Expanding Data Center Power Requirements
The “Data Center Power Market – Global Outlook & Forecast 2024-2029” report reveals that the global market, valued at USD 22.46 billion in 2023, is projected to surge to USD 41.30 billion by 2029. This growth, marked by a CAGR of 10.69%, is driven by increasing demands for high-performance computing (HPC) influenced by artificial intelligence (AI) and machine learning (ML).
Role of AI and ML in Market Expansion
The burgeoning need for AI and ML capabilities is pushing data center rack densities to unprecedented levels, with demands reaching up to 200 kW per rack. This technological evolution is significantly enhancing the computational power required by data centers, thus expanding the power market.
Renewable Energy and Sustainability Trends
With a global push towards sustainability, data centers are increasingly turning to renewable energy sources. Notably, Microsoft has committed to powering its data centers entirely by renewable energy by 2025. Furthermore, lithium-ion batteries are becoming a popular choice in UPS (Uninterruptible Power Supply) systems across data centers, adding to the sustainability of operations.
Segment Insights and Innovations
The report details various market segments, including UPS systems, generators, and other electrical infrastructure. Innovations in UPS systems, such as the integration of nickel-zinc and lithium-ion batteries, are enhancing environmental sustainability and operational efficiency. Diesel generators dominate the generator market, although there is a growing shift towards natural gas and renewable solutions like HVO biodiesel and eco-diesel generators.
Geographical Market Dynamics
North America remains a leader in data center power, with significant contributions from regions like North Virginia, Texas, and California. Meanwhile, regions like Latin America and Asia Pacific are witnessing rapid growth, fueled by increasing investments in data center infrastructure and the rapid digitization of economies.
Competitive Landscape
The market sees robust competition with major players like ABB, Eaton, and Schneider Electric leading the way. The industry is also seeing a shift towards smarter and more efficient power solutions to accommodate the evolving needs of data center operators, further driving market competition.
For more detailed insights, visit the full report at ResearchAndMarkets.com.
Source: globenewswire.com
