Data Centre Power Market

Global Data Centre Power Market Forecast

The Data Centre Power Market is expected to grow from USD 29.6 billion in 2026 to USD 56.6 billion by 2033, reflecting strong industry expansion and registering a CAGR of 9.7% during the forecast period from 2026 to 2033.

Rising Adoption of Cloud Computing to Fuel Growth of Data Centre Power Market

There are many considerations when selecting a data centre facility or colocation provider such as location, security, and support. However, one of the most important and often overlooked criteria when evaluating data centres is power. Power is the critical element that brings a data centre to life and keeps IT infrastructure up and running even during a disruption. It’s also one of the most important factors in calculating costs for colocation services. The growing demand to store data in the cloud has led in an increase in the number of data centres throughout the world, which consume a massive amount of energy. This is primarily driving the growth of global data centre power market. The rising usage of innovative technologies to reduce power consumption, in conjunction with the rise of modular data centres, is expected to fuel the expansion of data centre power market. With proliferating adoption of software as a service (SaaS), as well as the opportunity created by the mainstreaming of work from home culture, data centre power market will further exhibit lucrative growth potential.

According to Cisco, in 2021, data centre traffic was rapidly increasing and was predicted to reach 19.5 zettabytes (ZB) per year as a result of factors such as the expansion of Internet of Things (IoT) applications such as smart cars, smart cities, and linked health devices. Microsoft's Azure cloud is carbon-neutral, and half of the energy it consumes already comes from 1.2 gigatonnes of wind, solar, and hydro-electric sources, which is increased to 60% in 2020 and 100% at some point in the future for its data centre architecture. Cloud storage providers like as AWS, Microsoft, and Google are improving their storage capacity in order to enable more efficient cloud workflow. These firms are investing in hyperscale agreements, which is propelling the global data centre power market forward. In June 2021, Amazon Web Services Inc. (AWS), announced the installation of data centres in Israel. The company's goal is to enable more developers, start-ups, corporations, governments, institutions, and non-profits in the region to run their apps and service end users from data centres in the country.

Similarly, other corporations are contemplating data centre expansion in various countries. In June 2021, Stockland, an Australian real-estate corporation, revealed plans to develop a new data centre in Sydney. The data centre is expected to cost AUD 264 million in total. It will also comprise 6,300 square metres of data halls, 3,215 square metres of office space, and over 13,000 square metres of electrical and mechanical services. Such advances in the data centre industry are expected to drive the data centre power market's growth throughout the projected period.

Increased Utilisation of Large Data Centre by Large Organisations with High-Density Cloud Computing Systems to Drive Growth of Data Centre Power Market

Large data centres to hold a larger market size during the forecast period. Large data centres have an area of more than 25,000 square feet and are made up of high-density server racks. They provide improved ceiling service installation and a more fluid flow of activities on manufacturing floors. They use Computer Room Air Handler (CRAH) and Precision Air Handling Unit (PAHU) equipment that are extremely energy efficient. Better PDUs that improve efficiency and monitor losses are also included. These data centres consume more electricity than mid-sized and business data centres. This is due to increased data centre architecture and more complicated networking, servers, storage, and equipment, all of which necessitate effective data centre power handling and monitoring solutions. Major data centres are used by large organisations with high-density cloud computing systems. Large data centres are used for storage by data centre power systems, which provide consistency in power supply to both private and hybrid cloud platforms. They decrease capital expenditure and operational costs while also providing data security. Large data centre adoption among large organisations is likely to drive global data centre power market growth in the future years.

Rapid Adoption of Modern Technologies in Asia Pacific to Drive Growth of Data Centre Power Market

Asia-Pacific is expected to observe a significant growth during the forecast period. Rapid adoption of modern technologies such as 5G, big data, IoT, and cloud computing, resulting in an increase in the construction of new data centres. The existence of a high number of data centres in the country is increasing demand for data centre power systems. Furthermore, the rising number of new data centre projects and upgrades to existing data centres as a result of an increase in online shopping, social events, online schooling, and remote working under the pandemic situation is predicted to boost the expansion of data centre power market.

Countries such as Japan, China, and Australia are building massive data centres, fuelling industry expansion. Since the majority of data centres are fuelled by polluting coal, the governments of the countries are conducting a massive transition shift toward clean and renewable energy sources. China has installed the most renewable energy, with solar power exceeding 174GW and wind power over 184GW. Furthermore, the spike in data centre development expenditure is likely to fuel demand for data centre power solutions. China presently has 447 data centres and 112 service providers, according to Cloudscene. Moreover, in April 2021, Apple has announced the official inauguration of a new data centre in Guizhou, China. This data centre was built in collaboration between Apple and Guizhou-Cloud Big Data Industry Co. Ltd. Such new data centre projects in the country are expected to increase demand for data centre power solutions, thereby fostering the performance of data centre power market.

Prominent Players in Global Data Centre Power Market

• ABB
• Black Box
• CyrusOne
• Eaton
• Equinix Inc.
• GDS Holdings
• Generac Power Systems, Inc.
• General Electric Company
• Huawei Technologies Co., Ltd.
• Legrand

The Global Data Centre Power Market is Segmented as Below:

Component Outlook

• Solution
• Services

Solution Outlook

• PDU
• UPS
• Busway
• Others

Service Outlook

• Design & Consulting
• Integration & Deployment
• Support & Maintenance

End Use Outlook
• IT & Telecommunications
• BFSI
• Government
• Energy
• Healthcare
• Retail
• Others

By Region
• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa