Data Center Power Generator Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)

Name: Data Center Power generator Market Size, and Growth Report, 2032
Creator: P&S Intelligence
License: https://www.psmarketresearch.com/privacy-policy

This Report Provides In-Depth Analysis of the Data Center Power Generator Market Report Prepared by P&S Intelligence, Segmented by Product Type (Diesel, Gas), Capacity (-1.5 MW, 1.5 -3 MW, >3 MW), Tier (Tier Iand II, Tier III, Tier IV), and Geographical Outlook for the Period of 2019 to 2032

Report Code: 12314
Pages: 290

Key Highlights

Study Period	2019 - 2032
Market Size in 2024	USD 22.8 Billion
Market Size in 2025	USD 24.1 Billion
Market Size by 2032	USD 37.3 Billion
Projected CAGR	6.5%
Largest Region	North America
Fastest Growing Region	Asia-Pacific
Market Structure	Consolidated

Market Size

Data Center Power generator Market Growth Forecast

Major Companies

Data Center Power generator Market Companies

Important Takeaways

Market Size and Forecast
Industry Trend
Regulatory Landscape
Demand Trend Analysis
Companies Recent Strategical Developments
Key Stakeholders
Voice of Industry Experts/KOLs
Future Opportunity

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Data Center Power Generator Market Overview

The data center power generator market size was USD 22.8 billion in 2024, and it will grow by 6.5% during 2025–2032, reaching USD 37.3 billion by 2032. The market growth is supported by the booming production of customized generators and escalating fabrication of new data centers due to the growing demand for data storage among large organizations, globally. These facilities have been witnessing an increase in their number due to the commercialization of the 5G technology and the elevating adoption of IoT. As a result, various colocation service providers are laying emphasis on the construction of data centers.

Data centers need high power reliability; therefore, the significance of power backup equipment is high, which strengthens the use case for generators, as they are cost-effective, provided they are maintained regularly. Large data centers use more power due to their more-expansive infrastructure and intricate networking and storage, which create a strong need for efficient power handling and monitoring solutions.

Further, large-scale industries and enterprises with high-density cloud computing systems are highly dependent on large data centers, as they provide consistency in power supply and effective data protection. This has fortified the demand for generators in data centers across the globe. Apart from this, there is a significant rise in the establishment of hyperscale facilities and inflation in the use of diesel rotary uninterruptible power supply (DRUPS) systems.

Data Center Power Generator Market Emerging Trends

Rising Usage of Renewable Energy Is a Key Trend

More data centers around the world are being powered by renewable energy to reduce emissions and attain sustainability.
As per studies, indirect emissions from data centers globally could reach 2.5 billion tonnes over this decade.
A recent report in The Guardian says that these emissions could, in fact, be over 600% more than officially reported.
Due to this, data centers are being built in areas with lots of renewable energy or being designed to produce onsite solar or wind power.
The increasing demand for hybrid power systems, which combine traditional generators with solar, and cleaner fuels, such as hydrotreated vegetable oil (HVO), natural gas, and hydrogen fuel cells, is another trend.
Major tech players, such as Google, Microsoft, and Amazon Web Services, have set goals to run their data centers on 100% renewable energy by as early as 2025 itself.
To attain this, they are engaging in power purchase agreements, gaining renewable energy certifications, and generating clean energy onsite.
Data Center Policy 2020 of India’s Ministry of Electronics and Information Technology places a strong focus on uninterrupted, clean, and cost-effective electricity for data centers and data center parks.

Growing Capital Inflow Are Major Growth Drivers

As per the International Energy Agency, since 2010, internet traffic has risen 25 times, while the number of internet users has grown 10-fold.
Several companies are focusing on making investments in the construction of data centers globally, which, in turn, strengthens the data center power generators market.
In April 2025, Adani Group announced plans to invest USD 10 billion (INR 1,000 crore) more in data centers across the country.
For instance, in April 2022, Google LLC announced that it is planning to invest USD 9.5 billion in setting up data centers and offices in the U.S.
Data centers played a crucial role in the pandemic owing to the substantial growth in data creation, collection, and consumption by numerous companies, institutions, government organizations, and individuals, which, in turn, fueled the demand for data storage.
This further stimulated the usage of data centers as well as the use of generators.
Further, owing to the growing digitization and increment in the number of work-from-home jobs, several data centers enhanced their equipment, which had a positive influence on the use of generators.
The World Economic Forum says that electricity consumption at data centers will double by 2026, with the burgeoning use of AI alone leading to a 160% increase in the demand for power at these facilities.

Data Center Power Generator Market Segmentation Analysis

Product Type Analysis

The diesel category held the largest market share, of 70%, in 2024. This is because of their fuel efficiency, quick startup, reliability, and established infrastructure. Additionally, the adoption of diesel generators compliant with the noise and GHG emission norms of different countries drives this category.

The gas category will grow at the highest CAGR, of 7%, during the forecast period. This is because of their sustainability, lower emissions, and long-term usage advantages. As per Cummins Inc. natural gas leads to 17% less GHG emissions and 27% lower CO₂ emissions than crude oil fractions during extraction, refining, and combustion.

