There is an expected CAGR of 6.8% for the On-Site Photovoltaic Solar Power for the data centers market through 2022 to 2032, based on a current value of USD 23.62 Billion in 2022, which indicates an extremely high growth outlook. The market is likely to reach a valuation of USD 45.61 Billion by 2032.
| Attributes | Details |
|---|---|
| On-Site Photovoltaic Solar Power for Data Centers Market CAGR (2022 to 2032) | 6.8% |
| On-Site Photovoltaic Solar Power for Data Centers Market (2022) | USD 23.62 Billion |
| On-Site Photovoltaic Solar Power for Data Centers Market (2032) | USD 45.61 Billion |
A data center can be described as a part of a building or a cluster of buildings. This part of the building is dedicated to housing computer systems, storage systems, telecommunications systems, and all the other components that are associated with storing data.
Data centers consume a lot of electricity that requires a continuous power source and a backup power supply to ensure the continuous capturing of data. A typical data center consumes between a few kilowatts and several tens of megawatts of electricity. A high dependency on the power supply contributes to the high operating costs of the data center.
One of the main reasons for the growth of this market is the growing sustainability practices of using an independent and renewable energy source for data centers rather than relying on the fossil fuel-powered national power grid that releases toxic carbon particles into the environment when it is generated. During the forecast period, the market is expected to be driven by a decline in the cost of solar power installation.
However, the lack of space for small data centers to install solar panels is predicted to hinder the market growth during the forecast period. Various governments are taking initiatives to increase the share of renewable energy in total electricity production with increased carbon emissions.
Additionally, governments, as well as private organizations, are developing technologies such as polymer solar cells. These are expected to be cheaper, more flexible, and lighter, as well as 1000 times thinner than the existing silicon solar cell technology that is currently in use.
Such technological advancements are expected to boost the market and also create an opportunity for the market to grow in the future. For instance, it has been announced that Amazon has plans to install renewable power sources in its four data centers around the globe by the end of March 2020. These include data centers in Australia, Sweden, Spain, and Virginia. The power generated by these data centers is estimated to be around 840 gigawatts per hour.
Moreover, Microsoft's data centers are expected to run on 100% renewable energy by the end of 2025, which will result in onsite solar photovoltaic facilities continuing to grow over the next few years due to a decrease in installation costs.
In 2022, the North American market is expected to dominate due to the presence of solar photovoltaic facilities in data centers. The Emerson data center in Missouri is one of the top data centers in the country that uses solar photovoltaic technology to power its data center on its campus. Around USD 50 million was invested in the installation of a 100-kilowatt solar panel facility at the center.
Apart from the United States, Canada is planning to operate its data centers on renewable power. In the near future, Compass data center plans to build a solar facility at its under-construction data center in Toronto, which is expected to expand the market.
On-site photovoltaic solar power also known as solar PV has developed from market of small-scale application to becoming a source of mainstream electricity. With the increasing fuel costs, dependence on import of fossil fuel from ethically volatile areas and uncontrolled pollution level, on-site photovoltaic solar power for data centers market is recognized as a promising alternative renewable energy technology.
The use of photovoltaic solar power for data centers has come long way since 2005 when Affordable Internet Services Online, Inc. (AISO) assembled the first solar powered data center. On-site photovoltaic solar power for data centers are a good solution for many data centers and ICT companies which are focusing on decreasing carbon footprints.
Being a cost-effective and eco-friendly medium for supplement power the companies like Facebook, Apple, Cisco and other are adopting on-site photovoltaic solar power for data centers. Among other renewable source such as wind, biogas and other the utilization of on-site photovoltaic solar power for data centers market is the highest.
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One of the key driver in on-site photovoltaic solar power for data centers market is the stability in the cost of solar power energy. Solar power energy, further developed can be viable and economic source of energy for data center which require sustainable energy for operations and temperature maintenance within the data center.
Solar energy provides an added advantage of availability as opposed the demand for fossil fuel which fluctuates annually. As the solar power is self-managed and self-contained it is not susceptible to any reduction or restriction in the availability of electric power. Another driving factors stimulating the growth for on-site photovoltaic solar power for data centers market are mentioned below:
However, even large installation of photovoltaic solar panels produce a fraction amount of energy which restricts the use of on-site photovoltaic solar power for many data centers. Thus solar power is not a full time reliable power supply. To mitigate these limitations, companies can use the combination of:
Based on the geography, on-site photovoltaic solar power for data centers market can be classified into important segments as, Latin America, North America, Eastern Europe, Western Europe, Japan, Asia-Pacific, Middle East and Africa. Amongst all the region, North America is expected to be leading in on-site photovoltaic solar power for data centers market.
The impending termination of the solar ITC (Investment Tax Credit) by the USA government for the purpose of business installation is one of the driving factor for the boost in on-site photovoltaic solar power for data centers market.
Followed by North America, Western Europe is expected to be the second largest market for on-site photovoltaic solar power for data centers market. Western Europe on-site photovoltaic solar power for data centers market mainly propelled by demand and government initiative by the government from Germany, France, Spain and Benelux.
Key economies such as India, China and ASEAN are expected to spearhead the APEJ on-site photovoltaic solar power for data centers market. Likewise, the developing IT infrastructure in Middle East, Latin America and Japan is anticipated to project strong growth for on-site photovoltaic solar power for data centers market.
Some of the recognized key players in on-site photovoltaic solar power for data centers market are mentioned below:
The research report presents a comprehensive assessment of the market and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data. It also contains projections using a suitable set of assumptions and methodologies. The research report provides analysis and information according to categories such as market segments, geographies, types, technology and applications.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
The market is likely to register a CAGR of 6.8% through 2032.
The market is currently valued at USD 23.62 Billion in 2022.
The market is likely to grow to a valuation of USD 45.61 Billion by 2032.
North America is likely to be a leading market during the forecast period.
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On-Site Photovoltaic Solar Power For Data Centers Market
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