Data Center Generator Market SWOT Analysis and Driving Factors Forecast Research 2028

Increase in Use of Renewable Energy in Data Centers Creating New Opportunities for Data Center Generator Market 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. Such benefits are driving the data center generator market growth.

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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.

The List of Top Companies:

ABB
Atlas Copco AB
Caterpillar
Cummins Inc.
DEUTZ AG
Generac Power Systems, Inc.
HITEC Power Protection
Kirloskar
Kohler Co.
MITSUBISHI MOTORS CORPORATION

The data center generator market players adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key data center generator market players are listed below:

ABB LTD has introduced new shaft generator technology. This new generator brings flexibility and ease of installation to many vessels, including bulk carriers and container carriers. The AMZ 1400 permanent magnet shaft generator is optimized for converter control and enables better efficiency than induction.

Caterpillar to Launch Demonstration Project Using Hydrogen Fuel Cell Technology for Backup Power at Microsoft Data Center. This project enables Caterpillar to collaborate with industry leaders to take a large step toward commercially viable power solutions that also support the customers in making their operations more sustainable.

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Product Type-Based Market Insights:

Data center generators have been experiencing a rise in demand from across the globe in recent years. Companies provide three types of data center generators - diesel, natural gas, and bi-fuel. In January 2022, Cummins Power Generation announced that it had been awarded for its power solutions by the China data center industry. The company manufactures diesel data center generators. In January 2021, TRG Datacenters announced the upgrade of its Texas data center. The company is planning to install a bi-fuel option for power backup

Capacity-Based Market Insights:

In terms of capacity, the data center generator market size is segmented into below 1 MW, 1-2 MW, and greater than 2 MW. Below 1 MW is the most prominent capacity in data center generators. The facilities with a capacity of more than 10 MW are adopting generators of greater than 2 MW. Generators below 1 MW power capacity are usually adopted in modular data center deployments. The adoption of generators with below 1 MW power capacity is expected to increase the deployment of data centers. They are being adopted by small-scale data center operators in developing economies as they are less costly. The rise in manufacturing of hyper scale facilities in emerging economies would decline the dependency on generators having low capacity in the coming years.

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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.

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