DATA CENTER POWER MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS (2023 - 2028)

 The IT industry requires on-premise private data storage and hyper-scale data centres for its operations, depending on the size of the organization. Additionally, the adoption of cloud storage has increased over the years due to growth among 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. This indicates that IT companies are focusing on deploying an efficient power source for their data centres and increasing their utilization rate.

Cloud storage providers, like AWS, Microsoft, and Google, are expanding their storage capabilities to offer more efficient workflows in the cloud. These companies are making investments in hyperscale deals. For instance, in June last year, Amazon Web Services Inc. (AWS) announced the opening of data centers in Israel. The company aims to enable more developers, startups, enterprises, the government, education, and non-profits in the region to run their applications and serve end-users from data centers in the country.

Also, in November last year, AWS announced plans to open an infrastructure region in Alberta, Canada, in late 2023 or 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 non-profits to run their applications and serve end-users from data centers in Canada.

Furthermore, other companies are planning data center expansion in various regions.For instance, in June last year, Stockland, an Australian real-estate firm, announced plans to build a new data center in Sydney. The data center is to have an end value of USD 181 million. Moreover, it will include 6,300 sq m of data halls, 3,215 sq m of office space, and more than 13,000 sq m of electrical and mechanical services. Such developments in the data center industry are anticipated to propel the growth of the data center power market during the forecast period. Some new entrants, like SpaceDC, Keppel Data Centers, and Princeton Digital Group, are also making moves to invest in hyperscale facilities and data center investments.

Although the industry is rapidly adopting the cloud, the dependency on on-premise and hybrid data centers is still significant. These companies are trying to expand their own data storage capacities, which is expected to demand an efficient power solution for data centers. Moreover, the trend of the IT industry's agile and DevOps operational frameworks is increasing the need for more efficient data storage solutions.

According to Cloudscene, China currently has 447 data centres and 112 service providers. The presence of a large number of data centres is driving the demand for data centre power systems in the country. Furthermore, the increasing number of new data centre developments and the upgrading of existing data centres are also expected to drive the market's growth.

In April of last year, Apple officially announced the opening of a new data centre in Guizhou, China. Apple and Guizhou-Cloud Big Data Industry Co., Ltd. jointly built this data centre. Such new data centre developments in the country are expected to increase demand for data centre power solutions. As most of the data centres are powered by polluting coal, the governments of the affected countries are shifting toward clean and renewable energy sources. China has installed the most significant amount of renewable energy, with solar power reaching over 174 GW and wind power over 184 GW. Furthermore, the surge in investment in data centre development is expected to fuel the demand for data centre power solutions.

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