Continuous Innovations in Digitalization is Driving the Data Center Power Industry, says Market.us

Increased demand for cloud storage has led to an increase in data center locations worldwide. These data centers use a lot of energy. Market growth will be driven by modular data centers and power-saving technology.

According to Market.us, “The Data Center Power Market is projected to reach a valuation of USD 21.83 billion by 2032 at a CAGR of 6.9%, from USD 11.2 Billion in 2022.”

Asia-Pacific is experiencing significant market growth. It is expected to continue to be the fastest-growing segment during the forecast period. Asia-Pacific is expected to grow the fastest due to the rapidly growing adoption of advanced technologies such as AI, IoT, and other emerging technologies.

Anurag Sharma, a senior research analyst at Market.us, said, “There is a rising demand for large data storage devices due to the widespread adoption of mobiles and online computing services. Many companies are outsourcing their computing jobs to cloud-based infrastructure.”

Due to the total ban on offline activities in most of the world, the COVID-19 pandemic severely affected the data center power sector, particularly organizations. The demand for software-as-a-service (SaaS) and the possibility of working remotely during the pandemic are factors that drive the need for data centers.

Data Centre power can be defined as the sum of all solutions and services offered by a Data Centre to meet its energy needs. Data Centre power services include the management of components that are related to energy, their maintenance, and integration to ensure successful operations. The solution options include all components and software required for their operation, as well as any other infrastructural requirements.

A key factor in accelerating market growth is the rise of digitalization. Also, the rise of cloud computing adoption gives rise to a greater demand for data centers. An increase in data Centre volumes all over the world, a rise in hyperscale, and an increase in colocation provider construction are some of the main factors driving the data center power market. In the next forecast period, new opportunities are expected to prevail in the data center power market due to improvements in UPS and efficiency in renovating data centers.

Due to increasing digitization in industries and IT operations, data centers have become an increasingly important component of businesses. Many companies will adopt data centers to ensure business continuity. In recent years, many governments in developing countries like India and China have been working to establish solar-powered data centers. In the coming years, the popularity of solar-powered data centers will increase due to their cost-effectiveness and carbon footprint reduction. These data centers are being deployed by companies in this industry to increase their market presence.

Modern data centers are constantly being replaced with newer, more advanced systems that offer power management and advanced technology. Market growth is expected to be driven by the shift in the industry towards colocation and hyperscale data centers over the forecast period.

AWS, Microsoft, and Google are expanding the storage options they offer in order to create a more efficient cloud workflow. These companies are looking for large-scale deals. Duo, a cloud-based secure internet provider and currently a member of CISCO, opened its first data center in Mumbai, India in May 2022 to assist customers with their cyber defenses and data localization needs.
In the forecast period, the market’s growth will be impeded by the higher cost of installing data centers. The review period will also see a decrease in global data center power market growth due to the complexity and lack of knowledge about data centers.

Market.us concludes that “The rapid increase in the construction and growth of IT infrastructure will drive demand. To manage large amounts of data, data storage facilities are required for the development of telecommunication infrastructure. Reliability, energy consumption, maintenance, and reliability are all critical for IT and telecommunications facilities. This will be a key driver of growth over the next few years.”