Global Data Center Generator Market Projected to Grow at 7.5% CAGR, Reaching $8.98 Billion by 2029

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What Will the Data Center Generator Industry Market Size Be by 2025?
In the past few years, the market size for data center generators has seen robust growth. The figures are projected to rise from $6.42 billion in 2024 to $6.74 billion in 2025, with a compound annual growth rate (CAGR) of 5.0%. Factors that fueled the growth during the historic period include elevated data consumption, expansion of data centers, reliability needs, the shift towards digitalization, risk of power outages, and an uptick in energy efficiency.

What's the Long-Term Growth Forecast for the Data Center Generator Market Size Through 2029?
It is anticipated that the data center generator market will experience robust expansion in the upcoming years, with a projected valuation of $8.99 billion in 2029, growing at a compound annual growth rate (CAGR) of 7.5%. The predicted growth in this period is due to factors like increased data usage, emphasis on business continuity, integration of renewable energy, transition to edge computing, and adherence to energy efficiency norms. Key trends expected in this forecast period encompass prioritizing reliability and durability, adopting fuel efficiency technologies, rapid implementation solutions, predictive upkeep, and the development of remote and unmanned data centers.

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What Are the Key Growth Drivers Fueling the Data Center Generator Market Expansion?
The growth of the data center generator market is set to be driven by an increase in the number of data centers. Essentially a large network of interconnected servers, a data center is typically utilized by businesses for remote processing, storage, or transmission of large volumes of data. The need for data center capacity is soaring due to the advent of digital transformation and the increasing prevalence of cloud services. Providers of cloud services focused on consumers and hyperscale operators are expanding their operations significantly, for which they require data center generators. These generators provide backup power in cases of utility power outages. For example, in 2024, U.S.-based technology solutions provider Brightlio stated that in 2023, there were about 10,978 data centers globally. The countries hosting the most of these were the United States (5,388), Germany (522), the U.K. (517), China (449), and Canada (336). Hence, the growth in the number of data centers is projected to stimulate the expansion of the data center generator market.

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What Are the Key Trends Driving Data Center Generator Market Growth?
Leading businesses in the data center generator market are strategically partnering to explore technologies that allow the use of hydrogen as a sustainable fuel for essential data center infrastructure. Strategic partnerships are tactics where companies utilize each other's specialties and resources for shared achievements and advantages. For example, in September 2022, Equinix Inc., an American Internet service business, joined forces with the Singapore-based Center for Energy Research & Technology (CERT). Through this collaboration, Equinix and CERT will launch a pioneering research initiative to examine the effectiveness of proton-exchange membrane (PEM) fuel cells and fuel-flexible linear generator technologies. PEM fuel cells offer a significant option for hydrogen energy, while fuel-flexible linear generators grant the ability to smoothly shift between numerous clean fuel alternatives, including hydrogen, biogas, and various renewable liquid fuels. Implementing these technologies could allow data centers to reduce carbon emissions while still meeting the growing need for data, colocation, and interconnection services. The investigative collaboration between Equinix and CERT will undertake a thorough analysis of the applicability of these technologies for tropical data centers, factoring in local weather conditions, site restrictions, power needs, supply chain factors, fuel storage capacities, and compliance with local regulation policies.

How Is the Data Center Generator Market Segmented?
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 Companies Are Leading the Charge in Data Center Generator Market Innovation?
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

Which Regions Are Leading the Global Data Center Generator Market in Revenue?
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.

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