Data Center Power Market Forecast Report 2024-2029: Technological Advancements Fuel Data Center Power Market Growth Amid Rising Energy Costs, Market Surges at 9.88% CAGR
Dublin, May 08, 2024 (GLOBE NEWSWIRE) -- The "Data Center Power Market - Forecasts from 2024 to 2029" report has been added to * ResearchAndMarkets.com's* offering.
The data center power market is evaluated at US$19.6 billion for the year 2022 growing at a CAGR of 9.88% reaching the market size of US$37.9 billion by the year 2029.
The increasing demand for data centres and colocation centres is a growing market for data centre power. The data centre power market is expected to see a rise in the forecast period due to the increasing need for efficiency at a low cost. Traditional infrastructure usually has low efficiency due to the use of outdated energy conversion technologies, which causes overloading, downtime, and system failures more frequently, leading to an increase in operational costs and hindrances in the growth of the business. The need for data centre power is being fueled by the surge in data generation and the growing need for improved data storage infrastructure to effectively store massive volumes of data.
However, the data centre power market's growth is being affected due to the requirement of high investments and the inadequate availability of compatible devices in some countries. Lack of awareness among some enterprises about the benefits of power management solutions, coupled with low coverage and weak enforcement of laws associated with energy conservation, is also a restraining factor for this market. Growing investments into data centre expansion by major industry players are increasing the number of data centres as the demand from end-users for more storage space continues to increase, which is expected to continue driving the growth of the market over the projected period.
As the prices of electricity are rising along with the growing demand for data centre power across the globe, the cost incurred on power consumption in data centres accounts for half of the total cost. This is increasing the demand for more efficient data centre power solutions. The installation of efficient data centre power solutions will reduce the company's total expenses, thus bringing down the total cost of ownership of data centres. Increasing awareness about the reduction in carbon footprints is also increasing the market for data centre power.
The data centre power market has been segmented based on solutions, end-users, and geography. By solution, the market has been segmented into the Power Distribution Unit, UPS, and Busway. By end-users, the market has been segmented into colocation providers, cloud providers, and enterprises.
*Power distribution systems hold a significant share of the market*
Power distribution demand is increasing due to an increase in demand for intelligent power distribution units. Companies are moving on to intelligent power distribution units from traditional multi-socket racks with servers and network equipment. These units can measure distributed power parameters and identify environmental factors like temperature and humidity, which are contributing to their growing demand. UPS also holds a significant share in this market on account of the increasing focus of end-user enterprises on ensuring business continuity.
Datacentre UPS helps companies regulate and provide an uninterrupted power supply to equipment like servers and routers to run all the devices smoothly. Since the cost of downtime is showing a continuous increase, data centre owners are showing a continuous increase in demand for data centre UPS. An increase in the usage of portable UPS systems in services like Software as a Service (SaaS), high-performance computing, online gaming, and online media streaming is also fueling the market for data centre power.
*Colocation Service providers are expected to add momentum to the growth of data centre power*
By end-user, the data centre power market has been segmented into colocation providers, cloud providers, and enterprises. Colocation providers are expected to add momentum to the data centre power market due to an increase in the number of colocation centres around the world. The increase in colocation centres around the world is due to increasing requirements for data storage, big data management, and cloud computing, and an increase in the implication of artificial intelligence coupled with the increasing focus of end-users toward cost reduction. The market for data centre power in cloud data centres and enterprises is expected to witness decent growth over the forecast period.
The rapid growth of cloud computing worldwide on account of increasing demand for more agile infrastructure among enterprises of all sizes is adding to the growth of the market in this segment. As traditional setups in enterprise-owned data centres are being upgraded, to comply with industry standards and to integrate advanced technologies with improved power management capabilities, the market for data centre power is expected to show decent growth in this segment.
*North America is expected to hold a significant share during the forecast period*
North America holds a significant share of the data centre power market, and the growth of the market in this region is majorly attributed to the presence of a large number of data centres here. The availability of state-of-the-art infrastructure in countries like the United States and Canada is attracting investments by many major industry players into data centre expansion projects.
Europe also holds a fairly large share of this market and the market growth in this region is being driven by stringent regulations regarding data protection, which continue to have enterprises' trust. As a result, many enterprises are pumping investments into data centres in this region owing to the high reliability offered by the vendors here.
*Product Offerings*
· *Tripp Lite Power Distribution Unit PDUMH20HV:* An outlet-equipped device called a Power Distribution Unit (PDU) is used to supply power to computers, servers, network switches, and other IT equipment in a rack. PDUs are available in a range of designs that offer everything from straightforward power distribution to more sophisticated remote power management. The PDUMH20HV is a horizontal PDU, which means it is smaller in size and has fewer outlets. It is mounted in a rack and takes up one or two rack spaces (1U-2U).
· *Eaton ATS rack PDU:* The Eaton automatic transfer switch (ATS) PDU provides redundant power and keeps important mission-critical applications running while enabling remote monitoring of alarms with Eaton Gigabit Network cards that are compatible. The Eaton ATS PDU is typically utilized to provide energy redundancy to devices with a single power supply. If the primary source breaks or needs maintenance, it immediately and without interruption switches to the backup source to prevent equipment downtime.
*Market key launches*
· In December 2023, TEPCO Power Grid, Inc. (TEPCO PG) and NTT Global Data Centers Japan (NTT GDCJ), a division of NTT DATA Group Corporation, have decided to form a new business to collaboratively develop and run data centers in the Inzai-Shiroi neighborhood of Greater Tokyo, Japan. To secure power and connectivity jointly and support the development of data centers, primarily in Greater Tokyo, NTT GDCJ and TEPCO PG investigate the strategic placement of data centers. The joint venture will purchase land in the Inzai-Shiroi area as the partnership's first project. This area is one of the main hubs for large-scale data centers in the Asia-Pacific region.
· In October 2022, a plan for an International Business Exchange (IBX) data centre in the centre of Jakarta, valued at USD 74 million, was revealed by digital infrastructure company Equinix, Inc. With Equinix's expansion, Indonesian businesses and foreign companies doing business there will be able to connect and integrate the core infrastructure that powers their enterprises using their reliable platform.
*Key Attributes:*
*Report Attribute* *Details*
No. of Pages 135
Forecast Period 2022 - 2029
Estimated Market Value (USD) in 2022 $19.6 Billion
Forecasted Market Value (USD) by 2029 $37.91 Billion
Compound Annual Growth Rate 9.8%
Regions Covered Global
*Market Segmentation:*
*By Solution*
· Power Distribution Unit
· UPS
· Busway
*By End-User*
· Colocation Providers
· Cloud Providers
· Enterprises
*Companies Featured*
· Hewlett Packard Enterprise
· ABB
· Vertiv Group Corp
· Schneider Electric
· Eaton
· Rittal GmbH & Co. KG (Friedhelm Loh Group)
· Raritan Inc.
· Delta Electronics, Inc.
· General Electric
· Huawei Technologies Co., Ltd.
For more information about this report visit https://www.researchandmarkets.com/r/z7kyg3
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*Attachment*
· Global Data Center Power Market
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