Data Center Generator Market to Create Over $3 Billion Investment Opportunities by 2028, Innovation of HVO Fuel Creating a Buzz- Arizton

CHICAGO, June 14, 2023 /PRNewswire/ -- According to Arizton's latest research report, the data center generator market will grow at A CAGR of 6.24% during 2022-2028.

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Browse In-Depth TOC of the Data Center Generator Market       

104 - Tables        
271 - Charts       
534 – Pages 

Adoption of innovative generators, 5G deployment accelerates the deployment of edge data centers, automation and remote monitoring in generators, and regulations for using the electric generator and its procurement are key trends driving the global data center generator industry growth.

In 2022, several initiatives were taken by different countries to deploy technologies, such as IoT, Big data, 5G, and edge, and increased investments by cloud service providers across various geographies owing to increased digitalization due to the pandemic. In 2022, the demand for colocation services led to the strong utilization of existing data center space and drove service providers' revenues by over 10%. In addition, multiple new entrants in the market planned to invest in mega-scale data centers with over 15 MW of capacity.

The enterprise adoption of cloud-based services, Big data analytics, and IoT services is a strong force for data center investments in developing countries, further fueled by the pandemic.

Edge data center deployment is currently a major trend in the market. Many generator system providers innovate their product portfolios with announcements focused on edge power solutions. Edge data center deployments will increase the procurement of <1 MW generator systems. Partnerships with new edge data center providers are key to growing revenues from a vendor's perspective.

Growth in data center construction and an increased number of hyperscale constructions by colocation and hyperscale operators drive the growth of the global data center generator market. Several emerging countries, such as Brazil, Denmark, Singapore, Australia, Canada, India, Japan, Sweden, Norway, Finland, Ireland, Indonesia, and South Korea, identify multiple hyperscale data center projects that drive opportunities for power infrastructure vendors in these countries.

Global Data Center Generator Market Report Scope

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Rise in Construction of Hyperscale Data Center Facilities Booming the Market Growth

Hyperscale data centers have more than 15 MW of power capacity and over 5,000 racks capacity. The rapid adoption of advanced technologies, increased data traffic, and expansion of cloud zones by hyperscalers drive investments in hyperscale facilities.

Hyperscale data centers usually have higher power capacity than other data center facilities, and an increase in their deployment will drive the demand for generators to provide backup for data centers in the case of power outages for longer periods.

Innovation of HVO Fuel Generators Creating Buzz in the Data Center Generator Market

HVO is the oil synthesized from vegetable oils. It is a type of vegetable oil in which hydrogen is added to the oil. HVO is 25% costlier than regular diesel. This HVO fuel generates less carbon emissions (reduced by 90%) than regular diesel. HVO currently costs more than other fossil fuel alternatives. However, the use of HVO also offers several additional benefits related to the reliability of the infrastructure. This eliminates the growth of micro-organisms, which produce sludge that contaminates the fuel lines and clogs the engine. HVO does not require any modifications and can be used as a natural alternative or replacement for diesel. Its storage life is ten times longer than standard diesel.

• In March 2023, AWS announced to adopt HVO for the backup generator powering its data centers in Dublin, Ireland. AWS announced to shift to the use of HVO across all its data centers in Europe.
• In January 2023, KOHLER announced to shift to adopting HVO for its generator test site in France.
• In October 2022, LCL Data Centers announced the adoption of HVO fuel for its generators in the LCL Brussels-West data center facility in Aalst. The company plans to replace diesel and use HVO fuel across all its data center facilities in the long term.
• In July 2022, Datum Datacentres announced its plan to adopt HVO as a fuel for its diesel generators.
• In June 2022, Compass Datacenters partnered with Foster Fuels and selected the company as a preferred bio-diesel provider. The company will use HVO-based biodiesel for its onsite generators.

