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Comprehensive Data Center Generator Market Forecast 2025-2034: Growth Trends and Strategic Shifts
Use code ONLINE20 to get 20% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.Data Center Generator Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
In the past few years, the size of the data center generator market has been growing continuously. The market is expected to surge from $6.42 billion in 2024 to $6.68 billion in 2025, marking a compound annual growth rate (CAGR) of 4.1%. The historical growth in this sector was driven by factors such as the surge in data usage, the expansion of data centers, need for reliability, digitization, risk of power outage, and enhanced energy efficiency.
Data Center Generator Market Size Forecast: What's the Projected Valuation by 2029?
In the coming years, the data center generator market is anticipated to experience significant growth, with a projection to reach $8.79 billion by 2029 at a 7.1% compound annual growth rate (CAGR). The surge in the forecast period can be attributed to factors like heightened data consumption, emphasis on business continuity, integration of renewable energy, transition to edge computing, and adherence to energy efficiency standards. Major forecast period trends encompass focus on dependability and longevity, embrace of fuel efficiency technologies, swift deployment solutions, proactive upkeep, and remote and unmanned data centers.
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What Are the Drivers Transforming the Data Center Generator Market?
The surge in data center numbers is likely to fuel expansion in the data center generator market. Essentially, a data center is a vast network of interconnected computer servers typically utilized by businesses for remote data processing, storage, or transmission. The need for data center capacity is escalating to never-seen-before levels due to digital transition and the surge of cloud services. Providers of consumer-oriented cloud services and hyperscale operators are expanding their operations at an aggressive pace, thus driving the need for data center generators. In situations where there's a utility power interruption, data center generators provide backup power. For example, in April 2024, Brightlio, a technology solutions provider based in the US, revealed that there were around 10,978 data centers worldwide in 2023. The countries leading in terms of data center locations include the United States (5,388), Germany (522), the U.K. (517), China (449), and Canada (336). Hence, with the rise in the number of data centers, the data center generator market is expected to thrive.
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What Long-Term Trends Will Define the Future of the Data Center Generator Market?
Big corporations in the data center generator market are utilizing strategic partnerships to explore technologies that allow the use of hydrogen as a green energy source for crucial data center infrastructure. A strategic partnership involves companies utilizing each other's strong points and resources for mutual advantages and success. For example, in September 2022, Equinix Inc., an American internet services firm, formed a partnership with the Singapore-based Center for Energy Research & Technology (CERT). In this collaboration, Equinix and CERT will embark on the globe's first research project comparing the effectiveness of proton-exchange membrane (PEM) fuel cells and the fuel-flexible linear generator technologies. PEM fuel cells are considered a leading choice for hydrogen energy, while fuel-flexible linear generators allow the easy switch between several clean fuel options, such as hydrogen, biogas, and a variety of renewable liquid fuels. Using these technologies could allow data centers to reduce their carbon emissions while meeting the growing needs for data, colocation, and interconnection services. The joint research project by Equinix and CERT will conduct a detailed examination of the feasibility of these technologies for tropical data centers, considering local weather conditions, site restrictions, power needs, supply chain logistics, fuel storage capabilities, and compliance with local regulations.
Which Segments in the Data Center Generator Market Offer the Most Profit Potential?
The data center generatormarket 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 Firms Dominate the Data Center Generator Market by Market Share and Revenue in 2025?
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 Offer the Highest Growth Potential in 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.
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