Data center power market set to reach US$15 billion by 2026
The data center power market revenue is set to cross US$15 billion by 2026, according to Global Market Insights.
These findings were highlighted in the new report ‘Data Center Power Market by Component, Application, Regional Outlook, Price Trends, Competitive Market Share - Forecast 2026'.
The report finds that the widespread adoption of IoT and cloud computing technologies among enterprises is propelling the market growth.
In addition, the report finds that the trend of colocation is gaining traction due to several advantages offered by colocation providers, the analysts state.
Constructing new facilities drains a company's vital resources such as time, labour, and money.
Therefore, businesses with limited data storage requirements and budgetary constraints prefer colocation data centers.
The rapid technological developments, such as IoT and cloud services, coupled with an increase in data storage requirements in large enterprises are encouraging colocation providers to offer enhanced services to operators, such as power, cooling, and maintenance of infrastructure, supporting the market expansion, Global Market Insights states.
Services are estimated to witness high demand in the data center power market over the coming years.
Managed services help data center operators to have a proper service and maintenance of data center power equipment, optimising and maintaining mission-critical applications.
Data center power systems are required to be reliable, efficient, and secured for keeping data center running at maximum efficiency and optimal performance.
As such, the acceptance of regular maintenance avoids unnecessary downtime and helps save time and cost.
Prominent market leaders offer high-quality solutions that increase power availability and system uptime in mission-critical data centers.
The analysts find that the MEA data center power market size will observe substantial growth till 2026 on account of the flourishing telecom sector in the region.
The demand for cloud computing has encouraged service providers to expand their IT facility in the region.
Several telecom operators are engaged in constructing large-scale facilities to improve their data transmission rate and compete in the market.
For instance, in October 2019, Paltel Group, a Palestinian telecoms company, completed the construction of its second data center in Ramallah.
It is 65,000 square foot (6,000 sq m)-facility with Uptime Tier III Design certified.
The increasing construction of IT facilities will drive the demand for intelligent power managing solutions to enhance energy consumption in these facilities.
Major companies operating in the data center power market include Rittal GmbH - Co. Kg, Schneider Electric SE, Server Technology, Siemens AG, TDK Corporation, Toshiba Corporation, Tripp Lite, and Vertiv Group Co.
Further major findings of the data center power market report are:
- With the growing needs of data centers, the companies are shifting to modular data centers to add more modules and provide the required power backup. In these data centers, the modular UPS architectures offer smaller design and allow the load to operate at optimal efficiency.
- The smaller size of modular UPS makes them effective for micro and edge data center facilities located in crowded urban areas. These systems maximise reliability, simplify installation - availability and minimise the total cost of ownership compared to conventional UPS.
- The data center power industry is highly competitive owing to the presence of various market participants. They are developing advanced products and actively investing in R-D.