 2021, the 1 MW segment accounted for the largest market share. Based on tier, the data center generator market is segmented into tier 1, tier 2, tier 3 and tier 4. In 2021, the tier 3 segment accounted for the largest market share. By geography, the data center generator market size is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, North America accounted for the largest share of the data center generator market.

Impact of COVID-19 Pandemic on Data Center Generator Market Growth

The COVID-19 pandemic shook several industries such as manufacturing, retail, construction, and automotive. The tremendous growth in the spread of the novel coronavirus urged governments worldwide to impose strict restrictions on vehicles and human movement. Due to travel restrictions, mass lockdowns, and business shutdowns, the pandemic negatively affected economies and countless industries in various countries. The lockdown imposition resulted in the lesser production of commodities and goods, which hampered services. The data center generator market experienced a negative effect of the pandemic in the initial months of 2020 due to the closing of manufacturing facilities and disruptions in the supply chain of various components required to manufacture generators. Also, disruption in the supply chain of fuels, such as diesel, required to run data center generators negatively impacted the data center generator market size in 2020.

The electricity demand dropped during the COVID-19 pandemic as business activities slowed down. Therefore, there were less investments made in the generator industry in 2020. However, in 2021, with the relaxation of lockdown measures and the beginning of vaccination processes, the supply chain and manufacturing industries started to work fluently. Also, generators are required for continuous power supply in data centers. Therefore, the global data center generator market growth will be significant.

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 data center generator market. In addition to these, several other players were analyzed to understand the overall data center generator market.

Data Center Generator Market – by Region, 2021–2028 (%)

---

Data Center Generator Market Size & Industry Growth by 2028

Download Free Sample

---

Data Center Generator Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Product Type (Diesel, Natural Gas, and Others), Capacity (Below 1 MW, 1-2 MW, and Greater than 2 MW), and Tier (Tier 1 and 2, Tier 3, and Tier 4)