DUBLIN--(BUSINESS WIRE)--The "Global Data Center Power Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" report has been added to ResearchAndMarkets.com's offering.
The Global data center power market is expected to register a CAGR of 6.58% during the forecast period 2022-2027. The rising adoption of mega data centers is driving the market. Implementing fewer mega data centers depending on their locations can allow a company to enjoy advantages of certain local benefits with low energy prices, climate, or availability of alternative energy sources. Virtualization dramatically improves hardware utilization and enables firms to reduce the number of power-consuming servers and storage devices.
Key Highlights
- The rising adoption of cloud computing is also aiding the market growth leading to the rise of vast hyperscale cloud data centers. According to Cisco, data center traffic is growing fast and is expected to reach 19.5 zettabytes (ZB) per year by 2021 with factors such as the growth of the Internet of Things (IoT) applications like smart cars, smart cities, and connected health devices.
- The intelligent rack PDU solutions are designed to facilitate smooth operations in complex facilities with high rack power density. Datacenter colocation providers are looking for modern infrastructure solutions that require less maintenance and less space, with 99.99% uptime. These diverse demands are expected to boost the vendors to offer innovative power solutions. PDU is the biggest and most established product category in the data center power market, which is expected to register a much more moderate growth level during the forecast period.
- However, higher investment is restraining the market growth as primary areas of investment are cabling, power facility, and data center infrastructure management (DCIM) solutions which require high cost during the initial investment.
Key Market Trends
The Information Technology Segment is Expected to Hold a Major Market Share
- The IT industry requires on-premise private data storage centers and hyperscale data centers for its operations, as per the organizations' size. Additionally, the adoption of cloud storage has increased over the years due to growth in SaaS providers, enabling cloud storage providers to expand their capacities. Hence, the increasing data load requires more power. This creates a requirement for efficient power solutions in IT applications. According to the Data Center Survey, recently published by Vertiv, 98% of the participants voted for IT utilization to be above 20% by 2025, which witnessed significant growth from its 2014 survey, in which the figure was 88%. This indicates that IT companies are focusing on deploying an efficient power source for their data centers and increasing their utilization rate.
- Cloud storage providers, like AWS, Microsoft, and Google, are expanding their storage capabilities to offer more efficient workflow on the cloud. These companies are making investments in hyperscale deals. For instance, in June 2021, Amazon Web Services Inc. (AWS) announced opening data centers in Israel. The company aims to enable more developers, startups, enterprises, government, education, and non-profits in the region to run their applications and serve end-users from data centers located in the country.
- Also, in November 2021, AWS announced plans to open an infrastructure region in Alberta, Canada, in late 2023/early 2024. The new AWS Canada West (Calgary) Region will consist of three Availability Zones (AZs) at launch and join the existing AWS Canada (Central) Region in Montreal, which also consists of three Availability Zones. The new AWS Canada West (Calgary) Region will enable even more developers, startups, enterprises, education, government, and NPOs, to run their applications and serve end-users from data centers located in Canada.
The Asia Pacific Region is Expected to Witness a High Market Growth
- According to Cloudscene, China currently has 447 data centers and 112 service providers. The presence of a large number of data centers is driving the demand for data center power systems in the country. Furthermore, the increasing number of new data center developments and upgradation of existing data centers is also expected to drive the market's growth. According to a report published in 2019 by Greenpeace and North China Electric Power University, China's data centers consumed 161 billion kilowatt-hours of electricity in 2018. It is 2% of China's total usage. Moreover, data center power consumption is projected to grow 66% by 2023, to 267 billion kilowatt-hours.
- Further, the Japanese government has announced its plan to subsidize 50% of the building costs toward new zero carbon-emissions data centers and upgrade existing facilities as part of a new USD 7.3 billion initiative to innovate the industry and reduce carbon emissions.
- According to a study by DataSpan, in up to 55% of data centers, energy consumption is used to run cooling and venting systems. Thus, to reduce carbon emissions and the amount of energy used by data centers, which is mainly required to maintain server-suited temperatures, Japan is planning to build more new facilities in its colder regions. In November 2021, AirTrunk opened its first data center in Japan to support the growing number of companies in the country shifting into the cloud. The company has built a 300MW data center campus in Inzai and is set to begin operations with a 60MW phase.
Competitive Landscape
The data center power market is highly fragmented in nature, with the presence of several vendors. Players are adopting several strategies, such as mergers and acquisitions (M&A), collaborations, partnerships, etc. Various initiatives are undertaken by the governmental bodies as well as private data center construction which is creating high rivalry.
Companies Mentioned
- Schneider Electric SE
- Fujitsu Ltd
- Cisco Technology Inc.
- ABB Ltd
- Eaton Corporation
- Tripp Lite
- Rittal GmbH & Co. KG
- Schleifenbauer
- Vertiv Co.
- Legrand SA
- Black Box Corporation
Recent development in the market are:
- January 2022 - Tripp Lite by Eaton business introduced practical options for connecting and controlling network equipment in demanding industrial environments, such as factories and warehouses. The new managed, and lite managed industrial Gigabit Ethernet switches have an IP30-rated ruggedized metal case that can withstand vibration, shock, and the low and high temperatures often found on the factory floor. The switches also offer protection from electrostatic discharge (ESD) that can interfere with normal operation. An included rail clip enables mounting to standard 35 mm DIN rail. The switches can also be wall-mounted
- September 2021 - ABB Limited announced that it had been selected as a technology partner to support the CMC Creative Space data center with its critical power for delivering reliable, efficient services to fulfill the demand for data and digitalization services. ABB will safeguard critical power and ensure uptime for CMC Creative Space, a cloud computing infrastructure provider.
For more information about this report visit https://www.researchandmarkets.com/r/e34ijt
