The demand for data center power is increasing rapidly due to the growing construction of new data centers, driven by organizations worldwide seeking more data storage capabilities. This unprecedented surge in power consumption has significantly contributed to expanding the global data center power market.

The global data center power market was valued at USD 22.46 billion, and by 2029, it is expected to reach USD 41.30 billion, with a compound annual growth rate (CAGR) of 10.68%. This growth reflects the crucial role of data centers in housing massive amounts of information, which requires a consistent and uninterrupted power supply.

Data centers operate 24/7 and rely on an Uninterrupted Power Supply (UPS), which typically bridges the gap between power loss and backup generator activation. Diesel generators and Diesel Rotary Uninterruptible Power Systems (DRUPS) ensure that this gap is minimal, guaranteeing that sensitive IT infrastructure remains operational.

Diesel Generators Remain Prominent for Reliable Power

Diesel generators remain the most popular power source for data centers worldwide, particularly among hyperscalers and colocation operators in North America, Europe, the Middle East, and APAC. Diesel generators provide a fast, scalable solution during outages, ensuring continuous operations for critical infrastructure. With easily available fuel and high energy density, diesel generators offer long-lasting performance, making them ideal for extended outages. Their lower operational costs and modern compliance with emissions standards make them a cost-effective and environmentally friendly choice. The mature technology and strong support network around diesel generators ensure minimal downtime and maximum efficiency.

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Growing Adoption of DRUPS Systems in Space-Constrained Data Centers

DRUPS systems are particularly advantageous in limited-space data centers, providing a more compact alternative. The global DRUPS market is witnessing robust growth, especially in North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Countries like Brazil, the Netherlands, Singapore, Indonesia, Malaysia, Thailand, and Australia increasingly adopt DRUPS systems to ensure reliable power backup in their data centers.

For example, Cisco's Allen data center has deployed a robust integrated DRUPS system with eight units, delivering a reliable 15 MW power capacity ensuring continuous operation without incident for over six years. Diesel remains the preferred choice in many regions due to its cost-effectiveness and reliability in the face of potential power disruptions. However, with increasing emphasis on sustainability, we may gradually shift toward alternative power solutions like natural gas, biofuel, and fuel cell generators.

Evolving Power Generation Solutions in Global Markets for the Future

Advancements in gas and bi-fuel generators are making them viable alternatives. Market leaders continue to innovate in this space, with natural gas and bi-fuel generators integrated alongside grid power supplies to enhance energy efficiency. Operators in some parts of APAC, such as Japan, are increasingly adopting natural gas generators to strengthen energy resilience.

Notably, regional regulations on carbon emissions significantly affect generator choices. In Europe, countries like Ireland and Sweden are shifting from diesel to battery energy storage systems (BESS), with companies like Microsoft already transitioning to BESS solutions at their Swedish data centers. Conversely, diesel generators remain dominant in the Middle East and APAC, where emissions regulations are less stringent, and diesel supplies are more readily available.

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