Data Center Generator Market Size, Share, and Trends 2024 to 2033

Data Center Generator Market Size to Reach USD 16.27 Bn by 2033

The global data center generator market size was valued at USD 8.02 billion in 2023 and is anticipated to reach around USD 16.27 billion by 2033, growing at a CAGR of 7.33% from 2024 to 2033. At the time of power failures and power crunches, data center generators are helpful, which increases the demand for generators in data centers.

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Data Center Generator Market Key Takeaways

• The North America data center generator market size accounted for USD 3.05 billion in 2023 and is expected to attain around USD 6.18 billion by 2033.
• North America dominated the market with the major market share of 38% in 2023.
• Asia Pacific is estimated to grow at a notable CAGR of 9.74% during the forecast period of 2024-2033.
• By product type, the diesel type segment has generated more than 74% of market share in 2023.
• By product type, the gas type segment is the growing at a remarkable CAGR of 8.95% during the forecast period.
• By tier standards, the tier I & II segment has accounted the biggest market share of 54% in 2023.
• By tier standards, the tier IV segment is projected to expand at a CAGR of 8.93% during the forecast period.
• By capacity type, the <1MW segment has recorded more than 58% of market share in 2023.
• By capacity type, the 1MW-2MW segment is the growing at a 7.05% during the forecast period.

 Data Center Generator Market Size in U.S. 2024 to 2033

The U.S. data center generator market size was estimated at USD 2.29 billion in 2023 and is expected to be worth around USD 4.67 billion by 2033 at a CAGR of 7.38% from 2024 to 2033.

North America dominated the data center generator market in 2023. Increased awareness and use of advanced technologies in data center generators contribute to the growth of the market. Increased use of internet-connected devices is helpful for data center generators. Industries depend upon data analytics and data to increase cost-effectiveness, security, productivity, and efficiency, which contributes to the growth of the market. Increasing the number of data center generators helps the growth of the market in this region. The United States and Canada are the leading countries for data center generators in the North American regions.

• In October 2023, the latest Tier-IV final generators were launched by Aggreko, the world's leading provider of energy solutions, temperature control, and modular power for mobile in Canada. For Canadian customers, Aggreko offers low-emission technology with Canadian Standard Association (CSA) certifications, and its range is from 100kW to 500kW. The Tier IV type of generator designed by Aggreko follows emission regulations for diesel generators of the Canadian Environmental Protection Acts (CEPA) with the United States Environmental Protection Agency (EPA), which is helpful for Canada and the United States.

Asia Pacific is estimated to be the fastest growing region during the forecast period of 2024-2033 in the data center generator market. China and India are the leading countries in the Asia Pacific region that use data center generators. Market leaders increasing investment in developing countries such as China and India in the Asia Pacific region helps the growth of the market. To reduce carbon footprints, the Indian data center generators are holding up sustainability measures and renewable energy power contracts. Energy consumption regulations in energy management to follow green energy standards and policies are a must factor in the newly designed data centers in China. These factors help to the growth of the data generator market in the Asia Pacific region.

Data Center Generator Market Size in Asia Pacific 2023 to 2033

The Asia Pacific data center generator market size was calculated at USD 2.09 billion in 2023 and is projected to expand around USD 4.31 billion by 2033, poised to grow at a CAGR of 7.50% from 2024 to 2033.

Data Center Generator Market Overview

The data center generator is a piece of equipment used to provide backup power to the data center. The data center generator market deals with providing backup power supply sources during power interruption for various industries like hospitals, data centers, construction sites, and other applications. The data center generators are the main point for processing, storing, and distributing high volumes of applications and data for businesses. The data center generators help to meet the requirements of consumers with condition, quality, and sustainable needs.

The data center generators provide fuel efficiency, sustainability, noise suppression, emission reduction, block load acceptance, quick start capability, and transient response, which are helpful advantages. When data centers lose their main power source, generators provide peace of mind by providing a backup power supply. In an emergency, generators are helpful for data centers and offer peace of mind to the employees and clients.

Data Center Generator Market Growth Factors

• The data center generators are beneficial for environmental responsibility and cost savings due to sustainability and fuel efficiency.
• Noise suppression and emission reduction are helpful due to the use of environmentally friendly generators.
• The data center generators are helpful due to block load acceptance, quick start capabilities, and transient response.

Data Center Generator Market Scope

Data Center Generator Market Dynamics

Drivers: Energy backup

During a power outage, there is an instant requirement for energy backup or a power generator. Datacenter generators are useful for energy backup due to their number of properties, like low engine emission calibration, low sub-transient alternators, and high ambient cooling systems. The data center generator is helpful energy backup because it avoids data loss and maintains a functioning period. It also offers peace of mind for the employees and clients during the period of power interruption. Data outages have no effect on workers in different industries due to power backups in the form of generators. These factors of energy backup contribute to the growth of the data center generator market.

Restraint: Regulatory compliance

Regulatory compliance regulations include energy consumption regulations, regulation on greenhouse gas emission restrictions, electronic and electric waste regulations, water consumption regulations, regulations on noise emissions, and electrical safety regulations. Many countries have regulations based on energy consumption due to zero emission goals and an increase in carbon neutrality. European Commission has modified the energy consumption regulations and included requirements for energy data reporting for data center generators.

The data center generators may emit some harmful greenhouse gases, and regulations on greenhouse gases will be changed accordingly. Many regions have banned specific greenhouse gas use. Regulations on electronic and electric waste due to toxic substances releases from the waste of the data center generators.

The data center generators have considered the regulations for preventing water pollution and water stress. Regulations on noise emissions are also important due to issues regarding the safety and health of the neighboring peoples. The noise emission has a negative impact on the workers who work in the data center generators. Arc flash, high voltage circuits, and panels are hazards at the data center generators, and there is a need for electrical safety regulations. Therefore, the regulations can restrict the growth of the data center generator market.

