Data Center Generator Market Size - By Product Type (Diesel, Gas, Hybrid), Power Rating (<1 MW, 1 MW-2MW, >2MW), Cooling System (Air, Liquid), Tier Standard (Tier I & II, Tier III, Tier IV), End User, Regional Outlook & Forecast, 2024 - 2032

Data Center Generator Market Size

Data Center Generator Market size was valued at USD 1.1 billion in 2023 and is estimated to register a CAGR of over 7.5% between 2024 and 2032. The market growth is propelled by the continuous expansion and establishment of data centers globally. With the surging demand for digital services, rising data center capacities are necessitating robust power solutions. The critical role of generators in ensuring uninterrupted operations in these facilities positions them as essential components, driving market revenue. This trend underscores the market's responsiveness to the escalating requirements of the data-centric landscape.
 

Companies are engaged in expanding their market presence by introducing and supplying novel data center generators, thereby contributing to market growth. In 2023, Rolls-Royce delivered 31 mtu generator sets and a microgrid-level control system for a new hyperscale data center in Japan. The package includes emergency mtu gen-sets and a comprehensive mtu EnergetlQ control system to ensure efficient emergency operations.
 

The continuous advancements in generator technologies and new product launches significantly propelled the data center generator market forward. Ongoing innovations, such as improved energy efficiency, enhanced performance, and the integration of smart features, drive the industry forward. These cutting-edge developments meet the escalating demand for reliable power solutions and position the data center market at the forefront of technological evolution, fostering sustained growth and adaptability within the competitive landscape.
 

In 2022, Kohler Power Systems introduced the KD3750 generator sets, featuring a power range of up to 3750 kVA at 50 Hz, to address the increased power demands of mission-critical applications like data centers. These units are equipped with the KD83V16 engine, optimized through software modifications to the engine control unit for enhanced performance and efficiency. This launch contributes to reinforcing the data center generator industry by providing a technologically advanced and reliable solution, meeting the escalating power demands of mission-critical applications, and ensuring sustained growth in the sector.
 

Though the data center generator market is thriving, it faces growth barriers due to rising raw materials and manufacturing costs in line with stringent environmental regulations. Escalating expenses challenge affordability and market accessibility. However, these challenges also catalyze innovation. Industry players are focusing on developing cost-effective and eco-friendly solutions, ensuring that the market overcomes hurdles and aligns with sustainability goals. This proactive approach positioned the industry for long-term resilience and competitiveness in a changing economic and regulatory landscape.
 

Data Center Generator Market Trends

The data center generator industry is experiencing a pivotal shift towards sustainability and eco-friendliness. The escalating demand for environmentally responsible solutions fueled the adoption of generators designed with a focus on reduced carbon footprints. Companies increasingly prioritize energy-efficient and eco-friendly options, aligning with global sustainability goals. This trend addresses environmental concerns and reflects a strategic commitment within the industry to create a more sustainable and resilient future for data center power generation.
 

In 2023, Hitachi Energy, a global technology leader, introduced the HyFlex™ demonstration unit-a pioneering emission-free alternative to traditional diesel-powered generators. This innovative solution, an integrated and scalable plug-and-play generator, caters to both temporary and permanent installations, showcasing Hitachi Energy's commitment to cutting-edge, environmentally friendly power solutions.
 

Data Center Generator Market Analysis

Based on product type, the diesel segment dominated around USD 751.3 million revenue in 2023, due to its reliability and widespread use. The diesel generators' efficiency, robust performance, and ability to handle varying loads make them a preferred choice for ensuring uninterrupted power supply in data centers. As the demand for reliable backup power solutions continues to grow, the diesel segment maintains its dominance, providing a steadfast and dependable energy source for critical data center operations.
 

Based on power rating, the data center generator market from <1 MW segment is expected to expand at a CAGR of 6.5% during the forecast period, fueled by the increasing demand for smaller-scale, versatile solutions to meet diverse power requirements. Organizations favor <1 MW generators for their scalability, cost-effectiveness, and energy efficiency. As data centers evolve, the flexibility offered by these generators makes them instrumental in sustaining operations, positioning the <1 MW segment at the forefront of the dynamic and expanding market size.
 

North America data center generator market accounted for 35% of the revenue share in 2023. North America secured a leading position in the data center generator industry by leveraging advanced technologies and robust infrastructure development. The region's commitment to reliable and scalable power solutions propelled it to the forefront of the market. Swift adaptation to industry trends, in tandem with a dedication to innovation, solidified North America's position as the primary contributor to the thriving landscape of energy solutions for data centers.
 

For instance, in 2022, Kohler Power Systems inaugurated a cutting-edge production expansion at its existing North American generator manufacturing facility in Mosel, Wisconsin. This facility extension reinforces Kohler's ongoing expansion in crucial strategic markets, including data centers, healthcare, and other mission-critical segments.
 

Data Center Generator Market Share

Caterpillar Inc. and Cummins Inc. are the prominent industry players, holding over 10% market share in 2023 in the global market. These companies elevated their market presence by deploying cutting-edge technologies and fostering strategic collaborations. The proactive market analysis allowed them to identify and meet evolving customer needs swiftly. By offering efficient and scalable solutions, these businesses gained a competitive edge, expanded their client base, and solidified their industry presence in the dynamic landscape of data center generators.
 

Furthermore, these companies offer a range of solutions, including standby and prime power generators, to meet the critical energy needs of data centers. Specialized manufacturers focus on designing and producing reliable power generation equipment tailored for various applications, ensuring data center resilience during power outages.
 

Data Center Generator Market Companies

Major companies operating in the data center generator industry are:

• ABB Ltd.
• Atlas Copco
• Caterpillar Inc.
• Cummins Inc.
• Doosan Corporation
• Eurodiesel Services
• Generac Holdings Inc.
• HIMOINSA
• KOHLER
• Rolls Royce plc.
• Siemens AG
• Wärtsilä Corporation
• Yanmar Co., Ltd.
   

Data Center Generator Industry News

• In 2023, Mitsubishi Heavy Industries Engine & Turbocharger (MHIET) introduced the MGS3100R, a novel 3,000 kVA class generator set tailored for commercial and mission-critical facilities. This innovative unit boasts a space-efficient design, simplified installation, and secured approvals for its outstanding performance and quality standards.
   
• In 2022, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (MHIET), a division of the Mitsubishi Heavy Industries (MHI) Group, introduced the MGS-R Series of diesel generator sets. Designed to meet the expanding demands of the digital economy, this new series also functions as a dependable backup power option for commercial establishments like shopping malls and office buildings.
   

The data center generator market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Product Type

• Diesel
• Gas
• Hybrid

Market, By Power Rating

• <1 MW
• 1 MW-2MW
• >2MW

Market, By Tier Standard

• Tier I & II
• Tier III
• Tier IV

Market, By Cooling System

• Air-cooled generators
• Liquid-cooled generators

Market, By End Use

• BFSI
• Colocation
• Energy
• Government
• Healthcare
• Manufacturing
• IT & telecom
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Poland
  • Benelux
• Asia Pacific
  • China
  • India
  • Japan
  • Singapore
  • Australia 
• South America
  • Brazil
  • Chile
  • Peru
  • Argentina 
• MEA
  • GCC
  • South Africa