Data Center Substation Market Analysis, Size, Share, Growth, Trends, and Forecast by 2031

The data center substation market size is projected to reach US$ 18.47 billion by 2031 from US$ 11.38 billion in 2023. The market is expected to register a CAGR of 6.2% during 2023–2031. The growth in data centers worldwide and the need for efficient, smooth, and reliable power supply to the data center are likely to remain key trends in the market.

Data Center Substation Market Analysis

The growing number of data centers worldwide is driving the need for efficient power supply, which further fosters the data center substation market. Companies expanding their businesses across the world are launching their data center or going for colocation services further drives the need for data centers. The growing data is generating the need for storage where it can be processed and analyzed, further fostering the need for data centers. Thus, the mounting need for the data center is fueling the data center substation market for the efficient power supply during the building and working of the data center.

Data Center Substation Market Overview

A data center substation is a facility that plays a vital role in the power grid that transfers energy from production to consumption. The substation helps to protect the equipment from faults or short circuits and avoid damage to the power lines and equipment. Data center providers contact the utility provider to construct a substation on their campus or to build one and deliver it to the data center.

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Data Center Substation Market Drivers and Opportunities

Need for the data center for growing data to Favor the Market

The data is generated at a faster pace. The rise in internet penetration has fuelled the generation of data. Businesses all over the world are relying on data-driven strategic planning for efficient business growth. In addition, IoT generates a huge number of data that needs to be processed, stored and analyzed in real-time. The deployment of 5G is expected to significantly increase the volume of data traffic, as 5G offers much higher data and lower latency than the 4G and other networks. According to the Cisco reports, 5G will support more than 10% of the world's mobile connections by 2023, with an average speed of 575 Mbps. That's 13 times faster than the average mobile connection today. Due to increased data traffic, businesses and enterprises will seek a location to store, process and distribute their data more efficiently and reliably, contributing to the need for data center providers. Thus, to manage the power grid of a data center effectively, the demand for data center substations is growing.

Smart data center substation

The governments in various countries are closely monitoring the building of data centers and ensuring sustainability while developing and working on data centers. The government is focused on reducing its carbon footprint and handling the concerns arising from the energy-intensive facilities. Therefore, the market players are focused on building smart data center substation solutions to promote the data center industry effectively. For example, ABB provides smart data center substations to reduce the carbon and real estate footprint of these facilities. By using smart modular components, the company was able to reduce the quantity of copper control cables by over 50%. Thus, such building of smart solutions will foster the data center industry and generate the demand for an efficient data center substation market.

Data Center Substation Market Report Segmentation Analysis

Key segments that contributed to the derivation of the data center substation market analysis are component and voltage type.

• Based on the component, the data center substation market is divided into transformer, switchgears, relays, and others. The switchgears segment held the largest share of the market in 2023.
• By voltage type, the market is segmented into 33KV-110KV, 111KV-220KV, 221KV-500KV, and above 500KV. The above 500KV is expected to grow with a significant CAGR during the forecast period.

Data Center Substation Market Share Analysis by Geography

The geographic scope of the data center substation market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

Asia Pacific region is expected to grow with the highest CAGR during the forecast period. The rise in 5G, cloud computing, big data analytics, and several other advanced technologies works on a large scale of data that needs to be processed and analysed. The data storage and computing demand is fostering the data center market in the region, which further complements the data center substation market in Asia Pacific.

Data Center Substation Market Regional Insights

The regional trends and factors influencing the Data Center Substation Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Data Center Substation Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Data Center Substation Market Report Scope

Data Center Substation Market Players Density: Understanding Its Impact on Business Dynamics

The Data Center Substation Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Data Center Substation Market are:

1. EATON
2. General Electric
3. Hitachi Energy Ltd.
4. NEI Electric Power Engineering, Inc.
5. NR Electric
6. S&C Electric Company

Disclaimer: The companies listed above are not ranked in any particular order.

Data Center Substation Market News and Recent Developments

The data center substation market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the data center substation market are listed below:

• NTT Ltd. a leading IT infrastructure and services company, through NTT Global Data Centers Corporation (a subsidiary of NTT Ltd.), announced the launch of its new data center in NTT Cyberjaya campus. This facility, with an investment of over US$ 50 million (RM 234 million), aligns with Malaysia's digital growth vision, aiming for Malaysia to be an ‘Asian Digital Tiger’ by 2025. CBJ6, the sixth data center on NTT's campus, has a critical IT load of 7MW, 4,890m2 of space, two 33kV substations with diverse power reception and advanced cooling wall technology to maintain a stable environment for high-density racks up to 15kW. CBJ6 complements the Cyberjaya 5 (CBJ5) Data Center, built in 2021, the combined facility has 20,000m2 of space and a facility load of 22MW. (Source: NTT Ltd, Press Release, October 2023)
• Colt Data Centre Services (DCS), a global provider of hyperscale and large enterprise data center solutions, announced the launch of its first data center in India. The flagship Navi Mumbai data center marks Colt DCS’ strategic expansion and commitment to supporting the increasing demand of hyperscale cloud service providers and large enterprise businesses in the fast-growing Indian data center market. The data center boasts a highly resilient 220kV GIS substation onsite with LILO configuration. (Source: Colt Data Centre Services Holdings, Press Release, September 2023)

Data Center Substation Market Report Coverage and Deliverables

The “Data Center Substation Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• data center substation market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• data center substation market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• data center substation market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the data center substation market
• Detailed company profiles