NEW YORK, July 24, 2024 /PRNewswire/ -- The global generator in data centers market  size is estimated to grow by USD 4.26 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 8.56% during the forecast period. Increasing investments in data centers is driving market growth, with a trend towards use of next-generation power monitoring and management software. However, increase in carbon emission  poses a challenge. Key market players include Aggreko Plc, Atlas Copco AB, AVK SEG, Caterpillar Inc., Cummins Inc., Generac Holdings Inc., General Electric Co., Greaves Cotton Ltd., J C Bamford Excavators Ltd., Kirloskar Oil Engines Ltd., Kohler Co., Mahindra and Mahindra Ltd., Mitsubishi Heavy Industries Ltd., Nidec Corp., Powerica Ltd., Rolls Royce Holdings Plc, Sterling and Wilson Pvt. Ltd, Volvo Penta AB, Wartsila Corp., and Yanmar Holdings Co. Ltd..

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Key Market Trends Fueling Growth

Data center and IT professionals aim to optimize power delivery to critical components, saving costs and time while minimizing risks. Upgrading to advanced power monitoring and management software enables real-time monitoring, predictive analytics, and automates traditional monitoring tasks. This software predicts component failures, reducing the risk of power outages caused by equipment failure. Comprehensive analytics, advanced workflows, and domain expertise are integrated into the software. R&D in monitoring software continues, enabling early detection of power outage sources weeks before occurrence. Critical components, like backup generators, are monitored for abnormalities, allowing preventive measures against major power outages. Power management is vital for organizations, and power monitoring solutions enhance operational efficiency at lower costs. 

Data centers are essential for businesses to store and manage digital information. However, power interruptions and system downtime can lead to significant information loss and errors. To ensure up-time and reliability, data centers rely on backup power supplies like generators. The generator market is witnessing trends such as the use of renewable energy sources like solar, wind, and biogas, as well as gas turbines and fuel cells. Major manufacturers like Adani Group are investing in solar-powered data parks and hyperscale facilities. Edge data centers and 5G technology require customized capacity and power backup solutions. Power costs, including electricity prices and taxes, are driving the need for efficient power density and power loss prediction systems. Colocation service providers offer reliable power backup through diesel and natural gas generators, as well as Li-ion batteries. Power modules and backup power systems are essential for data center operation and power reliability. 

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Market Challenges

• Data centers consist of various components, such as generators, IT servers, building shells, and cooling systems, which release carbon dioxide during operation. The carbon emissions depend on the power consumption of these facilities, with those using coal-generated electricity emitting more than those utilizing renewable energy sources. The carbon footprint of US data centers is significant and higher than many other countries. Data center operators can calculate Carbon Usage Effectiveness (CUE) by considering the Data Center Facility Power Usage Effectiveness (PUE) rating and carbon dioxide emissions factor. Low PUE ratings correspond to less carbon emissions. The use of intelligent infrastructure, which aids in efficient CUE calculation and power supply based on IT infrastructure requirements, is expected to hinder the growth of the global generator market in data centers due to reduced power consumption.
• Data centers require uninterrupted power supply to ensure business continuity. Traditional power sources like diesel and natural gas generators face challenges from rising fuel costs and environmental concerns. Alternative energy sources, such as biogas from landfills, sewage gas, and industrial waste gases, offer solutions. Generators using biogas and steam turbines are gaining popularity. Major manufacturers like Adani Group are investing in solar-powered data parks and fuel cells. Backup power systems, including Li-ion batteries and power interruption prediction systems, are essential for data center operation. Power loss can lead to significant financial losses and reputational damage. Edge computing sites require customized capacity power backup solutions. Decision-makers face micro-economic factors, including power costs and power reliability, when selecting power backup solutions. Renewable energy sources like wind and solar are becoming more viable options. Fossil fuels and nuclear energy continue to dominate, but their environmental impact and rising costs make them less attractive. Power interruption and backup power supply are critical concerns for data center operation. Generator market trends include the use of fuel cells, natural gas generators, and Li-ion batteries. Power loss prediction systems help mitigate downtime risks. Electricity costs and power reliability are major factors in the decision-making process.

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Segment Overview 

This generator in data centers market report extensively covers market segmentation by

1. Type 
   • 1.1 Diesel
   • 1.2 Gas
2. Capacity 
   • 2.1 Less than 1MW
   • 2.2 1MW-2MW
   • 2.3 More than 2MW
3. Geography 
   • 3.1 North America
   • 3.2 Europe
   • 3.3 APAC
   • 3.4 South America
   • 3.5 Middle East and Africa

1.1 Diesel-  The generator market in data centers is experiencing significant growth due to the increasing demand for reliable and efficient power solutions. Data centers require uninterrupted power supply to ensure seamless operations. Generators provide backup power during power outages and help prevent downtime. Market leaders offer advanced technologies such as fuel cells and microturbines for improved efficiency and reduced emissions. The market is expected to continue expanding as businesses prioritize digital transformation and data security.

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The global data center market is booming, driven by increased demand for data storage and processing. In parallel, the global data center mechanical construction sector is evolving, with innovative cooling and HVAC systems becoming crucial for efficiency and reliability. The global data center power market is also expanding, as advanced power solutions are essential for managing the substantial energy needs of these facilities. With rising data consumption and technological advancements, investments in mechanical construction and power solutions are key to supporting the growth and sustainability of data centers worldwide.

Research Analysis

The generator market in data centers plays a crucial role in ensuring uninterrupted power supply and maintaining high reliability. Power interruptions and system downtime can lead to significant information loss and financial consequences. Anomalies, errors, and up-time are key performance indicators for data center operators. Power density, a critical factor in generator selection, is increasing due to the proliferation of edge data centers. 5G technology and edge computing are driving the demand for customized capacity and power backup solutions. Fuel cells, solar-powered data parks, natural gas generators, and diesel generators are popular power backup options. Li-ion batteries and backup power systems are essential components of these solutions. Power loss prediction systems help mitigate the impact of electricity outages. The generator market continues to evolve, offering innovative solutions to meet the evolving power needs of data centers.

Market Research Overview

Data centers are critical infrastructure for businesses and organizations, housing vital information and ensuring uninterrupted digital services. However, power interruptions and system downtime can lead to significant information loss and financial consequences. Anomalies, errors, and up-time reliability are key concerns for data center operators. Power density, the amount of power used per unit area, is a major consideration for data center design and operation. Edge data centers, powered by 5G technology, are becoming increasingly popular, reducing latency and improving data processing speed. Colocation service providers offer customized capacity solutions, while hyperscale facilities require massive power supplies. Electricity prices, taxes, and renewable energy sources impact power costs. Generators, including gas turbines, power modules, and fuel cells, provide backup power. Biogas, landfill gas, steam, sewage gas, and industrial waste gases are potential renewable energy sources. Power interruption prediction systems help mitigate power loss. Power costs, including electricity, fuel cells, and batteries, are significant factors for decision-makers. Renewable energy sources, such as solar and natural gas generators, are increasingly used for power backup solutions. Micro-economic factors, such as electricity prices and taxes, also influence power supply decisions.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• • Diesel
  • Gas
• Capacity
• • Less Than 1MW
  • 1MW-2MW
  • More Than 2MW
• Geography
• • North America
  • Europe
  • APAC
  • South America
  • Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

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