Data Center Power Market Overview:
Data center power refers to the infrastructure and systems that provide the necessary electrical power to support the operations of data centers. This includes the reliable supply of power to IT equipment, cooling systems, lighting, and other critical power loads within the data center environmesnt. Data centers are designed with a focus on ensuring uninterrupted power supply to maintain continuous operations, even in the event of electricity source failures. The power infrastructure of data centers typically involves considerations such as redundancy, voltage requirements, power distribution, and energy efficiency.
The data center power market is projected to grow from USD 19.2 Billion in 2023 to USD 31.6 billion by 2032, at a CAGR of 6.40% during the forecast period (2023 - 2032).
Data centers are crucial for housing an organization's IT operations, computer systems, and associated components. To operate smoothly and without downtime, a reliable supply of power is essential. The power supply of larger data centers typically starts with a connection to the main grid provided by the local utility company. For example, Datacenter.com in Amsterdam uses a 2N power design, which means the data center is connected to the national grid sectors with two separate transformers to protect against the risk of downtime should one sector fail.
Key Companies in the data center power market include
- ABB (Switzerland)
- Emerson Electric Company (U.S.)
- Schneider Electric (France)
- General Electric (U.S.)
- Eaton (Ireland)
- Delta Power Solutions (Taiwan)
- Raritan Inc. (U.S.)
- Rittal GmbH Co. KG (U.S.)
- Server Technology Inc. (U.S.)
- Tripp Lite (U.S.)
- CyberPower System (Taiwan)
- Black Box Corporation (U.S.)
- Caterpillar Inc. (U.S.)
- HP Enterprise Company (U.S.)
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The data center power market is witnessing substantial growth driven by factors such as technological integration, digitalization across organizations, and the increasing reliance on data-driven operations across industries.
The ongoing technological integration and digitalization across organizations worldwide have propelled the demand for robust and scalable power systems to support their computational requirements, driving market growth. Additionally, the increasing reliance on data-driven operations across industries and the need for reliable power supply in critical applications will strengthen the data center power industry outlook over the next ten years.
The demand for data center power is increasing significantly, driven by the rapid growth of data center development and the unprecedented increase in power demand. As data centers continue to evolve and expand, there is a critical need to address challenges related to power interconnection, infrastructure build times, cost considerations, and system impacts. The power infrastructure of data centers plays a crucial role in supporting the increasing reliance on data-driven operations across various industries and the integration of new technologies such as artificial intelligence, machine learning, and big data analytics.
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As data center development continues to grow, there is an unprecedented increase in power demand. For instance, U.S. data center power consumption is expected to reach 35 gigawatts by 2030, up from 17 gigawatts last year. This growth presents challenges for data center owners, utilities, and power producers, who have a variety of options to consider as demand accelerates for power interconnections
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