The Data Center Power Market

Data center power systems are responsible for providing uninterrupted electrical energy to the data center infrastructure.

The supply of power needed correlates to the number of servers in the network and their data processing and storage capacities.

Power systems are mission-critical for data center infrastructure, powering a number of hardware components from racks and servers to networking hardware as well as cooling and environmental control equipment.

See below to learn all about the global data center power market:

Data center power market

The data center power market was estimated at $17.4 billion in 2020. It’s projected to maintain a compound annual growth rate (CAGR) of 8.5% over the analysis period from 2020 to 2027, reaching $30.9 billion by the end of it.

The solutions segment of the market is estimated to reach $24.8 billion by 2027, trailing a CAGR of 8.4%. Meanwhile, the services segment is set for a CAGR of 8.9% over the same period.

Regionally, the global data center power market is segmented as follows:

• The U.S. market was estimated at $5.2 billion in 2020, with a 29.8% share
• The Chinese market is forecast for a CAGR of 8% over the analysis period, reaching $5.4 billion by 2027
• Japan and Canada are forecast to grow at a CAGR of 8% and 6.9% over the forecast period
• Within Europe, Germany is projected to maintain one of the highest CAGRs at 6.9%

By Industry, the global market is divided into the following segments:

• Banking, financial services, and insurance (BFSI)
• IT
• Telecommunications
• Media and entertainment
• Health care
• Manufacturing
• Government
• Retail

Data center power features

The power consumption levels of a data center infrastructure depend primarily on the hardware and architecture of the network.

When it comes to power supply connection, there are two types organizations can implement depending on their needs and requirements for energy efficiency.

Alternating current power circuits

Alternating current (AC) circuits are the most used types of circuits. They allow for on-demand access to power at different currents from 110 V to 240 V on average for most power outputs. AC circuits are able to change voltage and current for switching polarity or current direction.

Data centers that work on an AC power circuit usually receive their energy through a local utility provider or directly from their municipality’s electrical grid. The power is often redirected through transformers to ensure the exact right current and voltage reach the data center for optimal performance.

Direct current power circuits

Direct current (DC) circuits are used in certain situations as the current moves in one, fixed direction that cannot be changed or altered. The same concept can be found in battery-powered items, from laptops and portable phones to gadgets.

A DC is what’s often used with IT hardware and networking gear that requires an uninterruptible power supply (UPS) to function optimally. A UPS can be used to seamlessly transition the source of the power supply in case of a power outage or shortage to an alternative source, such as diesel power generators.

Energy consumption and data centers

Data center networks are one of the largest consumers of power in an organization’s technical infrastructure. Not only is this not environmentally sustainable in a future where more businesses and institutions are pressured to meet higher green energy goals, but it’s also costly.

Companies are using data center architectures and hardware that are more energy efficient. This can be achieved through a combination of smart algorithms, edge data centers, and more energy-efficient hardware.

Data center power benefits

Simply plugging in an entire data center architecture into a standard power outlet doesn’t come without numerous drawbacks and redundancies in the infrastructure and power consumption.

Implementing the right data center power hardware and setting up an equally suitable connection to the primary and emergency energy sources can have numerous benefits in both the short- and long-term, such as:

• Ensuring continuous data center operation
• Reducing energy costs
• Achieving green and environmentally-friendly goals
• Increasing the longevity of data center hardware
• Ensuring access to power during unplanned blackouts
• Meeting industry standards and boosting reputation

“Small tech businesses with an energy-conscious mentality are certainly helpful, but data centers around the world are some of the biggest consumers of energy for the industry,” says Peter Ward, member of the Forbes Technology Council.

“Whatever solution you select, it will be imperative to ensure you have an individual or team that knows what they’re doing and takes the time to understand every detail of your operation. All providers have subtle nuances that may require fine-tuning, so having people who are prepared and willing to roll up their sleeves is crucial for a successful cloud implementation.”

Data center power use cases

There are numerous data center power solutions that suit different organizations and businesses’ needs, depending on their current situation and future energy goals.

Green Mountain

Green Mountain is one of Norway’s largest data center operators, spanning over 22,000 square meters. Built inside a former high-security NATO ammunition storage facility, it holds the information of critical industries, such as health care, government, and financial services.

The company’s location requires specialty thermal management and cooling systems. Not only that, Green Mountain also wanted to find a solution that served its eco-friendly reputation in the data center market.

Working with Vertiv, Green Mountain deployed Vertiv Liebert PCW chilled water perimeter units in addition to 5 megawatts of cooling capacity.

“Sustainability affects everything we do and is very important whenever we build new colocation data centers. All our customers can see where we get our energy. It is a key differentiator for us,” says Alexander de Flon Ronning, design and product manager, Green Mountain.

“When we select a partner, we do so from a strategic perspective for a long-term relationship.”

Green Mountain was able to deploy energy-efficient power solutions for its data centers, allowing it to achieve a higher energy-efficiency rating.

Global Switch

Global Switch is a large colocation data center provider based in Sydney, Australia. With data centers spanning over 73,000 square meters, it offers its customers resiliency, security, and availability of data.

Known for energy-efficient and sustainable data centers in the region, Global Switch sought an infrastructure solution that’d allow it to maintain that reputation without compromising on performance.

Being a client of CBRE since 2014, Global Switch resorted to it again for the infrastructure upgrade. It ended up implementing multiple solutions to achieve a Power Usage Effective rating of 1.33.

“Using CBRE | Romonet, Global Switch can demonstrate the commitment to energy efficient data centers, and Global Switch’s customers can be confident that the declared PUE values are both accurate and validated by an independent party,” says Matthew Winter, Europe project director, Global Switch.

“Global Switch has a strong commitment to environmental sustainability and social responsibility at all of its data center sites.”

As a result of working with CBRE, Global Switch is able to pursue and improve its PUE score and deliver on its commitment to the environment.

Bharti Airtel

Bharti Airtel and its subsidiary, Nxtra Data Limited, operate 120 edge data centers and 10 large-scale data centers, operating in 18 countries across south Asia and Africa. Based in India, Airtel is committed to the more effective use of energy.

Experiencing a wave of exponential growth, Airtel needed an energy-efficient solution that would prevent its data centers’ energy consumption from growing rapidly. 

Partnering with Amp Energy, Airtel implemented various energy-efficient solutions to ensure their hardware doesn’t waste energy and to source power from renewable resources from around the globe.

“At Nxtra, we’ve implemented various initiatives across our operations to minimize environmental impact. We’re constantly trying to reduce the use of energy from fossil fuels in our data centers and increase the share of renewable energy,” says Rajesh Tapadia, CEO, Nxtra Data. 

“In the last five years, we’ve reduced carbon emissions by 49% per rack in our data centers.”

Working with Amp Energy, Airtel was able to achieve its data-efficiency goals in its numerous data centers without reducing the availability and performance of its services.

Data center power providers

Some of the leading providers of data center power in the market include:

• ABB Group
• Cyber Power Systems
• Delta Electronics
• Server Technology
• Black Box Corporation
• Hewlett Packard Enterprise
• Raritan Americas
• Rittal Corporation
• Eaton Corporation
• Schneider Electric