DATA CENTER POWER MARKET ANALYSIS

Data Center Power Market, By Component (Solution (Power Distribution, Power Monitoring, Power Backup, and Cabling Infrastructure) and Services (Design and Consulting, Integration and Deployment, and Support & Maintenance)), By End Users (Enterprises, Colocation Provider, Cloud Providers, and Hyperscale Data Centers), by Data Center Size (SMEs Data Centers and Large Data Centers), By Deployment Type (On-premises and Cloud), By Vertical (BFSI, IT and Telecommunication, Media and Entertainment, Healthcare, Government and Defense, Retail, Manufacturing, and Others (Energy, Research and Academia, and Transport and Logistics), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa) - Size, Share, Outlook, and Opportunity Analysis, 2022 - 2030

Published In : Jan 2023
Code : CMI4189
Pages :150
Formats :
Excel and PDF
Industry : Information and Communication Technology

Market Challenges And Opportunities

Market Opportunity

Increasing adoption of advanced technologies such as cloud and artificial intelligence

Datacentre manufacturers are optimizing data center costs, owing to rising operational expenses that also increase power tariffs, server racks, and heating, ventilation, and air conditioning (HVAC) systems. For instance, according to the U.S. Chamber of Technology Engagement Center (CTEC), the annual operational expenditure of large data centers is almost 8.3% of the capital expenses. Based upon data center tiers, power expenditure can range from 41%-82% of the total cost of operating data centers. The infrastructure cost and operational complexities of data centers increase the reliability level. Data center power is used for running computers & servers and cooling at data centers. Hence, in order to meet operational expenses, traditional data centers are enhanced by deploying energy-efficient and cost-effective power systems. The operational expenses of the data centers can be optimized by using a modern data center power system.

The increasing number of data centers

Vendors are offering data center power solutions to provide sustainable and reliable power systems to data centers. For instance, Huawei Technologies Co., Ltd., a China-based technology company, launched the Fusion DC 2.0 solution to optimize the cooling system of the data centers. Vendors are also offering low installation and infrastructure cost that reduces energy losses and provide a permanent storage system and do not require battery replacement. These factors are expected to drive market growth during the forecast period.

Market Restraint

High installation cost

The major factor restraining the growth of the global data center power market is a high investment. Data center companies are replacing traditional data centers with new ones, along with the latest and updated data center components. This requires new hardware, software installation, infrastructure renovation, and manpower. The initial investment in deploying energy-efficient power solutions is higher than traditional power solutions. This, in turn, is expected to hinder the growth of the data center power market.