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On-Site Photovoltaic Solar Power For Data Centers Market - Growth, Trends and Forecasts (2023-2028)

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  • 110 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 5120404
UP TO OFF until Mar 31st 2024
The on-site photovoltaic solar power for data centers market is expected to grow at a CAGR of more than 17% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.

Key Highlights

  • Over the medium term, the decreasing solar power installation costs and growing focus on implementing sustainable business practices, such as having an independent and renewable power source for data centers, are expected to drive the market.
  • On the other hand, the lack of space for small data centers to install solar panels is expected to hinder market growth during the forecast period.
  • Nevertheless, the large-scale commercialization of building-integrated photovoltaic technology into small data centers is expected to be a significant opportunity for the sector beyond the forecast period.
  • North America dominates the market and will likely witness the highest CAGR during the forecast period. This growth is attributed to the increasing investments, coupled with supportive government policies for installing solar PV systems to power data centers in this region, including the United States of America (USA) and Canada.

On-site Photovoltaic Solar Power for Data Centers Market Trends

Decrease in Solar Power Installation Cost is Likely to Drive the Market

  • Data centers are defined as a part of a building, a building itself, or a cluster of buildings dedicated to housing computer systems, storage systems, telecommunication systems, and all other associated components. An uninterrupted power supply with backup power is the utmost importance in data centers for data capturing.
  • A typical data center consumes power between a few kilowatts to several tens of megawatts. High dependency on the power supply is one of the high operating costs of the data center.
  • Several data centers are opting for onsite renewable power sources like solar photovoltaic to reduce operating costs and have a less environmental impact. With a decrease in solar power installation cost from USD 4808/kW in 2010 to nearly USD 857/kW in 2021 and global weighted average solar PV cost from USD 0.417/kWh in 2010 to almost USD 0.048/kWh in 2021, several entities have started adopting it.
  • Moreover, Microsoft is planning to run 100% of its data center by renewable energy by the end of 2025. Thus, with a decrease in installation cost, onsite solar photovoltaic facilities are expected to grow over the years.
  • Hence, deceresing solar power installation costs are expected to aid the growth of the on-site photovoltaic solar power for data centers market during the forecast period.

North America to Dominate the Market

  • North America is one of the largest software and information technology markets globally, and according to Cloudscene, as of January 2022, the United States was the largest data centre market in the world, housing nearly 2701 data centres, accounting for 42.6% of the total number of datacentres operating globally. Additionally, Canada (328) and Mexico (153) also held signficant shares in the global datacentre markets, with these 3 countries cumulatively accounting for more than 50% of the total number of data centres globally.
  • Emerson data center in Missouri is one of the key data centers in the United States that is using solar photovoltaic technology on its campus to power its data center. The center has a 100-kilowatt solar panel facility, that was installed at the cost of around USD 50 million. Aiso.net in California, i/o Data Centers in Arizona are few other data centers that are facilitated with onsite photovoltaic solar power facilities.
  • In October 2022, Invinity Energy Systems sold a 1.3 MWh system to Kinetic Solution for a microgrid project serving a data centre in Arizona. The company bagged the order for six of its VS3 batteries which will be installed alongside a 400kWp solar PV array at the data centre in the state bordering California and Mexico.
  • Similarly in February 2022, Energy Field Security (EFS) has announced a plan to construct an Edge Micro Data Center on a 7-acre site located in Delta, Colorado, and th facility will be powered by a microgrid with on-site solar panels, battery storage, auxiliary power and small vertical wind turbines.
  • Hence, due to rising focus on increasing project and business sustainability by using renewable energy to power the energy needs of datacentres, the market is expected to

On-site Photovoltaic Solar Power for Data Centers Market Competitor Analysis

The on-site photovoltaic solar power for data centers market is consolidated. The key players in the market, in no particular order, include Amazon.com Inc, Alphabet Inc, Microsoft Corporation, Alibaba Group Holding Ltd, Facebook Inc, Dell Technologies Inc, and Affordable Internet Services Online Inc among others.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
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Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Market Size and Demand Forecast in MW, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5.1 Geography
5.1.1 North America
5.1.2 Europe
5.1.3 Asia-Pacific
5.1.4 South America
5.1.5 Middle-East and Africa
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Amazon.com, Inc.
6.3.2 Alphabet Inc
6.3.3 Microsoft Corporation
6.3.4 Alibaba Group Holding Ltd
6.3.5 Facebook Inc
6.3.6 Dell Technologies Inc
6.3.7 Affordable Internet Services Online Inc

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Amazon.com, Inc.
  • Alphabet Inc
  • Microsoft Corporation
  • Alibaba Group Holding Ltd
  • Facebook Inc
  • Dell Technologies Inc
  • Affordable Internet Services Online Inc