Global Data Center Generator Market to Reach $8.99 Billion by 2029, Growing at 7% CAGR

"What industry-specific factors are fueling the growth of the data center generator market?
The anticipated expansion of data centers is predicted to fuel the growth of the data center generator market. Characterized by a large array of connected computer servers, businesses typically use a data center for remote processing, data storage, or the transfer of large data volumes. Digital transformation and the advent of cloud services are causing a surge in demand for data center capacity. Hyperscale operators and consumer-focused cloud providers are actively expanding their operations, necessitating the use of data center generators. A data center generator, for example, can provide back-up power in case of any utility power failure. In April 2024, Brightlio, a US technology solutions provider reported approximately 10,978 global data centers in 2023. The leading countries included the United States with 5,388, followed by Germany with 522, the U.K. with 517, China with 449, and Canada with 336. Therefore, the growth of the data center generator market is expected to be driven by an increase in the number of data centers.

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What Is the projected market size and growth rate for the data center generator market?
In recent times, the data center generator market has seen significant growth. It's anticipated to expand from a size of $6.42 billion in 2024 to $6.74 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 5.0%. The historical period growth has been driven by factors such as increased data consumption, expansion of data centers, stringent reliability norms, digital transformation, risks of power outages, and enhanced energy efficiency.

The market size of data center generators is predicted to experience a robust expansion in the coming years, with an anticipated size of $8.99 billion by 2029, and a compound annual growth rate (CAGR) of 7.5%. This escalation in the predicted timeframe is credited to the surge in data use, an emphasis on business continuity, the incorporation of renewable energy, transition to edge computing, and energy efficiency norms. Key trends anticipated during this forecast period are a heightened focus on dependability and longevity, the embrace of fuel efficiency systems, swift deployment strategies, predictive maintenance, and remote and unstaffed data center operations.

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What new trends are reshaping the data center generator market and its opportunities?
Major firms in the data center generator market are forging strategic partnerships to explore technologies that utilize hydrogen as a green fuel source for essential data center structures. These alliances often involve companies capitalizing on each other's resources and strengths to realize shared benefits and successes. As an example, in September 2022, Equinix Inc., a company providing internet services based in the US, collaborated with the Singapore's Center for Energy Research & Technology (CERT). Together, they will launch the first global research initiative to contrast the effectiveness of proton-exchange membrane (PEM) fuel cells and fuel-flexible linear generator technologies. PEM fuel cells are a prominent option for hydrogen energy, while fuel-flexible linear generators accommodate smooth transitions between various clean fuel options, such as hydrogen, biogas, and numerous renewable liquid fuels. Implementing these technologies may allow data centers to reduce carbon emissions while meeting growing needs for data, colocation, and interconnection services. The collaborative research by Equinix and CERT will include an extensive assessment of how well these technologies suit tropical data centers, factoring in regional climate conditions, site restrictions, energy requirements, supply chain factors, fuel storage capacities, and compliance with local regulations.

What major market segments define the scope and growth of the data center generator market?
The data center generator market covered in this report is segmented -

1) By Product: Diesel, Gas, Other Products
2) By Capacity: < 1 MW, 1 MW-2MW, >2MW
3) By Tier Standard: Tier I And II, Tier III, Tier IV

Subsegments:
1) By Diesel: Standard Diesel Generators, Tier 4 Diesel Generators
2) By Gas: Natural Gas Generators, Biogas Generators
3) By Other Products: Propane Generators, Hybrid Generators, Renewable Energy Generators

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Which region dominates the data center generator market?
North America was the largest region in the data center generator market share in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center generator market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Which key market leaders are driving the data center generator industry growth?
Major companies operating in the data center generator market are Alphabet Inc., Amazon.com Inc., Equinix Inc., Microsoft Corp., Oracle Corp., SAP SE, International Business Machines Corp., Cisco Systems Inc., Huawei Investment & Holding Co. Ltd., Google LLC, Meta Platforms Inc., Digital Realty, CyrusOne, GDS Holdings Limited, KDDI's Telehouse, Hewlett Packard Enterprise Company LP, Dell Technologies Inc., Fujitsu Limited, Schneider Electric SE, Eaton Corporation, Vertiv Co., Delta Electronics Inc., Rittal GmbH & Co. KG, ABB Ltd., Siemens AG, Hitachi Ltd., NEC Corporation

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What Is Covered In The Data Center Generator Global Market Report?

• Market Size Forecast: Examine the data center generator market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the data center generator market for a structured understanding.
• Key Players Overview: Analyze major players in the data center generator market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the data center generator market.
• Segment Contributions: Evaluate how different segments drive overall growth in the data center generator market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the data center generator market.
• Industry Challenges: Identify potential risks and obstacles affecting the data center generator market.
• Competitive Landscape: Review strategic developments in the data center generator market, including expansions, agreements, and new product launches.

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