Data Center Power Market by Infrastructure, UPS Systems Generators, Tier Standards and Geography - Forecast to 2025

DUBLIN, May 5, 2020 /PRNewswire/ -- The "Data Center Power Market - Global Outlook and Forecast 2020-2025" report has been added to's offering.

The report considers the present scenario of the data center power market during the forecast period and its market dynamics for the forecast period 2020-2025. It covers a detailed overview of several market growth enablers, restraints, and trends. The report profiles and examines leading companies and several other prominent companies operating in the market.

The Data Center Power Market is Expected to Grow at a CAGR of Over 11% During the Period 2019-2025

The global data center power market witnessed significant growth with more than 400 new investment and expansion projects in 2019. With thousands of existing data centers across the globe, service operators and vendors are continuously working to improve the efficiency of the power infrastructure adopted to overcome regulatory and environmental challenges. Increasing innovations in server virtualization and the adoption of artificial intelligence-based servers have increased the demand for high-efficiency power and cooling infrastructure.

To improve the efficiency of IT infrastructure operations in the facilities, the concept of the software-defined data center (SDDC) is gaining wide acceptance. The market is moving toward software-defined support infrastructure in the facilities. Multiple software vendors in the data center power market are partnering with major infrastructure providers to improve the efficiency of facilities using software-defined practices. The need for DCIM solution is witnessing growth due to the increasing number of facilities with high energy consumption and carbon emissions. Developing countries are identifying the potential benefit of using software solutions to monitor and automate new facilities. Hence, the increasing collaboration to improve capacity utilization through end-to-end automation of power infrastructure is driving the data center power market.

Market segmentation by infrastructure, UPS systems generators, tier standards, and geography

UPS systems is the largest revenue contributor to the power backup systems market, followed by generators, transfer switches and switchgears, and PDUs. Due to the wide adoption of modular, scalable, and lithium-ion powered systems, the revenue from UPS systems is likely to rise during the forecast period. Diesel generators are expected to dominate in the coming years. However, gas and bi-fuel generators are likely to experience steady growth. With the development of > 10MW capacity and 20 kW rack power facilities in developing countries, the market for scalable UPS systems and rack-level UPS systems is expected to grow.

A majority of the existing facilities are driven by the infrastructure in the N+N redundant configuration. Vendors are equipping their facilities with minimum N+1 distributed power systems with flexible designs supporting 2N+1 redundant infrastructure installations. The data center power market in Western Europe is expected to witness an absolute growth of over 7% during the forecast period. Major facilities are adopted UPS systems with N+1 redundancy and diesel generators in N+1 redundant configuration. A majority of investments are of greenfield projects, with service providers likely to expand their facilities. Hyperscale data center is likely to adopt DC systems and reduced dependence on generators as the facility is powered with renewable energy supplied through 99.99% reliable grids.

Vendors are offering multiple UPS systems with a capacity of <=500 kVA. These systems are mostly adopted at the rack level with high implementation among small and medium-sized facilities. The growth of <=500 kVA UPS systems will be higher among prefabricated operators than traditional brick-and-mortar facilities. There are multiple facilities expansions with less than 1 MW capacity, which are adopting UPS systems with a capacity of less than 500 kVA. Hyperscale in-row/in-rack power solutions also contribute to the growth of

Market vendors are currently offering multiple generators with a capacity of less than 1 MW. However, the use of these systems highly depends on the energy consumed by the facilities. Like UPS systems, generators with a capacity of less than 1 MW are mostly adopted in modular data center deployments. They are also being adopted by small-scale operators and on-premise data center operators in developing countries since they are cost-effective. With facility operators moving toward edge computing, the adoption of these systems is expected to grow during the forecast period. DRUPS solutions are likely to witness an increased demand among data centers with multiple modules having a total capacity of over 1 MW in N+N redundant configurations. The increasing deployment of hyperscale facilities will continue to increase the demand for greater than 2 MW generators during the forecast period. Also, countries that face frequent electricity outages will install these systems in 2N redundant configurations with up to 72 hours of fuel backup on-site.