Segmentation Analysis

• In terms of generators, the data center generator market has grown in adopting generator sets with a 1.5-3 MW capacity. In contrast, the hyperscale facilities are expected to invest in generators with a capacity of over 3 MW. The market for generators with a capacity of up to 1.5 MW has witnessed investments from edge facilities or on-premises data center operators.
• Generators with less than 1 MW power capacity are mostly adopted in modular data center deployments. They are also being adopted in developing countries by small-scale operators as they are cost-effective. The use of portable generators is also growing in the market.
• The procurement of diesel generators dominates the market adoption, with some facilities across the globe involved in procuring gas generators. For instance, Colt Data Centre Services' Tokyo Otemachi data center has 4,500-kVA gas turbine generators with N+1 redundancy.
• In addition, most of the data centers are shifting to the sustainability goals of being carbon neutral. Most operators are adopting new innovative technologies like fuel cell generators, HVO fuel generators, and eco diesel generators to operate the data center facility with zero carbon emissions.
• The adoption of DRUPS systems is increasing in APAC, European, and Latin American regions. The prominent vendors operating in the industry are Rolls Royce, Caterpillar, Piller Group, Hitzinger, and Hitech Power Protection. These systems provide an efficiency of over 96% and eliminate the use of separate UPS and generator systems in a data center environment, leading to significant space benefits.

Vendor Insights

Leading vendors that offer generators should consider adding fuel deployment expertise to their portfolio as a standalone solution or through partnerships with small-scale fuel cell suppliers. In addition, the increased deployment of OCP-based infrastructure design will bring about a shift in market demand. Schneider Electric, Rittal, HPE, Delta Power Solutions, and Huawei provide infrastructure based on OCP design. This will aid in the growth of market revenues for these vendors, as many organizations prefer 48V DC UPS systems.

Vendors that offer generator systems are in multiple countries through local resellers and distribution networks. The adoption of generators with a capacity of >2 MW will continue to grow during the forecast period with the rise in data center capacity.

Engine providers' partnerships with system vendors will increase competition, where efficiency, modularity, cost, and emission certifications will play a vital role in gaining a market advantage.

Key Vendors

• ABB
• Caterpillar
• Cummins
• Generac Power Systems
• HITEC Power Protection
• KOHLER
• Rolls-Royce
• Yanmar Holdings (Himoinsa)

• Aggreko
• Aksa Power Generation
• Alterra Power Systems (Palmer Johnson)
• Atlas Copco
• Ausonia
• CK Power
• Detroit Diesel
• DEUTZ
• Enrogen
• Guangzhou Weineng Electromechanical
• HITZINGER Electric Power
• Inmesol
• INNIO
• JCB
• Kirloskar Oil Engines (KOEL)
• Mitsubishi Heavy Industries
• ONIS VISA
• Perkins Engines
• Plug Power

Market Segmentation

System Capacity

• 0–1.5 MW
• 5 – 3 MW
• >=3 MW

Systems

• Drups
• Diesel & Gas & Bi-Fuel Generator
• HVO Fuel

Tier Standards

• Tier I & II
• Tier III
• Tier IV

Geography

• North America
• The US
• Canada
• Latin America
• Brazil
• Mexico
• Chile
• Colombia
• Rest of Latin America
• Western Europe
• The UK
• Germany
• France
• Netherlands
• Ireland
• Switzerland
• Italy
• Spain
• Belgium
• Other Western European Countries
• Nordics
• Sweden
• Denmark
• Norway
• Finland & Iceland
• Central & Eastern Europe
• Russia
• Poland
• Other Central & Eastern Europe
• Middle East
• The UAE
• Saudi Arabia
• Israel
• Other Middle Eastern Countries
• Africa
• South Africa
• Kenya
• Nigeria
• Other African countries
• APAC
• China
• Hong Kong
• Australia
• New Zealand
• India
• Japan
• South Korea
• Taiwan
• The Rest of APAC
• Southeast Asia
• Singapore
• Indonesia
• Malaysia
• Thailand
• Philippines
• Vietnam
• Other Southeast Asian countries

