The Global Data Center Power Market size is expected to reach $13 billion by 2028, rising at a market growth of 7.7% CAGR during the forecast period.
A data center is a self-contained unit within a building that stores computing equipment like servers as well as other components, including network, telecommunications, and storage systems. Every entity that makes or uses data, including government agencies, educational institutions, financial organizations, retailers of all sizes, social networking sites, providers of online information, and many more, requires data centers to a certain extent. Because AC is frequently converted to DC or vice versa, any data center would certainly require alternating current and direct current electricity.
The administration, measuring, and surveillance of power generation, consumption, and optimization inside a data center facility is known as data center power. It is a stage of the data center infrastructure management process that aims to offer administrators administrative control over a data center's electrical energy tools and operations. It entails defining, executing, and monitoring strategies to increase data center power efficiency at both the hardware and software levels. This can include replacing outdated equipment with newer, lower-power equipment and installing power management software to measure, monitor, and reduce power consumption throughout the data center.
When assessing data centers, one of the most critical and sometimes underestimated criteria is electricity. Power is the vital component that brings the data center to operation. It is also one of the most essential considerations when determining colocation costs. Servers, switches, routers, and other IT infrastructure are powered by two separate types of power circuits viz. alternating Current and Direct Current. Access to on-demand power or currents, like 240V, 220V, 208V, 120V, or 110V is provided via an AC power supply through plugging in devices. At regular periods of time, alternating current (AC) allows current or voltage to change direction or polarity. Customers who require services for a facility, storage devices, or rack-mounted servers should consider AC power circuits.
The COVID-19 pandemic severely impacted various economies all over the world. The outbreak of the pandemic caused a substantial slowdown in various major businesses while demolishing several small and medium businesses. In addition, governments across the world were compelled to enforce lockdown in their nations in order to regulate the diffusion of the COVID-19 infection. Due to the lockdown situation, various industries had to suffer complete or partial shutdown. Further, owing to the travel restrictions all over the world, the worldwide supply chain was majorly disrupted.
Datacenter owners strive to reduce operational costs via optimizing the overall costs. Power tariffs, racks, data center servers, and HVAC systems all grow as operational costs rise. The annual operation expenditure of an average large data center accounts for a significant proportion of capital expense. Power costs can also majorly increase the total cost of running data centers, depending on energy sources, data center tiers, and geographies. With increasing reliability, data center infrastructure expenses and operational complexities rise. The majority of the money spent on data centers goes toward power. It is utilized in data centers to run IT equipment, such as computers and servers, as well as cooling and power infrastructure.
The increasing data generation along with the demand to improve data center performance has increased the need for data center remodeling. The data center, server rooms, and surroundings should be renovated for a variety of reasons. When equipment is used in high ambient temperatures or exposed to extreme environmental conditions, it depreciates. Data center renovations are carried out to upgrade facilities, such as infrastructure, to sustain the load of IT requirements, expand available power and space, and improve data center facilities' overall reliability.
Due to the requirement for a substantial initial investment, businesses face significant challenges in the data center power sector. Modern data center power systems necessitate a shift away from traditional data center components toward more modern and updated data center components. It necessitates infrastructure upgrades, new gear and software installs, as well as manpower. This shift requires a significant initial expenditure. Due to this requirement, most businesses, even SMEs with limited money, are unable to modernize their data centers. The initial investment required to deploy energy-efficient power solutions is much higher than that required to establish standard power solutions.
Based on Product, the market is segmented into UPS, PDU, Busway, and Others. In 2021, the PDU segment recorded a significant revenue share of the data power center market. The rising growth of this segment is attributed to the increased automation in power management due to this technology. In data centers, a PDU, or power distribution unit, is a device that controls electrical power. Large power panels without surge protection are the most basic PDUs. They have no remote or monitoring access capabilities and are meant to offer normal electrical plugs for data center equipment.
Based on End User, the market is segmented into BFSI, Energy, Government, Healthcare, IT & Telecommunications, Retail, and Others. In 2021, the BFSI segment procured the highest revenue share of the data center power market. The rising growth of this segment is owing to the increasing growth of the BFSI sector all over the world. With the rapidly rising workloads in this sector, the demand for automation is constantly surging. The adoption of data power center is increasing owing to this factor. Hence, the growth of this segment is increasing.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 7.8 Billion |
| Market size forecast in 2028 | USD 13 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 7.7% from 2022 to 2028 |
| Number of Pages | 212 |
| Number of Tables | 314 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Product, End User, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2021, North America accounted for the largest revenue share of the data center power market. The rising growth of the segment is attributed to the early adoption of various latest and advanced technologies. Moreover, another major reason that is propelling the growth of the regional market is the rapidly increasing population of the region. Furthermore, the regional IT and telecom infrastructure is significantly robust, which is contributing to the rising growth of the segment.
Free Valuable Insights: Global Data Center Power Market size to reach USD 13 Billion by 2028
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Huawei Technologies Co., Ltd. is the forerunner in the Data Centre Power Market. Companies such as Cisco Systems, Inc., Siemens AG and Schneider Electric SE are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Schneider Electric SE, Siemens AG, Legrand S.A., Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), ABB Group, Eaton Corporation PLC, Mitsubishi Electric Corporation, Vertiv Holdings Co., Delta Electronics, Inc., and Cisco Systems, Inc.
By Component
By End User
By Geography
The data center power market size is projected to reach USD 13 billion by 2028.
Increasing number of data centers renovations are driving the market in coming years, however, high initial investment growth of the market.
Schneider Electric SE, Siemens AG, Legrand S.A., Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), ABB Group, Eaton Corporation PLC, Mitsubishi Electric Corporation, Vertiv Holdings Co., Delta Electronics, Inc., and Cisco Systems, Inc.
The expected CAGR of the data center power market is 7.7% from 2022 to 2028.
The UPS segment acquired maximum revenue share in the Global Data Center Power Market by Product in 2021, thereby, achieving a market value of $5 billion by 2028.
The North America market dominated the Global Data Center Power Market by Region in 2021, and would continue to be a dominant market till 2028.
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