Data Centre Power Market

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.

Global Data Centre Power Market: Competitive Landscape

In May 2020, Huawei introduced the SmartLi UPS system and the latest UPS power module in Singapore. SmartLi UPS reimagines power supply for next-generation data centres. Its built-in smart voltage balance technology allows for the hybrid usage of old and new battery strings and ensures that systems continue to function even if one battery module fails. On the other hand, in March 2020, Schneider Electric introduced its first UPS product, Smart-UPS Lithium-ion. It's intended for use in local edge environments and mini data centres. The APC Easy UPS 1 Ph Online is a versatile, high-quality, and cost-effective UPS designed to manage high voltage and intermittent power conditions.

A few of the players in the data centre power market include Schneider Electric (France), Tripp Lite (US), Toshiba (Japan), Siemens (Germany), Mitsubishi Electric (Japan), Cisco (US), Kehua Tech (China), Socomec (France), Rittal (Germany), Cyber Power Systems (Germany), Vertiv (US), ABB (Switzerland), Eaton (Ireland), Delta Electronics (Taiwan), Huawei (China), Legrand (France), PDU Experts (UK), and Anord Mardix (Ireland, UK and US), Raman Power Technologies (UK), N1 Critical Technologies (US), Critical Power (US), bXterra Power Technology (US), ZincFive (US), ZRGP (China), and Hardy Racks (India).

Regional Classification of the Global Data Centre Power Market is Listed Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

 Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East & Africa

*Regions and countries are subject to change based on data availability.

Key Elements Included In The Study: Global Data Centre Power Market

• Data Centre Power Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value, 2018 - 2022
• Market Value at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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