The Business Research Company’s report on the Data Center Generator Market provides insights into the global market size, growth rate, regional distribution, competitive landscape, key segments, emerging trends, and strategic opportunities.
What are the primary drivers fueling the growth of the data center generator market in recent years?
The increase in the number of data centers is expected to propel the growth of the data center generator market. A data center is a huge group of linked computer servers that businesses typically employ for the distant processing, archiving, or transport of massive amounts of data. The increased demand for data center capacity is rising to unprecedented heights due to digital transformation and the rise of cloud services. Consumer-focused cloud providers and hyperscale operators are aggressively growing their operations, for which they need data center generators. In the event of a utility power outage, a data center generator can be used to supply backup power. For instance, in April 2024, Brightlio, a US-based company that provides technology solutions published that, around 10,978 data center were located globally in 2023. Among them, the top countries are the United States (5,388), Germany (522), the U.K. (517), China (449), and Canada (336). Therefore, an increase in the number of data centers is expected to drive the growth of the data center generator market.
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What is the projected market size of the data center generator industry, and how is it expected to grow?
The data center generator market size has grown strongly in recent years. It will grow from $6.42 billion in 2024 to $6.74 billion in 2025 at a compound annual growth rate (CAGR) of 5.0%. The growth in the historic period can be attributed to rise in data consumption, data center growth, reliability requirements, digital transformation, power outage risks, increased energy efficiency.
The data center generator market size is expected to see strong growth in the next few years. It will grow to $8.99 billion in 2029 at a compound annual growth rate (CAGR) of 7.5%. The growth in the forecast period can be attributed to increased data consumption, focus on business continuity, renewable energy integration, shift to edge computing, energy efficiency standards. Major trends in the forecast period include focus on reliability and durability, adoption of fuel efficiency technologies, rapid deployment solutions, predictive maintenance, remote and unmanned data centers.
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Who are the key players driving competition in the data center generator market?
Major companies operating in the data center generator market are Alphabet Inc., Amazon.com Inc., Equinix Inc., Microsoft Corp., Oracle Corp., SAP SE, International Business Machines Corp., Cisco Systems Inc., Huawei Investment & Holding Co. Ltd., Google LLC, Meta Platforms Inc., Digital Realty, CyrusOne, GDS Holdings Limited, KDDI’s Telehouse, Hewlett Packard Enterprise Company LP, Dell Technologies Inc., Fujitsu Limited, Schneider Electric SE, Eaton Corporation, Vertiv Co., Delta Electronics Inc., Rittal GmbH & Co. KG, ABB Ltd., Siemens AG, Hitachi Ltd., NEC Corporation
What key trends are expected to drive the data center market during the forecast period?
Major companies operating in the data center generator market are adopting a strategic partnership approach to investigate technologies facilitating the utilization of hydrogen as an eco-friendly fuel for vital data center infrastructure. Strategic partnerships refer to a process in which companies leverage each other’s strengths and resources to achieve mutual benefits and success. For instance, in September 2022, Equinix Inc., a US-based Internet services company, partnered with Center for Energy Research & Technology (CERT), a Singapore-based interdisciplinary energy research center. Through this partnership, Equinix and CERT will initiate the world’s inaugural research initiative aimed at comparing the efficiency of proton-exchange membrane (PEM) fuel cells and fuel-flexible linear generator technologies. PEM fuel cells stand out as a prominent option for hydrogen energy, while fuel-flexible linear generators provide the flexibility to seamlessly transition between various clean fuel choices, including hydrogen, biogas, and diverse renewable liquid fuels. The adoption of these technologies has the potential to enable data centers to curtail carbon emissions while satisfying the increasing demand for data, colocation, and interconnection services. The research partnership between Equinix and CERT will encompass a comprehensive evaluation of the suitability of these technologies for tropical data centers, taking into account local climatic conditions, site limitations, power requirements, supply chain considerations, fuel storage capabilities, and adherence to local regulatory policies.
Which key geographies are driving the growth of the data center generator market?
North America was the largest region in the data center generator market share in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center generator market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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What are the key segments driving growth in the data center generator market?
The data center generator market covered in this report is segmented –
1) By Product: Diesel, Gas, Other Products
2) By Capacity: < 1 MW, 1 MW-2MW, >2MW
3) By Tier Standard: Tier I And II, Tier III, Tier IV
Subsegments:
1) By Diesel: Standard Diesel Generators, Tier 4 Diesel Generators
2) By Gas: Natural Gas Generators, Biogas Generators
3) By Other Products: Propane Generators, Hybrid Generators, Renewable Energy Generators
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How is the data center generator market defined?
A data center generator is an electrical device used to provide backup power when the utility power goes out. It is an affordable and trustworthy source of onsite power generation, provided they are maintained periodically.
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