According to our latest market study on "Data Center Generator Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Product Type, Capacity, and Tier," the market is expected to grow from US$ 4,693.00 million in 2021 to US$ 6,729.53 million by 2028; it is estimated to grow at a CAGR of 5.3% during 2021-2028.

Rise in Backup Power Supply Requirements in Data Centers Boosts Data Center Generator Market Growth
The power supply for large data centers typically originates from a connection to the primary grid provided by a local utility provider. To ensure uninterrupted operations during power outages, data centers usually have at least one backup generator powered by diesel or gas. Medium-voltage electricity is provided by both the local utility and backup generator, which is then converted to low voltage through one or more transformers for internal usage. Low-voltage electricity is distributed to endpoints such as uninterrupted power supply (UPS) systems or load banks through main distribution boards (MDBs). These boards house fuses, circuit breakers, and ground leakage protection units. In the event of a power outage, MDBs can initiate the backup generator and handle incoming power from the main grid. Data centers generally stock enough fuel to run the generator for 24-48 hours to safeguard sensitive data. The need for reliable backup power to ensure data protection is driving growth in the data center generator market.

To prevent significant revenue losses and equipment damage, uninterrupted power supply (UPS) systems with backup power, power switching control, and generator synchronization management are essential for data centers. Outages can be detrimental to operations, making it necessary to have immediate and reliable backup power systems. Modular and containerized backup power systems, utilizing gas turbines, power modules, and hybrid modules, are becoming popular solutions to meet stable backup power requirements. These systems can be easily installed and provide sufficient backup power to keep data centers functioning during power outages. As a result, the demand for generator systems is increasing due to the growing need for data centers, contributing to the growth of the data center generator market.

Key Findings of Study:
The data center generator market is categorized into diesel, natural gas, and other types based on the product. In 2021, the diesel segment dominated the market with a higher share. The demand for data center generators has been increasing worldwide in recent years. Companies offer three types of data center generators, namely diesel, natural gas, and bi-fuel. In January 2022, Cummins Power Generation was recognized by China Data Center Industry for outstanding technical innovation in data center generation. The company manufactures diesel data center generators. In January 2021, TRG Datacenters announced the upgrade of its Texas data center by installing a bi-fuel backup power option. Such developments are driving the growth of the data center generator market.

Based on capacity, the data center generator market is segmented into below 1 MW, 1-2 MW, and greater than 2 MW. Below 1 MW is the most prominent capacity in data center generators. The facilities with a capacity of more than 10 MW are adopting generators of greater than 2 MW.

The data center generator market is categorized into tier 1, tier 2, tier 3, and tier 4 based on their tier rating. In 2021, the largest market share was held by the tier 3 segment. Data centers rated as tier 1 have the lowest rating due to the absence of backup and longer downtime. Tier 3 data centers are classified as underdeveloped projects globally. On the other hand, all hyper-scale self-built units are classified as tier 4 data centers. The data center generator market is expected to grow significantly as companies like Microsoft, Apple, Facebook, Google, and AWS invest heavily in developing their data center generator product portfolio.

Based on geography, the data center generator market is segmented primarily into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, North America accounted for the largest share of the global data center generator market.

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