Data Center Power generator Market Segmentation Analysis

The product types analyzed here are:

Diesel (Largest Category)
Gas (Fastest-Growing Category)
Others

Capacity Analysis

The >3 MW category held the largest market share, of 50%, in 2024, due to the expanding operations of tech companies, cloud services, and social media platforms. This creates the need for an uninterrupted power supply for the thousands of servers at hyperscale and large colocation data centers.

The 1.5–3 MW category will grow at the highest CAGR, of 6.8%, during the forecast period, because of digital transformation and the adoption of cloud solutions across industries. This creates a necessity for localized infrastructure to balance capacity and efficiency. Additionally, to reduce latency and serve regional demands, mid-sized data centers and edge computing sites are being developed on a massive scale.

The capacities analyzed here are:

0-1.5 MW
1.5-3 MW (Fastest-Growing Category)
>3 MW (Largest Category)

Tier Analysis

The tier I and II category held the larger market share, of 50%, in 2024. This is because they have advanced UPS to filter power spikes, exclusive cooling systems, and IT systems to tackle momentary power failure. They also have low operational costs and initial investments.

The tier IV category will grow at the highest CAGR, of 7.6%, during the forecast period. This is because of the rising demand for low latency and constant data availability owing to the increasing adoption of AI, IoT, and 5G technologies. Additionally, increasing the investment in tier IV data centers drives the demand for high-capacity power generators.

The tiers analyzed here are:

Tier I and II (Largest Category)
Tier III
Tier IV (Fastest-Growing Category)

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Data Center Power Generator Market Geographical Outlook

North America held the largest market share, of 35%, in 2024. This is ascribed to the presence of major market players, such as Cummins Inc., Caterpillar Inc., and Generac Holdings Inc., in the region and expansions of data center facilities. Moreover, the rapid technological development and awareness about advanced technologies are expected to have a positive impact on the market. Additionally, with more than 5,400 data centers, the U.S. is the clear leader in this space.

Data Center Power generator Market Geographical Analysis

APAC will grow at a higher CAGR, of 7.8%, during the forecast period. This is because of the increasing investments by global and regional facility operators and the rising adoption of advanced technologies, including IoT, public cloud, and hybrid cloud, by various organizations. Amazon Web Services Inc., Google LLC, Baidu Inc., Alibaba Group Holding Limited, Microsoft Corporation, and Apple Inc. are some of the major investors in the regional market.

The regions analyzed in this report are:

North America (Largest Regional Market)
- U.S. (Largest Category)
- Canada (Fastest-Growing Category)
Europe
- Germany (Largest Category)
- U.K. (Fastest-Growing Category)
- France
- Italy
- Russia
- Rest of Europe
Asia-Pacific (Fastest-Growing Regional Market)
- Japan
- China (Largest Category)
- India (Fastest-Growing Category)
- South Korea
- Australia
Latin America
- Brazil (Largest Category)
- Mexico (Fastest-Growing Category)
Middle East and Africa
- Saudi Arabia (Largest Category)
- South Africa (Fastest-Growing Category)

Data Center Power Generator Market Share

The market is consolidated because it consists of major players, such as Caterpillar Inc., Cummins Inc., Generac Power Systems Inc., Kohler Co., ABB Ltd., Atlas Copco AB, Yanmar, and GE Vernova. They provide generators in a wide output range for small edge facilities to large hyperscale operations. The systems of these companies also accommodate different fuels and feature additional backup systems to dominate the market. Moreover, complying with the stringent emission norms around the world by integrating advanced engine components is not easy, thus raising the entry barriers for newcomers.

Key Data Center Power generator Companies:

Caterpillar
Atlas Copco
Cummins, Inc.
Eurodiesel Services
Generac Power Systems
HIMOINSA
KOHLER
MITSUBISHI MOTORS CORPORATION
Piller
Rolls Royce plc.

Data Center Power Generator Market News

In June 2025, Rolls-Royce plc won the bid to build three small modular reactors (SMRs) totaling 1.5 GW in capacity across the U.K.
In October 2024, Société Internationale des Moteurs Baudouin launched the M33 and M55 series of diesel generators for data centers. Designed for tier 3 and 4 data centers, these machines can run on hydrogenated vegetable oil.
In September 2024, Neste Oyj supplied renewable diesel to power the backup generators at ST Telemedia Global Data Centres’ facilities in Singapore.
In January 2024, Caterpillar Inc., in partnership with Microsoft Corporation and Ballard Power Systems, exhibited a 1.5-MW hydrogen fuel-cell system at Microsoft’s Cheyenne, Wyoming data center, 6,086 feet above sea level under freezing conditions.
In December 2023, Mitsubishi Corporation, in collaboration with Honda Motor Company and Tokuyama Corporation, launched an exhibition project in Shunan City, Yamaguchi Prefecture to power a distributed data center using by-product hydrogen from Tokuyama’s saltwater electrolysis plant. The project will also demonstrate the use of hydrogen fuel cells discarded from FCEVs.