In 2020, the US market contributed to around 47% of the total investment in the global power market, with South Eastern US leading investments within the US with around 36% of the investment.
In 2020, over 40 data center investments witnessed across Western US with total investment of USD 5.6 billion.
The adoption of VRLA batteries will continue to dominate the market; however, the penetration of lithium-ion UPS among data center operators is growing YoY.
Significant investments by hyperscale data center operators namely Facebook, Google, Microsoft, and AWS will grow the adoption of rack-level UPS systems of <=500 kVA capacity, with sizable contribution from edge data center deployments across the US.
Electricity pricing varies significantly in the US with South Eastern US offering electricity at a lower price of 5.92 cents per kWh, and Northeastern US with an average electricity pricing of 10.11 cents per kWh.
Market Size & Forecast by Revenue | 2020−2026
Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
Market Segmentation – A detailed analysis by infrastructure, UPS system capacities, generators system capacities, tier standards, and geography
Competitive Landscape – 7 key vendors and 45 other vendors
For the optimal performance, the data center power infrastructure is an essential component. It supplies power to IT equipment, cooling infrastructure, networking equipment, and other related infrastructure. The adoption of lithium-ion batteries is growing significantly YOY in the US market.
In South Western US, diesel generators are more likely to be adopted than bi-fuel or natural gas ones. Generators are usually built with N+1 redundancy in the region. Diesel generators are expected to decline in the coming years because of increasing concerns over carbon emissions. Fuel cell generators will also is likely to slow down the demand for other generator systems by 2026. The use of portable generators is also growing in the US market.
The (<=)500 kVA UPS market is higher among small- and medium-sized data centers. The growth of less than 500 kVA UPS system will be high among prefabricated and hyperscale operators. There are multiple small- and medium-sized data centers with a power density of less than 1 MW capacity that are adopting these UPS systems with a capacity of less than 500 kVA.
U.S. Data Center Power Market by Infrastructure
Uninterruptible Power Supply (UPS) Systems,
Power Distribution Units (PDUs)
Transfer Switches & Switchgears
U.S. Data Center Power Market by UPS Systems
U.S. Data Center Power Market by Generators
U.S. Data Center Power Market by Tier Standards
Tier I & II
U.S. Data Center Power Market – Dynamics
High data center power consumption and the need for arresting carbon emissions have prompted many data center service providers to purchase clean, renewable energy sources to power their current and new facilities in the US. In terms of regions, Mid-Western US has some has locations such as Illinois, Ohio, and Michigan, where there is a significant development of data centers. For instance, the hyperscale operator Facebook signed a Power Purchase Agreement (PPA) with Lincoln Land Wind Project in Illinois, which will support 170 MW power in their data center in August 2020. In January 2020, American Electric Power announced the supply of 240MW of green energy to its customers, including to Google's New Albany data center. AWS announced two new projects in Ohio, with a power capacity of 200MW and an 80MW solar power plant to power the facility.
Key Drivers and Trends fueling Market Growth:
Innovative Data Center Technologies
Innovative UPS Battery Technology
COVID-19 Boosts Data Center Demand
Increase in Power Outages
U.S. Data Center Power Market – Geography
Within the region, Virginia led the data center investment, with over 20 projects in 2020 and 50% of the total share of investments. The major investors in Virginia were CyrusOne, COPT Data Centers, Digital Realty, Aligned, Compass Data Centers, EdgeCore Internet Real Estate, Element Critical, and Iron Mountain. Virginia is among the biggest and most active data center markets in the US. It is also the leading market for data centers across the world due to its strong connectivity through fiber-optic infrastructure that runs across the region by Mid-Atlantic Broadband Communities Corporation's (MBC) advanced fiber-optic broadband system. The average electricity pricing for Virginia is around $6 cents per kWh.
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