Data Center Generator Market Size (2024 - 2029)

Data Center Generator Market Analysis

The Data Center Generator Market size is estimated at USD 7.22 billion in 2024, and is expected to reach USD 9.14 billion by 2029, growing at a CAGR of 4.85% during the forecast period (2024-2029).

Data centers are at significant risk of experiencing operational losses owing to power outages caused by utility grid failures, rolling blackouts, bad weather, natural or artificial calamities, or electrical breakdowns. Systems and components used in data centers are expected to operate nonstop. They require dependable, uninterrupted power seven days a week, creating a demand for the data center generator market.

The growth of digital data has significantly fueled the market studied. The need for data centers has increased as the population grows increasingly connected and dependent on digital infrastructure. The amount of digital data produced globally is growing rapidly.

Moreover, the emerging cloud technology in a wide range of data centers is one of the major factors driving the overall demand for data center systems and technologies, thereby fueling the studied market's growth. Continued high demand for data centers is expected to be driven by fast growth such as AI and other modern technologies, e.g., streaming gaming or autonomous car technology. As operators strive to provide the capacity that will allow them to meet increased power density requirements for HPC, innovation in data center design and technology may also be stimulated.

Due to an increase in data center construction and the increased number of hyperscale buildings by colocation and hyperscale operators, the global market for power generators has expanded. In several emerging countries, such as Brazil, Denmark, Singapore, Australia, Canada, India, Japan, Sweden, South Korea, and so on, several hyperscale data center projects have been identified. These projects in these countries are creating opportunities for suppliers of energy infrastructure.

The escalating growth of carbon emissions from data centers poses a significant restraint for data center operators and their generators. As the demand for digital services and storage continues to surge, the environmental impact of these facilities becomes an important concern. This issue necessitates comprehensively examining the challenges and potential solutions for mitigating carbon emissions from data centers.

With the outbreak of COVID-19, the cloud market gained significant traction as cloud-based services and tools are increasingly adopted due to organizations deploying remote work access amid lockdowns in various countries, as indicated in the graph. Most data centers worldwide witnessed a massive surge in demand owing to the growth of cloud adoption across all sizes of enterprises.

Data Center Generator Industry Segmentation

DC Generators are the backup power supply reservoirs for the data centers during a power break. A total power cut-off from a data center may need a complete restart for the system. This may lead to system downtime, start-up issues, and current/ongoing information damage. Thus, the generators constantly support data centers with a backup power supply to evade such irregularities and failures.

The data center generator market is segmented by product type (diesel, natural gas, and other product types), capacity (less than 1MW, 1-2MW, greater than 2MW), tier (tier I and II, tier III, tier IV), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts regarding value (USD) for all the above segments are provided.