On-Site Photovoltaic Solar Power For Data Centers Market Overview
There is an expected CAGR of 6.8% for the on-site photovoltaic solar power for the data centers market through 2022-2032, based on a current value of US$ 23.62 Bn in 2022, which indicates an extremely high growth outlook. The market is likely to reach a valuation of US$ 45.61 Bn by 2032.
Attributes
Details
On-Site Photovoltaic Solar Power for Data Centers Market CAGR
6.8%
On-Site Photovoltaic Solar Power for Data Centers Market (2022)
US$ 23.62 Bn
On-Site Photovoltaic Solar Power for Data Centers Market (2032)
US$ 45.61 Bn
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 US$ 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.
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
On-site photovoltaic solar power for data centers market: Market Dynamics
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:
Government incentives
Environment alarm over Green House Gas (GHG) emission
Cost saving associated with the power generation from PV solar power
Access for electricity in the areas with no grid electricity
Withdraw of reliance on non-renewable resources for power supply and its import
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:
Energy produced by solar panels into larger grid thus balancing the use of customary energy sources
Instead of replacing the whole power supply system, photovoltaic solar power can be used as a supplementary power supply system
On-site photovoltaic solar power for data centers market: Regional Outlook
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 U.S. 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.
Find your sweet spots for generating winning opportunities in this market.
Key Players
Some of the recognized key players in on-site photovoltaic solar power for data centers market are mentioned below:
Trina Solar
JA Solar Co., Ltd.
SunPower Corporation
FIRST SOLAR
Yingli Solar
Canadian Solar
Jinko Solar
Evergreen
Hanwha Q CELLS
SCHOTT North America, Inc.
Vikram Solar Pvt. Ltd.
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 covers exhaustive analysis on
Market Segments
Market Dynamics
Market Size
Supply & Demand
Current Trends/Issues/Challenges
Competition & Companies involved
Technology
Value Chain
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need and save 40%!
Regional analysis includes
North America (U.S., Canada)
Latin America (Mexico, Brazil)
Western Europe (Germany, Italy, France, U.K, Spain, BENELUX)
Eastern Europe (Poland, Russia)
Asia Pacific (China, India, ASEAN, Australia & New Zealand)
Japan
Middle East and Africa (Turkey, South Africa)
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.
On-site photovoltaic solar power for data centers market: Market Segmentation
On-site photovoltaic solar power for data centers market can be segmented based on the semi-conducting material used:
Monocrystalline silicon photovoltaic panels
Polycrystalline silicon photovoltaic panels
Thick-film silicon photovoltaic panels
Amorphous silicon photovoltaic panels
On-site photovoltaic solar power for data centers market can be segmented based on the application in respected countries:
On-grid connected
Off-grid connected
On-site photovoltaic solar power for data centers market can be segmented based on the technology:
Photovoltaic Solar Linear Fresnel Reflector
Integrated Solar Combined Cycle power plant (ISCC)
Photovoltaic Solar Parabolic Dish
Photovoltaic Solar Towers
Photovoltaic Solar Parabolic Trough
Frequently Asked Questions
What is the Growth Outlook for On-Site Photovoltaic Solar Power for Data Centers Market?
The market is likely to register a CAGR of 6.8% through 2032.
What is the Current Valuation of the On-Site Photovoltaic Solar Power for Data Centers Market?
The market is currently valued at US$ 23.62 Bn in 2022.
How is the Future of the On-Site Photovoltaic Solar Power for Data Centers Market?
The market is likely to grow to a valuation of US$ 45.61 Bn by 2032.
Which is the Leading Region in the Market?
North America is likely to be a leading market during the forecast period.
