Data center generator market to grow at 5.62% CAGR during 2022-2027

The global data center generator market will be growing at a CAGR of 5.62% during 2022-2027, according to Research and Markets.

Implementation of hydrogen fuel cell generators: Diesel generators are now becoming less popular as they are noisy and cause adverse environmental effects. Instead using natural gas is being adopted by data center operators. In the long run, however, the hydrogen-powered backup will be adopted by operators.

Rise of automation and remote control in generators: Data center operators are adopting automation and monitoring solutions to reduce the need for manual interference, thus a rise in automation will fuel demand in the data center power market.

Data center generator market segmentation
Generators with a power capacity of less than 1 MW are mostly adopted in modular data center deployments. They are also being adopted in developing countries by small-scale data center operators since they are cost-effective to be adopted on an on-demand basis. The use of portable generators is also growing in the market.

Most under-developed projects across the globe fall under the Tier III category. There are over 380 data center projects that fall under the Tier III category. This trend is likely to continue throughout the forecast period, with many operators expected to move to the Tier IV category based on the growth in rack power density and critical data center applications

Geographical outlook
APAC is currently one of the most dynamic data center markets across the globe, with increased investments from colocation providers as well as hyperscale operators.

The growing number of internet users, increased use of social media, elevated smartphone penetration, increased adoption of cloud services, and the need for enterprises to migrate from server room environments to data centers are the major drivers of the data center market in APAC.

Recent development & important investments

• The Central & Eastern region also witnessed significant investments in 2021 from the operators such as Rostelecom, 3data, IXcellerate, Equinix, Digital Realty, and others.
• The availability of free cooling and renewable energy were some of the factors that attracted the data center investment across the Nordics region. Equinix, Digital Realty, Green Mountain, StoreSpeed AS, and Digiplex were among the major investors in the region.

Vendor landscape

• The key players in the data center generator market are ABB, Caterpillar, Cummins, Generac Power Systems, HITEC Power Protection, KOHLER, Rolls-Royce, and Yanmar Holdings (Himoinsa).
• The generator vendors are also offering systems equipped with their engines as well as engines manufactured by other providers such as MTU, Perkins, Mitsubishi, Deutz, Volvo, Iveco, and John Deere.

CT Bureau