There are a few small-scale colocation facilities that are likely to operate with redundancy in UPS systems and PDU devices among Tier II facilities. A majority of under-developed projects across the globe fall under the Tier III category. There are more than 350 projects that are open and under construction that fall into the Tier III category. This trend is likely to continue during the forecast period, with many operators likely to move to the Tier IV category based on the growth in rack power density and critical data center applications. Tier IV data centers are equipped with at least 2N+1 redundancy across infrastructure, making the facility fault-tolerant.

Market Segmentation by:


    --  UPS Systems
    --  Generators
    --  Transfer Switches and Switchgears
    --  Rack PDU
    --  Other Electrical Infrastructures

UPS Systems

    --  <=500kVA
    --  500-1000 kVA
    --  1000kVA


    --  <=1MW
    --  1-2MW
    --  >2MW

Tier Standards

    --  Tier I &II
    --  Tier III
    --  Tier IV

Insights by Geography

The US is the leading market for data center power infrastructure. In terms of investment, Virginia, Arizona, Illinois, Nevada, California, Texas, Ohio, Tennessee, Iowa, and North Carolina have received more than $500 million of investment. Colocation and hyperscale self-built facilities are the major contributors to the market. The US is among the major contributor to the >2 MW data center generator investments segment. In Canada, multiple facilities have adopted 500 kVA UPS systems.

The data center market in Western Europe has witnessed significant growth in terms of investment. Germany has witnessed the highest investment followed by the Netherland, the UK, France, and Ireland. Germany witnessed the development of facilities over 200 MW capacity in 2019, followed by the UK and the Netherlands. Many facilities in Western Europe are being built to support OCP rack infrastructure solutions and higher rack power density, which increases the investment in modular power infrastructure.

Market Segmentation by Geography

    --  North America
    --  Latin America
    --  Western Europe
    --  Nordic
    --  Central & Eastern Europe
    --  Middle East
    --  Africa
    --  APAC

Key Vendor Analysis

The data center power market is witnessing increasing competition. The market is becoming highly competitive, with solution providers innovating product offerings to increase efficiency and reliability. ABB, Eaton, Cummins, Caterpillar, Schneider Electric, and Vertiv are the leading players for UPS and rack PDUs. Facility operators are focused on operating carbon emission-free data centers. Infrastructure providers are continuously innovating and improving backup sources. The emergence of nickel-zinc batteries and the growing procurement of lithium-ion batteries will continue to intensify the competition. In developing countries, partnerships with local service providers and resellers will enhance revenues for vendors. The use of DC systems in hyperscale facilities is likely to witness significant growth.

Key Company Profiles

    --  Hewlett Packard Enterprise (HPE)
    --  ABB
    --  Caterpillar
    --  Cummins
    --  Eaton
    --  Schneider Electric
    --  Vertiv

Other Prominent Vendors - AEG Power Solutions, Artesyn Embedded Technologies (Advanced Energy), Black Box Network Services (AGC Networks), Bloom Energy (Fuel Cells), Chatsworth Products, Cisco Systems, Controlled Power Company, Crenlo, Cyber Power Systems, Delta Group, Euro-Diesel (KINOLT), Fuji Electric, Generac Power Systems, Hewlett Packard Enterprise (HPE), Hitachi Hi-Rel Power Electronics, Hitech Power Protection, Hitzinger, KOEL (Kirloskar Group), KOHLER (SDMO), Legrand, Mitsubishi, MTU On Site Energy (Rolls Royce Power Systems AG), Natron Energy, Panduit, Piller Power Systems, Pramac, Riello UPS, Rittal, Shenzhen KSTAR Science And Technology, Socomec, Toshiba, Virtual Power Systems, Yanmar Group, ZAF Energy System and ZincFive.

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