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Table of Content

1. RESEARCH METHODOLOGY
2. RESEARCH OBJECTIVES
3. RESEARCH PROCESS
4. SCOPE & COVERAGE

4.1 MARKET DEFINITION

4.2 BASE YEAR

4.3 SCOPE OF THE STUDY

4.4 MARKET SEGMENTS

4.4.1 MARKET SEGMENTATION BY SYSTEM

4.4.2 MARKET SEGMENTATION BY SYSTEM CAPACITY

4.4.3 MARKET SEGMENTATION BY TIER STANDARD

4.4.4 MARKET SEGMENTATION BY GEOGRAPHY

5 REPORT ASSUMPTIONS & CAVEATS

5.1 KEY CAVEATS

5.2 CURRENCY CONVERSION

5.3 MARKET DERIVATION

6 PREMIUM INSIGHTS

6.1 KEY HIGHLIGHTS

6.2 MARKET TRENDS

6.3 SEGMENTATION ANALYSIS

6.4 VENDOR LANDSCAPE

7 MARKET AT A GLANCE

8 INTRODUCTION

8.1 POWER ARCHITECTURE IN DATA CENTERS

8.1.1 GENERATOR SET SELECTION CRITERIA

9 MARKET OPPORTUNITIES & TRENDS

9.1 ADOPTION OF INNOVATIVE GENERATORS

9.1.1 HVO FUEL

9.1.2 NATURAL GAS GENERATORS

9.1.3 ECODIESEL GENERATORS

9.1.4 HYDROGEN CELLS

9.2 5G DEPLOYMENT ACCELERATES EDGE DATA CENTER DEPLOYMENT

9.3 AUTOMATION & REMOTE MONITORING

9.4 REGULATIONS FOR THE USE OF ELECTRIC GENERATORS & THEIR PROCUREMENT

10 MARKET GROWTH ENABLERS

10.1 INCREASED DATA CENTER INVESTMENTS

10.2 DEPLOYMENT OF MODULAR DATA CENTERS & GENSETS

10.3 RISE IN CONSTRUCTION OF HYPERSCALE DATA CENTER FACILITIES

10.4 INCREASED POWER OUTAGES IN DATA CENTERS

11 MARKET RESTRAINTS

11.1 CARBON EMISSIONS BY DATA CENTERS

11.2 LOW ADOPTION OF GENERATORS IN REGIONS WITH STRONG POWER GRID FACILITIES

12 MARKET LANDSCAPE

12.1 MARKET OVERVIEW

12.2 INVESTMENT: MARKET SIZE & FORECAST

12.3 POWER CAPACITY: MARKET SIZE & FORECAST

12.4 FIVE FORCES ANALYSIS

12.4.1 THREAT OF NEW ENTRANTS

12.4.2 BARGAINING POWER OF SUPPLIERS

12.4.3 BARGAINING POWER OF BUYERS

12.4.4 THREAT OF SUBSTITUTES

12.4.5 COMPETITIVE RIVALRY

13 SYSTEM CAPACITY

13.1 MARKET SNAPSHOT & GROWTH ENGINE

13.2 MARKET OVERVIEW

13.3 0–1.5 MW

13.3.1 MARKET SIZE & FORECAST

13.4 1.5–3 MW

13.4.1 MARKET SIZE & FORECAST

13.5 >=3 MW

13.5.1 MARKET SIZE & FORECAST

14 SYSTEM

14.1 MARKET SNAPSHOT & GROWTH ENGINE

14.2 DRUPS SYSTEMS

14.2.1 MARKET OVERVIEW

14.2.2 MARKET SIZE & FORECAST

14.3 DIESEL, GAS & BI-FUEL GENERATORS

14.3.1 MARKET OVERVIEW

14.3.2 MARKET SIZE & FORECAST

14.4 HVO FUEL

14.4.1 MARKET OVERVIEW

14.4.2 MARKET SIZE & FORECAST

14.5 FUEL CELLS

14.5.1 MARKET OVERVIEW

14.5.2 MARKET SIZE & FORECAST

15 TIER STANDARD

15.1 MARKET SNAPSHOT & GROWTH ENGINE

15.2 MARKET OVERVIEW

15.3 TIER I & II

15.3.1 MARKET OVERVIEW

15.3.2 MARKET SIZE & FORECAST

15.4 TIER III

15.4.1 MARKET OVERVIEW

15.4.2 MARKET SIZE & FORECAST

15.5 TIER IV

15.5.1 MARKET OVERVIEW

15.5.2 MARKET SIZE & FORECAST

16 GEOGRAPHY

16.1 INVESTMENT: MARKET SNAPSHOT & GROWTH ENGINE

16.2 POWER CAPACITY: MARKET SNAPSHOT & GROWTH ENGINE

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