Opportunity: Increasing greener and sustainable future

Generators are an important component in data centers' functioning. When the data center stops working during power outages, it must instantly be powered by the backup power supply generator. A transition from the use of fossil fuels to other sustainable resources like wind energy and solar energy minimizes the power outage. Increasing the hydrogen fuel cell generator supply chain as an alternative to diesel for the power backup supply.

The data center generator can be developed in terms of greenery and sustainability. Implementation of hydrogen power fuel cell generators can help with renewable energy. Because it generates electricity, the chemical reaction between oxygen and hydrogen and the byproduct will only heat and water. These opportunities can help the growth of the data center generator market.

Product Type Insights

The diesel segment dominated the market in 2023. The diesel product type segment of data center generators never goes offline. Diesel generators are used in data center generators for backup power. Modern diesel generators are getting better features than earlier models of diesel generators. Modern diesel generators overcome maintenance costs and higher noise. Diesel generators are low maintenance because they require fewer components to start and need not change spark plugs like gas generators. These are durable and safe storage. Diesel has lower ignition risks than other types of fuel, such as gasoline, which helps to store diesel generators safely.

It can run longer periods and handle larger power loads than the other types of generators. These diesel generators are stronger and more reliable. This requires diesel, which is an easily accessible fuel that we use for vehicles, which means there is no need for different fuels. Diesel generators are more fuel-efficient than petrol generators. Diesel fuel and generators require less cost and less maintenance than petrol fuel and generators. These factors help to the growth of the segment and contribute to the growth of the data center generator market.

The gas type segment is observed to be the fastest growing during the forecast period in the data center generator market. Gas generators are used in data center generators because they provide reliability and cutting-edge performance. Gas generators are made in storage with the reliability of gas, which avoids the risk of refueling and limited run times. They are beneficial due to lower emissions and instant start gas generators. Gas generators are helpful in data center generators because they provide decriminalization opportunities. These factors are helpful for the growth of the market.

Tier Standard Type Insights

The tier I & II segment dominated the data center generator market in 2023. Tier-I type has a single path for cooling and power. Backup and extra components, including storage and power superabundance, are non-existent or little. The tier-I data center generator option is the cheapest for small, traditional businesses. Tier-II data center generator has more measures and infrastructures to ensure slighter sensitivity to unpredicted downtime. Tier-II data center generators must have extra capacity, such as auxiliary generators, cooling systems, and uninterrupted power supply (UPS). These factors of tier-I and tier-II help to the growth of the market.

The tier IV segment is the fastest growing during the forecast period. The tier-IV is an essential level of data center generator tiers. The tier IV type data center generator is completely fault resistant, and it also includes requirements for tier I, tier II, and tier III types. These factors help to the growth of the data market. However, tier-IV type standards are more expensive than tier-I and tier-II type standards.

Capacity Insights

The <1MW segment dominated the data center generator market in 2023. The amount of electricity generated by the generator is within a specific period. If a generator with 1MW power operates constantly for 1 hour, it will produce 1MWh of electricity, and the same for a 0.5MW power generator operates for 1 hour, it will produce 0.5 MWh of electricity. In various sectors, 0.5 MW of power generators are normally required.

The <1MW generator applications in various industries, including entertainment events, manufacturing facilities, maintenance upgrades, pulp or paper mills, construction sites, agriculture, municipalities, forestry, mining, oilfield, and other applications. Its ability to extend and fuel many fans, pumps, and motors can used for backup power supply during a power outage. This leads to the growth of the segment and contributes to the growth of the market.

The 1MW-2MW segment is observed to be the fastest-growing segment during the forecast period in the data center generator market. The 1MW-2MW generators have various applications due to their compact size, low weight, high power density, efficiency, higher reliability, lower maintenance, operational flexibility, and versatility properties. Design features and advanced technologies lead to reliability improvement and less cost due to generators' lifespan. The 1MW-2MW generators are used in diesel generator sets, high-speed motors or generators, Generac single-engine generators, and Generac Modular Power Systems (MPS). These applications and various properties of 1MW-2MW generators help the growth of the segment and contribute to the growth of the market.

Data Center Generator Market Recent Developments

• In August 2023, Mitsubishi Heavy Industries Engine and Turbocharger, Ltd (MHIET) launched a new 3000 KVA class generator, MGS3100R, for industrial needs including data centers, hospitals, commercial buildings, and factories for supplying power at the time of disasters, power failures, and power crunches.
• In November 2023, Hitachi Energy announced a new emission-free alternative like hydrogen power generators for diesel-powered generators.  Hydrogen power generators provide heat for hard-to-decarbonize and megawatt (MW) power, which is beneficial for hospitals, data centers, remote venues, and construction sites.
• In November 2023, in Laurient, France, the local government containerized data center was launched to feature on-site solar and the utilization of free cooling. It has 48 hours of fuel supply generator backup; duel energy feeds from EDF, and duel fiber feed properties.

Data Center Generator Market Companies

• Atlas Copco
• ABB Ltd
• Caterpillar
• Siemens AG
• Cummins
• Eurodiesel Services
• Generac Power Systems, Inc.
• HIMOINSA
• Yanmar Co. Ltd
• KOHLER
• MITSUBISHI MOTOR CORPORATION
• Doosan Corporation
• Piller
• Wartsila Corporation
• Rolls Royce Plc.

Segments Covered in the Report

By Product Type

• Diesel
• Gas
• Others

By Capacity

• < 1 MW
• 1 MW-2MW
• >2MW

By Tier Standards Type

• Tier I & II
• Tier III
• Tier IV

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa